Specialty Fats & Oils Market - Forecast(2023 - 2028)

Key Takeaways

• Demand and supply of cocoa butter and rising awareness about benefits of fatty acids consumption are key factors that are impelling the growth of specialty fats and oil market.
•  Decreasing demand for coconut oil and rising challenges for growing better quality cocoa crop likely to hamper the growth of the global market for specialty fats and oils.
•  Apart from this, a prominent surge in the intake of processed diet and confectionery will steer the growth of specialty fats & oils industry over the forecast period.
• There have been a considerable number of policies implemented by the authorities of various countries which support the production and consumption of vegetable oils, thus leading the market to grow.
•  Detailed analysis of the Strength, Weakness, and opportunities of the prominent players operating in the market will be provided in the Specialty fats and oil market report.

By Type – Segment Analysis

Specialty oil segment constitutes a major share by revenue in the Specialty Fats and Oil market share in 2019. The report provides key statistics on the market status of Specialty fats and oils and is valuable source for guidance and direction for companies and individuals interested in the industry.

Specialty fats are further segmented into cocoa butter equivalents, cocoa butter substitutes, cocoa butter replacers, cocoa butter improvers, dairy fat replacers and other. Specialty oils are further segmented into palm oil, soybean oil, coconut oil, cotton seed oil, rapeseed oil and other.

By Application – Segment Analysis

Bakery products holds largest market share in 2019 and is estimated to grow at a CAGR of 5.6% during period of 2020-2025. As per the Statistical Bulletin of CAOBISCO (Association of the Chocolate, Biscuit & Confectionery Industries of the EU) the biscuits, confectionery, and chocolate industry contributed majorly towards the European economy.  Rheological property which facilitates efficient production of confectionery products is one of the driving factors for the increasing use of specialty fats and oil. With rapidly expanding chocolate & confectionery sector and huge product demand from this sector, it is likely to aid in the market growth of the specialty fats and oils market.

By Geography – Segment Analysis

Asia-Pacific is one of the major markets for specialty fats and oils which constitute 40% of overall market and is also estimated to be the fastest growing region over the forecast period 2020-2025. 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. Also, the increased consumer spending on food purchases and growing demand for processed foods is the major defining factor behind the growth.

Market Drivers - Specialty Fats and Oils Market

·         Growing demand for Packaged food products

The growing demand of packaged foods has led to increase as it feels most convenient for the consumers to buy it and other is, they trust packaged foods with company labelled with the belief of purchasing it. These products are free from external tampering and easy to handle. People are shifting from traditional food to adjusting and adapting urban packaged food habits. Packaged foods are making consumers aware of the new product launches along with their USP. The growing awareness of the people towards proper nutrition has led to an increased consumer inclination towards packaged food, which in turn, incite the growth of the specialty fats and oils market around the globe.

·         Rising Chocolate Consumption

The increasing demand and growing popularity of dark and organic chocolates are fueling the market’s growth. Specialty fats and oil mostly used as ingredients in chocolate industry. Based on the composition the dark chocolates is anticipated to grow in the emerging countries which will have impact the expansion of the chocolate industry and increase in the seasonal sales Chocolate, owing to its numerous health benefits, is the most consumed confectionery product in the world, and many companies are now developing sugar-free and organic chocolate items to cater to the health-conscious urban populace. Also, chocolate consumption has positive physiological effects. For instance, a specialty fat such as cocoa butter used in chocolate manufacturing is capable of hardening and setting on the surface of a cake and offer a smooth mouthfeel.

·         Demand for Low-Fat Dairy products

People are nowadays adopting to healthy lifestyle with rising health consciousness which has led to demand for Low-Fat Dairy products. The current perception of an epidemic of obesity has the potential to promote the consumption of low-fat dairy products, while at the same time making consumers more wary of the consumption of cheese and cream. Increasing investment in dairy research and science is boosting product innovations and helping develop new products in the low-fat dairy product market. There is a lot of development in the expansion of the yogurt food industry which is indirectly boosting the demand for low-fat dairy product.

Challenges - Specialty Fats and Oils Market

Health concerns related to excessive consumption of fats & oils is restraints

Excessive consumption of hydrogenated fats & oils increases the level of LDLs (low-density lipoproteins) and decreases the level of HDLs (high-density lipoproteins) in the blood, thereby increasing the risk of thrombosis. Vegetable oils that are high in polyunsaturated fatty acids (PUFA) may cause inflammation of cells and lead to an imbalance in the digestive system.

This consumption of trans fatty acids is strongly associated with risk of cardiovascular disease and cancer. Thus, the awareness about negative health effects of trans fatty acids is affecting the confectionary fats and shortening market.

Specialty Fats and Oils Industry Outlook

Product launches, mergers and acquisitions, joint ventures and R&D activities are key strategies adopted by players in the Specialty Fats and Oils Market.  Specialty Fats and Oils top 10 companies are Cargill INC, Wilmar International, IFFCO Group, Musim Mas Group, Fuji Oil USA, Mewah International, Bunge Limited, AAK AB, IOI Group, Manildra, D&L Industries and Nisshin Oillio Group.

Developments

• In October 2018, Naturefresh, the home grown brand of Cargill’s INC in India extended its offering into premium health oil space with launch of Nature Fresh Acti Heart.
• In July 2019, Bunge Loaders Croklaan opened its new edible oil processing facility in China. This expansion would help the company to cater to the increasing demand for plant-based specialty oils and fats ingredients for the food and foodservice industry in China.
• In February 2019, AAK has acquired Dutch company Mass Refinery B.V., to increase their capacity, support existing production facilities and also enable continued growth.  Mass Refinery B.V. is specialized in toll refining of vegetable oils and fats for the food industry.