| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| CAGR | 5.30 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Fats and Oils Market Analysis
The Fats and Oils Market is expected to register a CAGR of 5.3% during the forecast period.
- Fats and oils are used extensively in food applications such as confectioners to produce candies and polish confectionery products. Refined olive oil and coconut oil are increasingly used for various bakery applications as they are bland in taste, allowing food to maintain its original flavor. They also do not exhibit any pungency, unlike mustard oil.
- According to the Food and Agricultural Organization (FAO) price index, the cost of fats and oils has increased by 40% between 2020 and 2021. In December 2021, these prices returned to their pre-COVID-19 levels. In 2021 compared to 2020, more industries utilized fats and oils as lubricants. Fats and oils have gained prominence as feed products due to their health benefits for poultry and cattle.
- Fats and oils are also well-known for high-energy food ingredients that contribute essential nutrients the body requires. Moreover, due to health concerns, consumers are gradually replacing trans fat with a healthier substitute, namely unsaturated liquid vegetable oils, such as olive, canola, corn, or soy. This is expected to drive demand for such products across the globe in various applications. Also, today, many fat and oil ingredients are available in great taste and texture while simultaneously targeting appealing label claims around nutrition content.
- Demand for such products is growing in the market and is expected to drive the fats & oils market over the forecast period. Fats and oils are high-energy supplements that ensure nutritional balance while minimizing feed costs. Thus, these are added as feed additives to reduce the incidence of bloat and energy density in the feed.
Fats and Oils Market Trends
Increasing Demand for Vegetable Oil in Energy and Cosmetic Industry
- Fats and oils are used in various manufacturing processes. With the rising awareness of the sustainable use of fossil fuels, manufacturers are opting for vegetable oils instead of lubricants. They are now being employed as a sustainable form of production in industries such as paints, lubricants, and paper, without the need for chemicals. Non-food uses, particularly oleochemicals, account for a sizable portion of the market.
- Oils and fats are the sources of oleochemicals. Oleochemicals from palm oil have a better odor and color than those made from low-grade animal fats. In many applications, their increased C16 content and vegetable origin provide advantages. Vegetables are also used as cutting or metal working fluid (MWF) in machinery operations.
- After processing, the lubricant nature of vegetable oils makes them versatile and helps ease machinery operations, which can be a possible alternative to fossil fuels. With many manufacturers using vegetable oils as lubricants, the demand for vegetable oils has been increasing and driving the market positively.
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Europe is the Fastest Growing Region in the Market
- A considerable number of policies have been implemented by the authorities of several countries that support the production and consumption of vegetable oils, thus boosting the market's growth. The European Union's vegetable oil consumption for biofuel has been primarily driven by the Renewable Energy Directive (RED).
- The EU member states (countries) must implement this target along with their national laws and incentives, such as blending mandates. Palm oil contributes to around 20% of the production of biodiesel (fatty acid methyl ester) and renewable diesel (hydro-treated vegetable oil) in the European Union.
- The other significant feed-stocks for producing diesel substitutes are rapeseed, used in cooking oils, and animal fats. Additionally, the amount of soybean oil used in biofuel production in the United States has been rising steadily due to the renewable fuel standard (RFS) and the biodiesel and renewable diesel tax credits. This trend is likely to continue in the foreseeable future.
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Fats and Oils Industry Overview
The fats and oils market is highly fragmented yet competitive, with a significant share held by the leading player, Wilmar International. Its segment, Tropical Oils, claims a dominant presence across the world. The most active companies in the market are Cargill Inc., Sime Darby Plantation, Bunge Limited, AAK, Olam International Limited, and ADM. These companies are more focused on expanding their global presence by increasing the production capacity of fats and oils. The other strategic steps major players take are partnerships, joint ventures, and sharing production facilities for a cost-effective outcome.
Fats and Oils Market Leaders
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Cargill Incorporated
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Bunge Limited
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Fuji Oil Holding Inc.
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Olam International
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The Archer Daniels Midland Company
- *Disclaimer: Major Players sorted in no particular order
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Fats and Oils Market News
- May 2021: ADM invested about USD 350 million to build a soybean crushing facility in North Dakota, United States. The plant is expected to finish and start processing by 2023. The plant functionaries include soy crushing, oil refining, and processing of soy-related products.
- November 2021: Cargill invested about USD 35 million to expand the Malaysian vegetable oil production facility. The facility features dry palm fractionation capacity, enabling the production of specialty fats for chocolates, coatings, and spreads.
- December 2021: Fuji Oil launched a joint venture with one of its subsidiaries, Fuji Specialities Inc., and ITOCHU International Inc., forming FII. The prime reason behind this collaboration is to expand the vegetable oil business in North America. The joint venture shares the raw material, manufacturing, and sales of fats and oils across North America.
Fats and Oils Industry Segmentation
Fats and oils are lipids. They are important energy stores in animals and plants. Fats are solid at room temperature, whereas oils are liquids.
The scope of the fats and oils market includes segmentation by type, application, and geography. Based on type, the market is segmented into fats and oils. Fats are further segmented into butter, tallow, lard, and specialty fats. Moreover, oil is segmented into soybean oil, rapeseed oil, palm oil, coconut oil, olive oil, cotton seed oil, sunflower seed oil, and other oils. Based on application, the market is segmented into food & beverage, personal care & cosmetics, pharmaceuticals, animal feeds, and others. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.
For each segment, the market sizing and forecasts have been done based on value (in USD million).
| Type | Fats | Butter | |
| Tallow | |||
| Lard | |||
| Specialty Fats | |||
| Oils | Soybean Oil | ||
| Rapeseed Oil | |||
| Palm Oil | |||
| Coconut Oil | |||
| Olive Oil | |||
| Cotton Seed Oil | |||
| Sunflower Seed Oil | |||
| Other Oils | |||
| Applications | Food & Beverages | Confectionary | |
| Bakery | |||
| Dairy Products | |||
| Other Applications | |||
| Pharmaceuticals | |||
| Animal Feed | |||
| Personal Care & Cosmetics | |||
| Others | |||
| Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Rest of North America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Italy | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Middle-East and Africa | South Africa | ||
| Saudi Arabia | |||
| Rest of Middle-East and Africa | |||
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Fats and Oils Market Research FAQs
What is the current Fats and Oils Market size?
The Fats and Oils Market is projected to register a CAGR of 5.3% during the forecast period (2025-2030)
Who are the key players in Fats and Oils Market?
Cargill Incorporated, Bunge Limited, Fuji Oil Holding Inc., Olam International and The Archer Daniels Midland Company are the major companies operating in the Fats and Oils Market.
Which is the fastest growing region in Fats and Oils Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Fats and Oils Market?
In 2025, the Asia-Pacific accounts for the largest market share in Fats and Oils Market.
What years does this Fats and Oils Market cover?
The report covers the Fats and Oils Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Fats and Oils Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Oils and Fats Industry Report
The Global Fats and Oils Market is segmented by type and applications, covering food & beverages, pharmaceuticals, animal feed, personal care & cosmetics, and other applications. The market analysis includes a market forecast outlook and a historical overview. This industry analysis offers a comprehensive market size and market statistics.
The market research indicates significant market growth and highlights the market leaders. The industry overview provides insights into market trends and market segmentation. The market report includes detailed market data and market value, offering a market review and market predictions.
The industry reports and industry research provide valuable industry information and an industry outlook. The report example is available as a report PDF for further reference. The industry sales and industry size are analyzed to understand the market dynamics better. The market outlook and market overview contribute to a thorough understanding of the market forecast and market growth.
This report also includes industry statistics and industry trends, emphasizing the market's development. The research companies involved have compiled extensive data to support the market analysis. The industry reports and market data are crucial for understanding the market value and market segmentation. The industry outlook and market predictions offer insights into future market trends and growth rate.
