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Specialty Fats and Oils Market Segmented By Specialty Oils, Specialty Fats, Lauric Fats, Creaming Fats, Anhydrous Milk Fats, Butter, Margarine, Shortenings Product
The market for specialty fats and oils can be expected to expand at a value-based CAGR of 4.6% and show an increase in revenue from US$ 52,401.3 Mn in 2023 to around US$ 82,174.3 Mn by 2033.
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Specialty Fats and Oils Market Size (2023E) |
US$ 52,401.3 Mn |
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Projected Sales of Specialty Fats and Oils (2033F) |
US$ 82,174.3 Mn |
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Value CAGR (2023-2033) |
4.6% |
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Value Share of Top 4 Countries (2022E) |
27.5% |
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The global specialty fats and oils market has witnessed significant growth in the historical period registering a CAGR of 4.9% in the historical period and was valued at US$ 52,401.3 Mn in 2023. The market is expected to grow steadily with increasing demand for nutritional food products along with increasing living standards.
Fats and oils are recognized as essential nutrients for both human and animal nutrition. The major component of fats and oils is triglycerides. Specialty fats and oils are the unique categories of fats that are substitutes for commonly available fats such as cocoa butter, butter, milk fats, etc. These types of fats and oils are tailored to meet the desired application in several industrial segments such as the food and beverages industry, personal care and cosmetic industry, and other industries. Specialty fats and oils cover, oils such as coconut oil, olive oil, palm kernel oil, cocoa butter substitutes, milk fat replacers, and others fats.
In the food industry, specialty oils and fats have increasingly found new applications over time, mostly due to the growing development of burgeoning markets free-from and specialist foods and rising consumer preference for clean-label functional foods.
The global market for specialty fats and oils is estimated to reach an approximate valuation of US$ 82,174.3 Mn in the forecast period.
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Get a Customized Version“Ample Availability of Soybean Oil Is Expected To Fulfill the Demand-Supply Gap”
Soybean oil is one of the major types of edible oils, which dominates in terms of consumption in markets across the globe. North America is one of the major producers of soybean oil in the world and accounts for a significant share of the global soybean oil production volumes. Soybean oil production is expected to remain high due to the high output in the U.S. and Argentina, resulting in lower soybean oil prices. This will also compensate for the increasing demand and supply gap due to the reduced supplies of other edible oils, such as canola and corn oil. The narrowing price gap between palm oil and soybean oil prices will also support the demand for soybean oil in the global market. Enzymatically inter-esterified (EIE) high oleic soybean oil is widely used as an alternative to the traditional shortenings made with partially hydrogenated oils (PHOs), due to its excellent stability and functionality.
“Revenue growth of the specialty fats and oils market impacted by the increasing adoption of specialty palm-based fats”
An increase in the global production of oils and fats and demand for alternatives and value-added ingredients across the food and beverages industry is expected to contribute to the revenue growth of the global specialty fats and oils market. Over the last few years, there has been significant growth in the global specialty fats and oils market owing to the rising consumption of specialty oils in several industrial applications. Since the last few years, research in developing specialty fats and oils has increased significantly due to the growing demand for value-added ingredients across the food and beverages industry.
Shea butter and palm oil derivatives are the most common sources of cocoa butter alternatives. Researchers are working on creating novel and healthier alternatives ranging from mango seed to hump fat.
“Demand for Low-fat Dairy Products to Propel the Market for Dairy Fat Replacers”
The demand for dairy products with low saturated fats has increased to a significant extent in recent years. High fat intake is associated with an increased risk of obesity, which is creating the demand for food products with low-fat content.
Fat replacers are low-calorie and low-fat alternatives to the conventional fat solutions available in the market, serving industries such as dairy, bakery, chocolate, and others. Protein- and carbohydrate-based fat replacers are gaining much attention among consumers, thus pushing revenue generation in the overall market for specialty fats during the forecast period. Furthermore, the increasing application of milk fat replacers in infant formula is expected to drive its consumption across the region.
“Decreasing demand for coconut oil and rising challenges for growing better quality cocoa crop likely to hamper the growth of the global market for specialty fats and oils”
The demand for coconut oil has been decreasing across the globe. Particularly in the U.S., the popularity of coconut oil is declining fast, leading to a reduction in revenue in the North American market for specialty fats and oils. This remarkable reduction in the consumption of coconut oil is associated with the rising health-conscious population particularly in North America, which is responsible for hampering the growth of the global market for specialty fats and oils during the projected period.
Due to uncertain weather conditions and political instability, the prices of oil crops are unstable thereby impacting the oil output from oil crop growers, which in turn is restraining the oil supply to manufacturers. Other key factors attributed to reduced production volumes of specialty oils across the globe are limited access to finance and a lack of knowledge about modern farming techniques and farm management skills. It is estimated that around 30%-40% of crops in major producing regions are lost due to improper pest and crop disease control procedures.
What is the value share held by the U.S. for the Specialty Fats and Oils market?
The demand for corn from food and beverage manufacturers is rapidly increasing across the globe. Corn oil is dominantly used in the U.S. and other North American countries in food products. Corn oil is a concentrated source of energy, and provides essential fatty acids and vitamin E, which makes it a preferred choice of edible oil. The U.S. currently holds a value share of 14.6% in the global market and a valuation of US$ 8,747.4 Mn in 2023.
How is the European Specialty Fats and Oils Market Faring?
The European region holds 23.9% of the current market share and is valued at US$ 12,517.6 Mn in 2023.
The popularity of specialty oils in the European market has gained immense traction in the recent past, both, as a consumer product and as a high-value ingredient. Nut-based specialty oils such as coconut, walnut, and peanut are significantly increasing in certain European countries such as Germany, Italy, France, Poland, the U.K., and Spain.
The demand for cold-pressed extra virgin olive oil, rapeseed oil, coconut oil, and other oils has significantly gained traction in the European market since more and more consumers today are seeking natural products.
Which product type of specialty fats and oils accounts for high revenue generation?
The specialty oils product type holds the maximum value of US$ 39,867 Mn in 2023 and 76.1% of the value share.
Palm, soya, peanut, sunflower, olive, rapeseed, and other sources. These oils have distinct qualities that make them useful for industrial and non-food uses. The constituent fatty acids of each cooking oil, as well as their minor components, are primarily responsible for the oils' functionality. Sunflower oil is used in the household, fast-food restaurants, and industry to cook meals such as French fries and frozen pre-fried foods. The increasing tendency toward the use of vegetable oils for cooking and household use is driving rapid expansion in developing regions such as Asia and the Middle East.
Which end use of specialty fats and oils is seen more across the world?
The industrial segment in the end user holds a value of US$ 24,506.2 Mn and a value CAGR of 5.5% for our forecast duration. Owing to their unique properties, these specialty oils are desirable in non–edible and industrial applications.
Companies that are part of the specialty oils and fats supply chain are entering into meaningful partnerships with various stakeholders of the market. The partnerships are supporting them to ensure a traceable and transparent supply chain and gain access to continuous specialty oils and fats supply. Players are also prioritizing innovation and they are investing in research and development activities. Increasing geographic presence and mergers & acquisitions are the key strategies inculcated by prominent players.
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Forecast period |
2023-2033 |
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Historical data available for |
2018-2022 |
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Market analysis |
USD million for value |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Customization & pricing |
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The global market for Specialty Fats and Oils has a value of US$ 52,401.3 Mn in 2023.
The global market for Specialty Fats and Oils has a value CAGR of 5.3% from 2018-2022.
The global market for Specialty Fats and Oils has a value of US$ 82,174.3 Mn in 2033.
The global market for Specialty Fats and Oils has a value CAGR of 4.6% from 2023-2033.
The top players in the global specialty fats and oils market include Cargill, Inc., Wilmar International Limited, Intercontinental Specialty Fats, Puratos Group NV (Coprem Nv), IFFCO Group, and 3F GROUP, among others.
