Fats Oil Market Size

Global Fats and Oil Market Overview

Fats and Oil Market Size was valued at USD 239.5 Billion in 2023. The Fats and Oil industry is projected to grow from USD 250.5 Billion in 2024 to USD 358.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.60% during the forecast period (2024 - 2032). Increasing health consciousness and growing demand for plant-based diets are the key market drivers accelerating market expansion.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Fats and Oil Market Trends

Growing food demand propels use of vegetable oils, driving market growth

The expanding food demand promotes consumption of vegetable oils, driving the market CAGR for fats and oils. Edible oil products such as sunflower oil, palm oil, soybean oil, and canola oil, among others, are often purified using various procedures such as degumming, neutralizing, bleaching, and deodorizing to provide uniformity in high-quality oil. Minor components, known as impurities, are physically or chemically separated during the purification process. High-quality edible oils are often referred to as refined oils.

Refined oils include a lot of monounsaturated fats. Premium oils are considered to be an excellent source of nutrition and are made with state-of-the-art equipment. Their consumption increases annually due to their growing population and increased utilization. But as consumers look for healthier options that maintain flavor while boosting nutritional content, the market for premium oils is growing. To meet this demand, manufacturers are increasing their product lines and advancing processing techniques. The fats and oils industry was revolutionized by a technique developed by ADM (USA) and Novozymes (Denmark). This method helped the company produce high-quality edible oils by including enzymes into the development process.

Additionally, Unpredictable severe weather circumstances, such as droughts, floods, frost, and earthquakes, have impacted cocoa bean production in top cocoa-producing countries. Africa, particularly the Ivory Coast and Ghana, is the world's largest cocoa producer, accounting for more than 70% of production. Excessive human activity in the form of animal husbandry and agriculture has also put the habitat under stress, affecting output. As a result of the market's demand and supply mismatch for cocoa, the price of cocoa will rise, increasing demand for substitute items such as specialty fats. During the course of the forecast period, it is anticipated that these variables would positively affect the market under study.

Moreover, the number of supportive policies established by governments around the world to boost the production and use of vegetable oils has increased. The amount of soybean oil utilized in biofuel production in wealthy countries has been constantly increasing. Also, palm oil accounts for around 20% of the manufacturing of biodiesel and renewable diesel in the European region, fueling the growth of the Fats and Oil Market.

Fats and Oil Market Segment Insights

Fats and Oil Type Insights

The Fats and Oil Market segmentation, based on type includes oil {vegetable oils, palm oil, soybean oil, sunflower oil, rapeseed oil, oilve oil, other oils} fats {butter & margarine, lard, tallow & grease, other fats}. Over the projected period, the butter & margarine sub-segment is projected to hold the greatest share of the market in the fats and oils sector. Research has demonstrated that butter has numerous health benefits, including increased immunity, hormone regulation, protection of the eyesight, increased metabolism, improved brain function, lowered blood pressure and heart disease risk, cancer prevention, potent antioxidant activity, and protection against gastrointestinal disorders. Furthermore, butter is composed of approximately 80% fat and 15% water, whereas margarine is a popular butter alternative produced entirely of animal fats.

Fats and Oil Application Insights

The Fats and Oil Market segmentation, based on Application, includes {food applications, bakery & confectionery, bakery, confectionery, processed food, snacks & savory, R.T.E foods/convenience foods, sauces, spreads, and dressings, other foods (incl. meat products}, industrial applications {biodiesel, other industrial applications}, oleochemicals, animal feed). Over the forecast period, the food segment is expected to have the quickest CAGR in the fats and oils market. Fats and oils are found in a wide range of culinary products, including chocolates and confectioneries, bakery goods, processed foods, and dairy products. They add flavour to a variety of recipes and contribute to the tenderness of the truncated cake. Aerating the dough with fats also helps to produce texture in cakes. As a result, they are predicted to outnumber industrial applications in terms of market share.

Fats and Oil Form Insights

The Fats and Oil Market segmentation, based on form, includes liquid and solid. The liquid segment is the market leader. Liquid fats and oils are widely utilized in a variety of applications, including cooking, baking, frying, and salad dressings. They are preferred for their ease of use and adaptability in many culinary applications.

Fats and Oil Source Insights

The Fats and Oil Market segmentation, based on source, includes vegetable and animals. Vegetables are the fastest growing sector. Growing health consciousness and a trend toward plant-based diets are driving up demand for vegetable oils. Olive oil, canola oil, and soybean oil are considered better alternatives to animal fats. They are low in saturated fats and high in unsaturated fats, which have been linked to a variety of health advantages.

Figure 1: Fats and Oil Market, by Application, 2022&2032(USD Billion)

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Fats and Oil Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Fats and Oil Market area will dominate this market, because of its significant agriculture industry.  North America offers rich resources and favourable climatic conditions for cultivating oilseeds such as soybeans and canola, which are key suppliers of vegetable oils. This ensures that the region has a consistent and predictable supply of raw materials for the manufacturing of fats and oils.

Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.

Figure 2: FATS AND OIL MARKET SHARE BY REGION 2022 (USD Billion)

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe Fats and Oil Market accounts for the second-largest market share Because of its health benefits and practicality, European sales of virgin coconut oil for industrial use have increased dramatically in the recent decade. Further, the German Fats and Oil Market held the largest market share, and the UK Fats and Oil Market was the fastest growing market in the European region

The Asia-Pacific Fats and Oil Market are anticipated to expand between 2023 and 2032 with the quickest CAGR. This is because of expanding population and increased fat and oil consumption, notably in Asian countries such as China and India. Moreover, China’s Fats and Oil Market held the largest market share, and the Indian Fats and Oil Market was the fastest growing market in the Asia-Pacific region.

Leading market players are putting a lot of money in research and development in order to expand their product lines, which will help the Fats and Oil Market, grow even more. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, Fats and Oilindustry must provide reasonably priced goods.

One of the main business strategies employed by manufacturers is to manufacture locally in order to reduce operating expenses in the Fats and Oil industry to help customers and expand the market segment. In recent years, the Fats and Oil industry has given the food business some of the biggest benefits. Major players in the Fats and Oil Market, including Cargill Incorporated, Bunge Limited, The Archer Daniels Midland Company, Fuji Oil Holding Inc., Olam International, Wilmar, International Limited, Musim Mas Group and others, are making investments in R&D activities in an effort to raise market demand.

Cargill, Inc. is a multinational food firm headquartered in Minnetonka, Minnesota, and incorporated in Wilmington, Delaware.  It was founded in 1865 and is the largest privately held firm in the United States by revenue. In November 2021, Cargill spent approximately USD 35 million to expand the Malaysian vegetable oil producing facility. The plant has dry palm fractionation capabilities, allowing it to produce specialty fats for chocolates, coatings, and spreads.

The Archer-Daniels-Midland Company, or ADM, is an American food processing and commodities trading firm headquartered in Chicago, Illinois, founded in 1902. The company processes cereal grains and oilseeds into products that are sold in the food, drink, nutraceutical, factories, and animal feed industries at more than 270 factories and 420 crop procurement sites globally. In May 2021, ADM spent around USD 350 million to construct a soybean crushing facility in North Dakota, USA. The plant is expected to be completed and operational by 2023. Soy crushing, oil refining, and soy-related product processing are among the plant's functions.

Key Companies in the Fats and Oil market include:

• Cargill Incorporated


• Bunge Limited


• The Archer Daniels Midland Company


• Fuji Oil Holding Inc.


• Olam International


• Wilmar International Limited


• Musim Mas Group


• Alami Commodities Sdn Bhd


• Kuala Lumpur Kepong Berhad


• Arista Industries

Fats and Oil Industry Developments

For Instance, February 2019, Cargill Incorporated introduced PalmAgility, a palm oil shortening line created specifically for baked goods. When compared to ordinary palm oil shortenings, the product claims to have a creamier and smoother texture.

For Instance, February 2019, Calyxt, Inc. released 'Calyno high oleic soybean oil' in the United States. The product claims to have 80% oleic acid and zero grams of trans fat per serving and can be used in frying, salad dressings, and other applications.

For Instance, December 2021, Fuji Oil formed FII in collaboration with one of its subsidiaries, Fuji Specialities Inc., and ITOCHU International Inc. The primary goal of this collaboration is to grow the vegetable oil industry in North America. The joint company distributes raw materials, manufactures, and sells fats and oils throughout North America.

Fats and Oil Market Segmentation

Fats and Oil Market Type Outlook

• Oil
  
  
  
  • Vegetable Oils
  
  
  • Palm oil
  
  
  • Soybean oil
  
  
  • Sunflower oil
  
  
  • Rapeseed oil
  
  
  • Oilve Oil
  
  
  • Other oils
  
  
  
  


• Fats
  
  
  
  • Butter & margarine
  
  
  • Lard
  
  
  • Tallow & grease
  
  
  • Other fats
  
  
  
  

Fats and Oil Market Application Outlook

• Food applications
  
  
  
  • Bakery & confectionery
  
  
  • Bakery
  
  
  • Confectionery
  
  
  • Processed food
  
  
  • Snacks & savory
  
  
  • T.E foods/Convenience foods
  
  
  • Sauces, spreads, and dressings
  
  
  • Other foods (incl. meat products)
  
  
  
  


• Industrial applications
  
  
  
  • Biodiesel
  
  
  • Other industrial applications
  
  
  
  


• Oleochemicals


• Animal Feed

Fats and Oil Market Form Outlook

• Liquid


• Solid

Fats and Oil Market Source Outlook

• Vegetable


• Animals

Fats and Oil Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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