by Animal fats and oils are obtained from live animals and consist of triglycerides containing saturated and unsaturated fatty acids. They are widely used in food applications such as bakeries, confectioneries, parenteral nutrition, etc. owing to their excellent emollient properties. Animal fats such as lard and tallow provide a creamy texture and mouthfeel in baked goods. Additionally, they impart flavor and provide stability to shortenings used in baking. Many consumers prefer animal fats and oils over hydrogenated or partially hydrogenated vegetable oils as they are considered healthier alternatives. The global Animal Fats and Oils Market is estimated to be valued at US$ 279.3 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The key trend gaining traction in the animal fats and oils market is the increasing demand for specialty fats. Specialty fats are tailor-made to suit specific customer applications and provide superior functionalities over common fats and oils. For instance, structured lipids derived from animal fats mimic the action of milk fat and improve the texture and mouthfeel in dairy products. Furthermore, interesterified fats created through enzymatic rearrangement of fatty acids in triglycerides display unique functionalities. They have excellent plasticity and improve the quality of baked and fried foods. Thus, the multifunctional profiles and customizability of specialty fats are driving their use in various industrial applications.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the animal fats and oils market is moderate due to high capital requirements and regulatory barriers.
Bargaining power of buyers: The bargaining power of buyers is high as animal fats and oils have substitutable options. Buyers can switch to other available vegetable oils easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers in the market and suppliers are price takers.
Threat of new substitutes: The threat of new substitutes is high as vegetable oils are emerging as better substitutes to animal fats due to health awareness.
Competitive rivalry: The competitive rivalry in the animal fats and oils market is high due to the presence of established global players.
Key Takeaways
The Global Animal Fats And Oils Market Size is expected to witness high growth. The Asia Pacific region dominates the market and is expected to grow at the fastest rate during the forecast period due to rising consumption of dairy and meat products.
Regional analysis: The Asia Pacific region holds the largest share in the global animal fats and oils market due to increasing demand from growing population, rising disposable income, and improving economic conditions in countries such as China and India. The region constitutes around 60% of the global market share.
Key players: Key players operating in the animal fats and oils market are Medtronic Plc, Koninklijke Philips N.V., GE Healthcare, FreeScale Semiconductors, Omnivision Technologies, Inc., Smiths Medical, Analog Devices, Inc., Honeywell International, Inc., Broadcom Limited, Danaher Corp.
