by Animal fats and oils contain a variety of essential nutrients that impart desirable functional properties like texture, palatability, and enhanced flavor to finished food products. The demand for animal fats and oils as a versatile and clean nutritional ingredient has increased significantly for applications across bakery & confectionery, dairy, sauces & dressings, and processed meat industries. The functional properties and nutritional benefits offered make animal fats and oils an important ingredient in meat alternatives as well.
The Global Animal Fats and Oils Market is estimated to be valued at US$ 321.76 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Animal Fats And Oils Market Size are Johnson Controls, Honeywell, Schneider Electric, Siemens Healthineers, Philips, GSK, AbbVie, Pfizer, Merck & Co., Novartis. Growing demand for nutritionally superior feed ingredients from animal farmers and increased focus on sustainable sourcing of agricultural ingredients are some of the major factors driving the growth of the global animal fats and oils market. Technological advancements in the extraction and refining processes help manufacturers produce high-quality specialty fats & oils suitable for applications across industries while ensuring a minimal environmental footprint.
Market Trends
Growing Demand for Specialty and Fractionated Oils – The demand for fractionated and specialty animal fats and oils is growing significantly owing to the optimized functional properties they impart to finished formulations. Advancements in fractionation technology help manufacturers derive streamlined oils tailored for specific uses.
Clean Label and Sustainability Trends Shape Growth – Clean label trends have increased demand for non-GM, natural, and sustainable ingredients like animal fats and oils. Manufacturers are responding through traceable and transparent sourcing alongside reduced environmental impact.
Market Opportunities
Asia Pacific and Latin America Offer Lucrative Growth Prospects – Emerging countries in the regions exhibit strong demand growth driven by urbanization, rising incomes, and shifts to Western diets. This makes them key target markets for animal fats and oils suppliers.
Innovations in Fractionation and Extraction to Drive Revenue – Continued R&D in refining processes helps commercialize new fractionated and nano-sized specialty fats & oils with enhanced benefits. This will support market expansion into high-value application segments.
Impact of COVID-19 on Animal Fats and Oils Market Growth
The outbreak of COVID-19 pandemic has impacted the growth of the global animal fats and oils market. Due to lockdowns enforced worldwide and disrupted supply chains, production and transport of animal fats and oils were adversely affected. There was a decline in demand from food service industry and restaurants as dining out reduced significantly. However, retail sales increased moderately as more people cooked at home during lockdowns. In the pre-COVID period, the market was growing steadily at a CAGR of around 12% driven by increasing demand from food processing and personal care industries.
The pandemic has fast tracked transformation to digital platforms across industries. Market players are focusing more on e-commerce websites and applications to sell their products directly to consumers. Manufacturers are investing in automation and advanced technologies to minimize dependence on human workforce and ensure continuity of operations. With mass vaccination drives underway in 2021, economic activities and market demand are recovering gradually. The food service industry’s revival will further aid the market’s growth. To sustain long term growth, companies need to adapt to changing consumer preferences and focus on developing healthier product offerings.
North America holds the largest share of the global animal fats and oils market in terms of value. This can be attributed to the strong meat and dairy industries in the region and increasing demand for specialty fats. Europe follows North America as the second largest market due to high consumption of animal fat-based foods like butter in countries like Germany, France and Italy. However, Asia Pacific is emerging as the fastest growing regional market for animal fats and oils. China and India have experiencing rapid urbanization, rising living standards and changing lifestyles and food habits, resulting in increased demand for various types of animal fats and oils.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
