Specialty Oils Market

Specialty Oils Market Size, Growth, Forecast (2023-2028)

The Global Specialty Oils Market size was worth USD 12.6 billion in 2022, and it is anticipated to reach a valuation of USD 19.8 billion, recording an annual expansion rate (CAGR) of 7.8% between 2023 and 2028.

Market Overview:

Specialty oils are used as essential ingredients in many industries, especially in perfumes and fragrances, cosmetics, personal care, pharmaceuticals, and aromatherapy. In addition, all types of oils contain unique functional properties that provide numerous health benefits for the human body. Specialty oils are specifically designed to mimic many of the positive properties of milk fat, butter, cocoa butter, and other similar fats, making them suitable for multiple uses. The main use of specialty oils is in the confectionery and ice cream industry. It is also used as a substitute for milk fat, as a binder in the pharmaceutical and cosmetic industries. Molding, filling, coating and extrusion are some of the basic uses of baking with special fats and oils. They provide properties such as gloss retention, blooming resistance, excellent gloss and temperature resistance of the product. In addition, they provide excellent melting profiles and flavor release properties. Specialty oils find many niche applications in many fields, especially in the food and beverage industry. Some of the most important uses for specialty oils and fats come from chocolate and confectionery manufacturers.

Specialty Oils Market Growth:

Growing consumer awareness of the health benefits of specialty oils, especially the demand from the pharmaceutical sector, is driving the global specialty oils market.

REPORT COVERAGE:

Drivers:

As the demand for high-quality fragrances increases, the need for high-quality specialty oils increases. With the increasing use of specialty oils in the pharmaceutical industry, the call for specialty oils has increased in recent years. The growing global demand for specialty oils for substitutes and value-added ingredients in the food and beverage industry is supposed to contribute to sales growth in the global specialty oils market. The world market has grown significantly in recent years with the increased consumption of specialty oils in various industrial applications. Research on the development of specialty fats and oils has increased significantly in recent years as the demand for value-added ingredients has augmented in the food and beverage industry. Derivatives of palm oil and shea are the most common sources of cocoa butter substitutes. Many specialty oil applications are largely distinguished by cocoa butter substitutes, more specifically cocoa butter substitutes and cocoa butter equivalents. Although it is growing, but now there are niche segments of exotic provinces, almost all specialty fats find the most applications in the production of pastry and bakery products. Market growth during the forecast period was attributed to the growing gap between supply and demand for cocoa butter. On the other hand, the increase in processed foods and baked goods will drive the growth of the specialty oil industry during the conjecture period. Apart from this, the inflation of foreign direct funds, as well as the associations observed in the food industry, will expand the scope of the Specialty Oil market in the coming years. Furthermore, the application of specialty oils as a substitute for cocoa butter will increase the demand for specialty oils in the coming years.

Market trends become even more prominent when awareness of the benefits of consuming a product increase. In addition, the high end-user propensity for specialty oils will drive business growth over the next two years. Apart from this, the enormous popularity of confectionery and the diffusion of products in this sector will boost the business space in the following years. Factors such as increased global oil production, augmented awareness of health issues, rising demand for bakery and confectionery products, and growing demand for value-added alternatives and ingredients are driving the development of the global specialty oil business. The specialty oils market size is determined to grow in the forecast period due to factors such as higher consumption of processed foods and confectionery. The specialty oils market is likely to provide growth opportunities along with increased production and trade in raw materials during the forecast period.

Restraints:

High prices for oil crops and raw materials and the lack of modern agricultural technology are limiting growth in demand. Regulations governing the use of liquid oils directly in confectionery and glaze products represent a challenge for the growth of the global specialty oil market. Health problems related to excessive consumption of fats and oils limit the Specialty Oil market demand. Declining need for coconut oil and growing challenges in growing better quality cocoa crops may hamper the growth of the global market for specialty oils. The decrease in the availability of agricultural land may be due to a decrease in the agricultural labor force due to the increase in the urban population. With the sharp decline in the availability of agricultural land in the Asia Pacific area, little land is available to produce important oilseed crops. This factor has a negative impact on the overall growth of the worldwide specialty oils market.

Specialty Oils Market Segmentation Analysis:

By type, the Specialty Oils market is segmented into cottonseed oil, rapeseed oil, soybean oil, coconut oil, and palm oil. Among them, palm oil has the largest market share. The cottonseed and soybean oil sectors are showing remarkable growth due to their high use in the pharmaceutical industry.

Depending on the type of process, the Specialty Oils market is segmented into cold presses, hot presses, etc. The cold press segment dominates the market. The cold pressing method is simpler and helps to produce the maximum oil from seeds.

By application, the Specialty Oils market is segmented into cosmetics and personal care, pharmaceuticals, food, etc. Across all sectors, the application of specialty oils to food is expected to hold an advantage over the forecast period as consumer awareness of personal health increases. Furthermore, the use of special oils in cosmetics and personal care products is showing high growth in this sector.

Impact of COVID-19 on the Specialty Oils Market:

As the coronavirus spreads rapidly around the world, countries are working to prevent further transmission by taking steps such as contact tracing, social distancing, communication, surveillance, self-isolation and testing. The supply and demand for specialty oils in the global market has become a response to the coronavirus crisis as price uncertainties increase. The confectionery and industry has seen an increase in sales as people buy these products during closing.

Regional Analysis:

Asia Pacific is expected to dominate the global Specialty Oils market with a larger market share, followed by North America. Italy, France and Germany are the main producers of special oils in the European region. The increasing use of specialty oils in aromatherapy and pharmaceuticals is supporting the growth of the specialty oils market in North America and Europe. Additionally, the United States and Canada in North America are experiencing high growth rates in this market. The strong potential of specialty oils and the increased application of specialty oils in cosmetics and personal care are supporting market boom in these countries. The global market for specialty oils has recently witnessed the emergence of a wide range of applications in the Asia Pacific. In India, palm oil and other specialty oils are consumed in large quantities, while Indonesia, China and Malaysia are praised as prestigious manufacturers of specialty oils.

Key Players in the Market:

Major Key Players in the Global Specialty Oils Market are

• IOI Group
• AAK AB
• Wilmar International
• D & L Industries
• Cargill Inc
• Mewah International
• Manildra
• IFFCO Group
• Musim Mas
• The Nisshin Oillio Group
• 3F GROUP
• Puratos Group NV
• De Wit Specialty Oils
• Oleo-Fats Inc
• Bunge Limited
• Archer Daniels Midland Company
• The Hain Celestial Group Inc
• Apical Group Ltd
• Ventura Foods
• Adams Group
• Liberty Oil Mills Ltd
• Presco PLC