Global Market Study on PHO and Non-PHO based Oils and Fats: Palm Oil Emerging as a Frontrunner to Replace PHO Oils


Pho And Nonpho Based Oils And Fats  Market
  • Published On : Aug-2018 |
  • Pages : 266 Pages |
  • Format :

This report provides forecast and analysis of the global PHO and non-PHO based oils and fats market. It provides estimated data for 2018, and forecast data up to 2026 in terms of revenue (US$ Mn) and volume (metric tons). The report also includes the business environment scenario along with an outlook on PHO and non-PHO based oils and fats for the global market. It includes drivers and restraints of the global PHO and non-PHO based oils and fats market and their impact during the forecast period. The report also comprises the study of current regulatory scenario for PHO and Non-PHO based oils and fats. It also includes value chain analysis and cost structure of key oil modification processes.

In order to provide users of this report with a comprehensive view of the market, we have included detailed competitiveness analysis and PHO and non-PHO based oils and fats market key players and strategic overview. The dashboard provides a detailed comparison of PHO and non-PHO based oils and fats manufacturers on parameters such as total revenue, product offerings, and key strategy. The study encompasses PHO and non-PHO based oils and fats market attractiveness analysis by product type, application, and region.

The report includes PHO and non-PHO based oils and fats market company profiles and the revenue generated by the companies across Americas, South East Asia, Eastern Mediterranean, Western Pacific, Africa and Europe. On the basis of product type, the PHO and non-PHO based oils and fats market is segmented as partially hydrogenated oils and non-partially hydrogenated oils. In terms of volume, non-partially hydrogenated oils constitute a significant share in the PHO and non-PHO based oils and fats market. On the basis of application, the market is segmented into industrial, commercial and household.

PMR determined the volume consumption of PHO and non-PHO based oils and fats across various regions including the Americas, South East Asia, Eastern Mediterranean, Western Pacific, Africa and Europe. Forecasting is done through an internal proprietary model using different macroeconomic, industry-based demand driving factors impacting the market and its forecast trends by identifying and allocating a weighted score to forecast factors that influence the demand for PHO and non-PHO based oils and fats. These factors were the representative of an entire value chain, as well as the macroeconomic indicators such as regulatory scenario and their impact, production, import, and export scenario, per capita consumption and agri-produce scenario have been taken into consideration to arrive at the volume consumption of PHO and non-PHO based oils and fats in respective countries.

For the estimation of market size, consumption of various oils was calculated considering the local production, export, and import for each country. This was followed by analyzing the overall share of PHO and non-PHO based oils and fats in the oils and fats market. The data validation was done by identifying the production capacity of key players in each region. Product pricing has been collected at the manufacturer node to arrive at the market size for PHO and non-PHO based oils and fats. In addition, margarine and shortening have also been analyzed in the report but excluded from market estimations as they are produced from oils and animal fats, which is likely to lead to an overlap in the estimations for PHO and non-PHO oils.

Weighted average selling price for PHO and non-PHO based oils and fats was considered to estimate the market size for top PHO and non-PHO based oils and fats consuming countries. These prices were captured in their respective countries and then converted into USD to offer forecasts in one consistent currency standard.

Given the characteristics of the market, PMR triangulated the data based on the supply side, demand side, and dynamics of the global PHO and non-PHO based oils and fats market. To develop the global PHO and non-PHO based oils and fats market forecast, PMR analyzed various factors to understand their respective impact on the target market. However, quantifying the market across the abovementioned segments is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them after the forecast has been completed.

Global PHO and Non-PHO based Oils and Fats Market – By Product Type

  • Partially Hydrogenated Oils
    • Palm Oil
    • Soy Oil
    • Groundnut Oil
    • Coconut Oil
    • Rapeseed Oil
    • Sunflower Oil
    • Cottonseed Oil
  • Non-Partially Hydrogenated Oils
    • Palm Oil
    • Soy Oil
    • Groundnut Oil
    • Coconut Oil
    • Rapeseed Oil
    • Sunflower Oil
    • Cottonseed Oil
    • Olive Oil

 Global PHO and Non-PHO based Oils and Fats Market – By Application

  • Industrial
    • Food and Beverages Industry
      • Bakery
      • Dairy and Ice cream
      • Chocolate & Confectionery
      • Bread and Cereals
      • Others
    • Personal Care and Cosmetics
    • Others
  • Commercial (Hotel/Restaurant/Café), (HoReCa)
  • Household

Global PHO and Non-PHO based Oils and Fats Market – By Region

  • Americas
  • South East Asia
  • Eastern Mediterranean
  • Western Pacific
  • Africa
  • Europe

It is imperative to note that in an ever-fluctuating economy, we not only provide forecasts in terms of CAGR but also analyze on the basis of key parameters, such as year-on-year (Y-o-Y) growth, to understand predictability of the market and identify the right opportunities.

Another key feature of this report is an analysis of the global PHO and non-PHO based oils and fats market and the corresponding revenue forecast in terms of absolute dollar opportunity. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global PHO and non-PHO based oils and fats market.

To understand key segments in terms of their growth and performance in the global PHO and non-PHO based oils and fats market, Persistence Market Research has also presented a market attractiveness index. The resulting index should help providers identify existing market opportunities in the global PHO and non-PHO based oils and fats market.

The report provides detailed competitive and company profiles of key participants operating in the global PHO and non-PHO based oils and fats market. PHO and non-PHO based oils and fats key players include Bunge Ltd., Archer-Daniels Midland Co., AAK AB, Ventura Foods, Apical Group Ltd., Adams Group., Cargill, Incorporated, Wilmar International Limited, Puratos Group NV, INTERCONTINENTAL SPECIALTY FATS SDN. BHD, IFFCO Group., 3F Industries Limited, Musim Mas Holdings, Oleo-Fats Inc., De Wit Specialty Oils, IOI Corporation Berhad, Liberty Oil Mills Ltd., Fuji Oil Holdings Inc., Mewah International Inc., Corbion N.V. and others.

Global PHO and Non-PHO based Oils and Fats Market: Global Industry Analysis and Forecast, 2018–2026

According to the U.S. FDA (Food and Drug Administration), PHOs are defined as oils and fats which have been hydrogenated, however, not to complete or near complete saturation, and with an iodine value (IV) greater than 4. PHOs are the primary dietary source of industrially-produced trans-fatty acids as unlike other edible oils, PHOs inherently contain trans-fats and are intentionally produced to affect the function and properties of the oils and the characteristics of the food to which they are added. According to the WHO (World Health Organization), the intake of trans-fat leads to over 500,000 deaths annually resulting from cardiovascular diseases which is also attributed to the increasing health awareness triggering the demand for non-PHO based oils and fats in the food and beverage industry.

pho and nonpho based oils and fats market

Stringent Rules and Regulations Applied for the Elimination of Trans-fatty Acids, Molding the Current Scenario of PHO and non-PHO based Oils and Fats Market

Owing to the rise in some fatal diseases caused due to the consumption of fatty food products, concerned food safety authorities and organizations have been taking steps on limiting the use of trans-fatty acids in most food products that are being consumed. The WHO is one of the frontrunners in taking initiatives on limiting the use of trans-fatty acids in food production which has resulted in a sharp decline in the demand of PHO oils thus triggering the demand for non-PHO based oils and fats. Countries like Austria, Denmark, Hungary, Iceland, Norway, and Singapore have limited industrially-produced trans-fat content in all foods to 2 percent of fats and oils. Moreover, the U.S. and Canada have implemented nationwide bans on PHOs, which are considered as the main sources of industrially-produced trans-fats, by the end of 2018. Furthermore, FSSAI (Food Safety and Standards Authority of India), the food safety regulatory body in India, which happens to be one of largest markets for fats and oils, has laid down guidelines to limit trans-fats in oil by 2% by 2022 in response to the WHO guidelines against the consumption of trans-fats, while the currently permitted level for trans-fat is 5%. These regulations are covered in detail in the report on global PHO and non-PHO based oils and fats market and include the latest information on regulations against trans-fatty acids of key countries that have implemented them. Moreover, leading food and non-alcoholic beverage companies are also committing to phase out trans-fats in their products in compliance with the WHO’s goal of eliminating industrially produced trans-fat by 2023. For instance, the International Food and Beverage Alliance, which represents companies like Nestlé, Kraft, Unilever, PepsiCo, Mars, Kellogg, General Mills, Ferrero and others, have committed to reduce the industrially produced trans-fatty acids from PHO in all of their products across the globe to not more than one gram trans-fatty acid per 100 grams of the product by the end of 2018.

Food Industry Response Against trans-fat Bans

The majority of food and beverage manufacturers are opting for palm oil and oils blended with palm oil fractions as PHO replacement. Palm oil has emerged as the most attractive replacement attributed to its low cost, abundant supply and flexibility in various formulations. Moreover, palm oil has a neutral taste, has a high smoking point and melting point which makes it ideal for frying. These factors are anticipated to drive the growth of palm oil over the forecast period. However, companies are also using hard fat blends and interesterified soybean oil as a PHO replacement oil. Trait modified high oleic soybean and canola oil are also being introduced in the market by key players. In December 2017, Cargill, which is a U.S.-based provider of food, agricultural, financial, and industrial products across the globe, introduced lowest saturated fat, high oleic canola oil commercially available to a number of food customers, globally. This oil is made up of a canola hybrid containing 4.5% or less saturated fatty acid while maintaining extended shelf life, improved taste, and freshness. Apart from this, the oil also reduces 35% of saturated fat content in comparison to other canola oils available in the market.

Global PHO and Non-PHO based Oils and Fats Market Contributor

Global PHO and non-PHO based oils and fats market is moving at a decent pace and will catch up on major opportunities, our analysis revealed. The market conditions are developing and scaling up with growing demand for non-PHO based oils and fats as more and more countries are implementing bans on trans fats, competitors in the market are making an investment in alternative technologies such as interesterification, enzymatic inter-esterification, and fractionation to cater the growing demand of non-PHO based oils and fats. However, to phase out the trans-fats from the food supply will require more resources—technical, human, and financial and regulatory checks and infrastructure especially in underdeveloped and developing countries.

Company Profile

  • Cargill, Inc.
  • Wilmar International Ltd.
  • Intercontinental Specialty Fats
  • PURATOS
  • IFFCO Group
  • 3F Industries Limited
  • Musim Mas Holdings
  • Fuji Oil Holdings Inc.
  • Oleo-Fats Inc.
  • De Wit Specialty Oils
  • Mewah International Inc.
  • IOI Corporation Berhad
  • Archer-Daniels-Midland Company
  • Bunge Ltd.
  • AAK AB
  • The Hain Celestial Group Inc.
  • Ventura Foods
  • Apical Group Ltd.
  • Liberty Oil Mills Ltd.
  • Adams Group
  • PRESCO PLC.
  • Corbion N.V.
  • Maverik Oils, L.L.C.
  • Others.
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