Fats and Oils Market Overview: Trends & Growth Analysis

Rising demand for biofuels drives market growth

The global fats and oils market is substantial and continues to grow, driven by increasing demand for processed foods, biofuels, and industrial applications. In the food industry, fats and oils are essential for their role in flavor, texture, and preservation. They are integral to a wide array of products including baked goods, snacks, and ready-to-eat meals. In addition to food applications, fats and oils are used in non-food sectors such as cosmetics, pharmaceuticals, and biodiesel production.

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Market report highlights

Source	Vegetable Animal
Application	Food Personal Care Pharmaceutical Others
Regional Landscape	North America Europe APAC South America Middle East and Africa
Key Companies Profiled	Cargill Inc. Wilmar International ADM Ajinomoto Associated British Foods

Market report insights

Technavio’s industry reports offer qualitative and quantitative analysis of historical data as well as a comprehensive market forecast. They examine key factors such as market drivers, challenges, and emerging trends, and provide detailed information on the global competitive landscape. Also included is a breakdown of the types of products available on the market, along with a region-by-region analysis of market growth and opportunities.

Market segmentation

Rising demand for healthier fats and oils

The food industry is the largest consumer of fats and oils globally. This sector encompasses a wide range of applications where fats and oils play a crucial role in the preparation, flavoring, and preservation of food products. There is increasing demand for oils with health benefits, such as olive oil, avocado oil, and oils high in omega-3 fatty acids. These are used as substitutes for more saturated fats.

Regional analysis

Rapid growth in APAC

APAC is one of the fastest-growing markets for fats and oils, driven by increasing urbanization, rising disposable incomes, and changing dietary patterns. Countries such as China and India have large populations with growing demand for processed and convenience foods. The region is a major consumer of palm oil, which is widely used in cooking and food processing. Additionally, there is a rising interest in health-conscious oils, such as olive and canola oils.

Competitive landscape

This report provides an analysis of the market’s competitive landscape and offers information on the products offered by various companies in order to help clients improve their market positions. Companies leading the global fats and oils market include:

Cargill Inc.
Wilmar International
ADM
Ajinomoto
Associated British Foods

Market Dynamics

Health and Wellness Trends

Consumer awareness regarding health and nutrition is significantly shaping the fats and oils market. There is a growing preference for oils with perceived health benefits, such as olive oil, avocado oil, and coconut oil. These oils are rich in monounsaturated and polyunsaturated fats, which are considered healthier alternatives to saturated fats. This shift is also reflected in the reformulation of food products to reduce trans fats and replace them with healthier options.

Demand for Sustainable and Natural Products

Sustainability and naturalness are becoming increasingly important in the fats and oils market. Consumers are seeking products that are not only healthy but also environmentally friendly. This has led to a rise in the popularity of organic and sustainably sourced oils, as well as fats and oils produced through environmentally conscious methods. Certification programs and labels that denote sustainable practices are gaining traction among consumers.

Technological Advancements

Advancements in extraction and processing technologies are driving innovation in the fats and oils market. Technologies such as cold-pressing and molecular distillation are enhancing the quality and purity of oils. Additionally, there is ongoing research into developing new fat alternatives and improving the efficiency of oil extraction processes. These innovations are contributing to higher product yields and improved functionality.

Faq

How are consumer preferences shaping the fats and oils market?

Consumer preferences are significantly influencing the fats and oils market. There is a noticeable shift towards health-conscious choices, with consumers increasingly favoring oils that are perceived as healthier, such as olive oil and avocado oil. These preferences are driving demand for products that offer beneficial fats while minimizing unhealthy ones. Sustainability is another key factor, with consumers showing a preference for sustainably sourced and organic oils, leading to growth in these segments. Additionally, there is a rising interest in natural and non-genetically modified oils, reflecting a broader trend towards transparency and naturalness in food products.

What challenges does the fats and oils market face?

The fats and oils market faces several challenges. One significant issue is the volatility in raw material prices, particularly for key ingredients like palm oil and soybeans, which can impact production costs and pricing stability. Environmental concerns are also pressing, especially related to the sustainability of palm oil production, which has been associated with deforestation and habitat destruction. Health concerns about certain types of fats, such as trans fats and saturated fats, require the industry to continually adapt and offer healthier alternatives. Additionally, the market must navigate complex regulatory environments to ensure compliance with food safety and labeling standards.

Which sectors are the largest consumers of fats and oils?

The largest consumers of fats and oils are found across several sectors. The food processing and manufacturing industry is a major consumer, using fats and oils in a wide array of products, including baked goods, snacks, and confectionery. Culinary uses in both home kitchens and professional settings also contribute significantly, with fats and oils being crucial for frying, baking, and flavoring. Additionally, industrial applications represent a growing segment, with oils being utilized in the production of cosmetics, pharmaceuticals, and biodiesel.

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1 Executive Summary

1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market by Geography
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Distribution Channel
- Exhibit 06: Executive Summary – Chart on Market Segmentation by Product
- Exhibit 07: Executive Summary – Chart on Incremental Growth
- Exhibit 08: Executive Summary – Data Table on Incremental Growth
- Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem
- Exhibit 10: Parent market
- Exhibit 11: Market Characteristics

3 Market Sizing

3.1 Market definition
- Exhibit 12: Offerings of vendors included in the market definition

3.2 Market segment analysis
- Exhibit 13: Market segments

3.3 Market size 2023

3.4 Market outlook: Forecast for 2023-2028
- Exhibit 16: Chart on North America: Year-over-year growth 2023-2028 (%)

4 Historic Market Size

4.1 Dietary supplements market in North America 2018 - 2022

4.2 Distribution Channel Segment Analysis 2018 - 2022

4.3 Product Segment Analysis 2018 - 2022

4.4 Geography Segment Analysis 2018 - 2022

5 Five Forces Analysis

5.1 Five forces summary
- Exhibit 22: Five forces analysis - Comparison between 2023 and 2028

5.2 Bargaining power of buyers
- Exhibit 23: Chart on Bargaining power of buyers – Impact of key factors 2023 and 2028

5.3 Bargaining power of suppliers
- Exhibit 24: Bargaining power of suppliers – Impact of key factors in 2023 and 2028

5.4 Threat of new entrants
- Exhibit 25: Threat of new entrants – Impact of key factors in 2023 and 2028

5.5 Threat of substitutes
- Exhibit 26: Threat of substitutes – Impact of key factors in 2023 and 2028

5.6 Threat of rivalry
- Exhibit 27: Threat of rivalry – Impact of key factors in 2023 and 2028

5.7 Market condition
- Exhibit 28: Chart on Market condition - Five forces 2023 and 2028

6 Market Segmentation by Distribution Channel

6.1 Market segments
- Exhibit 29: Chart on Distribution Channel - Market share 2023-2028 (%)
- Exhibit 30: Data Table on Distribution Channel - Market share 2023-2028 (%)

6.2 Comparison by Distribution Channel
- Exhibit 31: Chart on Comparison by Distribution Channel
- Exhibit 32: Data Table on Comparison by Distribution Channel

6.3 Offline - Market size and forecast 2023-2028

Exhibit 33: Chart on Offline - Market size and forecast 2023-2028 ($ billion)

Exhibit 34: Data Table on Offline - Market size and forecast 2023-2028 ($ billion)

Exhibit 35: Chart on Offline - Year-over-year growth 2023-2028 (%)
Exhibit 36: Data Table on Offline - Year-over-year growth 2023-2028 (%)

6.4 Online - Market size and forecast 2023-2028

Exhibit 37: Chart on Online - Market size and forecast 2023-2028 ($ billion)

Exhibit 38: Data Table on Online - Market size and forecast 2023-2028 ($ billion)

Exhibit 39: Chart on Online - Year-over-year growth 2023-2028 (%)
Exhibit 40: Data Table on Online - Year-over-year growth 2023-2028 (%)

6.5 Market opportunity by Distribution Channel
- Exhibit 41: Market opportunity by Distribution Channel ($ billion)
- Exhibit 42: Data Table on Market opportunity by Distribution Channel ($ billion)

7 Market Segmentation by Product

7.1 Market segments
- Exhibit 43: Chart on Product - Market share 2023-2028 (%)
- Exhibit 44: Data Table on Product - Market share 2023-2028 (%)

7.2 Comparison by Product
- Exhibit 45: Chart on Comparison by Product
- Exhibit 46: Data Table on Comparison by Product

7.7 Others - Market size and forecast 2023-2028

Exhibit 63: Chart on Others - Market size and forecast 2023-2028 ($ billion)

Exhibit 64: Data Table on Others - Market size and forecast 2023-2028 ($ billion)

Exhibit 65: Chart on Others - Year-over-year growth 2023-2028 (%)
Exhibit 66: Data Table on Others - Year-over-year growth 2023-2028 (%)

7.8 Market opportunity by Product
- Exhibit 67: Market opportunity by Product ($ billion)
- Exhibit 68: Data Table on Market opportunity by Product ($ billion)

8 Customer Landscape

8.1 Customer landscape overview
- Exhibit 69: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

9.1 Geographic segmentation
- Exhibit 70: Chart on Market share by geography - 2023-2028 (%)
- Exhibit 71: Data Table on Market share by geography - 2023-2028 (%)

9.2 Geographic comparison
- Exhibit 72: Chart on Geographic comparison
- Exhibit 73: Data Table on Geographic comparison

9.6 Market opportunity by geography
- Exhibit 74: Market opportunity by geography ($ billion)
- Exhibit 75: Data Table on Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

10.1 Market drivers

10.2 Market challenges

10.3 Impact of drivers and challenges
- Exhibit 76: Impact of drivers and challenges in 2023 and 2028

10.4 Market trends

11 Vendor Landscape

11.1 Overview

11.2 Vendor landscape
- Exhibit 77: Overview on Criticality of inputs and Factors of differentiation

11.3 Landscape disruption
- Exhibit 78: Overview on factors of disruption

11.4 Industry risks
- Exhibit 79: Impact of key risks on business

12 Vendor Analysis

12.1 Vendors covered
- Exhibit 80: Vendors covered

12.2 Market positioning of vendors
- Exhibit 81: Matrix on vendor position and classification

13 Appendix

13.1 Scope of the report

13.2 Inclusions and exclusions checklist
- Exhibit 82: Inclusions checklist
- Exhibit 83: Exclusions checklist

13.3 Currency conversion rates for US$
- Exhibit 84: Currency conversion rates for US$

13.4 Research methodology
- Exhibit 85: Research methodology
- Exhibit 86: Validation techniques employed for market sizing
- Exhibit 87: Information sources

13.5 List of abbreviations
- Exhibit 88: List of abbreviations

Fats and Oils Market Size, Forecast, Trends, and Competitive Landscape Report by Source (Vegetable, Animal), Application (Food, Personal Care, Pharmaceutical), and Geography 2024-2028