Global Specialty Fats & Oils Market to witness surge in its valuation at a CAGR of 10.10% by 2026
According to BlueWeave Consulting, the Global Specialty Fats and Oil Market is expected to be USD 6.28 billion by 2026 from USD 3.2 billion in 2019, at a CAGR of 10.10% from 2020 to 2026. The growth of the market over the estimated period is attributed to an increasing gap between demand and supply of cocoa butter (a substitute for Specialty Fats and Oil). Apart from this, a noticeable surge in the intake of treated diet and confectionery will steer the development of specialty fats & oils industry over the forecast period. Besides, rise in the overseas funding and alliances observed in the food industry will enlarge the market scope during the forthcoming period. Moreover, the use of specialty fats & oils as a cocoa butter substitute will multiply the request for specialty fats & oils.
Specialty fats are particular class of vegetables used for different kinds of fats in multiple products such as chocolate, cosmetics, compound coatings, infant formula, confectionery, spreads & filings, ice cream, and dairy products. In addition to this, specialty oils also find massive applications as food supplements in cooking & commodity oils. The worldwide demand for specialty fats and oils is anticipated to spur the market’s development during the forecast period. Moreover, growing health awareness among customers to lower body cholesterol levels and to augment the nutritive value of the food are the main driving forces for the growth of the Specialty fats and oils market.
“The Liquid Form of Specialty Fats & Oils dominates the Consumption.”
Based on the form of specialty fats & oils, the liquid form of specialty fats & oils is expected to rise at a higher rate. High stability oils in the liquid form support in the efficient, smooth, and speedy manufacturing of sweets and bakery products. The liquid forms also provide excellent moisture holding in baked products such as cakes, leading to its wide adoption in food industry.
“The Key Drivers of the Global Specialty Fats & Oils Market are Growth in the Consumption of Confectionery and Processed foods and Health-conscious Consumers.”
Global economic development has led to rise in disposable income and busy routines, which in turn, contribute to a surge in the demand for treated food and confectionery products. The rising demand for confectionery and chocolates across the globe is pushing the specialty fats & oils market largely. According to the Statistical Bulletin of CAOBISCO (Association of the Chocolate, Biscuit & Confectionery Industries of the EU), the biscuits, confectionery & chocolate industry contributed substantially in the European economy. Intake of confectionery food products is expected to see improvement in the future as well, acting as a propelling factor for the development of the specialty fats & oils market.
The customers have started following strict health norms to improve the quality of their life. In this quest, people have lowered their intake of cholesterol, which keeps them away from consumption of regular cooking oils. Hence, the demand for specialty oils and fats is increasing year over year due to their nutritional value.
Despite the presence of many supportive factors for the market, the supply of these products depends on good crop yield, which keeps fluctuating in many areas because of an erratic rainfall pattern and changing climatic conditions. Moreover, agricultural land has also been decreasing leading to less production. Production of specialty oils such as palm faces issues related to emission of harmful gases. These reasons are likely to restrain development during the forecast period.
“Asia Pacific dominates the Global Specialty Fats & Oils Market.”
The Asia Pacific dominated the regional fats & oils market and is poised to witness fast growth over the next six years. Emerging economies such as China, Indonesia, India and Malaysia are characterized by increasing disposable incomes, higher processed food & edible oil consumption, and growing health-conscious consumers. North America and Latin America have witnessed the major shift towards substitute industrial uses of fats & oils in the recent past.
“The leading players” operating in the Global Specialty Fats & Oils Market are AAK AB, IOI Group, D&L Industries, Wilmar International, Mewah International, Cargill, Bunge, Manildra, Musim Mas, IFFCO, and The Nisshin Oillio Group and others.