Specialty Fats and Oils Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Specialty Fats and Oils Market is Segmented by Type (Specialty Fats and Specialty Oils), by Application (Bakery, Confectionery, Dairy Products, Infant Nutrition, and Other Applications), and by Geography (North America, Europe, Asia-Pacific, and Rest of World). The report offers market size and forecasts for the specialty fats and oils market in value (USD million) for all the above segments.

Market Snapshot

specialty fats and oils market summary
Study Period: 2016 -2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 6.5 %

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Market Overview

The global specialty fats and oils market is projected to register a CAGR of 6.5% during the forecast period (2022 - 2027).

As this COVID-19 continues to spread rapidly at a global level, countries across the globe are trying to prevent further contagion by taking measures such as social distancing, contact tracing, self-quarantining, communication, and testing. The supply and demand for specialty fats & oils in the global market has shifted in response to the coronavirus crisis, with growing uncertainty related to prices.

Shortenings and specialty oils, such as cake oils, are increasingly used to enhance product performance and ensure higher consumer acceptance. These factors have accelerated the growth of this segment.

The increasing gap between demand and supply of cocoa butter in the confectionery and chocolate industry is met by the production of specialty fats. Moreover, the rising awareness about the benefits of the consumption of good fatty acids is a key driver for the growth of the specialty fats and oils market.

Scope of the Report

The scope of the market is segmented by type into specialty fats and specialty oils. Specialty fats can be further segmented into cocoa butter equivalents (CBE), cocoa butter replacers (CBR), cocoa butter substitutes (CBS), cocoa butter improvers (CBI), milk fat replacers (MFR), and other specialty fats. The specialty oils segment is further divided into soybean oil, rapeseed oil, palm oil, coconut oil, olive oil, and other oils. By applications, it is segmented into bakery, confectionery, dairy products, infant nutrition, and other applications. The study also involves the global level analysis of regions, such as North America, Europe, Asia-Pacific, and Rest of the World. The report offers market size and forecasts for Japanese foodservice (in USD billion) for the above segments.

By Type
Specialty Fats
Cocoa Butter Equivalents (CBE)
Cocoa Butter Replacers (CBR)
Cocoa Butter Substitutes (CBS)
Cocoa Butter Improvers (CBI)
Milk Fat Replacers (MFR)
Other Specialty Fats
Specialty Oils
Soybean Oil
Rapeseed Oil
Palm Oil
Coconut Oil
Olive Oil
Other Oils
By Application
Bakery
Confectionery
Dairy Products
Infant Nutrition
Other Applications
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
Germany
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
Rest of the World
South America
Middle-East & Africa

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Key Market Trends

Manufacturers Replacing Cocoa Butter with Cocoa Butter Equivalents

Cocoa production has always been fluctuating, and it is a costly ingredient. Hence, confectioners are using alternative ingredients to substitute cocoa butter to maintain profit margins. Earlier, cocoa butter was preferred over cocoa butter equivalent (CBE) as a fat source in chocolate products, but in the coming years, the balance is projected to shift in favor of CBEs. Annual growth in CBE demand is currently estimated to be at 10%, while for chocolate, it is only 3-4%. Reasons for the recent interest in CBEs include their 30-40% reduction in cost, as compared to cocoa butter, their sustainability, and the flexibility of the products. These specialty fats are also predominantly used to produce compound coatings used in bakery and confectionery products, where the coatings form 10% to 30% of the total weight of the enrobed products.

Specialty Fats and Oils Market1

Asia-Pacific is the Fastest Growing Market

As chocolate has begun to be used for a wider range of applications (including bread, ice cream, and cookies), there has been an increasing demand for highly functional specialty oils and fats for chocolate manufacturing. China ranks second, with about 14% of the total world production of fats and oils in 2015, and the country is a major producer of soybean and canola oils. In China, palm oil is widely being used to replace hydrogenated oils as the base specialty oil in processed food, bakery, and confectionery. Confectioners are increasingly substituting cocoa butter with CBEs derived from a mix of shea stearin and palm mid fraction due to reduced cost, improved functionality, and sustainability. Around 90-95% of exported shea butter is used in the production of cocoa butter equivalents in China. This is increasing the growth of the market studied in the region.

oils and fats Market

Competitive Landscape

The global specialty fats and oil market is highly competitive. The major players have used various strategies, such as new product launches, expansions, agreements, joint ventures, partnerships, and acquisitions, to increase their footprints in the market studied. The major players in the food industry are investing in R&D activities to expand their specialty fat and oil product portfolios and attract more consumers by providing innovative products. The key players in the market are Cargill Incorporated, Olam International, The Archer Daniels Midland Company, Musim Mas Group, Mehwah International, D&L Industries, Fuji Oil Co. Ltd, Wilmar International Ltd, and AAK AB.

Recent Development

In 2020, Bunge Loders Croklaan (BLC) announced the launch of Sweetolin - a patent-pending total fat system with solutions in confectionery coatings and fillings applications, enabling up to 50% sugar reduction in the final product.

In 2020, BASF Nutrition & Health Launched an omega-3 fatty acid product in Switzerland to help patients manage Non-Alcoholic Fatty Liver Disease (NAFLD), its first market in continental Europe for the product.

In 2020, AAK, one of the world’s leading manufacturers of value-adding specialty vegetable fats and oils, created a range of innovative plant-based fat & oil solutions for IFT2.AAK is showcasing a wide range of multi-functional fat solutions that help manufacturers create foods for today’s marketplace, including plant-based versions of everyone’s favorite foods that keep taste and texture intact

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 By Type

      1. 5.1.1 Specialty Fats

        1. 5.1.1.1 Cocoa Butter Equivalents (CBE)

        2. 5.1.1.2 Cocoa Butter Replacers (CBR)

        3. 5.1.1.3 Cocoa Butter Substitutes (CBS)

        4. 5.1.1.4 Cocoa Butter Improvers (CBI)

        5. 5.1.1.5 Milk Fat Replacers (MFR)

        6. 5.1.1.6 Other Specialty Fats

      2. 5.1.2 Specialty 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 Other Oils

    2. 5.2 By Application

      1. 5.2.1 Bakery

      2. 5.2.2 Confectionery

      3. 5.2.3 Dairy Products

      4. 5.2.4 Infant Nutrition

      5. 5.2.5 Other Applications

    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 United Kingdom

        2. 5.3.2.2 Germany

        3. 5.3.2.3 France

        4. 5.3.2.4 Italy

        5. 5.3.2.5 Russia

        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 Rest of the World

        1. 5.3.4.1 South America

        2. 5.3.4.2 Middle-East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Position 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 Olam International

      5. 6.3.5 Wilmar International Limited

      6. 6.3.6 Musim Mas Group

      7. 6.3.7 AAK AB

      8. 6.3.8 D&L Industries

      9. 6.3.9 Mehwah Internationa

      10. 6.3.10 Fuji Oil Holding Inc.

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

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Specialty Fats and Oils Market market is studied from 2016 - 2027.

The Specialty Fats and Oils Market is growing at a CAGR of 6.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Bunge Limited, Cargill, Incorporated, Fuji Oil Co., Ltd, Wilmar International Ltd, AAK AB are the major companies operating in Specialty Fats and Oils Market.

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