South America Fats and Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

South America Fats and Oil Market are segmented by Type (Fats, Specialty Fats, and Oils); By Application (Food, Industrial, and Animal Feed), and by Geography.

Market Snapshot

South America Fats and Oil Market
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4.59 %

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Market Overview

South America Fats and Oil Market are expected to record a CAGR of 4.59% during the forecast period, 2020-2025.

  • Amidst rising concerns, consumers are increasingly shifting toward natural alternatives in order to avoid conventional beauty products, which has conclusively raised the demand for products formulated with natural ingredients, including cocoa and shea butter, for their excellent emollient properties.
  • Brazil and Venezuela are the leading vegetable oil producing countries in South America.
  • Owing to several heart risks, associated with partially-hydrogenated vegetable fats and their by-products, governments are repositioning their policies and rolling outlaws to limit the usage of the same. This reflects the hindered growth of the market in the near future.

Scope of the report

South America fats and oil markets are 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.

By Type
Specialty Fats
Cocoa Butter Equivalents
Cocoa Butter Replacers
Cocoa Butter Substitutes
Cocoa Butter Improver
Milk Fat Replacer
Other Specialty Fats
Soybean Oil
Palm Oil
Coconut Oil
Olive Oil
Sunflower Seed Oil
Other Oils
By Application
Bakery Products
Dairy Products
Other Foods
Animal Feed
By Geography

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Key Market Trends

Palm Oil is Likely to Foster the Growth of the Market in the Region

Countries such as Colombia and Ecuador are inclining towards 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. In 2018, Ecuador became the first country in the region to adopt a jurisdictional approach to sustainable palm oil production in the whole country with an investment of USD 1.2 billion. The approach will aid in the organic and sustainable application in various sectors.

South America Fats and Oil Market1

Cosmetic Industry is Opening New Doors for Oil Utilization

The innovations in cosmetics applications are paving the way to the growing market. The most important single cosmetic use of an unmodified natural fat or oil is that of castor oil as the base for lipsticks. Other unmodified oils have largely minor specialty uses, particularly in higher-priced cosmetics. These include almond oil, apricot kernel oil, sesame oil, safflower oil, wheat germ oil, avocado oil, turtle oil, and mink oil. Cocoa butter is used to some extent in suntan products. Reconstituted fractionated coconut oil is widely used. Moreover, complex oils are being developed for better stability and versatility. For instance, Cargill introduced a new ingredient category called Ultra Oils, representing a unique level of purity for oils and oil products. The range is developed by combining natural properties of vegetable oils blending it with the company’s exclusive technology and knowledge in lipids.

South America Fats and Oil Market2

Competitive Landscape

The manufactures 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. 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 asked for by the industries while procuring the raw ingredients in bulk. Therefore, the concerned manufacturers abide by the requirements to establish a strong consumer base. Moreover, different applications require suitable oil/ fat type to outperform, which again provides an opportunity to expand the product range.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study



    1. 3.1 Market Overview


    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


    1. 5.1 By Type

      1. 5.1.1 Fats

        1. Butter

        2. Tallow

        3. Lard

      2. 5.1.2 Specialty Fats

        1. Cocoa Butter Equivalents

        2. Cocoa Butter Replacers

        3. Cocoa Butter Substitutes

        4. Cocoa Butter Improver

        5. Milk Fat Replacer

        6. Other Specialty Fats

      3. 5.1.3 Oils

        1. Soybean Oil

        2. Palm Oil

        3. Coconut Oil

        4. Olive Oil

        5. Sunflower Seed Oil

        6. Other Oils

    2. 5.2 By Application

      1. 5.2.1 Food

        1. Confectionary

        2. Bakery Products

        3. Dairy Products

        4. Other Foods

      2. 5.2.2 Industrial

      3. 5.2.3 Animal Feed

    3. 5.3 By Geography

      1. 5.3.1 Brazil

      2. 5.3.2 Colombia

      3. 5.3.3 Venezuela


    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 AAK

      2. 6.4.2 Cargill Inc.

      3. 6.4.3 Bunge Limited

      4. 6.4.4 Olam International Limited

      5. 6.4.5 Fuji Oil Holding Inc.

      6. 6.4.6 Archer Daniels Midland Company

      7. 6.4.7 Wilmar International

    5. *List Not Exhaustive

**Subject to Availability

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Frequently Asked Questions

The South America Fats and Oil Market market is studied from 2016 - 2026.

The South America Fats and Oil Market is growing at a CAGR of 4.59% over the next 5 years.

Cargill Inc., Bunge Limited, Olam International Limited , Fuji Oil Holding Inc. are the major companies operating in South America Fats and Oil Market.

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