Specialty Fats & Oils Market By Type (Specialty Fats, Specialty Oils); By Form (Dry, Liquid); By Functionality (Molding, Filling, Coating, Stabilizing, Texturing, Health); By End-Use Vertical (Industrial, Household Purposes); By Application (Chocolates & Confectionery, Bakery Products, Processed Foods, Animal Nutrition, Dairy Products, Infant Nutrition, Cosmetics); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2022-2032
Specialty Fats & Oils Market Overview
The Global specialty fats and oils market is expected to grow from USD 12.5 billion in 2022 to USD 27.2 billion by 2032, at a CAGR of 8.1% during the forecast period 2022-2032. Specialty fats & oils are essential components in a wide variety of products as they tremendously enhance the product performance. Specialty fats basically are particular class of vegetable fats used as alternatives/substitutes for other kinds of fats in different products. Specialty oils on the other hand, are the class of oils that are used as dietary supplements, and which find high exclusivity amidst cooking and commodity oils.
Specialty fats & oils offer several important functionalities such as molding, filling, coating, stabilizing, extrusion, and texturing in food processing. Specialty fats also provide properties such as superior gloss, gloss retention, bloom resistance, and product temperature resistance. Along with that, these are also known to provide excellent melting profile and flavor-releasing properties which make them extensively desirable in industries.
As such, these are used in a wide range of products such as margarine, shortenings, dressings, confectionery products, baked goods, snack foods, infant formulas, non-dairy creamers, compound coatings, chocolate, cosmetics, confectionery, spreads & filings, ice cream, and dairy products.
The global specialty fats and oils market is expected to witness growth at a comprehensively impressive CAGR in the next few years.
Specialty Fats & Oils Market Drivers
The growth of this market is attributed towards major pertaining factors including; the increase in global production of oils and fats, growing demand for alternatives and value added ingredients across the food and beverages industry, the rise in consumption of bakery and processed food products, the global increase in consumption of dairy products, increasing demand for nutritional food products, rising demand for clean label food products, the growing production and trade of raw materials used, increasing R&D in developing specialty fats and oils, the escalating awareness regarding health concerns and also regarding the advantages derived from the intake of these products, the growing consumer preferences for products that are natural in origin and the expanding retail sector along with the high demand of fried food etc.
Additionally, the global demand for cocoa butter alternatives which is a specialty fat has increased as the production and price of cocoa butter has been fluctuating since a long time which consequently has created an imbalance in the demand-supply graph. This is contributing immensely to the growth of the specialty fats and oils market.
Moreover, hydrogenation as a process is known to not only bring about the desired physical forms of the product, but also the required consistency and holding characteristics that are important for enhanced functionality. This has opened new doors for vegetable oil processing and is therefore fueling the overall specialty fats and oils market growth.
Furthermore, the massive popularity of baked items & confectionaries coupled with immense penetration of the product in this sector, the rising living standards of wide sections of the population, particularly in emerging and developing markets triggering the demand for different types of edible fats & oils, the increasing demand for chocolates, the rising awareness regarding health hazards caused by intake of saturated fats, the shift in preference towards healthy lifestyle to reduce body cholesterol and by switching to nutritive and healthier alternatives and the rise in demand for natural cosmetic products is expected to further boost the market growth.
However, high oil, crop and raw material prices, lack of modern farming techniques, health concerns pertaining to the excessive consumption of fats and oils, decreasing demand for coconut oil and rising challenges for growing better quality cocoa crops are some factors that are hindering the growth of this market.
Specialty Fats & Oils Market Segmentation
- Specialty Fats
- Cocoa Butter Equivalents
- Cocoa Butter Substitutes
- Cocoa Butter Replacers
- Cocoa Butter Improvers
- Dairy Fat Replacers
- Specialty Oils
- Palm Oil
- Coconut Oil
- Soybean Oil
- Sunflower Oil
- Rapeseed Oil
- Olive Oil
- Peanut Oil
- Other Functions
By End-Use Vertical
- Household Purposes
- Chocolates & Confectionery
- Bakery Products
- Processed Foods
- Animal Nutrition
- Dairy Products
- Infant Nutrition
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Specialty Fats & Oils Market Regional Insight
The Asia Pacific region is the largest and the fastest growing regional market for specialty fats and oils products and is also projected to continue its dominance in the market in forthcoming years as well. This growth in this region can be attributed to factors such as the rapid proliferation of bakery, confectionery, cosmetics, dairy, food processing, and other industries in the region, the growing demand for processed products, the rise in disposable incomes and purchasing power of the people, changing dietary habits, increase in middle-class population , increasing awareness about the health benefits associated with the consumption of clean label food products, the increasing demand from the chocolate & confectionery industries, increasing demand for highly functional specialty oils and fats for chocolate manufacturing and the increasing demand for alternative and healthier specialty fats and oils etc. The major contributors in the region include India, China, and Indonesia.
The North American region holds a substantial share in the specialty fats and oils market and is also expected to grow at a robust rate in the coming years owing to factors such as the increasing consumption of fast and processed foods, the growing focus of producers to provide quality and healthy food, the rapidly growing fast-food sector, high disposable incomes of people residing and the presence of highly developed countries in the region along with various other associated factors. It is accounted that the share of processed foods in American diets cross over 60%, which evidently makes it a lucrative market for specialty fats and oils products. The major contributors in the region include U.S and Canada.
Key Players In Specialty Fats & Oils Market
- Liberty Oil Mills Ltd.
- Gold Coast Commodities
- Cargill Incorporated
- Bunge Limited
- Musim Mas Holdings Pte. Ltd.
- The Nisshin Oillio Group Ltd.
- Wilmar International Limited
- Aak Ab
- 3f Industries
- Golden Agri-Resources (Gar)
- Moi International
- Oleofats Inc.
- Mehwah International
- Ioi Loders Croklaan
- D&L Industries
- International Foodstuff Company Limited (Iffco)
- Manildra Group
- Intercontinental Specialty Fats Sdn Bhd
- Nature Intl Pte Ltd & Ngo Chew Hong Edible Oil Pte Ltd
- Kala Gostaran Sabz Andish Co. Ltd.
- Premium Nutrients Berhad
- Lasenor Charbhuja
- Nine Stars Worldwide (M) Sdn Bhd
- Fuji Oil Co. Ltd
- Ioi Corporation Berhad
- Other Players
- In August 2020, AAK USA Inc. showcased its latest specialty fat solutions at ShIFT20 with a menu of seven sample items.
- In September 2020, Capitol Food Co., formerly Capitol Milling Co., announced an agreement with Wilmar International Ltd. for the sales and distribution of Wilmar’s Natural Boxed Palm products in North America.
- In December 2020, Netherlands-based specialist oils and fats group Bunge Loders Croklaan launched its Karibon, patent-pending 100% shea-based premium Cocoa Butter Equivalent (CBE), aiming to advance standards in chocolate confectionery.
Timeline Considered for Analysis:
- 2022: Base Year
- 2023 to 2032: Forecast Period
Research Scope and Deliverables
Overview & Executive Summary
Market Drivers, Trends, Challenges and Opportunities
Market Size and Forecast Projections
Macroeconomic Indicators of Various Countries Impacting the Growth of the Market
Extensive Coverage of Industry Players including Recent Product Launches and Market Activities
Porter’s Five Force Analysis
Market Segmentation Analysis:
Industry report analyzes the global specialty fats & oils market by the following segments:
- Deployment Mode
- Organization Type
- End-Use Industry
Customization: We also offers customization is in the industry report as per the company’s specific needs.
Key Questions Answered in the Global Specialty Fats & Oils Industry Report
- What is the overall market size in 2022? What will be the market growth during the forecast period i.e., 2023-2032?
- Which region would have high demand for product in the upcoming years?
- What are the factors driving the growth of the market?
- Which sub-market will make the most significant contribution to the market?
- What are the market opportunities for existing and entry-level players?
- What are various long-term and short-term strategies adopted by the market players?