South America Fats & Oil Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2023 - 2028 |
| Historical Data Period | 2018 - 2021 |
| CAGR | 4.59 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South America Fats & Oil Market Analysis
The South American Fats and Oil Market are expected to record a CAGR of 4.59% during the forecast period, 2022-2027.
The COVID-19 outbreak has disrupted the food & beverage supply chain all across the country. Furthermore, the impact of the pandemic on society and the economy has been witnessed as a result of lockdowns across the globe. Labor mobility restrictions, travel bans, airline suspensions, and a slowdown in the economy affected the sustainability of supply chains of the food and beverage industry all across the globe. Consumers' consumption habits have been changed by their perception of the risk associated with COVID-19. To reduce the risk of infection, consumers used delivery services to buy groceries and food products. Furthermore, fear of potential food ingredient shortages has fueled the hoarding trend in consumers. The unavailability of raw materials has raised new concerns for market players.
The market is primarily being driven by its extensive applications in the food industry for making bakery, confectionery, dairy, and other products, along with its industrial use in the production of biodiesel, fatty acids, animal feeds, paints and coatings, plastics additives, soaps, lubricants and greases, cosmetics, pharmaceuticals, etc.
Also, the growing demand for plant-based food ingredients has propelled the application of oils in food products. In 2020, according to Good Food Institute (GFI), the plant-based food products market in the Latin American region was worth around USD 800 million.Due to several heart risks associated with partially-hydrogenated vegetable fats and their by-products, governments are repositioning their policies and rolling outlaws to limit their usage. This reflects the hindered growth of the market in the near future.
South America Fats & Oil Market Trends
This section covers the major market trends shaping the South America Fats & Oil Market according to our research experts:
Palm Oil is Likely to Foster the Growth of the Market in the Region
Countries such as Colombia and Ecuador are inclining toward sustainable palm oil production as palm oil tightens its grip on the rest of South America by taking certification from Roundtable on Sustainable Palm Oil. Since palm oil is extensively utilized in the region, more manufacturers are trying to expand their local business and get involved in the overseas trade of palm oil. Palm oil is gaining popularity due to its reduced trans fat content and low pricing. Furthermore, palm oil is very competitive in terms of pricing compared to rapeseed, soybean, and sunflower oils. Palm oil and palm kernel oil are also used to swap butterfat from milk replacers for feeding young animals, while refined palm oil provides texture and taste for a variety of products, like margarine, and confectionery products, chocolates, and ice cream. In most industrialized regions, the demand for biofuel is increasing, which has boosted the demand for palm oil.
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Brazil Holds the Largest segment
Brazil is the world's leading soybean oilseed producer and exporter. It is the primary soybean supplier to China, the world's largest soy consumer, accounting for 85% of its total soybean purchases. In 2020, the country was the world's second-largest exporter of soybean oil, shipping 1,414.5 thousand tons to India, China, Bangladesh, and other worldwide markets. Furthermore, advancements in cosmetics applications paved the way for the country's rising demand for vegetable oils. For instance, in 2020, Cargill introduced the Ultra Oils ingredient category, representing a unique purity level for oils and oil products. This range was curated by combining the natural characteristics of vegetable oils with the company's lipid technology and understanding. In addition to the overseas market, increased local consumption has aided the expansion of soybean agriculture in Brazil. Soybean oil usage in the industrial sector has risen steadily over the last decade, owing to its use as the primary feedstock for biodiesel synthesis.
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South America Fats & Oil Industry Overview
The manufacturers of fats and oils in the region are ultimately striving to prove their superiority in the not-so-consolidated market by offering products that can be made a part of more applications than the conventional ones. Some of the Major Players in the markets are Cargill Inc., Bunge Limited, Olam International Limited, Fuji Oil Holding Inc., Aceitera General Deheza, AAK, Sime Darby Plantation Berhad, Agropalma, Archer Daniels Midland Company, Wilmar International. To achieve this, the main factors to be controlled are the stability of the oils/ fats through the use of antioxidants, reduced odor, and chemical modification. The purity of oils is one of the demanded factors by the industries while procuring the raw ingredients in bulk. Therefore, the concerned manufacturers abide by the requirements to establish a strong consumer base.
South America Fats & Oil Market Leaders
Cargill Inc.
Bunge Limited
Olam International Limited
Fuji Oil Holding Inc.
ADM
*Disclaimer: Major Players sorted in no particular order
South America Fats & Oil Market News
In October 2021, Cargill declared the introduction of poultry feed with essential oils for healthy flocks and augmented egg production. Enhanced Nutrena® NatureWise® formulas increase the wellness, happiness, and productivity of backyard chickens. Backyard poultry owners require organic, wholesome feeds that assist in their birds' flourishing and maintain their eggs healthily and their coops naturally.
In 2020, Cargill Brazil launched Lévia+c, 'a new fat' that can reduce the saturated fat content in ice cream, cream, and dairy drinks by up to 30%. The fat is a blend of vegetable oils, primarily soybean oils and emulsifiers, used to achieve firmness, slower melting, texture, and creaminess. The technology used to develop it is patent-pending.
In 2019, ADM acquired Brazilian oilseed facilities from Algar Agro. ADM will also gain access to an extensive network of origination and storage silos throughout northeastern and southeastern Brazil.
South America Fats & Oil Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Fats
5.1.1.1 Butter
5.1.1.2 Tallow
5.1.1.3 Lard
5.1.2 Specialty Fats
5.1.2.1 Cocoa Butter Equivalents
5.1.2.2 Cocoa Butter Replacers
5.1.2.3 Cocoa Butter Substitutes
5.1.2.4 Cocoa Butter Improver
5.1.2.5 Milk Fat Replacer
5.1.2.6 Other Specialty Fats
5.1.3 Oils
5.1.3.1 Soybean Oil
5.1.3.2 Palm Oil
5.1.3.3 Coconut Oil
5.1.3.4 Olive Oil
5.1.3.5 Sunflower Seed Oil
5.1.3.6 Other Oils
5.2 By Application
5.2.1 Food
5.2.1.1 Confectionary
5.2.1.2 Bakery Products
5.2.1.3 Dairy Products
5.2.1.4 Other Foods
5.2.2 Industrial
5.2.3 Animal Feed
5.3 Geography
5.3.1 Brazil
5.3.2 Argentina
5.3.3 Chile
5.3.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 AAK
6.4.2 Cargill Inc.
6.4.3 Bunge Limited
6.4.4 Olam International Limited
6.4.5 Fuji Oil Holding Inc.
6.4.6 Archer Daniels Midland Company
6.4.7 Sime Darby Plantation Berhad
6.4.8 Agropalma
6.4.9 Aceitera General Deheza
6.4.10 Wilmar International
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
South America Fats & Oil Industry Segmentation
The South American fats and oils market is segmented by type into fats, specialty fats, and oils. Based on the application, the market is classified according to the application of fats and oils in food, industrial, and animal feed applications. The market is also differentiated on the basis of geography.
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| Animal Feed |
| Geography | |
| Brazil | |
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| Chile | |
| Rest of South America |
South America Fats & Oil Market Research FAQs
What is the current South America Fats and Oil Market size?
The South America Fats and Oil Market is projected to register a CAGR of 4.59% during the forecast period (2023-2028).
Who are the key players in South America Fats and Oil Market?
Cargill Inc., Bunge Limited, Olam International Limited, Fuji Oil Holding Inc. and ADM are the major companies operating in the South America Fats and Oil Market.
South America Fats and Oil Industry Report
Statistics for the 2023 South America Fats and Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Fats and Oil analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South America Fats and Oil Report Snapshots
