Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Normal & Specialty Fats market.
Trusted Business Insights presents an updated and Latest Study on Normal & Specialty Fats Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Normal & Specialty Fats market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Normal & Specialty Fats Market
The global normal & specialty fats market size was estimated at USD 28.9 billion in 2020 and is anticipated to expand at 6.3% CAGR from 2020 to 2027. The growth can be attributed to the ascending demand for bakery and confectionery products. Growth in the food processing sector along with increasing consumption of specialty fats is projected to drive the market.
Food applications such as confectionery and bakery comprise a prominent consumer base for normal and specialty fats, which find application in candy preparations, polishing of confectionery products, and others. Animals and plants are two of the major sources utilized for developing fats that are further used for developing the above formulations.
The prominently used animal fats include edible beef tallow and lard oils, whereas, vegetable sources include oils such as soy, palm, rapeseed, and sunflower. Apart from the food industry, these are used in several industrial and commercial applications including soaps and lubricants. Growing consumption of fats in food formulations is expected to drive the market over the forecast period 2021-2027.
However, growing consumer awareness about a healthy lifestyle and increased cases of health issues such as overweight, obesity, and high cholesterol have prompted traditional fat manufacturers to develop alternative sources. For instance, carrageenan is being used as a fat substitute, which mimics fat properties and lowers the caloric value when added to any food product. Cargill, Inc., a key industry player, develops and distributes carrageenan as a fat substitute for food product manufacturing. This is expected to pose a potential threat to the market growth.
Type Insights: Normal & Specialty Fats Market
In 2019, butter emerged as the largest type segment in the normal & specialty fats market followed by shortenings. Butter is a semi-solid emulsion at room temperature, comprising roughly 80% of butterfat. It is melted as a condiment, used as a spread, and as an ingredient in saucepan frying, making, baking, and other cooking processes. In addition, growing consumer awareness concerning extreme butter fat intake that can lead to heart diseases has positively contributed to the consumption of low-calorie, low cholesterol, and low-fat butter.
Shortenings possess similar properties as that of lard, having semi-solid fats and high smoke point compared to margarine and butter. Shortenings comprise less water and thus, are less prone to splattering, which makes them safe for frying. Shortenings have a high-fat content of up to 100% compared to margarine and butter with 80%. Cake shortenings have a high content of monoglycerides. These types of products blend better with hydrophilic ingredients such as sugar and starches. The aforementioned factors are expected to contribute to the product demand in the dairy and bakery sectors in near future.
Distribution Channel Insights
In 2019, B2B emerged as the dominating distribution channel owing to high demand from food and beverage manufacturers across globe, especially producers of dairy, bakery, chocolates, and confectionery, and convenience food products along with restaurants. On account of the high demand for fats from several end-use industries, the market is characterized by the presence of a well-established distribution network to ensure uniform product availability across the globe. This includes selling, distributing, and trading the product through the Internet, wholesalers, and value-added distributors.
B2C refers to the process of selling products to consumers or end users through supermarkets, departmental stores, specialty stores, online stores, and door-to-door sales. The sales of normal and specialty fats through supermarkets/hypermarkets are anticipated to witness significant growth in the near future. On the other hand, online sales of the product are expected to grow significantly in Asia Pacific and Central and South America, thus, supported by convenient purchasing experience for customers.
End-use Insights: Normal & Specialty Fats Market
In 2019, industrial emerged as the largest end-use segment followed by commercial sector. Fats are extensively used in industrial sector for producing several food and beverage products including fried foods, biscuits, chocolate, cheese, bakery, margarine, ice cream, spray drying, foodservice, animal feed, and other confectionery products. They are also used for several non-food industrial purposes such as paints, cosmetics, petrochemical, leather, and textiles.
Different types of fats are in demand from several commercial applications such as restaurants, cafes, and local bakeries and confectioneries. Saturated fats are preferred for commercial use as they comprise full-fat milk, fatty cuts of meat, cream, butter, and cheese. These fats are used predominantly in the formulation of several commercial baked products including pastries, biscuits, and deep-fried fast food.
Application Insights: Normal & Specialty Fats Market
In 2019, bakery emerged as the largest application segment followed by convenience food. Bakery fats play a integral role in the formulation of several items including pastries, biscuits, and cakes, thus, imparting the product with taste, texture, flakiness, and richness. They help enhance the process handling and boost the final product quality, which includes volume appearance, texture, shelf life, and nutrition profile. High-income economies including Canada, U.K., Spain, Germany, and the U.S. have experienced growth in the consumption and production of ultra-processed food and bakery products including pastries, bread, cookies, and cakes over the past few years.
Vegetable fats are used as key ingredients in a broad range of convenience foods including party dips and sauces, soups, canned fish, powdered foods, muesli and breakfast cereals, and coffee whiteners. These are predominantly used in the formulation of nutritional supplements, food additives, and emulsifiers. Changing standard of living, increasing disposable income, and inclination of consumers toward convenience foods due to hectic lifestyle and job culture, especially in developed economies, are expected to trigger the growth of the convenience food market. This is anticipated to fuel the demand in near future.
Regional Insights: Normal & Specialty Fats Market
Asia Pacific lead the market in 2019 followed by Europe and is projected to be the fastest-growing regional segment over the forecast period. Growing disposable income, swift growth of the middle-class population, high purchasing power, and rising consumer demand for convenience food are expected to contribute to the growth. The application of specialty fats is anticipated to increase at a high rate due to rising demand from chocolate and confectionery industry. Mounting consumer spending on ready-to-eat food products is another key factor driving growth.
The growth in the Europe market can be attributed to the rising consumer awareness regarding cocoa butter alternatives and consuming healthy food along with strong economic growth. Bakery is one of the most prominent food industries in the European Union (EU), which is intensely driven by evolving consumer preferences and frequent innovations. Key players including Kellogg Co. and Mondelez International, Inc. have marketed their products in Italy. Along with the growth of bakery sector in Italy and France, the growing chocolate and confectionery sector in the Netherlands and Spain is expected to drive the market.
Key Companies & Market Share Insights: Normal & Specialty Fats Market
The market is fragmented with presence of long term and well-established industry players. The global players face intense competition from each other and regional players who have strong distribution networks and good knowledge about suppliers and regulations. The companies compete based on product quality and production technology. Major players compete on the basis of product offerings, application development capability, and form strategic partnerships with regional players to minimize the risk of expanding into a new marketplace. Established players, such as Cargill Inc., are investing in research and development activities to increase their product offerings, which give them a competitive edge over other players. Some of the prominent players in the normal & specialty fats market include:
Key companies Profiled: Normal & Specialty Fats Market Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this report, Trusted Business Insights has segmented the global normal & specialty fats market report on the basis of type, application, distribution channel, end use, and region:
Type Outlook (Revenue, USD Million, 2016 – 2027)
- Cocoa Butter Equivalent
- Cocoa Butter Replacer
- Cocoa Butter Substitute
- Filling Fats
- Milk-Fat Replacers
- Spread Fat
- Frying Fats
Application Outlook (Revenue, USD Million, 2016 – 2027)
- Convenience Food
Distribution Channel Outlook (Revenue, USD Million; 2016 – 2027)
End-use Outlook (Revenue, USD Million, 2016 – 2027)
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