How Has the Fats And Oils Market Size Evolved in Recent Years?
The fats and oils market has seen considerable growth due to a variety of factors.
• The size of the fats and oils market has seen robust growth in the past few years. Starting from $182.94 billion in 2024, it is projected to rise to $196.61 billion in 2025, with a compound annual growth rate (CAGR) of 7.5%.
The historical growth of this sector can be associated with factors such as significant economic development in emerging markets, an increase in the global population, and shifts in dietary consumption patterns.
What Are The Predictions for The Fats And Oils Market Size In The Coming Years?
The fats and oils market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the fats and oils market is anticipated to witness robust growth, with projections estimating it to attain a value of $256.35 billion by 2029, increasing at a compound annual growth rate (CAGR) of 6.9%.
Factors contributing to this predicted growth during the forecast period involve governmental backing, the escalating demand for vegetable oil in energy and cosmetic sectors, the rise in interested consumer bases natured towards health consciousness, and an increasing requirement in the retail and food service sectors. The forecast period will also witness cooking oils engineered via fermentation that are characterized by a high smoke point and an unadulterated, neutral taste, emphasis on capitalizing e-commerce platforms, focus on innovative fat technologies, the advent of automated cooking oil management systems, and the creation of avant-garde products using advanced technologies.
What Factors Are Driving Growth In The Fats And Oils Market?
Overproduction across the globe has resulted in a drop in crop prices, which in turn is anticipated to decrease raw material costs for companies producing fats and oils. For example, in November 2022, Frontline, an Indian agriculture-focused national magazine, reported that the Cabinet Committee on Economic Affairs revealed a rescue plan worth $8.4 billion (Rs 7000 crore) for farmers active in sugar production. This scheme included setting the minimum selling price of refined sugar at $ 0.35 (Rs 29 per kilogram) after recent prices had plunged to Rs 23-24 due to excessive production, and establishing a one-year sugar buffer stock of 3 million tonnes. Thus, the oversupply of certain crops is expected to boost profit margins for food and drink companies. These increased profit margins may, in turn, empower fat and oil producers to heighten their output, propelling the market forwards.
What Are The Core Segments Of The Globa Fats And Oils Market?
The fats and oils market covered in this report is segmented –
1) By Type: Fats, Oils
2) By Product Type: Palm Oil, Sunflower Oil, Olive Oil, Soybean Oil, Rapeseed Oil, Other Product Types
3) By Source: Plants, Animals
4) By Distribution Channel: Supermarkets Or Hypermarkets, Convenience Stores, E-Commerce, Other Distribution Channels
5) By Application: Food And Beverages, Personal Care, Pharmaceutical, Animal Feed, Other Applications
Subsegments:
1) By Fats: Butter, Lard, Tallow, Margarine, Shortening
2) By Oils: Palm Oil, Soybean Oil, Sunflower Oil, Olive Oil, Coconut Oil, Rapeseed Oil (Canola Oil), Corn Oil
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Which Emerging Trends Are Reshaping The Fats And Oils Market?
There is a rising trend among manufacturers to supply avocado oil, driven by higher demand from customers who prioritize their health. Avocado oil, loaded with nutritious fats and a wealth of vitamins, offers numerous health advantages. In addition, global avocado fruit production has risen by five million metric tons, with yearly production forecasts indicating an increase by approximately 200,000 metric tons. Mexico alone contributes towards this production with around 1.8 million metric tons of avocado fruit. The surge in avocado fruit production is anticipated to further elevate the demand.
Who Are the Key Players in the Fats And Oils Market?
Major companies operating in the fats and oils market include:
• 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.
What are the Regional Insights into the Fats And Oils Market?
Asia-Pacific was the largest region in the fats and oils market in 2024. 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
