The global market for normal and specialty fats was valued at USD 29.0 million in 2019. It is expected to grow at 7.4% CAGR between 2020-2027. This is due to rising demand for confectionery and bakery products. The market is expected to grow due to the increasing demand for specialty fats and growth in food processing.
Bakery and confectionery are two of the most important consumer bases for specialty and normal fats. These fats can be used in candy preparations and polishing confectionery products. Two of the most important sources for fats are animals and plants.
Vegetable oils include soy, palm and rapeseed oils. These fats are also used in many commercial and industrial applications, including soaps and Lubricants. The market is expected to grow due to increased consumption of fats in food formulations.
Traditional fat producers have had to come up with alternative sources due to growing consumer awareness and increasing cases of obesity and overweight. Carrageenan, for example, is used as a fat replacement. It mimics fat properties and lowers calories when added to food products. Cargill, Inc., is a major industry player that develops and distributes carrageenan to be used as a fat substitute in food product manufacturing. This could pose a threat to market growth.
Butter was the most popular type of fat in 2019, followed closely by shortenings. Butter is a semisolid emulsion at room temperatures, which contains approximately 80% butterfat. Butter can be melted to make a spread or used in cooking, such as baking, making, and saucepan frying. Consuming low-calorie, low-fat, and cholesterol-free butter has been a positive step in reducing heart disease risk.
Shortenings have similar properties to lard. They are semi-solid fats with a high smoke point, which is higher than butter and margarine. Shortenings are safer for frying because they contain less water. Shortenings can have up to 100% of the fat content of margarine or butter, which is 80%. Monoglycerides are high in cake shortenings. These products are more compatible with hydrophilic ingredients like sugar and starches. These factors will likely increase the demand for dairy and bakery products in the near future.
B2B was the dominant distribution channel in 2019, owing to the high demand from food and drink manufacturers around the globe, particularly those producing dairy, chocolates and bakery products, as well as convenience food products and restaurants. Due to the high demand from many end-use industries for fats, the market has a well-established distribution system that ensures product availability throughout the world. This includes selling, distributing and trading the product via the Internet, wholesalers and value-added distributions.
B2C is the selling of products to end-users or consumers through online, door-to-door, specialty, departmental, and supermarket stores. The sales of normal and specialty fats through supermarkets/hypermarkets are anticipated to witness significant growth in the near future. Online sales are expected to increase in Asia Pacific, Central and South America. This is due to the ease of purchasing the product online.
Industrial was the most important end-use sector in 2019, followed closely by the commercial sector. Many food and beverage products are made from fats such as fried foods, cakes, biscuits and chocolates, as well as bakery products like margarine, butter, ice cream and spray drying. They can also be used in non-food industries such as paints and cosmetics, petrochemicals, leather, and textiles.
There are many commercial uses for different types of fats such as cafes, restaurants, local bakeries, and confectioneries. Because they contain full-fat milk, fat cuts of meat, cream and butter, saturated fats are more popular for commercial use. These fats are used primarily in the preparation of many commercial baked goods, including pastries, cookies, and deep-fried fast foods.
Bakery was the most popular application in 2019, followed closely by convenience foods. Bakery fats are essential in the preparation of many items, including pastries, cakes, and biscuits. They impart the product's taste, texture and flakiness. They improve the product's quality and enhance its handling. This includes the product's volume, texture, shelf-life, nutrition profile, and appearance. The U.S., Canada, Spain, Germany and Canada are high-income countries. Over the past few decades, there has been a rise in the production and consumption of ultra-processed foods and bakery products, including pastries, breads, cookies and cakes.
A wide range of convenience foods use vegetable fats as key ingredients, including soups and sauces for parties, cakes, muffins, breakfast cereals and coffee whiteners. They are used primarily in the production of nutritional supplements, food additives, and emulsifiers. The convenience food market is expected to grow due to rising living standards, increased disposable income, and the desire to eat convenience foods, particularly in developed countries. In the near future, this will fuel demand.
Asia Pacific was the dominant market segment in 2019, followed by Europe. It is expected to continue to grow rapidly over the forecast period. The growth is expected to be aided by rising disposable income, rapid growth of middle-class populations, high purchasing power and rising consumer demand to eat convenience foods. Due to the rising demand for chocolate and confectionery, specialty fats are expected to grow at a rapid pace. Another key driver of growth is the increasing consumer spending on ready to eat food products.
The rising awareness of cocoa butter alternatives, and the desire to eat healthy foods alongside strong economic growth is the key reason for Europe's market growth. The European Union's most important food industry is bakery. It is driven by changing consumer preferences and constant innovation. It has been a major market for key players like Mondelez International, Inc. and Kellogg Co. The market will be driven by the expanding bakery sector in France and Italy, as well as the increasing chocolate and confectionery industry in Spain and the Netherlands.
With the presence of well-established and long-term industry players, the market is fragmented. Global players are in fierce competition with each other, but regional players have strong distribution networks and are well-versed about suppliers and regulations. Companies compete on the basis of product quality and production technology. To minimize risk in expanding into new markets, major players compete on the basis their product offerings and application development capabilities. They also form strategic partnerships with regional competitors. Cargill Inc. is one of the most prominent players in the normal & specialty fats market. They invest heavily in research and development to improve their product offerings. This gives them an edge over other players. The following are some of the most prominent players in the specialty and normal fats market:
Intercontinental Specialty Fats Sdn. Bhd.
Musim Mas Holdings Pte. Ltd.
Up Market Research published a new report titled “Normal & Specialty Fats Market research report which is segmented by Type (Milk-fat Replacers, Butter, Shortenings, Margarines, Cocoa Butter Equivalent), By Players/Companies Musim Mas Holdings Pte Ltd, Cargill Incorporated, Intercontinental Specialty Fats Sdn Bhd”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
|Report Attributes||Report Details|
|Report Title||Normal & Specialty Fats Market Research Report|
|By Type||Milk-fat Replacers, Butter, Shortenings, Margarines, Cocoa Butter Equivalent|
|By Companies||Musim Mas Holdings Pte Ltd, Cargill Incorporated, Intercontinental Specialty Fats Sdn Bhd|
|Regions Covered||North America, Europe, APAC, Latin America, MEA|
|Historical Year||2018 to 2019 (Data from 2010 can be provided as per availability)|
|Number of Pages||221|
|Number of Tables & Figures||155|
|Customization Available||Yes, the report can be customized as per your need.|
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Type (Milk-fat Replacers, Butter, Shortenings, Margarines, Cocoa Butter Equivalent).
Normal & Specialty Fats Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
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Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Normal & Specialty Fats Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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