Oils and Fats Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Global Fats and Oils Market is Segmented by Type (Fats and Oils); Applications (Food & Beverages, Pharmaceuticals, Animal Feed, Personal Care & Cosmetics, Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, Middle-East, and Africa,). The report offers market size and values in (USD million) during the forecasted years for the above segments.

Fats and Oils Market Size

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Fats and Oils Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 5.30 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Fats and Oils Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Fats and Oils Market Analysis

The fats and oils market is projected to register a CAGR of 5.3% during the forecast period.

  • Fats and oils are used extensively in food applications such as confectioners to produce candies and polish confectionery products. Refined olive oil and coconut oil are increasingly used for various bakery applications as they are bland in taste, allowing food to maintain its original flavor. They also do not exhibit any pungency, unlike mustard oil.
  • According to the Food and Agricultural Organization (FAO) price index, the cost of fats and oils has increased by 40% between 2020 and 2021. In December 2021, these prices returned to their pre-COVID-19 levels. In 2021 compared to 2020, more industries utilized fats and oils as lubricants. Fats and oils have gained prominence as feed products due to their health benefits for poultry and cattle.
  • Fats and oils are also well-known for high-energy food ingredients that contribute essential nutrients the body requires. Moreover, due to health concerns, consumers are gradually replacing trans fat with a healthier substitute, namely unsaturated liquid vegetable oils, such as olive, canola, corn, or soy. This is expected to drive demand for such products across the globe in various applications. Also, today, many fat and oil ingredients are available in great taste and texture while simultaneously targeting appealing label claims around nutrition content.
  • Demand for such products is growing in the market and is expected to drive the fats & oils market over the forecast period. Fats and oils are high-energy supplements that ensure nutritional balance while minimizing feed costs. Thus, these are added as feed additives to reduce the incidence of bloat and energy density in the feed.

Fats and Oils Market Trends

This section covers the major market trends shaping the Fats & Oils Market according to our research experts:

Increasing Demand for Vegetable Oil in Energy and Cosmetic Industry

  • Fats and oils are used in various manufacturing processes. With the rising awareness of the sustainable use of fossil fuels, manufacturers are opting for vegetable oils instead of lubricants. They are now being employed as a sustainable form of production in industries such as paints, lubricants, and paper, without the need for chemicals. Non-food uses, particularly oleochemicals, account for a sizable portion of the market. 
  • Oils and fats are the sources of oleochemicals. Oleochemicals from palm oil have a better odor and color than those made from low-grade animal fats. In many applications, their increased C16 content and vegetable origin provide advantages. Vegetables are also used as cutting or metal working fluid (MWF) in machinery operations. 
  • After processing, the lubricant nature of vegetable oils makes them versatile and helps ease machinery operations, which can be a possible alternative to fossil fuels. With many manufacturers using vegetable oils as lubricants, the demand for vegetable oils has been increasing and driving the market positively.
Fats and Oils Market - Fats and Oils Market: Imports of Animals or Vegetables Oils Fats, 2017-2021

Europe is the Fastest Growing Region in the Market

  • A considerable number of policies have been implemented by the authorities of several countries that support the production and consumption of vegetable oils, thus boosting the market's growth. The European Union's vegetable oil consumption for biofuel has been primarily driven by the Renewable Energy Directive (RED).
  • The EU member states (countries) must implement this target along with their national laws and incentives, such as blending mandates. Palm oil contributes to around 20% of the production of biodiesel (fatty acid methyl ester) and renewable diesel (hydro-treated vegetable oil) in the European Union.
  • The other significant feed-stocks for producing diesel substitutes are rapeseed, used in cooking oils, and animal fats. Additionally, the amount of soybean oil used in biofuel production in the United States has been rising steadily due to the renewable fuel standard (RFS) and the biodiesel and renewable diesel tax credits. This trend is likely to continue in the foreseeable future.
Fats and Oils Market: Market Share (%), By Region, Global, 2021

Fats and Oils Industry Overview

The fats and oils market is highly fragmented yet competitive, with a significant share held by the leading player, Wilmar International. Its segment, Tropical Oils, claims a dominant presence across the world. The most active companies in the market are Cargill Inc., Sime Darby Plantation, Bunge Limited, AAK, Olam International Limited, and ADM. These companies are more focused on expanding their global presence by increasing the production capacity of fats and oils. The other strategic steps major players take are partnerships, joint ventures, and sharing production facilities for a cost-effective outcome.

Fats and Oils Market Leaders

  1. Cargill Incorporated

  2. Bunge Limited

  3. Fuji Oil Holding Inc.

  4. Olam International

  5. The Archer Daniels Midland Company

*Disclaimer: Major Players sorted in no particular order

Fats and Oils Market Concentration
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Fats and Oils Market News

  • May 2021: ADM invested about USD 350 million to build a soybean crushing facility in North Dakota, United States. The plant is expected to finish and start processing by 2023. The plant functionaries include soy crushing, oil refining, and processing of soy-related products.
  • November 2021: Cargill invested about USD 35 million to expand the Malaysian vegetable oil production facility. The facility features dry palm fractionation capacity, enabling the production of specialty fats for chocolates, coatings, and spreads.
  • December 2021: Fuji Oil launched a joint venture with one of its subsidiaries, Fuji Specialities Inc., and ITOCHU International Inc., forming FII. The prime reason behind this collaboration is to expand the vegetable oil business in North America. The joint venture shares the raw material, manufacturing, and sales of fats and oils across North America.

Fats and Oils Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Fats

        1. 5.1.1.1 Butter

        2. 5.1.1.2 Tallow

        3. 5.1.1.3 Lard

        4. 5.1.1.4 Specialty Fats

      2. 5.1.2 Oils

        1. 5.1.2.1 Soybean Oil

        2. 5.1.2.2 Rapeseed Oil

        3. 5.1.2.3 Palm Oil

        4. 5.1.2.4 Coconut Oil

        5. 5.1.2.5 Olive Oil

        6. 5.1.2.6 Cotton Seed Oil

        7. 5.1.2.7 Sunflower Seed Oil

        8. 5.1.2.8 Other Oils

    2. 5.2 Applications

      1. 5.2.1 Food & Beverages

        1. 5.2.1.1 Confectionary

        2. 5.2.1.2 Bakery

        3. 5.2.1.3 Dairy Products

        4. 5.2.1.4 Other Applications

      2. 5.2.2 Pharmaceuticals

      3. 5.2.3 Animal Feed

      4. 5.2.4 Personal Care & Cosmetics

      5. 5.2.5 Others

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Russia

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 South Africa

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Cargill Incorporated

      2. 6.3.2 Bunge Limited

      3. 6.3.3 The Archer Daniels Midland Company

      4. 6.3.4 Fuji Oil Holding Inc.

      5. 6.3.5 Olam International

      6. 6.3.6 Wilmar International Limited

      7. 6.3.7 Musim Mas Group

      8. 6.3.8 Alami Commodities Sdn Bhd

      9. 6.3.9 Kuala Lumpur Kepong Berhad

      10. 6.3.10 Arista Industries

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Fats and Oils Industry Segmentation

Fats and oils are lipids. They are important energy stores in animals and plants. Fats are solid at room temperature, whereas oils are liquids.

The scope of the fats and oils market includes segmentation by type, application, and geography. Based on type, the market is segmented into fats and oils. Fats are further segmented into butter, tallow, lard, and specialty fats. Moreover, oil is segmented into soybean oil, rapeseed oil, palm oil, coconut oil, olive oil, cotton seed oil, sunflower seed oil, and other oils. Based on application, the market is segmented into food & beverage, personal care & cosmetics, pharmaceuticals, animal feeds, and others. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.

For each segment, the market sizing and forecasts have been done based on value (in USD million).

Type
Fats
Butter
Tallow
Lard
Specialty Fats
Oils
Soybean Oil
Rapeseed Oil
Palm Oil
Coconut Oil
Olive Oil
Cotton Seed Oil
Sunflower Seed Oil
Other Oils
Applications
Food & Beverages
Confectionary
Bakery
Dairy Products
Other Applications
Pharmaceuticals
Animal Feed
Personal Care & Cosmetics
Others
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Russia
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
South Africa
Saudi Arabia
Rest of Middle-East and Africa
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Fats and Oils Market Research FAQs

The Fats and Oils Market is projected to register a CAGR of 5.30% during the forecast period (2024-2029)

Cargill Incorporated, Bunge Limited, Fuji Oil Holding Inc., Olam International and The Archer Daniels Midland Company are the major companies operating in the Fats and Oils Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia-Pacific accounts for the largest market share in Fats and Oils Market.

The report covers the Fats and Oils Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Fats and Oils Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Oils and Fats Industry Report

Statistics for the 2024 Oils and Fats market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oils and Fats analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Oils and Fats Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)