The specialty fats and oils market share 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%.

This specialty fats and oils market research report provide valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers specialty fats and oils market segmentation by type (specialty oils and specialty fats) and geography (North America, Europe, APAC, MEA, and South America). The specialty fats and oils 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.

What will the Specialty Fats and Oils Market Size be During the Forecast Period?

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"North America has a rapidly increasing fast-food business."

Specialty Fats and Oils Market: Key Drivers, Trends, and Challenges

The fluctuations in global cocoa production is notably driving the specialty fats and oils market growth, although factors such as fluctuation in oil crop prices due to lack of land may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the specialty fats and oils industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Specialty Fats and Oils Market Driver

One of the key factors driving the global specialty fats and oils 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 the 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.

Key Specialty Fats and Oils Market Trend

Rise in the demand for natural cosmetic products is another factor that is expected to drive the global specialty fats and oils 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.

Key Specialty Fats and Oils Market Challenge

One of the major challenges to the global specialty fats and oils 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 specialty fats and oils 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.

Parent Market Analysis

Technavio categorizes the global specialty fats and oils market as a part of the global packaged foods and meats market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the specialty fats and oils market during the forecast period.

Market Overview

The global packaged foods and meats market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and to extend shelf life. Technavio calculates the global packaged foods and meats market size based on 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.

Who are the Major Specialty Fats and Oils Market Vendors?

The report analyzes the market's competitive landscape and 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
• Wilmar International Ltd.

This statistical study of the specialty fats and oils market encompasses successful business strategies deployed by the key vendors. The specialty fats and oils market is fragmented and the vendors are deploying various organic and inorganic growth strategies to compete in the market.

Product Insights and News

• Cargill Inc. - The company offers specialty fats and oils that include edible oils, palm oil, palm kernel oil, coconut oil products, refined oils, packaged palm fats, oils, and many more, under the brand name of Cargill Inc.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The specialty fats and oils market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Specialty Fats and Oils Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the specialty fats and oils market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the packaged foods and meats market includes the following core components:

• Inputs
• Inbound logistics
• Primary processing
• Secondary and tertiary processing
• Outbound logistics
• End-customers
• Marketing and sales
• Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Specialty Fats and Oils Market?

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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 for specialty fats and oils 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 specialty fats and oils 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.

COVID Impact and Recovery Analysis

In 2020, due to the outbreak of COVID-19, nationwide lockdowns were imposed to restrict the spread of the disease that hampered the supply of and demand for specialty fats and oils in the regional market shifted due to the outbreak, with an increasing uncertainty related to prices. The closure of stores and shops disrupted the trade of specialty fats and oils and hampered its production. However, the bakery and confectionery industries observed a spike in sales, with people stocking up on these products during lockdowns. As of early 2021, with the initiation of vaccination drives, the number of COVID-19 cases reduced. This led to the resumption of lockdown restrictions and the reopening of bakery stores. Thus, with the growing need for confectionary products in the region, the market is expected to grow during the forecast period.

What are the Revenue-generating Type Segments in the Specialty Fats and Oils Market?

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The specialty fats and oils 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 specialty fats and oils market size and actionable market insights on post COVID-19 impact on each segment.

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Specialty Fats market - The market analysts estimate that the market share will grow steadily at a CAGR of greater than 9% by 2021.

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What are the Key Data Covered in this Specialty Fats and Oils Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive specialty fats and oils market growth during the next five years
• Precise estimation of the specialty fats and oils market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the specialty fats and oils industry across North America, Europe, APAC, MEA, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of specialty fats and oils market vendors

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