Fats and Oils Market – Global Industry Analysis and Forecast 2023-2029

The Fats and Oils Market was valued at US$ 244.78 Bn. in 2022. The Fats and Oils Market size is estimated to grow at a CAGR of 3.9% over the forecast period.
Fats and Oils Market Overview:
The report explores the Fats and Oils market's segments (Source, Oil Type, Animal Fats, Application, and Region). Data has been provided by market participants and regions (North America, Asia Pacific, Europe, Middle East & Africa, and South America). This market report provides a thorough analysis of the rapid advances that are currently taking place across all industry sectors. Facts and figures, illustrations, and presentations are used to provide key data analysis for the historical period from 2018 to 2022. The report investigates the Fats and Oils market's drivers, limitations, prospects, and barriers. This MMR report includes investor recommendations based on a thorough examination of the Fats and Oils market's contemporary competitive scenario.To know about the Research Methodology :- Request Free Sample Report
Fats and Oils Market Dynamics:
The rising use of Fats and Oils in the Industrial and food market:

Primary sources of Fats and Oils are plants such as Olive oil, soybean, Rapeseed, palm, and sunflower oil. They are also derived from animals such as including butter & margarine, tallow, and lard. Apart from food uses, fats and oils are also increasingly used for industrial applications, like soaps, detergents, paints, and oleochemicals, the major one of them being biodiesel. Fats and oils are simple or mixed glyceryl esters of various organic acids. The demand for oil and fat is rapidly increasing in developed and emerging countries such as Brazil, China, India, Indonesia, and the US.

Animal fats are majorly having demand for the applications such as pet food, animal feed, and other industrial purposes such as biodiesel and oleochemicals. Oils of plant origin have been mostly used for food-based applications. The rapid growth in convenience food and fast food because of the changing lifestyle of people. The demand for fats and oil is also rising. Nowadays, consumers are also getting aware of healthy eating habits, which is leading to the growth of high quality and natural fats and oil demand during the forecast period.

Rising health problems lead to limit the consumption of fats and oils:

The rise in the health problems like cardiovascular and other diseases is motivating people to reduce the consumption of fats and oils market during the forecast period. The consumption of too much saturated fat causes cholesterol to build up in arteries (blood vessels). Saturated fats raise a person's LDL (bad) cholesterol. At the same time, high LDL cholesterol increases the risk for heart disease and stroke. Rising consumer awareness about the negative effects caused by fats and oils is restraining the growth of the fats and oils market during the forecast period. Further, the stringent regulations by food regulatory authorities for ensuring safety are also limiting the growth of the Fat and Oil Market.

Rising demand for fats and oils in Cosmetic Industry:

The rise in the demand for oil in Energy and Cosmetic industry is creating an upcoming demand for the Fats and Oils Market. These are used in varieties of manufacturing processes. Vegetable Oils have replaced lubricants that are used for reducing friction between parts in contact. By using vegetable oils for lubrication fossil, fuel consumption can be reduced. Fats and Oils are used as a sustainable form of production in industries such as paints, lubricants, and paper, without the need for chemicals. Vegetable oils are used in the cosmetic industry for manufacturing products such as day creams, night creams, lotions, lipsticks, shampoos, etc. These oils contain Omega 3 and Omega 6 fatty acids that help the skin glow and reduce pigmentations. A total of 204 million tons of cosmetic products were produced globally in 2021/2022. Also, According to MMR report, the cosmetic industry is expected to reach $464.9 billion by 2029. This is creating an upcoming opportunity for the growth of the Fats and Oils Market during the forecast period.
Fats and Oils Market Trends:
The rapid growth in convenience food and fast food because of the changing lifestyle of people. The demand for fats and oil is also rising. Nowadays, consumers are also getting aware of healthy eating habits, which is leading to the growth of high quality and natural fats and oil demand. The demand for oil and fat is rapidly increasing in developed and emerging countries such as Brazil, China, India, Indonesia, and the US. The rise in the demand for oil in Energy and Cosmetic industry is driving the market growth. Vegetable oils are used in the cosmetic industry for manufacturing products such as day creams, night creams, lotions, lipsticks, shampoos, and others. Fats and Oils are used as a sustainable form of production in industries such as paints, lubricants, and papers. There are driving the growth of the Fats and Oils market during the forecast period.
Fats and Oils Market Segment Analysis:
Based on Source, the Fats and Oils Market is segmented into Vegetable and Animal sources. The Vegetable oil segment has dominated with the largest market share accounting for 43% in 2022 and is expected to grow at a CAGR of 5.90% during the forecast period. There is a rising demand from various industries like the food industry, Cosmetic industry, and other industrial applications. The vegetable oils such as soybean oil, palm oil, and others are used for the production of baked products and confectionery products. This is due to their easy availability, low cost, and taste-enhancing properties, driving the growth of the market.

Based on Application, the Fats and Oils Market is segmented into Food, pharmaceutical, personal care, and industrial. The food segment has dominated with the largest market share accounting for 35% in 2021 and is expected to grow at a CAGR of 6% during the forecast period. This is because fats and oils play a very important role in enhancing the taste, texture, smell, Flavor, etc. Further, the use of fat and oils is expected to rise in the forecast period
Fats and Oils Market Regional Insights:
The Asia Pacific region held the largest market share accounting for 46% in 2022. This is because of the rise in disposable income of people in developing countries such as China, India, Indonesia, Malaysia, and others. There is a rise in the demand for high-quality fats and oils. There is rapid growth in convenience food and fast food because of the changing lifestyle of people. In 2022, countries such as Indonesia, followed by Malaysia and Thailand were the fastest-growing countries, both in terms of production and consumption. In Indonesia, there is an increase in palm oil plantation areas, favorable government regulations, and a rising number of edible oil manufacturers engaged in palm oil production activities.

The Europe region is expected to witness significant growth at a CAGR of 4% through the forecast period. The government is promoting and supporting the production and consumption of vegetable oils, thus leading to the growth of the market. The European Union’s consumption of vegetable oil for bio-fuel has been primarily driven by the Renewable Energy Directive (RED). Fats and Oils are required for 10% of energy consumption on road and rail transport in 2022. Palm oil contributes to around 20% of the production of biodiesel and renewable diesel in the European Union. These factors are rising the Fats and Oils Market during the forecast period.

The objective of the report is to present a comprehensive analysis of the global Fats and Oils Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear, futuristic view of the industry to the decision-makers.

The reports also help in understanding the Fats and Oils Market dynamic, and structure by analyzing the market segments and projecting the Fats and Oils Market size. Clear representation of competitive analysis of key players by Design, price, financial position, product portfolio, growth strategies, and regional presence in the Fats and Oils Market make the report investor’s guide.
Fats and Oils Market Scope: Inquire before buying



Fats and Oils Market


Base Year
2022
Forecast Period
2023-2029


Historical Data
CAGR
Market Size in 2022
Market Size in 2029


2018 to 2022
3.9%
US$ 244.78 Bn
US$ 319.96 Bn


Segments Covered


by Source
Vegetable
Animal
by Oil Type
Soybean
Palm
Sunflower
Olive
Rapeseed
by Animal Fats
Tallow
Butter
Lard
by Application
Food
Pharmaceutical
Personal Care
Industrial


Regions Covered


North America
United States
Canada
Mexico
Europe
UK
France
Germany
Italy
Spain
Sweden
Austria
Rest of Europe
Asia Pacific
China
S Korea
Japan
India
Australia
Indonesia
Malaysia
Vietnam
Taiwan
Bangladesh
Pakistan
Rest of APAC
Middle East and Africa
South Africa
GCC
Egypt
Nigeria
Rest of ME&A
South America
Brazil
Argentina
Rest of South America



Fats and Oils Market Key Players are:
1. Wilmar International Limited
2. Olam International
3. Ajinomoto Co. Inc.
4. Archer-Daniels-Midland Company
5. Associated British Foods PLC
6. Bunge Limited
7. Cargill Incorporated
8. Conagra Brands Inc.
9. Fuji Oil Holding Inc.
10.Unilever
11.United Plantations Berhad
12.Wilmar International Limited
13.James Richardson & Sons, Limited
14.IFFCO
15.AAK AB
16.Mewah International Inc.
17.Richardson International Limited
18.Vega Foods
19.Goodhope Asia Holdings Ltd.
20.Oleo Fats, Inc.
21.K S Oils

Frequently Asked Questions:

1) What segments are covered in the Fats and Oils Market report?
Ans. The segments covered in the Fats and Oils Market report are based on Source, Oil Type, Animal Fats, Application, and Region

2) Which region holds the highest share in the Fats and Oils Market?
Ans. The Asia Pacific region is expected to hold the highest share in the Fats and Oils Market.

3) What is the market size of the Fats and Oils Market by 2029?
Ans. The market size of the Fats and Oils Market by 2029 is US$ 319.96 Bn.

4) What is the forecast period for the Fats and Oils Market?
Ans. The Forecast period for the Fats and Oils Market is 2023-2029.

5) What was the market size of the Fats and Oils Market in 2022?
Ans. The market size of the Fats and Oils Market in 2022 was US$ 244.78 Bn.