The global interesterified fats market size is forecast to reach USD 4,486.2 million in 2023. Total interesterified fat sales are poised to surge at 5.9% CAGR over the forecast period (2023 to 2033) taking the overall market valuation to USD 7,439.4 million by end of 2033.
Rising application of interesterified fats in food processing, cosmetics & personal care, and pharmaceutical is providing impetus to the development of the global interesterified fats industry.
Interesterified fats were initially introduced as a substitute for unhealthy trans fats which have detrimental effects on cardiovascular health. These interesterified fats are being used in a wide range of food products as they minimize the content of saturated fatty acids.
Growing awareness about the health benefits of interesterified fats coupled with rising demand for healthy food products is expected to boost interesterified fats industry during the projection period.
Globally, consumers are becoming more informed regarding the food products they consume and are carefully choosing what best suits their health and taste. This has prompted food manufacturing companies to utilize products such as interesterified fats in their products.
Various processed food manufacturers, spread brands, and food service chains have shifted towards low trans-fat product offerings, which they also highlight in their product packaging and advertisements. This is creating lucrative growth opportunities for the manufacturers of interesterified fats.
Similarly, growing prevalence of diseases such as obesity worldwide and increasing initiatives by government and other regulatory bodies to eliminate trans fats from food will propel interesterified fats demand during the projection period.
Over the years, several regulatory bodies have launched initiatives to lower trans fats in food products and prevent the development of cardiovascular diseases.
According to the World Health Organization (WHO), around 500,000 people die every year from cardiovascular disease caused by intake of trans fats. To tackle this, WHO released ‘REPLACE’, a guide for the elimination of industrially produced trans-fatty acids from worldwide food supply. This will continue to act as a catalyst triggering growth in the interesterified fats market.
Companies such as Bunge, Fuji Oil Co., Ltd., and Wilmar International Limited are driving the market forward with product innovation and technical advancements through rigorous research and development.
On the other hand, competitors such as Cargill Incorporated, Archer-Daniels-Midland Co., and Liberty Oil Mills Ltd are focusing on the proper strategy and marketing to be implemented to increase their market share.
| Attribute | Key Insights |
|---|---|
| Interesterified Fats Market Estimated Value (2023E) | USD 4,486.2 million |
| Projected Market Value (2033F) | USD 7,439.4 million |
| Value-based CAGR (2023 to 2033) | 5.9% |
| Top 3 Countries Marketing Share | 20% to 25% |
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| Market Statistics | Details |
|---|---|
| Jan to Jun (H1), 2021 (A) | 4.2% |
| Jul to Dec (H2), 2021 (A) | 4.8% |
| Jan to Jun (H1), 2022 Projected (P) | 5.1% |
| Jan to Jun (H1), 2022 Outlook (O) | 4.9% |
| Jul to Dec (H2), 2022 Projected (P) | 5.2% |
| Jul to Dec (H2), 2022 Outlook (O) | 6.2% |
| Jan to Jun (H1), 2023 Projected (P) | 5.8% |
Interesterified fats sales grew at a CAGR of 4.6% between 2018 and 2022 as per Future Market Insights. However, for the next ten years (2023 to 2033), the global interesterified fats market is expected to witness a growth rate of 5.9% CAGR, surpassing a valuation of USD 7,439.4 million by the end of 2033.
Growing usage of interesterified fats across industries such as food processing, cosmetics & personal care, and pharmaceutical is a key factor driving the global market forward.
In recent years, there has been exponential growth in the usage of interesterified fats in food, pharmaceutical and cosmetics, and personal care products. This is expected to continue to boost the market during the projection period.
Trans fats, which are known to be bad for cardiovascular health, are being increasingly replaced by interesterified (IE) fats in a variety of food products. As a substitute for hydrogenation, interesterification of fats is being used more frequently to create the shortening and margarine bases.
Usage of interesterified fats helps lower levels of saturated fatty acids (SFA) and trans fatty acids (TFA) in various foods. Hence, growing demand for healthy food products will play a crucial role in boosting interesterified fats sales during the projection period.
| Regions | North America |
|---|---|
| Countries | United States |
| CAGR | 4.5% |
| BPS Analysis | -177 |
| Market Value (2033) | USD 1,494.2 million |
| Regions | Europe |
|---|---|
| Countries | United Kingdom |
| CAGR | 2.6% |
| BPS Analysis | -241 |
| Market Value (2033) | USD 258.9 million |
| Regions | Asia Pacific |
|---|---|
| Countries | China |
| CAGR | 5.4% |
| BPS Analysis | -310 |
| Market Value (2033) | USD 223.9 million |
| Regions | Asia Pacific |
|---|---|
| Countries | India |
| CAGR | 5.7% |
| BPS Analysis | -755 |
| Market Value (2033) | USD 410.3 million |
| Regions | Asia Pacific |
|---|---|
| Countries | Japan |
| CAGR | 6.3% |
| BPS Analysis | 121 |
| Market Value (2033) | USD 246.7 million |
Ongoing Reformulation Research and Projects for Improving Fatty Acid Profile of Foods Booting the USA Market
According to Future Market Insights, the USA interesterified fats market is forecast to exhibit a CAGR of 4.5% between 2023 and 2033, reaching a valuation of USD 1,494.2 million by the end of 2033. The United States is set to hold around 86.0% share of North America market in 2023.
Rising prevalence of lifestyle diseases such as obesity and initiatives by government and other regulatory bodies for encouraging usage of trans fat substitutes are key factors propelling unesterified fat sales across the USA.
Modifying the structure and activity of lipids to produce interesterified fat food ingredients is being encouraged by both consumers and regulatory bodies. As part of the ongoing reformulation projects (for improving the fatty acid profile of foods) being carried out by food makers, the usage of interesterified (IE) fats has increased in recent years and the trend is expected to continue during the assessment period.
Similarly, rapid expansion of food processing, bakery, and pharmaceutical industries will positively influence interesterified fat demand during the projection period.
Increasing Efforts of Companies to Reduce Trans-fats in Food Products Making India a Lucrative Market
The overall market for interesterified fats in India is projected to expand at 5.7% CAGR during the forecast period, reaching around USD 410.3 million by 2033.
Growing awareness about the health benefits of interesterified fats and growing efforts of food manufacturing companies to reduce trans-fats in their products are a few of the key factors fuelling interesterified fat sales across India.
India is gradually becoming a lucrative market for interesterified fat manufacturers owing to the rising awareness of the food ingredient reformulations. Subsequently, the growing trend of Indian food producers and retailers reformulating food ingredients to improve the fatty acid profile of regularly eaten fatty foods, such as cocoa butter will elevate interesterified fats demand.
Simple Nature and Environmental Benefits Making Enzymatic Interesterification Highly Preferable Process
By interesterification process, the market has been segmented into chemical and enzymatic. According to Future Market Insights, enzymatic interesterification will continue to remain the most preferred interesterified process due to its simple nature and environmental benefits. The target segment is set to accelerate at 6.2% CAGR between 2023 and 2033.
During chemical interesterification, redistribution of fatty acids in triacylglycerols occurs, changing the composition of fatty acids in the substance. The process affects the physical properties of oils and fats, such as crystallization capabilities and melting. As a result, manufacturers are opting for alternative processes such as enzymatic interesterification.
Enzymatic interesterification is a much simpler process with fewer steps. It reduces the environmental impact of interesterified fats production and has thus become a more sustainable production process.
Fats, when produced by enzymatic interesterification using a specific lipase catalyst, results in the production of triacylglycerols in the interesterified fats. These triacylglycerols include, stearoyl-oleoyl-stearoyl glycerol (SOS) and Palmitoyl-Oleoyl-Stearoylglycerol (POS).
This catalyzes the reaction between raw material rich in tristearin (SSS) or stearic acid, such as palm oil. These interesterified fats are considered to be healthy substitutes for conventional fatty acids which are harmful for human body.
Rich Omega-3 Fatty Acid Content in Palm Oil Making is an Ideal Source
By source, the global market is categorized into coconut oil, mango kernel, palm oil, illpe, sal, shea/shea nut oil, sunflower oil, kokum gurgi, soybean oil, and canola oil.
Among these palm oil remains the most used source for making interesterified fats. This is due to presence of large amounts of omega 3 fatty acids in palm oil and growing end user preference for interesterified fats with healthy ingredients.
Interesterified fats with omega-3 and omega-6 can easily be produced by using plant-based raw material techniques such as palm oil blending and PMF process while using lipozyme enzyme as a biocatalyst, which can easily retain both omega-6 and omega-3 contents in that fat product after the process.
Such modernization of interesterification processes has led to more efficient production and more innovative interesterified fats, which are full of healthy constituents in comparison to normal fat products.
Thanks to growing popularity of palm oil-based interesterified fats, FMI predicts the palm oil segment to hold around 30.3% market share of the global interesterified fats industry in 2023.
Food Processing Remains the Most Lucrative Application for Interesterified Fats
Based on end use application, the global market for interesterified fats is segmented into pharmaceuticals, food processing, and cosmetics & personal care.
Among these, food processing holds around 72.1% share of the market, and it is expected to further expand at 4.1% CAGR through 2033. This is attributed to rising usage of interesterified fats in numerous food products as a replacement for unhealthy trans fats.
Since their discovery, demand for interesterified fats has been growing with each passing day because of their usage in food processing industry. These fats are being used in products such as chocolate, snacks, candy & jelly, cotton candies, chewing gums, cake decoration items, bakery, frozen desserts, dairy products, beverages, and several other food items.
High adoption of interesterified fats in confectionery items and bakeries along with increasing consumption of these products is expected to fuel growth of the target segment during the assessment period.
Fatty products, being the main ingredient, have always played an important role in chocolate and other confectioneries production. Various factors related to normal fat products, such as uncertainty in supply, and variability in quality have generated demand for alternative products, such as interesterified fats.
Manufacturers are also interested in blending different raw material sources together in production, such as palm and coconut oils, to give an exotic flavor and exquisite taste to confectionery products.
Key interesterified fat manufacturers are concentrating on new product launches, mergers, collaborations, acquisitions, research & development activities, and partnerships to expand their customer base as well as strengthen their regional presence.
Recent Developments
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 4,486.2 million |
| Projected Market Size (2033) | USD 7,439.4 million |
| Anticipated Growth Rate (2023 to 2033) | 5.9% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others. |
| Key Segments Covered | Interesterification Process, Source, End Use Application, and Region |
| Key Companies Profiled | Archer-Daniels-Midland Co.; Adams Group; Cargill Incorporated; Wilmar International Limited; FUJI OIL CO., LTD.; Novozymes; Oleofinos; AAK KAMANI Pvt. Ltd.; Willowton Group |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers Restraints Opportunity Trends Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The global interesterified fats market is estimated to reach a valuation of USD 4,486.2 million in 2023.
The global interesterified fats demand is forecast to increase at 5.9% CAGR between 2023 and 2033.
During the historical period from 2018 and 2022, the worldwide interesterified fats industry recorded a CAGR of 4.6%.
As per FMI, the global interesterified fats industry is anticipated to attain a valuation of USD 7,439.4 million by the end of 2033.
Increasing use of interesterified fats in the food industry, growing need for trans-fat substitutes, and longer shelf life of interesterified fats are key trends driving influencing sales in the global market.
Leading players operating in the global interesterified fats industry include Bunge (Loders Croklaan), Archer-Daniels-Midland Co., Adams Group, Cargill Incorporated, and Wilmar International Limited.
The North America interesterified fats market is projected to expand at a 4.3% CAGR over the forecast period.
Leading players in the global market for interesterified fats are estimated to account for approximately ~20% to 25% of the total market share.
Europe’s interesterified fats industry is anticipated to expand at 5.1% CAGR during the assessment period.
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Interesterified Fats Market
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