by The global Animal Fats and Oils market is estimated to be valued at US$ 279.30 billion in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Animal Fats and Oils are derived from animals and have various applications in numerous industries such as food processing, pharmaceuticals, cosmetics, and others. These products are rich in essential fatty acids, vitamins, and minerals, making them a valuable ingredient in the formulation of animal feed, personal care products, and industrial applications. For instance, tallow, a type of animal fat, is commonly used in the production of soaps, candles, and biodiesel. The demand for animal fats and oils is expected to increase due to the growing population, rising disposable income, and changing dietary preferences.
B) Market Dynamics:
The Animal Fats and Oils market is driven by various factors. One of the key drivers is the increasing demand for animal-based products. As the global population grows, so does the demand for meat, dairy, and other animal-based products. Animal fats and oils are widely used in the production of processed meat products such as sausages, hamburgers, and ready-to-eat meals. Moreover, these products find applications in the dairy industry for the production of butter, cheese, and other dairy products. The rising consumer awareness regarding the nutritional benefits of animal fats and oils is also contributing to market growth. Animal fats and oils are a rich source of essential fatty acids, omega-3 fatty acids, and fat-soluble vitamins such as A, D, and E. These nutrients play a crucial role in maintaining overall health and well-being.
Another driver for market growth is the increasing utilization of animal fats and oils in the pharmaceutical and cosmetics industries. These industries use animal fats and oils in the production of various products such as ointments, creams, lotions, and medicines. Animal fats and oils provide viscosity, stability, and moisturizing properties to these products, making them an essential ingredient. The pharmaceutical industry uses animal fats and oils in the formulation of capsules and soft gels. Additionally, the growing demand for natural and organic personal care products is further boosting the market for animal fats and oils.
C) Segment Analysis:
The Animal Fats and Oils market can be segmented based on type and application. Based on type, the market can be classified into tallow, lard, poultry fat, butter, and others. Among these, tallow is expected to dominate the market due to its wide applications in various industries. Tallow is used in the production of animal feed, soaps, candles, and biodiesel. In the food industry, tallow is extensively used for frying and baking purposes. It provides a unique flavor and enhances the texture of baked goods. Based on application, the market can be segmented into food processing, industrial application, pharmaceuticals, and cosmetics. The food processing segment is anticipated to hold the largest market share due to the increasing consumption of processed meat products and the rising demand for convenience foods.
D) PEST Analysis:
Political: The political factors influencing the Animal Fats and Oils market include government regulations and policies regarding the production, import, and export of animal fats and oils. For instance, strict regulations on the use of genetically modified organisms (GMOs) in animal feed can impact the availability and pricing of animal fats and oils.
Economic: Economic factors such as disposable income levels, GDP growth, and inflation rates influence the demand for animal fats and oils. Higher disposable incomes and economic growth lead to increased consumption of animal-based products, boosting the demand for animal fats and oils.
Social: Changing dietary preferences, increasing health awareness, and the shift towards natural and organic products are social trends that drive the demand for animal fats and oils. Consumers are becoming more conscious of the nutritional benefits and quality of the products they consume.
Technological: Technological advancements in the extraction and refining processes of animal fats and oils contribute to improved product quality and efficiency. Innovative technologies such as cold pressing and enzyme-assisted extraction methods enable the production of high-quality animal fats and oils.
E) Key Takeaways:
– The Global Animal Fats and Oils Market Demand is expected to witness high growth, exhibiting a CAGR of 7.9% over the forecast period, due to increasing demand for animal-based products and growing awareness regarding the nutritional benefits of animal fats and oils.
– Asia Pacific is projected to be the fastest-growing and dominating region in the Animal Fats and Oils market. The region has a large population, increasing disposable incomes, and a strong demand for processed meat products.
– Key players operating in the global Animal Fats and Oils market are Bunge Limited, Archer Daniels Midland Company, Cargill, Incorporated, Wilmar International Limited, Tyson Foods, Inc., JBS S.A., Darling Ingredients Inc., IOI Corporation Berhad, Ventura Foods, LLC, BRF S.A., Ajinomoto Co., Inc., Premium Vegetable Oils Sdn Bhd, AAK AB, Conagra Brands, Inc., and Richardson International Limited. These companies focus on product development, strategic partnerships, and acquisitions to expand their market presence and cater to the increasing demand for animal fats and oils.
In conclusion, the global Animal Fats and Oils market is expected to witness significant growth due to the increasing demand for animal-based products and the growing awareness regarding the nutritional benefits of animal fats and oils. The market is driven by factors such as changing dietary preferences, rising disposable incomes, and technological advancements in extraction and refining processes. The Asia Pacific region is anticipated to dominate the market due to its large population and growing consumption of processed meat products. Key players in the market are adopting strategies to expand their market presence and meet the rising demand for animal fats and oils.
