Edible Animal Fat Market

Edible Animal Fat Market Size and Forecast (2023-2028):

The Global Edible Animal Fat Market size is expected to grow at a CAGR of 5.04% during the forecast period 2023-2028 to reach USD 58.7 billion by 2028 from USD 43.4 billion in 2022.

Market Overview:

Animal fat that is safe for human consumption is referred to as edible animal fat. To improve the flavor, texture, and moisture of many dishes, it is a common ingredient in cooking. Sources of edible animal fats include beef, pork, chicken, and fish. They often get turned into products like lard, tallow, butter, and schmaltz after being rendered, purified, and processed. This fat is a major source of energy and consists of both saturated and unsaturated fats. They offer richness to food and are essential to some culinary traditions around the world, contributing to the overall taste and textures of various cuisines.

REPORT COVERAGE:

Drivers:

One of the significant drivers propelling the market growth is the rising demand for edible animal fats in the food industry. These fats maintain an attractive demand for consumers who seek premium culinary experiences because of their credibility for enhancing flavor, texture, and authenticity. Animal fats have an essential role in food preparation, from adding a distinctive flavor to traditional foods to improving the texture of premium food products. Their application covers various industries, including bakery, fried food, and gourmet products, to meet changing customer trends and preferences. Edible animal fats acquire increased significance as modern creativity and traditional ingredients are used in culinary innovation, which increases demand for these fats in the food industry.

Another driver for the edible animal fat market expansion is the growing preference for sustainable animal fat oils. The demand for animal fat oils supplied through sustainable and ethical practices has significantly increased as consumers become more aware of environmental and ethical issues. This shift reflects a broader approach to supporting eco-friendly and ethical food business choices. As a result of this trend's meeting with customer demand for organic and ethically produced products, sustainable animal fat oils such as fish oil are becoming more popular on the market. Hence inducing demand for edible animal fat market globally.

Furthermore, the increasing demand for oleochemicals serves as a substantial driver, boosting the edible animal fat market growth. Oleochemicals, which are made from natural fats and oils, have numerous applications in cosmetics, pharmaceuticals, detergents, and other industries. The demand for oleochemicals derived from edible animal fats has increased as customer preferences shift towards sustainable and bio-based products. The connection of oleochemicals and edible animal fats sets the industry for sustainable expansion as the focus on eco-friendly and renewable resources increases on a global scale. Hence, this attribute significantly influences the market demand.

Restraints:

A significant restraint on the edible animal fat market growth is the growing health concerns associated with their consumption. Consumer concerns are being driven by increased awareness of the links between saturated fats present in animal products and health problems like cardiovascular diseases, obesity, and high cholesterol levels. Due to this reputation of animal fats, individuals increasingly prefer healthier dietary alternatives and hence shift away from these animal fats. This is creating challenges for the adoption of edible animal fats and hence restraining market growth.

Also, the shifting dietary trends and consumer preferences act as an obstacle to market growth. The growing acceptance of vegan and vegetarian diets, increased health awareness, and ethical concerns have influenced consumers to opt for substitutes for animal fats. Also, plant-derived alternatives are becoming more popular as a result of a belief that animal fats cause health problems like heart disease and weight gain. Manufacturers in the animal fat industry face the challenge of adapting to these shifting trends as culinary innovation and a focus on holistic well-being continue to influence dietary decisions. This factor is majorly restricting the market size expansion.

Opportunities:

The increasing adoption of edible animal fats in various industries presents an excellent opportunity for edible animal fat market expansion. Animal fats are finding novel applications that go beyond the food industry, including in the cosmetics, pharmaceutical, and biofuels industries. The market's reach is widened by this diversification, which additionally takes benefit of the special qualities of animal fats. Their potential as natural lubricants, emollients, and feedstocks for biofuels presents opportunities for partnerships and collaborations that can promote innovation and revenue in the market.

COVID-19 Impact on Edible Animal Fat Market:

The edible animal fat market growth was severely affected by the COVID-19 pandemic. The demand for animal fat decreased during the pandemic due to some factors such as the closure of food service sectors and various other industries where the demand for this animal fat is huge. Also, the disrupted supply chains and restrictions on transportation and logistics affected the overall production of edible animal fat and further led to delayed distribution and deliveries. This had a major impact on the shares of the market during the pandemic.

Edible Animal Fat Market Segmentation Analysis:

By Type:

• Butter
• Tallow
• Lard
• Others

By type, the butter segment is dominating the edible animal fat market share during the forecasted period. Butter is derived from milk and offers a creamy texture and significant flavor. Hence, it is used in baking, cooking, and as a spread. It can be used in both savory and sweet dishes, making it an essential ingredient in numerous global cuisines. This attribute is majorly influencing the market demand. However, the lard segment is expected to grow at the fastest rate during the projected period. It is derived from pig fat that has been rendered, and it is appreciated for having a high smoke point that makes it perfect for frying and sautéing. Lard serves as a traditional fat in many cuisines and offers food flavor and texture, which is boosting its demand.

By Source:

• Cattle
• Pig
• Others

By source, the cattle segment is ruling the edible animal fat market shares during the anticipated period. Fats like tallow belong to the edible animal fats derived from cattle, such as beef. It is a multipurpose fat that can be used in cooking and several other industrial processes. It is used in the production of soap, candles, and cosmetics and also has a high smoke point, making it perfect for frying. These factors are significantly contributing to boosting the market size. At the same time, the pig segment is deemed to grow at the fastest rate during the forecasted period. Lard and other pig-derived animal fats constitute a significant share of the market. Lard is used in baking and cooking due to its distinctive flavor. It enhances the flavor and texture of numerous dishes, including traditional and convenience food. This is pushing the market forward in the coming years.

By Application:

• Food Industry
• Non-Food Industry

By application, the food industry is dominating the edible animal fat market demand during the projected period. Edible animal fats are commonly used in the food industry for baking, frying, flavoring, and improving texture. They are essential in providing various foods with the proper flavor, texture, and quality. The restaurant, bakery, confectionery, food manufacturing, and other culinary industries are all included in this segment, majorly contributing to influencing the shares of the market. At the same time, the non-food industry is expected to grow significantly during the forecasted period. They are used in the manufacturing of products like soap, cosmetics, medicines, and industrial items. These growing applications in other industries besides food contribute to promoting the overall growth of the market.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

By region, the North American segment is anticipated to rule the edible animal fat market share during the forecasted period. The expanding food industry in this region is elevating the market shares. The food industries are demanding more animal fats for various food preparations, and further, the changing consumer preferences and health trends are contributing to a boost in the market expansion in this segment. However, the Asia Pacific is expected to grow at a healthy CAGR in the upcoming years. The increased use of edible animal fat in various dishes, the expanding food industry, and the growing demand for animal-based products due to the rising population are all propelling the market demand in this region.

Key Players in the Market:

Major Key Players in the Global Edible Animal Fat Market are

• Ten Kate Holdings
• Cargill Inc.
• Darling Ingredients Inc.
• Archer Daniels Midland Company
• Bunge Limited
• Sanimax
• Baker Commodities Inc.
• York Foods Pty Ltd.
• Saria Group
• Colyer Fehr Tallow Pty Ltd.