Fats and Oils Market Report 2024

The fats and oils market size has grown strongly in recent years. It will grow from $170.87 billion in 2023 to $184.28 billion in 2024 at a compound annual growth rate (CAGR) of 7.9%. The growth observed in the historical period can be ascribed to robust economic expansion in emerging markets, a rise in the global population, and shifts in dietary patterns.

The fats and oils market size is expected to see strong growth in the next few years. It will grow to $237.8 billion in 2028 at a compound annual growth rate (CAGR) of 6.6%. The anticipated growth in the forecast period can be credited to governmental backing, a rising demand for vegetable oil in the energy and cosmetic sectors, an upsurge in interest from health-conscious consumers, and an increasing demand in the food service and retail domains. Key trends expected in the forecast period encompass the production of cooking oils through fermentation with a clean, neutral taste and high smoke point, emphasizing the utilization of e-commerce platforms, concentrating on innovative fat technologies, devising automated cooking oil management systems, and creating inventive products through advanced technologies.

Many countries worldwide are grappling with plummeting crop prices due to overcapacity, leading to expectations of reduced raw material costs for fats and oils manufacturing companies. As an illustration, in November 2022, as reported by the India-based agricultural magazine Frontline, the Cabinet Committee on Economic Affairs unveiled an $8.4 billion (Rs 7000 crore) bailout package for farmers in the sugar production sector. The package aimed to establish a minimum selling price of refined sugar at $0.35 (Rs 29 per kilogram) to address the drop in prices to Rs 23-24 due to overproduction. Consequently, the overproduction of certain crops is foreseen to contribute to enhanced profit margins for food and beverage companies. These augmented profit margins will empower fat and oil manufacturing companies to boost productivity, propelling the market forward.

The expansion of the global population is anticipated to drive the growth of the fats and oils market in the foreseeable future. Population growth signifies the total number of individuals or organisms in a specific geographic area or community at a given time. The rise in population is a crucial factor in the heightened demand for fats and oils, given their essential role in food production. The increasing number of consumers necessitates elevated food production. As of 2022, the United Nations reports that the world's population is on the rise, expected to reach approximately 10 billion by 2050. Hence, population growth remains a key driver for the fats and oils market.

Manufacturers are responding to the growing demand from health-conscious consumers by increasingly offering avocado oil. Avocado oil is gaining popularity due to its numerous health benefits, serving as a healthy fat and rich in vitamins. Global avocado fruit production has witnessed a rise, reaching five million metric tons, with an anticipated annual increase of nearly 200,000 metric tons. Notably, Mexico stands out as a major contributor, producing around 1.8 million metric tonnes of avocado fruit. This surge in fruit production is expected to drive an upswing in demand.

Prominent companies in the fat and oil market are directing their focus towards innovative product launches, introducing alternatives such as plant-based fat to cater to sustainability and healthier choices compared to traditional fats. Plant-based fat, in this context, refers to dietary fats and oils derived from plant sources rather than animals. A case in point is Shiru, a US-based alternative protein company, unveiling OleoPro in March 2023. OleoPro stands as their inaugural plant-based fat, combining plant proteins with unsaturated oil. Its distinctive features include maintaining shape at room temperature, browning when cooked, and delivering a juicy mouthfeel in plant-based meat applications.

Major companies operating in the fats and oils market report are Bunge Limited, Wilmar International Limited, Archer Daniels Midland Company (ADM), Mewah International Inc., AAK AB, Cargill, Incorporated, The Nisshin Oillio Group, Musim Mas Group, Fuji Oil Co. Ltd., Associated British Foods PLC, Miyoshi Oil & Fat Co Ltd., IOI Group, Fairchem, Australian Chemical Industries Int Co, Jayant Oils And Derivatives Ltd., Atlas Chemicals, Guangdong Jiangmen Chemical Plant, Shanghai Yan'an Grease Chemical Co Ltd., Gysmecol (Guangzhou) Technology Co Ltd., Eastman Chemical Company, BASF SE, Aker BioMarine, Oleon NV, Emery Oleochemicals GmbH, Kao Oleochemical, Ashland Global Specialty Chemicals Inc., Zaplaza Tec, Krasnogorsk Oil Plant Llc, Th Ekobiotek-Uktaine Ltd., Verona Agroexport, Pe Rpc Elitphito, Oliya Voluni, Flp Kasap, Bulk Apothecary, Vigon International, Ingredients Online, Sonneborn LLC, Welch Holme & Clark Co Inc., Amazonian Natural Oils, Copacol foods, Crista Industria E Comercio Ltda, Romero E Jacobucci Ltda, Arab Sudanese Vegetable Oil Company (ASVOC), Emek Yag Sanayii AS, Egenin Kalbi, Balsari Yag Sanayi Ve Ticaret Limited Sirketi, United Foods Company, Abu Dhabi Vegetable Oil Company (ADVOC), AJWA Group Food Industries, Olam Togo SARL.

Asia-Pacific was the largest region in the fats and oils market in 2023. Western Europe was the second-largest region in the fats and oils market. The regions covered in the fats and oils market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Fats and oils are glyceryl esters of diverse organic acids, forming part of the fatty acid series, and are sourced from either plant or animal origins.

The primary categories of fats and oils encompass both fats and oils, representing fatty compounds found in the tissues of plants and animals. These substances are prevalent in various foods consumed by people. Key product types include palm, sunflower, olive, soybean, rapeseed, derived from a range of sources such as plants and animals. Their applications span across the food, personal care, pharmaceutical, and animal feed industries, as well as other distribution channels. These products are distributed through various channels, including supermarkets/hypermarkets, convenience stores, e-commerce, and other distribution channels.

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

The countries covered in the fats and oils market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The fats and oils market consists of sales of tallow, butter, lard, soybean oil, palm oil, sunflower oil, rapeseed oil, and other fats and oils. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. The fats and oils market is segmented into fats and oils.

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.


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