The low-fat product market is estimated to secure a valuation of US$ 8.9 Billion in 2023 and is estimated to rise to US$ 17.9 Billion by 2033. The market is anticipated to grow at a CAGR of 7.2% during the forecast period. The factors accelerating the demand for low-fat products are as follows-
Low-fat products are healthy and nutrition rich with reduced fat and calories, many buyers are reducing the intake of food that are high in fat thus they are opting for low-fat food products with fewer artificial ingredients.
The low-fat products include various types of food & beverages, like dairy products, baked goods, snacks, and ready-to-eat food, all of these with reduced fat content.
The low-fat products market is driven by growing concern about the side effects of synthetic additives and chemicals used in food & beverages. With an increasing number of disease related to the consumption of high-fat food and increasing sedentary lifestyle, low low-fat food gain popularity, which help consumers keep their fat intake in check
North America is the leading region in the low-fat product market followed by Europe. The growing health awareness among consumers and growing preference for balanced and nutritious food are driving the market growth in the region.
Asia Pacific is set to record fast growth over the forecast period for the low-fat product market owing to rapid urbanization and increased consumers’ inclination toward low-fat food products. The increased spending power and growing health awareness among millennials are fuelling market growth.
The players operating in the low-fat product market include Kellogg’s, Amul, Ajinomoto Company Inc, Cargill, PepsiCo, Danone, Nestle, Arla Food amba, Fonterra, and Bernard food industry among others. All these companies have a wide range of low-fat products like low-fat cheese, low-fat milk, and low-fat frozen desserts and drinks.
Manufacturers are performing mergers acquisitions and partnerships and joint ventures to increase their global footprint. And also focusing on the improvement of production lines and diversifying their offerings to cater to a wide consumer base. Market players are also investing in research & development and innovations to fulfill the demand for healthy products from the food & beverage industry.
For instance, Nestlé’s has NESTLÉ a+ SLIM Milk has 90% less fat as compared to buffalo and cow milk.
The low-fat butter market is expected to grow in the coming years as the increasing application of low-fat products in the food & beverage industry is expected to drive market growth during the forecast period.
Also, the rapid growth of e-commerce and numerous malls, convenience stores, and departmental stores are contributing to the expansion of the low-fat products market. New start-ups are entering the market and contributing to the growth of the market with the launch of new fat-free product range.
| Data Point | Key statistics |
|---|---|
| Expected Market value in 2023 | US$ 8.9 Billion |
| Projected Market Value in 2033 | US$ 17.9 Billion |
| Growth Rate (2023 to 2033) | CAGR of 7.2% |
Global low fat product market is estimated to notice rapid growth over the forecast period. The factor that attributes to rise the low fat product market is growing health awareness among the population around the world.
Increasing problem of obesity, cardiovascular diseases and diabetes over the years have triggered the demand for low fat products and it is expected to fuel the market for low fat products. In developing countries such as India, China, Mexico and Brazil, changing lifestyle of consumers and rapid urbanization is anticipated to be a key driver for low fat products.
Increasing retail sector and increasing disposable income of consumer is expected to have favorable impact on low fat product market. Introduction of dietary supplements, low fat cereal bars and functional foods over past few years has increased the demand for low fat products because of the lack of physical activity and hectic and busy lifestyle.
Additionally, making investment in research and development is fostering product innovation in the low fat product market. The constant R&D activities are contributing growth in the global market of low fat products.
Low fat products consist of healthy cereals, low fat dairy products, low fat drinks and snacks. Advancement in technology and increasing automation process in the industry are estimated to boost the low fat product industry growth.
Changing preference of consumer across the globe regarding the intake of healthy, tasty and organic foods are predicted to propel the demand of low fat product market. Growing consumption and production of organic products in the European market is estimated to boost the low fat product industry.
Many companies are innovating their products due to increasing popularity of new and organic product in the market. The production of low fat products is mainly driven by the West Europe and the United State companies. The key player of this region such as Danone and Nestle are expanding their manufacturing units across the globe to make their products easily available to everyone.
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Rising awareness about the health associated benefits from fat free products around the world is estimated to boost the demand for low fat products across the world. People are becoming more health conscious and they are choosing healthy diet over other foods to maintain a healthy lifestyle. Increasing number of obese population which is moving towards healthy lifestyle is making a positive impact on global low fat products.
Moreover, changing lifestyle is very common now a day, hectic and busy life compel the consumers to go for healthy foods which are low in fat and low in calories. Mostly, consumers are aware about the risk associated with their health with the consumption of high fat food and high calorie contain foods, thus it promote the market to increase the demand for products which promotes physical health with nutritional values by consuming low calorie and low fat products.
Increasing investment in research which in turn helps in product development and new products are launched to satisfy consumer’s needs. For instance, there is a lot of development happened in low fat dairy products such as introduction of low fat yogurt. In 2019, Danone had launched two yogurt lines that tap both low sugar and plant based trend.
The first is Greek low fat yogurt which is a dairy base product which include low sugar and low calorie. The second is Good plants it is a dairy free probiotic yogurt made with almond milk. Development and expansion of product portfolio boost the global low fat product.
Development in retail infrastructure drives the consumption of low fat products. Supermarket/hypermarket making is easy availability of products for consumer which is fueling the growth of global low fat products. Since the ingredients used in low fat products are costlier, hence the price of the product becomes costlier in comparison with other foods. This is one of the key restraints of the low fat products globally.
Some of the key players operating in global fat free product are as follows-
and many more. Many manufacturers of low fat products are moving towards product innovation by introducing new product variants in the existing product line, or by acquiring other companies which are already in the same market or they are expanding their geographical boundries by opening their new plant.
Principal Consultant
North America dominates the market by holding the market share followed by Europe. Over the year the manufacture of low fat products has been globalized due to the growth of economic in developing nations. The demand of low fat product is driven by the key manufacturers available in western European regions.
The market of North America is driven by increasing intake of low fat dairy products in United State. A huge number of local players are present in United State and these manufacturers are trying to launch new variants or flavors in the product to rise their market share.
Asia pacific is growing as a budding market with increase in rate of consumption of low fat products in regions such as India, China and Japan. Changing preference of consumer and rising number of consumer choosing organic products is estimated to propel the demand of low fat product in the market.
Australia and New Zeeland are the key suppliers of processed milk in the region. The increasing export of dairy products from this country is predicted to boost the low fat product market during forecast period.
The research report presents a comprehensive assessment of the low fat product market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to market segments such as application, product type, form, nature and sales channel.
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The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
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