The animal fats and oils market comprises fats and oils obtained from various animal sources such as bovine, porcine and marine. Animal fats offer various health benefits such as providing energy and assisting nutrient absorption. They are primarily used in food processing industries for baking, frying and cooking applications owing to their high smoke point. In the nutraceuticals industry, animal fats like fish oil find application in dietary supplements due to presence of omega-3 fatty acids.
The Global Animal Fats and Oils Market is estimated to be valued at US$ 321.76 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the animal fats and oils market are Johnson Controls, Honeywell, Schneider Electric, Siemens Healthineers, Philips, GSK, AbbVie, Pfizer, Merck & Co., Novartis. The key players are focusing on capacity expansion and new product launches to cater to increasing demand.
The key opportunities in the market include rising demand for nutritious food products fortified with animal fats and growing popularity of marine oils due to presence of beneficial fatty acids. The manufacturers are expected to leverage these opportunities through strategic collaborations with food processing companies.
Globally, the demand for animal fats and oils is highest in Asia Pacific region owing to large population and growing food processing industry in countries like China and India. The key players are focusing on strengthening their distribution network in Asia Pacific region to tap the potential opportunities.
Market drivers
The primary driver which is propelling the growth of global animal fats and oils market is increasing demand from food processing industry. Animal fats are used on a large scale by bakeries, restaurants and food franchises for frying, baking and cooking applications due to beneficial cooking properties. This widespread application is driving the consumption of animal fats and oils.
PEST Analysis
Political: The regulations related to the use of Animal Fats And Oils Market Size in food products vary widely across different countries and regions. Export and import norms for animal fats and oils also differ significantly based on quality and safety standards.
Economic: Factors such as fluctuating feedstock prices and volatility in global energy prices have a strong influence over production costs for animal fat and oil producers. The overall economic growth rates within key markets also determine the purchasing power and demand trends for animal fats and oils.
Social: Changing consumer preferences towards products with certain health claims and non-GMO attributes are impacting product innovation trends. Increased awareness about links between diet and diseases is also impacting consumption patterns for different types of animal fats and oils.
Technological: New extraction and fractionation techniques allow production of specific types of fats and oils from animal sources. Advanced techniques for interesterification and hydrogenation are enabling development of novel structured lipid products.
Among geographical regions, the countries in North America and Europe account for a major share of the overall market value, owing to high per capita consumption in developed countries. However, Asia Pacific is emerging as the fastest growing regional market, driven by rising incomes, westernization of diets, and expansion of food processing industries in developing Asian economies. Countries such as China, India and Indonesia are lucrative markets within this region.
The market in Latin America is also expanding at a significant rate due to growing demand from food and personal care products manufacturing sectors. Countries like Brazil, Mexico and Argentina exhibit high growth potential within this region over the forecast period. Nations in Middle East and Africa currently account for a relatively smaller share but are expected to offer new opportunities for market participants.
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