Speciality Fats And Oils Market

Specialty Fats and Oils Market Size, Share, Growth (2023-2028)

Specialty Fats and Oils Market value is estimated to reach USD 15.36 billion in 2023 to USD 22.36 billion by 2028. with a CAGR of 7.80%

Specialty Fats and Oils Market Overview:

Specialty Fats and Oils are specially designed to imitate many positive characteristics of cocoa butter, milk fats, butter, and other similar fats that make them suitable for many applications. Specialty greases have a full application in the ice cream and confectionery industry. Furthermore, they are used as binders in the pharmaceutical industry, milk fat substitutes, and the cosmetic industry. Molding, coating, filling, and extrusion are some basic confectionery applications using Specialty Fats and Oils. They offer properties such as superior gloss, gloss retention, bloom resistance, and product temperature resistance. Furthermore, they provide an excellent melting profile and flavor release features.

Recent Developments in Speciality Fats and Oils Industry:

• In July 2019, Bunge Loders Croklaan opened its new edible oil processing plant in China. This expansion would help the company meet the growing demand for special herbal oils and fats for the food and catering industry in China.

• In February 2019, AAK acquired a Dutch vegetable oil refinery to increase its production capacity, support existing production facilities, and enable the continued growth of vegetable oils and fats for the food industry.

• Cargill extended its canola oil portfolio in December 2017 by introducing low saturated fat, high oleic canola oil to meet the consumer demands in terms of health consciousness. The oil is made from a canola hybrid that contains 4.5 percent or less of saturated fat while maintaining high performance, freshness and frying flavor and shelf life.

REPORT COVERAGE:

Drivers and Restraints:

Modern retail businesses and changes in consumer lifestyles are critical factors in increasing the consumption of packaged foods. These products are free from external counterfeits and are easy to handle. These benefits bode well for urban consumers looking for convenient, ready-to-eat meals to suit their fast-paced lifestyle. Today, customers are looking for healthier snacks and foods that are low in fat and cholesterol. The growing public awareness of proper nutrition has led to a higher consumer inclination to packaged foods, which in turn are driving the growth of the global specialty fats and oils market. The rapid urbanization and growth of the middle-class population have led to the increasing use of chocolate. Specialty fats and oils are mainly used as ingredients in the chocolate industry. For example, a Specialty fat like cocoa butter used in chocolate making is able to harden on the surface of a cake and provides a smooth mouthfeel. Dark chocolate has several health benefits because it improves brain function, lowers blood pressure, improves blood circulation, and reduces the risk of heart disease. Furthermore, these are rich in antioxidants and contain soluble minerals, fiber and bioactive compounds.

Therefore, due to its wide range of health benefits, chocolate consumption should help the expansion in the world market for Specialty fats and oils.To lose weight, low-fat dairy products can provide a solid nutritional base. Milk minerals play an essential role in bone metabolism during weight loss. Fat-free and low-fat dairy products are recommended to reduce the consumption of calories, saturated fat, and cholesterol, and provide the same amount of vitamins and minerals that the body needs. Low-fat dairy products can prevent the risk of high blood pressure. Low-fat dairy products can minimize the risk of developing cognitive health disorders, such as cardiovascular disease and metabolic syndromes. These benefits of low-fat dairy products, in turn, trigger the growth of the specialty fats and oils market.

Specialty Fats and Oils Market Demand Analysis:

The demand for coconut oil has decreased worldwide. In the United States, in particular, the popularity of coconut oil is declining rapidly, resulting in reduced revenue in the North American market for specialty fats and oils. This notable reduction in coconut oil consumption is associated with the increase in the health-conscious population, particularly in North America, which could be responsible for hindering the growth of global fat and specialty oils during the projected period. Due to uncertain weather and political instability, oilseed prices are volatile, which has an impact on oil production by oilseed producers, which in turn restricts the supply of oil to manufacturers. Other key factors attributed to reduced production volumes of specialty oils worldwide are limited access to finance and a lack of knowledge of modern agricultural techniques and farm management skills. It is estimated that around 30-40% of crops in the main producing regions are lost due to inadequate pest and disease control procedures.

Specialty Fats and Oils Market Segmentation and Sub segmentation:

Based on Type:

• Specialty oil type

  • Palm oil

  • Soybean oil

  • Coconut oil

  • Cottonseed oil

  • Rapeseed oil

  • Others

• Specialty fat type

  • Cocoa butter equivalents

  • Cocoa butter substitutes

  • Cocoa butter replacers

  • Cocoa butter improvers

  • Dairy fats replacers

  • Exotic fats

Based on Application:

• Chocolate & confectionery

• Bakery

• Dairy

• Processed foods

• Others

Based on Form:

• Dry

• Liquid

Market Segmentation Insights:

• type

• application

• shape 

• functionality

By type

• special fats

• oils

Special fats are broken down into cocoa butter equivalents, cocoa butter substitutes, cocoa butter substitutes, cocoa butter improvers, milk fat substitutes, and others. Special oils are further segmented into palm oil, soybean oil, coconut oil, cottonseed oil, rapeseed oil, and others.

by application

• confectionery

• bakery products

• processed foods

• dairy products

based on form

• dry

• liquid

based on the functionality is divided

• the molding

• filling

• coating

• stabilizing

• texturing

• health

Impact of covid-19 on the global Speciality Fats and Oils Market

As the effects of COVID-19 are felt around the world, food and beverage companies face significantly reduced supply chain disruption and consumption challenges. While domestic consumption has peaked in the past two weeks, domestic consumption has stagnated. Since the out-of-home market has always generated the highest margin, this will have an immediate impact on the income statement, although some suppliers seek to mitigate this by diverting their supplies to retail stores. Agricultural production is depressed, supply chains are disrupted, mainly due to rapid changes in behavior and consumer demand.Once the situation begins to normalize, out-of-home consumption will resume, but it is unlikely to be enough to cover lost sales in the coming weeks. With an impending economic downturn, food and beverage revenues are likely to be under pressure.

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)

Asia-Pacific is clearly distinguished by a significant market share due to increased disposable income, purchasing power, growth of the middle-class population and changes in eating habits. Also, growing health and wellness concerns in emerging regions of China and India, as well as increasing per capita consumption of specialty oils and fats, are expected to support the global market. The growing acceptance of western-style products such as olive oil, butter, cocoa butter, etc. has supported the general growth of the Speciality Fats and Oils Market. Moreover, consumer demands for processed foods create extensive opportunities for the regional specialty fats and oils sector. On the other hand, North America is expected to experience moderate growth due to the application of Speciality Fats and Oils for walnut vinaigrette, also for non-food purposes, such as the production of biodiesel and acids bold font.

Speciality Fats and Oils Market Key Players

1. Wilmar International Limited

2. Nisshin OilliO

3. Intercontinental Specialty Fats SDN BHD

4. Cargill Inc

5. IOI Loders Croklaan