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The specialty fats and oils market size is expected to increase by USD 6.06 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.52%. The market undergoes volatility due to global cocoa production fluctuations. Cocoa, a vital ingredient in confectionery and processed foods' specialty fats and oils, instigates market instability. Concurrently, escalating global population and evolving consumer preferences propel market expansion. However, health concerns and the subsequent demand for healthier alternatives, including plant-based oils, pose challenges and opportunities for market players. A comprehensive grasp of market tendencies, consumer behavior, and production intricacies is essential to navigate these factors effectively. Keywords: Specialty Fats and Oils market, global cocoa production, confectionery, processed foods, consumer preferences, health concerns, plant-based oils, market instability, market trends, production dynamics.
The market report also offers information on several market vendors, including 3F Industries Ltd., Cargill Inc., De Wit Speciality Oils, Fuji Vegetable Oil Inc., IFFCO Group, Musim Mas Group, Nisshin OilliO Group Ltd., Olea Fats Inc., Puratos NV/SA, and Wilmar International Ltd. among others.
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"North America has a rapidly increasing fast-food business."
In the current context, the demand for nutritional food has surged, driven by rising living standards and a growing awareness of health and wellness. This trend is particularly evident in the market for specialty fats and oils. These high-value products, which include hempseed oil, dairy fats, and vegetable fats and oils, are prized for their unique health benefits. The International Monetary Fund (IMF) reports that gross domestic product (GDP) growth in the food industry has remained robust, despite the challenges posed by chronic diseases such as cardiovascular diseases. Consumption analysis indicates that triglycerides, a type of edible fat, are a significant contributor to these health issues. As a result, there is a growing demand for healthier alternatives, such as specialty palmbased fats, shea butter, and cocoa crop-derived fats.
The industrial segment is also investing heavily in the production and distribution of specialty fats and oils. Soybean oil, corn oil, soya oil, peanut oil, sunflower oil, rapeseed oil, and other vegetable oils are popular choices due to their versatility and wide range of applications. Meanwhile, contact tracing, social distancing, and surveillance measures implemented in response to the ongoing pandemic have disrupted supply chains, leading to increased prices and supply shortages in some markets. In conclusion, the specialty fats and oils market is experiencing significant growth, driven by rising living standards, health consciousness, and the demand for healthier alternatives to traditional edible fats. Despite challenges posed by supply chain disruptions and rising prices, the market is expected to continue expanding in the coming years. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
One of the key factors driving global market growth is the fluctuations in global cocoa production. The unpredictable adverse weather conditions, including droughts, floods, frost, and earthquakes in top cocoa-producing countries have hampered the production of cocoa beans. Africa, especially the Ivory Coast and Ghana, is the world's greatest cocoa producer, accounting for over 70% of worldwide production. Factors such as excessive human intervention, in the form of animal husbandry and agriculture, have also put the habitat under pressure, thereby impacting production. Therefore, the demand and supply gap of cocoa in the market will result in a high price of cocoa, which will result in increased demand for substitute products such as specialized fats. Such factors are expected to positively impact the market in focus during the forecast period.
The rise in the demand for natural cosmetic products is another factor that is expected to drive the global market growth during the forecast period. Over the years, there has been a growing preference for natural products over artificial chemicals in the beauty and personal care industries. Factors such as the increase in the number of the millennial population, especially in APAC, a sharp increase in the online presence and Internet usage, the increase in per capita income, and a growing awareness of sustainable and environmentally friendly products have all together dominated the market for organic cosmetics and personal care products. This has increased the demand for specialty ingredients such as palm and olive oils in the beauty and personal care industries in the recent past and is expected to positively impact the market during the forecast period.
One of the major challenges to global market growth is the fluctuation in oil crop prices due to lack of land. Oil crop prices are rising due to factors such as variable weather conditions, decreasing specialty oil production levels across the world, lack of funding and information about contemporary agricultural practices and farm management skills, and political instability affecting oil crop producers' output, which is limiting oil supply to manufacturers. It is estimated that 30% of crops in key countries are lost due to ineffective insect and crop disease management techniques. Such factors are expected to impede the growth of the market in focus during the forecast period.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
The global packaged foods and meats market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and extend shelf life. Technavio calculates the global packaged foods and meats market size based on the combined revenue generated by the vendors operating in the market. The market does not include manufacturers of food processing equipment. The market also excludes producers of packaged alcoholic and non-alcoholic beverages, including mineral waters.
The report analyzes the market's competitive landscape and offers information on several market companies, including:
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32% of the market's growth will originate from North America during the forecast period. The US is the key market in North America. However, the market growth rate in this region will be slower than the growth of the market in Europe and APAC.
The rapidly increasing fast-food business in countries with high disposable income such as the US and Canada will facilitate the market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
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The market share growth by the specialty oils segment will be significant during the forecast period. The significant increase in the demand for specialty oils owing to their use in supplements, special culinary applications, and cosmetics will drive the growth in this segment. This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on each segment.
Specialty Fats market - The market analysts estimate that the market share will grow steadily at a CAGR of greater than 9% by 2021.
In the dynamic and evolving market, several types of edible fats play a significant role. These include self-quarantined production facilities for the bakery and confectionery industries, which utilize various lipids such as LDLs (low-density lipoproteins) and HDLs (high-density lipoproteins). The fatty acid composition of these lipids is crucial, with a preference for PUFAs (polyunsaturated fatty acids) and a limitation on trans-fatty acids.
Key players in this market include those specializing in oilseed processed products, such as Mehwah Group. They focus on the production and export of edible oils derived from various sources, including coconuts and soybeans. These oils are essential for infant nutrition, particularly in the formulation of infant formulas and food lipids. The dry form of these lipids is also in high demand due to its long shelf life and ease of use.
Olive oil, another essential component of the market, is known for its high dependence on imports. Its production is limited, making it a valuable commodity. The market is subject to various market trends and regulations, making it a complex and intriguing industry to monitor and participate in.
Specialty Fats and Oils Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.52% |
Market growth 2022-2026 |
USD 6.06 billion |
Market structure |
Fragmented |
YoY growth (%) |
5.82 |
Regional analysis |
North America, Europe, APAC, MEA, and South America |
Performing market contribution |
North America at 32% |
Key consumer countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
3F Industries Ltd., Cargill Inc., De Wit Speciality Oils, Fuji Vegetable Oil Inc., IFFCO Group, Musim Mas Group, Nisshin OilliO Group Ltd., Olea Fats Inc., Puratos NV/SA, and Wilmar International Ltd. |
Market dynamics |
Parent market analysis, market growth and forecasting, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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Executive Summary
Market Landscape
Market Sizing
Five Forces Analysis
Market Segmentation by Type
Customer landscape
Geographic Landscape
Vendor Landscape
Vendor Analysis
Appendix
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