The global yellow fats market size is expected to reach a valuation of USD 28.3 Billion by the end of 2022, accelerating at a CAGR of 4.2% during 2022 to 2032. Growing popularity of yellow fats in the bakery and confectionery industry is expected to drive the yellow fats market forward, which has historically grown at a modest rate of around 3.6%. The global yellow fats market is projected to reach USD 42.7 Billion in 2032.
According to FMI, yellow fats are used as a raw material in creating margarine and as a shortening in dough, puff pastries, croissants, and other pastry items. Easy spreadability and toughness of butter can be ascribed to changes in the content of saturated and unsaturated fatty acids. Increasing application of yellow fats in bakery products is set to propel growth in the global yellow fats market.
Moreover, ongoing expansion of the foodservice industry and surging manufacturing of food products across the globe are anticipated to drive the global yellow fast market. Various government agencies, such as the USA Food and Drug Administration (FDA) and the USA Department of Agriculture (USDA), are introducing federal guidelines and regulations for butter and margarine-related products. The published regulations are guidelines are further ensuring the quality of dairy products up to safety standards for consumers.
| Attributes | Key Statistics |
|---|---|
| Global Yellow Fats Market Estimated Size (2022E) | USD 28.3 Billion |
| Projected Market Valuation (2032F) | USD 42.7 Billion |
| Value-based CAGR (2022 to 2032) | 4.2% |
| Collective Value Share: Top 3 Countries | 32.2% |
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Yellow fats have a smooth texture, which makes them simple to prepare and use. It is simple to utilize in machines and has a high level of stability for safe processing. Furthermore, it aids in separating the dough and butter layers during the laminating process.
It also allows for the coloring of pastries and the browning of pastry items. Textured butter further improves the flavor and texture of culinary goods. Bakery product consumption is increasing, which is projected to contribute to the expansion of the yellow fats market.
Yellow fats retain their smooth and firm texture at any melting point throughout the year, enhancing their use in confectionery and bakery products. The number of hotels, restaurants, and cafes is increasing globally. Various restaurant and cafe owners prefer to buy yellow fats in bulk and keep them for extended periods.
People choose to visit restaurants and cafés more frequently due to rapid urbanization, another reason driving the demand for yellow fats. Thus, by 2032, the yellow fats market is anticipated to be worth USD 42.7 Billion and exhibit growth at a CAGR of 4.2% from 2022 to 2032.
Increasing Demand for Butter and Margarine
Spreads are no longer merely a morning choice served with toast. Though spreads are becoming oversaturated as a breakfast companion product, they are increasingly being employed to enhance convenience in making other foods. Apart from traditional breakfast, spreads are extensively employed during dining occasions, workplace lunches, and leisure snacking.
The term "yellow fat spread" refers to any spreadable fat such as butter, margarine, or blended fat spreads. The versatility of yellow fat spreads is thus expected to drive growth in the global yellow fats market over the forecast period.
Principal Consultant
Demand for Vegetable Fat Spreads to Grow in the USA amid Surging Need for Unique Flavors
Consumers in the USA are becoming more interested in various mouthwatering culinary products offered by the food and beverage market. As customers explore more of the globe via the lusciousness of regional cuisines, flavor inspiration is affecting the food and beverage market. Flavor inspiration is one of the primary factors driving the demand for yellow fats among customers in the USA spreads industry.
Yellow fat spreads are produced with various ingredients that provide flavor, texture, and scent. These spreads are also available in grocery store aisles and are gradually becoming the most desired go-to food choice due to their wide variety of tastes. These factors are pushing the USA yellow fats market at a rapid pace.
Increasing Number of Cake Shops in Germany to Fuel Sales of Fat Spread Butter
In Germany, increasing need for nutritionally beneficial value-added baking and confectionery items is driving the demand for yellow fats among bakery and confectionery artisans & craftsmen. Yellow fats are mainly utilized in a wide range of products, including cakes, waffles, confectioneries, and doughnuts, to give customers tasty culinary alternatives & cutting-edge taste profiles. Furthermore, expansion of the bakery and confectionery industry, as well as rising number of various cake shops in several parts of Germany, is expected to foster the yellow fats market in the next decade.
Yellow Fat Spreads to Gain Traction in India with Surging Inclination towards Premium Products
The concept of premiumization in India is pushing various food & beverage companies to go beyond cost and provide outstanding quality and a greater experience. Premiumization has also increased customer awareness regarding high-quality, value-added products made by using premium components that offer greater health benefits. Consumers are prepared to pay more for items that provide various health advantages, which is their only requirement. They are looking for one-of-a-kind products that would fulfill their fundamental nutritional and health demand, while also providing a sensory delight.
Butter Brands to Generate High Demand in the Upcoming Decade
According to FMI, the butter segment is set to account for a significant share of the global yellow fats market, but margarine is expected to witness a steady growth rate during the forecast period. Increasing demand for spreads from millennials and Gen-Z consumers is driving growth of the global market.
Food & Beverage Industry to Extensively Use Fat Spreads and Margarines
On the basis of end-use application, the household/retail consumption of yellow fats is anticipated to witness lucrative growth rate over the forecast period. High demand for unique flavors, convenience, and nutritional properties in food is expected to drive the demand for yellow fats in the food & beverage industry. Companies are also making new soft items that may be distributed straight from the fridge
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Margarine has evolved through time into a diverse range of products for both home use and for baking, catering, & prepared meal businesses. As a result of this diversification, the general phrase "yellow fats" is now frequently used to refer to margarine, spreads, and similar products. Key players operating in the global yellow fats market are focusing on increasing retail sales of yellow fats, as its popularity as margarine is increasing at a fast pace.
For instance,
Bunge, Land O'Lakes, Inc., and Danone Are Introducing Vegan and Kid-friendly Products to Deepen Their Relationships with Customers
Bunge Limited is an American agricultural and food corporation headquartered in St. Louis, Missouri. It was founded in Bermuda. It engages in grain trade, food processing, fertilizer production, and exporting soybeans internationally. It is considered to be the largest producer and supplier of fertilizers to farmers in South America. Bunge is also the world's top marketer of bottled vegetable oil to consumers and the world's largest processor of oilseeds.
In May 2022, Bunge North America, Inc., a division of Bunge Limited signed a deal with Chevron USA Inc., a division of Chevron Corporation, to establish Bunge Chevron Ag Renewables LLC. By combining Bunge's knowledge of oilseed processing and relationship with farmers with Chevron's expertise in fuel production and marketing, the new firm will produce sustainable fuel feedstock. Similarly, in April 2022, Bunge announced its agreement to sell Zen-Noh Corporation 35 interior grain elevators in the USA Sale completion is anticipated to occur in Q4 2020 or Q1 2021, subject to regulatory approval.
Land O'Lakes, Inc., on the other hand, is a dairy-focused American member-owned agricultural cooperative with headquarters in the Arden Hills neighborhood of Minneapolis-St. Paul, Minnesota. Through its dairy goods division, the co-op is among the biggest makers of butter and cheese in the USA It also provides services to farmers, animal owners, and their families through more than 4,700 local cooperatives. For instance, in June 2022, the company announced that with seven new varieties at some stores, Land O Lakes Cheese may now be available in the dairy case area of the grocery store.
Danone S.A. is another global food-products firm headquartered in Paris. It was established in Spain's Barcelona. Danone India provides a variety of specialist products for all phases of life, including pregnancy, babies, early children, and adults, under well-known Indian and international brands such as Aptamil, Neocate, Farex, Protinex, Dexolac, and Nusobee.
In July 2022, in response to parents' requests for vegetarian and flexible diet alternatives for their babies, Danone announced the release of the first-ever Dairy and Plants Blend infant formula. The consumption of plant-based foods is rising significantly, with almost 70% [69%] of parents increasingly preferring their children eat more plant-based meals, and more than one-third [37%] of EU consumers selecting a vegan, vegetarian, or flexitarian diet.
| Attributes | Details |
|---|---|
| Estimated Market Size (2022) | USD 28.3 Billion |
| Projected Market Valuation (2032) | USD 42.7 Billion |
| Value-based CAGR (2022 to 2032) | 4.2% |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | Value (USD Billion) and Volume (MT) |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, Nordic, Russia, Poland, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Singapore, Australia, New Zealand, GCC countries, North Africa, South Africa, others. |
| Key Segments Covered | Product Type, End-use Application, and Region |
| Key Companies Profiled | Bunge; Clover; Land O’ Lakes Inc.; Arla Foods; Amul; Crystal Farms; Danone SA; Horizon Organics; Dean Food Company; Nestle SA; Kraft Foods Inc.; Yorkshire Butter; Vitalite; County Milk Products; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The yellow fats market is expected to reach a valuation of nearly USD 28.3 Billion by 2022.
The yellow fats market is anticipated to reach a valuation of USD 42.7 Billion by the end of 2032.
The yellow fats market is expected to register a 4.2% CAGR between 2022 and 2032.
Europe is anticipated to drive demand in the yellow fats market during the forecast period of 2022 to 2032.
Some of the key players present in the yellow fats market are Bunge, Clover, Land O’ Lakes Inc., Arla Foods Amba, Amul, Crystal Farms, Danone SA, Horizon Organics, Dean Food Company, Nestle SA, Kraft Foods Inc., Yorkshire Butter, Vitalite, and County Milk Products.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Analysis 2017 to 2021 and Forecast 2022 to 2032, By Product Type 5.1. Butter 5.2. Margarines/Spreads 6. Global Analysis 2017 to 2021 and Forecast 2022 to 2032, By End Use Application 6.1. Food & Beverage Industry 6.1.1. Bakery 6.1.2. Dairy & Ice to creams 6.1.3. Chocolate & Confectionery 6.1.4. Spreads, Dressings & Condiments 6.2. Cosmetics & Personal Care Industry 6.3. Food Service (Hotels, Restaurants, Cafes) 6.4. Household/Retail 6.4.1. Hypermarkets/Supermarkets 6.4.2. Traditional Grocery Stores 6.4.3. Convenience Stores 6.4.4. Online Retail Stores 6.4.5. Departmental Stores 7. Global Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. East Asia 7.5. South Asia 7.6. Oceania 7.7. MEA 8. North America Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 9. Latin America Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10. Europe Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. East Asia Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. South Asia Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Oceania Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. MEA Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Key Countries Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Bunge 17.2. Clover 17.3. Land O’ Lakes Inc. 17.4. Arla Foods Amba 17.5. Amul 17.6. Crystal Farms 17.7. Danone SA 17.8. Horizon Organics 17.9. Dean Food Company 17.10. Nestle SA 17.11. Kraft Foods Inc. 17.12. Yorkshire Butter 17.13. Vitalite 17.14. County Milk Products 17.15. Others 18. Assumptions & Acronyms Used 19. Research Methodology
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Yellow Fats Market
