Specialty Fats and Oils Market Report 2025

This Specialty Fats and Oils market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The specialty fats and oils market size has grown strongly in recent years. It will grow from $12.76 billion in 2024 to $13.95 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to changing dietary patterns, food industry innovation, functional ingredients demand, health and wellness concerns, and globalization of food supply chains.

The specialty fats and oils market size is expected to see strong growth in the next few years. It will grow to $19.84 billion in 2029 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to rising demand in functional foods, plant-based and alternative fats, clean label and natural products trend, regulatory changes and standards, nutraceutical and pharmaceutical applications. Major trends in the forecast period include rising demand for plant-based alternatives, functional and nutraceutical ingredients, clean label and natural ingredients, technological advancements in processing, sustainable sourcing and production.

The rising consumption of packaged food is projected to drive the growth of the specialty fats and oils market. Packaged food is defined as food that is entirely wrapped to protect it from direct contact with the environment, using either permeable or impermeable materials. Consumers increasingly favor low-fat, healthier options and ready-to-eat meals due to their convenience, taste, and nutritional value. Specialty oils and fats used in packaged foods offer both nutritional benefits and functional advantages, which contributes to the growing demand in the market. For example, in June 2024, reports from the US Department of Agriculture, a research service based in the US, indicated that retail food prices increased by 5% in 2023 compared to the previous year, following an 11.4% rise in 2022. Key packaged food categories driving this retail growth include rice, pasta, noodles, dairy products, processed meats, and seafood. Consequently, the increasing consumption of packaged foods is fueling the demand for specialty fats and oils.

The growing awareness of health issues is anticipated to drive the expansion of the specialty fats and oils market in the coming years. Health consciousness refers to the extent to which individuals are concerned about and take proactive measures to maintain their physical and mental well-being. Specialty oils and fats are rich in antioxidants, which can help protect the body from free radical damage and may lower the risk of chronic diseases such as cancer and heart disease. They also offer health benefits, including the enhancement of gut bacteria and improved digestion. For example, in May 2022, the International Food Information Council, a US-based nonprofit organization supported by the food, beverage, and agricultural industries, reported that 52% of Americans followed a diet or eating pattern in 2022, a notable increase from 39% in 2021. Thus, the rising health consciousness among consumers is driving the growth of the specialty fats and oils market.

Innovation stands as a prominent trend fueling growth in the specialty oils and food market. Leading companies in this sector are diligently developing innovative solutions to fortify their market position. Evonik Industries AG, in December 2023, unveiled Ecohance Soft Baobab Oil, derived from the non-edible seeds of the baobab fruit. This natural, sustainable, and fair-trade ingredient boasts a wide range of applications in cosmetic formulations such as hand creams, hair conditioners, and body butters. Rich in antioxidants, the oil offers moisturizing and conditioning properties and is a valuable source of vitamins A, C, and E.

Major players in the specialty oils and food sector prioritize collaboration and partnerships to enhance customer service reliability. A notable instance is the strategic collaboration between Cargill Inc. and Cubiq Foods announced in March 2023. Cargill Inc., a US-based food corporation, partnered with Cubiq Foods, a Spain-based entity specializing in cultivated fats, aiming to expedite the commercialization of Cubiq's innovative fat technologies in the plant-based food sector. This collaboration has the potential to revolutionize plant-based food offerings, ensuring they are healthier, more sustainable, and boast superior taste profiles.

In August 2022, Alfa Laval, a Swedish company specializing in specialty fats and oils, completed the acquisition of Desmet Ballestra Group for an undisclosed sum. This strategic move bolstered Alfa Laval's presence in the edible oils sector, amplifying innovations across food, feed, and biofuels. Desmet Ballestra Group, based in the US, is recognized for its manufacturing of specialty fats and oils.

Specialty oils and fats encompass a range of oils derived from diverse natural sources including coconuts, sunflowers, soybeans, rapeseed, palm, as well as other sources like peanut and olive oil.

The main types of specialty fats and oils are specialty oil and specialty fat. These are available in various forms, including solid, semi-solid, and liquid, and are used in several applications, such as confectionery, bakery, dairy, cosmetics, and others.

The specialty fats and oils market research report is one of a series of new reports that provides specialty fats and oils market statistics, including specialty fats and oils industry global market size, regional shares, competitors with a specialty fats and oils market share, detailed specialty fats and oils market segments, market trends and opportunities, and any further data you may need to thrive in the specialty fats and oils industry. This specialty fats and oils market research report deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the specialty fats and oils market include AAK AB, Cargill Incorporated, Fuji Oil Co. Ltd., Bunge Limited, Mewah International Inc., Wilmar International Limited, D&L Industries Inc., IFFCO Group, Archer Daniels Midland Company, The Hain Celestial Group Inc., Ventura Foods LLC, Apical Group Ltd., Liberty Oil Mills Ltd., Adams Group, PRESCO plc, Intercontinental Specialty Fats Sdn. Bhd., MOI International Pte. Ltd., Golden Agri-Resources Ltd., Kuala Lumpur Kepong Berhad, Sime Darby Plantation Sdn. Bhd., IOI Corporation Berhad, Oleo-Fats, De Wit Speciality Oils, Puratos, Musim Mas Group, Savola Group, The Manildra Group, 3F Industries Ltd., OLENEX C.V., BASF SE.

North America was the largest region in the specialty fats and oils market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global specialty fats and oils market report during the forecast period. The regions covered in the specialty fats and oils market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the specialty fats and oils market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.