| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| 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 |
Specialty Fats & Oils Market Analysis
The Specialty Fats And Oils Market is expected to register a CAGR of 7.38% during the forecast period.
- 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.
Specialty Fats & Oils Market Trends
Growing Demand for Cocoa Butter Equivalents Among Food Manufacturers
- Cocoa is a costly ingredient owing to the fluctuating prices of raw materials. Manufacturers of chocolate or confectionery products are opting for substitutes such as cocoa butter equivalents (CBE) owing to the high prices and fluctuation in demand and supply of natural cocoa butter. Thus, manufacturers prefer low-cost sustainable vegetable fats and oils like cocoa butter equivalents, palm oil, and others. Furthermore, cocoa substitutes also help increase the profit margins of food & beverage manufacturers, thus gaining popularity among manufacturers. Earlier, cocoa butter was the preferred ingredient over cocoa butter equivalent as a fat source.
- However, manufacturers are shifting towards cocoa butter equivalents (CBE) as it helps improve the fat stability and fat composition profile in the end products. Furthermore, Cocoa Butter Equivalents (CBE) provide manufacturers with the ability to achieve consistent product quality by minimizing fat migration in multi-layer products and addressing the softness that can occur due to the presence of milk or nut ingredients.
- For instance, according to Agriculture and Agri-Food Canada (AAFC), the retail sales volume of chocolate confectionery was 140.5 metric tons in 2023 in India. Furthermore, cocoa butter equivalents offer sustainability and flexibility, helping to reduce the cost by 30-40%.
- The growing demand for substitutes for cocoa butter that possess similar chemical and physical properties as cocoa is further propelling the growth of specialty fats in the market. The growing consumption of confectionery products is enabling confectionery manufacturers to use specialty fats as an ingredient to enhance the profile of the end products. For instance, according to the United States Department of Agriculture (USDA), the production volume of palm oil was 77.22 million metric tons in 2022-23.
- In addition, the growing demand for healthy fat products, along with the increasing number of food companies demanding ingredients with healthier fats, is boosting the sales of specialty fats in the market.
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North America Holds the Majority Share
- The increased consumption of processed food products in the region, along with the growing interest of consumers in high-quality products and increasing willingness to pay a premium price for premium-quality products owing to the high disposable income of consumers, is enabling manufacturers to incorporate high-quality ingredients products in processed food.
- For instance, according to the International Monetary Fund (IMF), gross domestic product (GDP) per capita in the United States was USD 80,304.58 in 2023. The rising demand for safe and indulgent bakery and confectionery goods is boosting the sales of specialty oils and fats in the region. The rise in awareness regarding the importance of leading a healthy lifestyle accelerates market growth. The prevalence of various chronic diseases, such as diabetes and cardiovascular diseases, among others, is encouraging people to adopt vegetable oil.
- With a considerable number of consumers opting to replace vegetable and seed oil with olive oil, the sales of olive oil have continued to thrive, while the demand for the latter has experienced a decline. This shift in consumer preferences has resulted in sustained growth in olive oil sales, with vegetable and seed oils losing market share as a consequence.
- According to the United States Department of Agriculture (USDA), in 2021, domestic olive oil consumption in the United States amounted to approximately 423,000 metric tons, an increase from 395,000 metric tons in 2020. In addition to the health and wellness claims, consumers are especially drawn to features that denote a more premium product. These include where and how ingredients are sourced, as well as natural components.
- The demand for specialty fats and oils is surging to manufacture high-value and premium food products. The presence of key market players in the region, along with the increasing number of specialty fats and oils manufacturers investing heavily in research and development to innovate new products to cater to the demand of end-users, is fuelling the market's growth. Furthermore, increasing preference for natural ingredients over synthetic chemicals in the food and beverages industry, along with growing demand for genuine and reliable certified specialty oils to fulfill the labeling claims of the end products, is expected to boost the sales of certified specialty fats and oils in the market.
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Specialty Fats & Oils Industry Overview
The specialty fats and oils market is highly competitive due to the presence of many international, regional, and local players. The key players operating in the market are Bunge Limited, Wilmar International Limited, Golden Agri-Resources Ltd, Kuala Lumpur Kepong Berhad, and Sime Darby Plantation Sdn Bhd, among others. The market players are adopting expansion as a key strategy to strengthen their specialty fats and oils business.
In addition, the key players have used various strategies such as agreements, joint ventures, acquisitions, partnerships, product launches, and others to gain a significant market share. The market players are investing heavily in research and development (R&D) to expand their specialty fat and oil product portfolios and attract more end-users by providing innovative products.
Similarly, players, such as Sime Darby Plantation, are marketing their products by launching new campaigns and introducing sustainable strategies for smallholders and regional farmers to accentuate their position among other industry players.
Specialty Fats & Oils Market Leaders
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Bunge Limited
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Wilmar International Limited
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Golden Agri-Resources Ltd
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Kuala Lumpur Kepong Berhad
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Sime Darby Plantation Sdn Bhd
- *Disclaimer: Major Players sorted in no particular order
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Specialty Fats & Oils Market News
- November 2022: To expand its geographic footprint and bolster its high-quality specialty oil and fats business in southeast India, AAK acquired Arani Agro Oil Industries Ltd. This strategic move was aimed at enhancing AAK's position in the specialty fats and oils market, allowing the company to better serve customers in the region while capitalizing on the growing demand for specialty products.
- December 2021: Bunge Loders Croklaan built a state-of-the-art, sustainable production facility in the Port of Amsterdam. When completed in 2024, the plant will replace the Maasvlakte refinery in Rotterdam, which was sold at the end of last year. Production at the current Bunge Loders Croklaan location in Wormerveer will also be moving to this new facility.
- November 2021: Cargill Incorporated invested USD 35 million to expand its production facility of specialty fats in Port Klang, Malaysia. The company planned to install dry palm fractionation capacity, which helps in the production of a wide range of specialty fats for different applications, including coatings, chocolates, spread, bakery fats, and other applications. The company aimed to increase its production capacity and offer tailored solutions that align with the unique needs of its customers.
Specialty Fats & Oils Industry Segmentation
Specialty fats and oils have unique properties desired in both industrial and non-edible applications. Specialty fats are also known as hard butter, confectionery fat, and cocoa butter alternatives. Some specialty oils contain a high amount of nutritionally desired components, including essential fatty acids, phytosterol, antioxidants, phospholipids, and other bioactive phenolics.
The specialty fats and oils market is segmented based on type, application, and geography. By type, the market is segmented into specialty fats and specialty oils. The specialty fats segment is 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 segmented into soybean oil, rapeseed oil, palm oil, coconut oil, olive oil, and other oils. By application, the market is segmented into bakery, confectionery, dairy products, infant nutrition, and other applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.
For each segment, the market sizing and forecasts have been done based on value (in USD million).
| 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 Specialty Oils | |||
| 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 | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Middle East and Africa | United Arab Emirates | ||
| South Africa | |||
| Rest of Middle East and Africa | |||
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Specialty Fats & Oils Market Research FAQs
What is the current Specialty Fats And Oils Market size?
The Specialty Fats And Oils Market is projected to register a CAGR of 7.38% during the forecast period (2025-2030)
Who are the key players in Specialty Fats And Oils Market?
Bunge Limited, Wilmar International Limited, Golden Agri-Resources Ltd, Kuala Lumpur Kepong Berhad and Sime Darby Plantation Sdn Bhd are the major companies operating in the Specialty Fats And Oils Market.
Which is the fastest growing region in Specialty 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 Specialty Fats And Oils Market?
In 2025, the North America accounts for the largest market share in Specialty Fats And Oils Market.
What years does this Specialty Fats And Oils Market cover?
The report covers the Specialty Fats And Oils Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Specialty Fats And Oils Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Specialty Fats & Oils Industry Report
Statistics for the 2025 Specialty Fats And Oils market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Specialty Fats And Oils analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
