Fats and Oils Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

There has been a considerable number of policies implemented by the authorities of several countries that support the production and consumption of vegetable oils, thus leading the market to grow. The European Union’s consumption of vegetable oil for bio-fuel has been primarily driven by the Renewable Energy Directive (RED). This directive, established in 2009, requires 10% of the energy consumption in road and rail transport, in 2020, to be generated from renewable sources. The EU member states (countries) are required to 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, also 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 as a result of the RFS and the biodiesel and renewable diesel tax credits, and this trend is likely to continue during the foreseeable future.

Beauty and cosmetic products contain numerous detrimental ingredients and toxic chemicals. Around 90% of the approximately 13,000 chemicals used in cosmetic products are not FDA-approved. Furthermore, several tests conducted by organizations and associations indicated the presence of catastrophic heavy metals, such as lead, beryllium, thallium, and cadmium, which are branded as potential carcinogens and lead to serious health risks, including cancer, infertility, and Alzheimer’s disease. Amidst rising concerns, consumers are increasingly shifting toward natural alternatives, in order to avoid using conventional beauty products, which has conclusively raised the demand for products formulated with natural ingredients, including specialty fats, such as cocoa and shea butter, for their excellent emollient properties. Moreover, the personal care industry has witnessed a substantial surge in the launch of products, such as body butter, body moisturizers, and lipsticks, all comprising pure forms of shea and cocoa butter.