The Animal Fats and Oils Market is estimated to be valued at US$ 279.30 billion in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The Animal Fats and Oils Market comprise of fats and oils derived from animals, which are widely used in various industries such as food, feed, and biodiesel. These animal fats and oils are utilized in the production of various products such as meat, dairy, confectionery, bakery, and processed foods. Moreover, they are also used as feedstock for the production of biodiesel, due to their higher energy content and lower greenhouse gas emissions compared to traditional fossil fuels. The growing demand for animal-based products and the increasing use of animal fats and oils as biodiesel feedstock are driving the growth of the market.
The Animal Fats and Oils Market is driven by two main factors. Firstly, the increasing demand for animal-based products such as meat, dairy, and confectionery is boosting the growth of the market. The rising population and changing dietary preferences towards protein-rich foods are further augmenting the demand for animal-based products, which, in turn, is increasing the consumption of animal fats and oils. Secondly, the use of animal fats and oils as biodiesel feedstock is creating lucrative opportunities in the market. The high energy content and lower greenhouse gas emissions of animal fats and oils make them an attractive option for producing biodiesel, which is driving their consumption in the biofuel industry.
The Animal Fats and Oils market can be segmented based on the type of animal fats and oils, end-use applications, and region. In terms of type, the dominating sub-segment is expected to be tallow, which is derived from beef or mutton fat. Tallow is widely used in various industries such as food, cosmetics, and biodiesel production due to its low cost and versatile properties. It is commonly used as a cooking oil, as an ingredient in the manufacture of soaps, candles, and cosmetics, and as a feedstock for biodiesel production. The increasing demand for these applications is expected to drive the growth of the tallow segment in the Animal Fats and Oils market.
Political: The government regulations and policies regarding the use and production of animal fats and oils can significantly impact the market. For instance, regulations on the use of animal fats in food products may affect the demand and production.
Economic: The economic factors such as the GDP growth rate, disposable income, and consumer spending patterns can influence the demand for animal fats and oils. A stable and growing economy will likely drive the market.
Social: Changing consumer preferences towards healthier and plant-based alternatives may pose a challenge to the animal fats and oils market. Increased awareness about the health risks associated with the consumption of animal fats can impact the demand.
Technological: Technological advancements in processing and refining methods can improve the quality and yield of animal fats and oils. Innovations in extraction techniques and equipment can lead to better efficiency and cost-effectiveness in the production process.
The global Animal Fats And Oils Market Share is expected to witness high growth, exhibiting a CAGR of 7.9% over the forecast period. This growth can be attributed to increasing demand for animal fats and oils in various industries such as food, cosmetic, and biodiesel production. The rising awareness regarding the health benefits of animal fats and oils, in moderation, is also driving market growth.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the Animal Fats and Oils market. The region’s strong presence in the food processing industry, along with the increasing demand for natural and organic ingredients, is fueling the market growth. Moreover, the rising popularity of animal-based food products and the use of animal fats and oils in the cosmetic and pharmaceutical industries are contributing to the market growth in North America.
Key players operating in the Animal Fats and Oils market include Bunge Limited, Archer Daniels Midland Company, Cargill, Incorporated, Wilmar International Limited, Tyson Foods, Inc., JBS S.A., Darling Ingredients Inc., IOI Corporation Berhad, Ventura Foods, LLC, BRF S.A., Ajinomoto Co., Inc., Premium Vegetable Oils Sdn Bhd, AAK AB, Conagra Brands, Inc., and Richardson International Limited. These key players are adopting strategies such as mergers
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it