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

Global Specialty Fats and Oils Market is Segmented by Type (Specialty Fats (Cocoa Butter Equivalents, Cocoa Butter Replacer, Cocoa Butter Substitutes, Cocoa Butter Improvers, Milk Fat Replacers, and Other Specialty Fats) and Specialty Oils (Soybean Oil, Rapeseed Oil, Palm Oil, Coconut Oil, Olive Oil, and Other Oils)), by Application (Bakery, Confectionery, Dairy Products, Infant Nutrition, and Other Applications), and by Geography.

Market Snapshot

specialty fats and oils market summary
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 6.5 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The global specialty fats and oils market is projected to register a CAGR of 6.5% during the forecast period (2020 - 2025).

  • 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 consumption of good fatty acids is a key driver for the growth of the specialty fats and oils market.
  • Asia-Pacific is one of the major markets for specialty fats and oils. The demand for specialty oils and fats in the region is likely to remain concentrated in China and India, owing to a large consumer base and application in the countries.

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. Based on application 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.

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
Dairy Products
Infant Nutrition
Other Applications
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
Rest of the World
South America
Middle-East & Africa

Report scope can be customized per your requirements. Click here.

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. Moeover, 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.

Specialty Fats and Oil Market2

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, Fuji Oil Co. Ltd, Wilmar International Ltd, and AAK AB.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    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 Specialty Fats

        1. Cocoa Butter Equivalents (CBE)

        2. Cocoa Butter Replacers (CBR)

        3. Cocoa Butter Substitutes (CBS)

        4. Cocoa Butter Improvers (CBI)

        5. Milk Fat Replacers (MFR)

        6. Other Specialty Fats

      2. 5.1.2 Specialty Oils

        1. Soybean Oil

        2. Rapeseed Oil

        3. Palm Oil

        4. Coconut Oil

        5. Olive Oil

        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. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. United Kingdom

        2. Germany

        3. France

        4. Italy

        5. Russia

        6. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. South America

        2. Middle-East & Africa


    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 Fuji Oil Holding Inc.

    4. *List Not Exhaustive

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Specialty Fats and Oils Market market is studied from 2016 - 2026.

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 2020.

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

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!