22-Dec-2022 | Zion Market Research
The global fats & oils market size was worth around USD 237 billion in 2021 and is predicted to grow to around USD 358 billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.34% between 2022 and 2030.
Oil and fats both are made of glycerol and have the same chemical structure. The main difference between both is that while oils are liquid when kept at room temperature, fats are solid. Over the years, fats and oils have found varied applications both in industrial and domestic settings. Since fats and oils are lipids they are essential energy-storing units in plants and animals. The difference in the fatty acid content of the compound is what decides if the final product will be a part of the oil group or fat group. Different processes are used to produce the compounds.
Some of these processes include hydrogenation, fractionation, and interesterification. All of these methods give rise to different types of fat from the oil. The fats produced from varying methods differ in functions, crystallization, and melting point. When used in the food industry, every edible item has its own set of oil & fats requirements that have different functions, which means that they should be different in fatty acid content. The main function of dietary fat is to encourage cell growth and enhance the energy capacity of the body. Polyunsaturated and monounsaturated fats are known to have a positive impact on human health when consumed in an appropriate proportion.
The global fats and oils market is projected to boost owing to the versatility of the product since not only can fats and oils be used during food preparation, they are now being used extensively in industrial settings as well. Naturally derived fats or oils, either plant-based or animal-based are used in quantities starting from millions of tons across industries. They can broadly be classified into three types. The first is in the edible-fat sector which includes products like margarine, dairy butter, confectionery fats, and cooking fats.
The second sector is the manufacturing of detergents and soaps. The third category is the production of varnishes, paints, linoleum, leather coverings, and fillings. In the last category, the production depends on the conversion of specific types of fatty acids to solids that are like colloids through the process of polymerization or oxidation or both.
The global market may face revenue decline due to the constantly fluctuating prices of edible oil and fats. The growing political turmoil has impacted the supply chain of essential items, especially in the food industry, which is highly sensitive to changes in inter-border collaborations or tie-ups. For instance, the edible oil price in India has gone up by INR 20 to INR 25 per liter as the country imports almost 80% of sunflower oil. The Russia-Ukraine war has impacted the import quantity.
The unexplored markets may provide growth opportunities while unclear labeling is projected to pose a major challenge during the growth trajectory.
The global fats and oils market is segmented based on form, source, application, and region
Based on the source, the global market divisions are animal-based and plant-based. In 2021, the majority of consumers preferred oil and fats derived from plants as the demand for vegetable oil increased exponentially. Most of the plant-based oils or fats are labeled as healthy for the heart as they have a high content of polyunsaturated fat which is linked to less risk of heart conditions as opposed to saturated fat. Olive oil is considered far superior to vegetable oil since it has an extremely high amount of monounsaturated fat which is far more beneficial for health. Olive oil consumption in Europe stood at 1.4 million tons in 2021.
Based on application, the global market divisions are industrial biodiesel, food, animal feed, and others. Food was the most dominating segment in 2021 with the majority of the global market share. Different forms of fats and oil, in various quantities, are an important part of the entire food preparation process. Butter, a key ingredient in the bakery industry, is around 80% fat.
North America will emerge as a leading region in the global fats and oils market because of growing demand for healthy fats and oils across consumer groups that invest heavily in maintaining a balanced diet as well as rising applications in the production of biodiesel which is made of yellow grease, vegetable oils, animal fats, and used cooking oils. The regional growth may be driven by the stronghold of Mexico in the edible oil segment as it is the world’s largest exporter of edible oils. It holds a market share of over 44% of the global supply of edible oils. Growth in Europe may be driven by the extensive use of oil & fats in the food industry. Germany is home to the largest bakery industry in the world. As per a recent report, around 6.12 kilograms of butter were consumed in 2021 while surveying the per capita consumption level.
This review is based on a report by Zion Market Research, titled “Fats & Oils Market By Form (Solid, and Liquid), By Source (Animal-Based, and Plant-Based), By Application (Industrial, Biodiesel, Food, Animal Feed, and Others), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2030.”- Report at https://www.zionmarketresearch.com/report/fats-oils-market
The global fats & oils market is led by players like:
The global fats and oils market is segmented as follows:
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