April 24, 2024

Animal Fats and Oils Market is Driven by Expanding Applications in Food and Personal Care Industries

These fats and oils find numerous applications in food, personal care, pharmaceuticals, and other industries owing to their nutritional profile and functional properties. They are used as cooking oils, shortenings, margarines, soaps and lubricants. The growing demand for natural and sustainable ingredients in the food and personal care sectors has been driving increased consumption of animal fats and oils.

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 include Johnson Controls, Honeywell, Schneider Electric, Siemens Healthineers, Philips, GSK, AbbVie, Pfizer, Merck & Co., Novartis. These companies dominate the market with their well-established global production and distribution networks.

The demand for animal fats and oils is increasing globally owing to the expanding applications in various industries. In the food industry, they are widely used for cooking, bakery, and confectionery products. The personal care industry is also witnessing rising usage of these fats and oils in cosmetics and skincare applications due to their emollient and moisturizing properties.

The animal fats and oils market is expanding globally with growth in markets across Asia Pacific and Latin America. The increasing meat production and consumption in countries like China, Brazil and Mexico is stimulating the production of by-products like animal fats and oils. Several companies are investing in these emerging regions to tap into new growth opportunities.

Market Drivers
One of the key drivers for the animal fats and oils market is the shifting preference towards natural and clean-label ingredients in the food industry. Consumer demand for natural, non-GMO and sustainably produced food products is prompting food manufacturers to replace artificial and chemically synthesized ingredients with natural alternatives like animal fats and oils. This trend is expected to have a positive influence on the sales of animal fat and oil products over the forecast period.

Impact of geopolitical situation on Animal Fats and Oils market growth:

The current geopolitical instability across several regions is impacting the growth of the global animal fats and oils market. The ongoing Russia-Ukraine conflict and sanctions on Russia have disrupted supply chains and export of important feedstocks. Russia and Ukraine are among the leading exporters of sunflower, canola and soybean oils. The conflict has led to a spike in commodity prices. Palmoil imports from top exporter Indonesia have also been affected due to various export restrictions and policies. Meanwhile, China’s zero-Covid policy is prolonging port closures and impacting international trade. These geopolitical issues are hindering free trade and increasing input costs for animal fats and oil producers. Looking ahead, companies must diversify their sourcing markets, explore alternative feedstocks and plan for disruptions while working with governments to stabilize trade conditions. Strategic partnerships across regions can help mitigate risks from geopolitical instability on the market.

Geographical regions with high Animal Fats and Oils market value:

The Asia Pacific region accounts for a major share of the global Animal Fats And Oils Market Size in terms of value, led by China, India and other developing nations. Wide availability of raw materials, large livestock population and growing demand for meat and dairy products have made APAC an attractive market. North America is another prominent regional market supported by well-established meat and food processing industry. Countries like the US, Canada and Mexico utilize significant amounts of animal fats and oils in various food applications. Europe remains a key regional market despite recent declines especially in Western European nations with stringent health regulations.

Fastest growing region for Animal Fats and Oils market:

Africa is forecasted to be the fastest growing regional market for animal fats and oils during the forecast period. Rapid urbanization, rising population, growing middle class and shift towards western diets rich in meat and dairy are driving up demand. Sub-Saharan countries with large livestock base like Nigeria, Ethiopia, South Africa offer major opportunities. Investments in infrastructure, policy support for agriculture and food industry are helping Africa emerge as high potential market. Companies should explore partnerships and sourcing opportunities in African nations to capitalize on the rapid growth momentum.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it