Market Size of Specialty Fats And Oils Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 7.38 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Specialty Fats & Oils Market Analysis
The specialty fats and oils market was valued at USD 13,713.1 million for the current year and is expected to register a CAGR of 7.38% over the next five years.
- The growing demand for high-quality or specialty fats and oils that enables manufacturers to produce food products that are functionally superior as well as have improved nutrition content to cater to the demand for health-conscious consumers is augmenting the growth of the market. Specialty fats and oils have wide applications in the bakery, confectionery, dairy, infant nutrition, and others.
- Specialty fats are gaining popularity in infant nutrition as vegetable oils are commonly used to provide fatty acids in term and preterm infant formulas and human milk fortifiers (HMFs). Moreover, the rising presence of specialty fat manufacturers, including industry leaders like AAK, has led to the availability of customized solutions. These manufacturers offer specialty fats that can precisely control the triglyceride structure, ensuring enhanced absorbability and mimicking the composition of mother's milk. Additionally, they provide a range of man-made and natural contaminant-free ingredients, aligning with strict regional and local regulations. This enables food and beverage companies to meet regulatory requirements while catering to health-conscious consumers' evolving preferences and demands.
- Specialty fats offer a distinct solution to the challenge posed by the rising demand for cocoa as an ingredient amid declining production rates. Specialty fats, including cocoa butter substitutes and equivalents, have properties that are similar to those of cocoa. Specialty fats are additionally less expensive than cocoa butter.
- Specialty fats and oils are increasingly used to enhance product performance and ensure higher consumer acceptance, aiding the market's growth. Furthermore, the increasing number of manufacturers replacing cocoa butter with cocoa butter equivalents to enhance the quality and nutritional properties of the end products and increase their profit margins is anticipated to propel the market's growth.
- Specialty oils are marketed for their health-promoting properties, as hempseed oil helps reduce cholesterol levels, control high blood pressure, and help in the treatment of cancer, among others, in turn boosting the demand for specialty oils among food manufacturers.
