Edible Animal Fat Market Analysis

Global Edible Animal Fat Market Overview

Global Edible Animal Fat Market size Anticipated to reach approximately USD 60.4 billion by 2032, at a CAGR of 4.50% from 2024 to 2032. 

The selling of edible animal fats derived from animals bred, raised, slaughtered, and processed expressly for humans by entities is referred to as the edible animal fat market. Margarine, shortening, and compound fat are generally produced from animal fats. They are also present in many processed foods. Animal fats make soap, lubricants, fatty acids, and feeds. The market is expanding due to how crucial animal fat is to manufacturing various foods. For frying, baking, and other cooking tasks, animal fats are needed. Edible animal fats are utilized in meat products, margarine, baked goods, sauces, and soups, together with other ingredients. These fats are widely used in food services and households and are highly sought-after for usage in animal feed due to their outstanding taste and texture. As a result of these causes, the market has grown faster.

COVID-19 Impact Analysis

Numerous people and their businesses have been impacted by COVID-19. Government-imposed lockdowns and workforce shortages in several nations hampered slaughterhouse operations. In addition, as per the food and agriculture report, many new human diseases are directly linked to food and substances of animal origin, which has further decreased meat consumption in many countries. As a result, less animal fat was available for human consumption.

Market Dynamics

As per the edible animal fat market analysis, the rise in demand from the food service industry and the expanding use of lard as bread spreads in the baking business are driving the market globally. The edible animal fat market is expanding rapidly due to the increased demand from downstream industries such as biodiesel, food, oleochemicals, and pet food. The demand for lard (as a spread for bread) from the German baking sector is expanding, thereby enhancing market growth. The need for tallow, used in animal feeding and biodiesel, is rising, adding to the market for edible animal fat. Additionally, several significant firms are working hard to maintain their position by implementing tactics like alliances and collaborations to outperform their competitors in the global market.

Drivers

• 
  

  Increasing adoption in the food industry

  
  

Edible animal fats are great fatty acids, vitamins, and energy sources. They also aid in improving the flavor and texture of meals. These fats, like tallow and butter, are therefore preferred by many food processors and bakers. Additionally, animal fats provide high levels of oleic acid, which has been linked to several health advantages. Consumable animal fats like tallow and lard are greatly favored during food preparation because of their delicious flavor and superior baking and frying capabilities. Lard and goose fat are common spreads in Germany and France, whereas tallow is used for frying French fries in America. As a result, the widespread use of animal fats in food is projected to increase demand for them globally.

• 
  

  Rising demand for high nutritional value products in developing countries

  
  


• 
  

  Increasing consumption of bakery, confectionery, and savory snacks across the world

  
  

Restraints:

• 
  

  Rising health concerns

  
  

Food and additives are becoming a major concern for consumers everywhere. As a result, food producers take great care when creating any product. Additionally, the health issues brought on by a large diet of animal products cause people to use saturated fats less frequently. Vegetable oils like palm, palm kernel, coconut, and partially hydrogenated oils began to replace animal fats since solid fats are essential to some foods. Therefore, these factors are projected to limit the market's growth during the forecast period.

• 
  

  Rising trend of veganism among individuals

  
  

Opportunities:

• 
  

  Growing preference for sustainable animal fat oil

  
  

The European Food Hygiene Regulations state that edible animal fats come from creatures that have been bred, raised, killed, and processed exclusively for human consumption, unlike vegetable oils, especially palm and sunflower oils, which are grown primarily for their oil content. Additionally, animals that produce these fats are primarily reared and cared for their milk, meat, and wool. In addition, these fats' economic value is typically determined by the proportion that each product endures. As a result, co-products like animal fats are held accountable for a lesser proportion of the overall environmental impact. Animal fats are therefore considered sustainable compared to vegetable oils like palm, sunflower, and coconut. It will present an opportunity to expand the global market in the next few years.

• 
  

  Growing focus on the environmentally friendly cooking oil industry

  
  

Segment Overview

By Raw Material

Based on raw material, the global edible animal fat market is segmented into lard and tallow. The tallow category dominated the market share in 2021. The demand for tallow from the biodiesel industry, which makes up nearly 9% of the feedstock, is driving its growth. However, the supply of tallow has grown because of the fast rise in worldwide slaughter rates. Besides this, the lard category is the fastest-growing segment. Many different types of food use lard as a cooking fat or shortening. Lard is frequently favored in western cuisines because it can occasionally be used in place of butter.

By Form

Based on the form, the global edible animal fat market is divided into liquid, solid and semi-solid. The solid category had a prominent share in 2021. Solid fats are things like suet, butter, ghee etc. Cattle, pigs, and other mammalian tissues are the principal sources of this kind. Normally, it is solid at normal temperature. Besides this, the semi-solid category is the fastest growing. A semi-solid substance, edible animal fat mostly consists of triglycerides. It comes from lipids, which are solid but turn liquid when heated at ambient temperature. Food producers employ it in creating their products for both functional and non-functional reasons.

By Source

Based on the source, the global edible animal fat market is divided into cattle, pigs, and others. The cattle category had a prominent share in 2021. The cattle industry is the major one due to the high customer appetite for edible animal fats derived from cattle, such as butter and tallow. Additionally, many cattle animals are accessible, which increases the availability of edible animal fats. Besides this, the pig category is the fastest growing. Lard, which is highly utilized in the culinary business for frying, grilling, roasting, and baking, is driving the increase in demand.

By Application

Based on application, the global edible animal fat market is divided into culinary, bakery & confectionery, savory snacks, e-foods/convenience foods, biodiesel, and animal feed. The e-foods/convenience foods category had a prominent share in 2021. The culinary industry uses edible animal fat as an emulsifier or a baking ingredient. Other edible animal fats used in food items include extending shelf life and stability, reducing rancidity by blocking oxidation, and enhancing texture (mouthfeel). Edible animal fat is an essential component that gives baking and confectionery goods flavor, aroma, and texture. Using edible animal fat in various applications in place of more expensive components lowers the cost of manufacturing bakery and confectioneries.

Global Edible Animal Fat Market Share, by Region, 2021 (%)

Regional Analysis

By region, the global edible animal fat market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Asia-Pacific is projected to exhibit the highest CAGR during the review period.

In 2021, the North American edible animal fat market had the largest share because the food and non-food industries are using more edible animal fat. For instance, customers in nations like the United States frequently consume butter. The industrial sector in North America uses tallows to produce animal feed. The North American Renderers Association (NARA) reports that approximately 100,000 tonnes of beef fat are used annually in this region, making beef and edible animal fat the fourth and fifth largest category of animal components by volume in the food business in 2020. Therefore, if edible animal fats become more widely used in the food business, there will be an increase in demand for edible animal products, which will drive the market.

Asia-Pacific

The Asia-Pacific edible animal fat market is anticipated to be the fastest growing rate. Technology development, population growth, and rising lard consumption by the bread industry are all contributing to the expansion of the global edible animal fat market in this region. In developing regions like the Asia-Pacific, where lard is more frequently used in baked goods than butter, demand has been stoked by this trend. China has attained self-sufficiency in the production of lard and pork. The demand for edible animal fat in the region has grown due to a rise in the consumption of processed foods that use lard.

Competitive Landscape

The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have global reach with diverse product portfolios. Companies such as Saria SE and Co. KG, York Foods Pty Ltd, Darling Ingredients Inc., Colyer Fehr Tallow Pty Ltd., and Ten Kate Holding B.V. dominate the global edible animal fat market due to product differentiation, strategic developments, financial stability, and diversified regional presence. The players are concentrating on supporting research and development. They embrace strategic growth initiatives, such as development, product introduction, joint ventures, and partnerships, to strengthen their market position and capture an extensive customer base. For instance, in December 2021, Valley Proteins Inc. was purchased by Darling Ingredients Inc. for USD 1.1 billion. Darling Ingredients Inc. is a US-based developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients. Darling Ingredients anticipates being profitable after the integration of this purchase. Furthermore, in June 2019, the SARIA Group company PTUE SARIA, which produces goods using animal by-products as raw materials, recently inaugurated a new production plant in Belarus.

Prominent players in the global edible animal fat market include Saria SE and Co. K.G. (Germany), York Foods Pty Ltd (Australia), Darling Ingredients Inc. (United States), Colyer Fehr Tallow Pty Ltd. (Australia), Ten Kate Holding B.V. (Netherlands), Cargill Incorporated (United States) and Baker Commodities Inc. (United States).

Scope of the Report

Global Edible Animal Fat Market, by Raw Material

• Lard


• Tallow

Global Edible Animal Fat Market, by Form

• Liquid


• Solid


• Semi Solid

Global Edible Animal Fat Market, by Source

• Cattle


• Pig


• Others

Global Edible Animal Fat Market, by Application

• Culinary


• Bakery & Confectionery


• Savory Snacks


• E-Foods/Convenience Foods


• Bio Diesel


• Animal Feed

Global Edible Animal Fat Market, by Region

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa
  
  
  
  

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

Market Size and Forecast:

To identify and estimate the market size for the global edible animal fat market segmented by raw material, form, source, and application by value (in US dollars). Also, to understand the consumption/demand created by consumers of edible animal fat between 2024 and 2032

Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global edible animal fat market

Market Influencing Factors:

To find out the factors which are affecting the sales of edible animal fat among consumers

Impact of COVID-19:

To identify and understand the various factors involved in the global edible animal fat market affected by the pandemic

Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

• Edible Animal Fat Manufacturers


• Raw Material Suppliers


• Retailers, Wholesalers, and Distributors


• Governments Associations and Industrial Bodies


• Investors and Trade Experts