Global Speciality Fats and Oils Market value is estimated to reach USD 16.56 billion in 2024 to USD 30.20 billion by 2032. with a CAGR of 7.8% in the period 2024 to 2032.
Speciality fats and oils are expected to have various health benefits, such as improving health and reducing certain chronic diseases. Various applications are majorly enhancing the demand in different end-use sectors. The Speciality fats and oils market accounted for significant growth in the past years and is estimated to have a prominent growth rate in the coming years. Each of the fats and oils has its unique benefits, and the fluctuations in cocoa production and enlarging chocolate and confectionery industries are creating remarkable demand for Speciality fats and oils.
Speciality Fats and Oils are specially designed to imitate many positive characteristics of cocoa butter, milk fats, butter, and other similar fats that make them suitable for many applications. Speciality greases have a full application in the ice cream and confectionery industry. Furthermore, they are used as binders in the pharmaceutical industry, milk fat substitutes, and the cosmetic industry. Moulding, coating, filling, and extrusion are some basic confectionery applications using Speciality Fats and Oils. They offer properties such as superior gloss, gloss retention, bloom resistance, and product temperature resistance. Furthermore, they provide an excellent melting profile and flavour release features.
These products are free from external counterfeits and are easy to handle. These benefits bode well for urban consumers looking for convenient, ready-to-eat meals to suit their fast-paced lifestyle. Today, customers are looking for healthier snacks and foods that are low in fat and cholesterol. The growing public awareness of proper nutrition has led to a higher consumer inclination to packaged foods, which in turn are driving the growth of the global Speciality fats and oils market. The rapid urbanization and growth of the middle-class population have led to the increasing use of chocolate. Speciality fats and oils are mainly used as ingredients in the chocolate industry. For example, a Speciality fat like cocoa butter used in chocolate making is able to harden on the surface of a cake and provides a smooth mouthfeel. Dark chocolate has several health benefits because it improves brain function, lowers blood pressure, improves blood circulation, and reduces the risk of heart disease. Furthermore, these are rich in antioxidants and contain soluble minerals, fibre and bioactive compounds.
Therefore, due to its wide range of health benefits, chocolate consumption should help the expansion in the world market for Speciality fats and oils. To lose weight, low-fat dairy products can provide a solid nutritional base. Milk minerals play an essential role in bone metabolism during weight loss. Fat-free and low-fat dairy products are recommended to reduce the consumption of calories, saturated fat, and cholesterol, and provide the same amount of vitamins and minerals that the body needs. Low-fat dairy products can prevent the risk of high blood pressure. Low-fat dairy products can minimize the risk of developing cognitive health disorders, such as cardiovascular disease and metabolic syndromes. These benefits of low-fat dairy products, in turn, trigger the growth of the Speciality fats and oils market.
The demand for coconut oil has decreased worldwide. In the United States, in particular, the popularity of coconut oil is declining rapidly, resulting in reduced revenue in the North American market for Speciality fats and oils. This notable reduction in coconut oil consumption is associated with the increase in the health-conscious population, particularly in North America, which could be responsible for hindering the growth of global fat and Speciality oils during the projected period. Due to uncertain weather and political instability, oilseed prices are volatile, which has an impact on oil production by oilseed producers, which in turn restricts the supply of oil to manufacturers. Other key factors attributed to reduced production volumes of Speciality oils worldwide are limited access to finance and a lack of knowledge of modern agricultural techniques and farm management skills. It is estimated that around 30-40% of crops in the main producing regions are lost due to inadequate pest and disease control procedures.
The rising health concerns regarding the excessive consumption of fast food and oils are significant factors restraining the expansion of the global market. Excessive consumption increases LDL levels and decreases HDL levels, which increases the risk of thrombosis. The rising awareness regarding the adverse health effects of fats and oils hampers the market size expansion. Other factors include cost fluctuations in the oilseed processing and limited availability of the oilseeds in domestic markets. Climate conditions are all estimated to hinder product quality and quantity by limiting market share growth. The reduced demand for coconut oil, particularly in the United States, is causing a decline in the market revenue in the North American region. Various factors like weather conditions, political instability, and issues related to imports are all making oil crop prices unstable, negatively impacting the market expansion. Limited knowledge of modern agricultural methods and the stringent regulations for product approvals are estimated to impede market share growth.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
7.8% |
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Segments Covered |
By Type, Application, Form, Functionality & region. |
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Various Analyses Covered |
Global, Regional and Country Level Analysis; Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Archer Daniel Midland Company, Associated British Foods, Burge, Cargill, Wilmar International, Conagra Foodservice, Dalmia Shop, Huiles TITAN OILS, Jivo Wellness, Richardson International |
The Speciality oils sub-segment dominates the global market revenue `with a prominent market share due to the rising adoption of vegetable oils among consumers considering health.
The Speciality oils are sourced from palm, coconut, soybean, rapeseed, and others, and these are widely applicable in industries along with the edible applications that drive the segment growth. The escalating demand for vegetable oils in the food and beverages industry, majorly in the bakery and confectionery market, is expected to enhance the growth opportunities in the coming years. According to the United States Department of Agriculture (USDA), the production volume of palm oil was 77.22 million metric tons from 2022 to 2023.
The Speciality fats are estimated to have prominent growth during the forecast period due to rising demand for cocoa butter equivalents. The growing cocoa prices and fluctuations in demand and supply enhance the manufacturers' desire for cocoa butter equivalents, primarily boosting segment growth. Cocoa butter equivalents improve the final products' fat stability and composition profile, fueling the adoption rate.
The processed foods segment dominates the global Speciality fats and oils market due to the increasing use of Speciality fats and oils in manufacturing processed foods like ready-to-eat, snacks, and convenience foods. The confectionery segment is estimated to grow significantly in the coming years due to the increased adoption of Speciality oils like palm oil and soyabean oil for confectionery product preparation. These are expected to provide specific sensory and textural characteristics for the confectionery products fueling the segment market share.
Most cocoa butter equivalents, substitutes, replacers, improvers, and dairy fat replacers are available in dry form due to their wide usage in chocolates and confectioneries as coatings. The liquid form is estimated to grow moderately during the forecast period due to the growing demand for Speciality oils across various industries.
The Speciality fats and oils' major function is to improve the texture and enhance the shelf-life of the product, which drives the segment's growth. The coating and filling health segments are projected to have steady growth in the coming years due to rising health concerns among consumers. The utilization of powder cocoa butter equivalents for coating will accelerate the growth opportunities in the market.
Also, growing health and wellness concerns in emerging regions of China and India, as well as increasing per capita consumption of Speciality oils and fats, are expected to support the global market. The growing acceptance of western-style products such as olive oil, butter, cocoa butter, etc. has supported the general growth of the Speciality Fats and Oils Market. Moreover, consumer demands for processed foods create extensive opportunities for the regional Speciality fats and oils sector. On the other hand, North America is expected to experience moderate growth due to the application of Speciality Fats and Oils for walnut vinaigrette, also for non-food purposes, such as the production of biodiesel and acids bold font.
The primary factors driving the regional market growth are the rising disposable incomes, growing demand for premium-quality products, and the well-established food and beverages industry across the United States and Canada due to the presence of significant market players. The increasing awareness among consumers regarding the healthy lifestyle, prevalence of chronic diseases, and rising demand for safe and indulgent bakery and confectionery products are boosting the adoption of Speciality oils and accelerating the expansion of the regional market size. According to the United States Department of Agriculture (USDA), in 2021, domestic olive oil consumption in the United States amounted to approximately 423,000 metric tons, an increase from 395,000 in 2020.
Also, growing health and wellness concerns in emerging regions of China and India and increasing per capita consumption of Speciality oils and fats are expected to support the regional market growth. The growing acceptance of Western-style products such as olive oil, butter, cocoa butter, and others has supported the general growth of the Speciality Fats and Oils Market. Moreover, consumer demands for processed foods create extensive opportunities for the regional Speciality fats and oils sector.
The European region is estimated to have moderate growth in the coming years due to rising health concerns among the people and a growing food and beverage industry. The demand for Speciality fats and oils is accelerating to serve high-quality and premium products, and the presence of key market players is fueling the regional market growth.
Key Players In Speciality Fats And Oils Market are Wilmar International Limited, Nisshin OilliO, Intercontinental Speciality Fats SDN BHD, Cargill Inc, IOI Loders Croklaan.
In January 2024, Johor Plantations signed a deal with Fuji Oil Asia to develop a Speciality oils and fats refinery to strengthen their market presence. This partnership is expected to expand the Johor Plantation's market share.
In 2023, Cargill introduced a low-saturated fat, high-oleic canola oil targeted at health-conscious food businesses. This product launch is expected to expand the company portfolio worldwide.
In November 2022, AAK acquired Arani Agro Oil Industries Ltd. to bolster the high-quality Speciality fats and oils business in Southeast India. This strategic move by the company mainly aimed to enhance AAK's position in the Speciality fats and oils market, allowing the company to serve customers in the region better.
In July 2019, Bunge Loders Croklaan opened its new edible oil processing plant in China. This expansion would help the company meet the growing demand for special herbal oils and fats for China's food and catering industry.
By Type
By Application
By Form
By Functionality
By Region
Frequently Asked Questions
Specialty fats and oils are fats and oils that are processed or modified to exhibit specific functional properties tailored for various food and non-food applications.
Examples include structured lipids, cocoa butter equivalents (CBE), cocoa butter substitutes (CBS), shortening fats, specialty vegetable oils (e.g., palm oil fractions, high oleic oils), specialty animal fats (e.g., tallow fractions), specialty marine oils (e.g., fish oil concentrates), and other functional fats and oils (e.g., emulsifiers, texturizers).
Specialty fats and oils can exhibit properties such as high stability against oxidation, tailored melting profiles, improved texture and mouthfeel, compatibility with other ingredients, reduced or modified saturated fatty acid content, enhanced nutritional profile, and non-trans fat formulations.
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