The normal and specialty fats market size is projected to be valued at USD 39.5 billion in 2023 and is expected to rise to USD 74.15 billion by 2033. The sales of normal and specialty fats are likely to register a CAGR of 6.5% during the forecast period.
Various factors propelling the demand for normal and specialty fats are:
Food consumption is currently increasing as a result of the growing population. This is one of the main factors contributing to a positive market outlook, along with the expanding food and beverage (F&B) business and growing reliance on ready-to-eat (RTE) food goods.
They can be consumed as supplements or used in cooking, as spreads or sauces. Specialty fats and oils come in a variety and are readily available in the market. The most widely used ones include coconut oil, avocado oil, fish oil, and olive oil.
The demand is also being fueled by the widespread use of normal and specialty fats in the preparation of numerous recipes, including baked goods and as a condiment on cooked foods. Normal and specialty fats sales are also rising as a result of the global expansion of cafés, cloud kitchens, and quick service restaurants (QSRs).
The market is distinguished by numerous brands that serve the B2C market by providing high-quality goods at flexible pricing ranges. The advancement in dairy farming and the rise in the production of dairy products drive growth in normal and specialty fats production across several regions.
Manufacturers are spending more on aggressive marketing strategies, such as influencer marketing on social media platforms and television (TV). In addition, the easy availability of the product across offline and online distribution channels is assisting in the market's expansion.
The threat posed by counterfeit products may emerge as an obstacle for the normal and specialty fats market. These fake goods are subpar or could endanger customers' safety and the brands' reputation.
Additionally, the growing trend of eating out and consuming ready meals may open up business growth opportunities in the next few years.
| Attribute | Details |
|---|---|
| Normal and Specialty Fats Market Estimated Size (2023) | USD 39.5 billion |
| Normal and Specialty Fats Market CAGR (2023 to 2033) | 6.5% |
| Normal and Specialty Fats Market Forecasted Size (2033) | USD 74.15 billion |
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Given their many multiple uses in the food, cosmetics, and pharmaceutical industries, specialty fats and oils are in high demand. Considering the numerous health advantages connected with these items, the market is anticipated to expand rapidly over the next few years.
As consumers become more health-conscious, they seek out organic and natural products that are free of artificial chemicals and additives. This trend is particularly prevalent in developed countries such as the United States, the United Kingdom, and Germany.
More individuals are converting to plant-based diets for ethical or health reasons related to animal welfare. Palm oil, coconut oil, and olive oil are among the plant-based fats and oils that are in higher demand due to this.
A growing trend of personal care and cosmetic items, including specialized fats and oils, is also being seen in the market for specialty fats and oils. For instance, shea butter, an ingredient originating from African trees that is high in vitamins A and E, is present in many skin care products.
Hence, end users such as catering, quick service restaurants, and artisanal bakeries have become a constant source of revenue generation for normal and specialty fats manufacturers. Future Market Insights opines the normal and specialty fats market is projected to remain steady, exhibiting a record of 6.5% CAGR between 2023 and 2033 and witnessing a revenue size of USD 74.15 billion by 2033.
Among other things, butter has been shown to strengthen the immune system, control hormones, safeguard vision, increase metabolism, improve brain function, reduce the risk of heart disease and blood pressure, guard against cancer, act as a potent antioxidant, and guard against gastrointestinal problems and conditions. Growing consumer awareness has positively influenced the consumption of reduced, low-cholesterol, and low-fat butter.
The spreadable form of specialty fats and oils, one of the form segments, held a significant revenue share in the global market and is anticipated to develop at a relatively faster rate of 6.3% during the forecast period. End consumers' strong preference for the spreads, makes these specialty fats a better substitute for cocoa and dairy fats. Growing customer demand for reduced cholesterol and fat products is to account for the segment's expansion over the assessment period.
In the food sector, fats and oils are utilized in a wide range of products, including dairy products, processed foods, chocolates, and confectioneries. They contribute to the tenderness of the shorter cake and give a range of dishes pleasing qualities. Cakes' texture is further aided by fats, which aerate the dough. They are anticipated to have an extensive market share than industrial applications as a result.
Specialty oils have recently experienced tremendous growth in appeal on the German market, both as a consumer good and as a premium ingredient. Specialty oils made from nuts, such as coconut, walnut, and peanut, are becoming increasingly popular in some European nations. Since more and more people are now looking for natural products, the demand for cold-pressed extra virgin olive oil, rapeseed oil, coconut oil, and other oils has dramatically increased in the German market.
Two factors contribute to the huge need for specialized fats and oils in the United States. First off, numerous affluent individuals in the region are willing to pay more for these goods. Second, because the American food market is so fiercely competitive, producers are constantly coming up with novel and innovative methods to use specialty fats and oils in their goods. Olive oil, canola oil, coconut oil, and palm oil are a few of the most often utilized specialty fats and oils in United States culinary goods. Numerous uses for these components include baking, cooking, salad dressings, and more.
With almost 14% of the world's total production of fats and oils in 2015, China is in second place and is a significant producer of canola and soybean oils. In China, palm oil is frequently utilized as the primary specialty oil in processed foods, baked goods, and confections in place of hydrogenated oils. Due to their lower cost, enhanced functionality, and sustainability, CBEs made from a combination of shea stearin and palm mid-fraction are replacing cocoa butter in confections on a more frequent basis. About 90 to 95 percent of shea butter shipped is used in China to make products that are comparable to cocoa butter. This is accelerating the market's expansion in the region.
The global normal and specialty fats market is fragmented, with many local and international competitors striving for market dominance, and product innovation is a key strategic stance taken by the leading players. In addition, collaborations with other businesses and mergers, expansions, and acquisitions are frequently used tactics to strengthen a company's position and expand its market. Fonterra Co-operative Group, Arla Foods Amba, Dairy Farmers of America, and Land O' Lakes Inc. are a few of the well-known businesses active in the sector under study. Companies are vying for customers based on promotions, quality, innovation, and pricing. They are thus concentrated on strategic endeavors to obtain significant market shares. ?
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Key Companies Insights
Leading New Zealand-based dairy producer Fonterra actively invests in new product developments in the Normal and Specialty Fats market to bolster its product line and solidify its position in the international market. For instance, to meet the rising demand for organic dairy products, the company introduced a new carbon-zero-certified organic butter in March 2021.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.5% from 2023 to 2033 |
| Base Year of Estimation | 2023 |
| Historical Data | 2017 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and Volume in Units and F-CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
| Key Segments Covered | By Type, By Application, By End User, By Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; The Middle East & Africa; Oceania |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
| Key Companies Profiled | Fonterra Co-operative Group; Arla Foods; Dairy Farmers of America; Gujarat Co-operative Milk Marketing Federation; Ornua Co-operative Ltd.; Land O’Lakes, Inc.; Nestle India Ltd.; Organic Valley Family of Farms; Royal FrieslandCampina NV; The Kraft Heinz Company |
| Customization & Pricing | Available upon Request |
The global normal and specialty fats market is estimated to be valued at USD 39.5 billion in 2023.
The normal and specialty fats market is likely to record a CAGR of 6.5%during 2023 to 2033.
The normal and specialty fats market is projected to reach a valuation of USD 74.15 billion by 2033.
Asia Pacific is projected to lead the global normal and specialty fats market by 2033.
The market is valued at USD 39.5 billion in 2023.
Arla Foods, Nestle India Ltd, and Fonterra Co-operative Group are the key market players.
The market is forecast to register a CAGR of 6.5% through 2033.
Germany is estimated to witness a 4% growth rate until 2033.
A CAGR of 4.7% is projected for the bakery segment through 2033.
| 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% |
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Normal and Specialty Fats Market
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