Vegetable Fats Market size is forecast to reach $97.9 Bn by 2025, growing at a CAGR of 4.8% during the forecast period 2020-2025. Vegetable fats are ones that extracted from seeds, or less often, from other parts of fruits. Like animal fats, vegetable fats are mixtures of triglycerides. Soybean oil, rapeseed oil, and cocoa butter are examples of fats from seeds. Olive oil, palm oil, and rice bran oil are examples of fats from other parts of fruits. In common usage, vegetable oil refers exclusively to vegetable fats which are liquid at room temperature. Vegetable oils are usually edible oils, while non-edible oils derived mainly from petroleum are termed mineral oils. Hydrogenated fats are liquid vegetable oils made creamy when manufacturers convert some of the unsaturated fats into saturated ones through a process called hydrogenation. The edible oil processing process involves the extraction and processing of oils and fats from vegetable sources. Demand for rich and high-quality oils and fats, changing consumption habits of consumers and increasing health consciousness among consumers about the disadvantages related to the consumption of animal oil are driving the market growth in recent years. In addition, major market development of key players like Cubiq Foods and Kite Hill are other factors driving the growth of the market. Vegetable Fats Industry Analysis is based on type, product, application, and geography.
- Europe dominates the Vegetable Fats Market in the year 2019 owing to increasing awareness about the health benefits offered by vegetable fats, growing consumer demand for ethnic food recipes in several parts of the region and growth of fusion restaurants in the region. The Vegetable Fats Market scope for different regions will be provided in the final report.
- Growing demand for rich and high quality oils and fats, changing consumption habits of consumers and increasing health consciousness among consumers about the disadvantages related to the consumption of animal fat in upcoming years is estimated to drive the industry growth during the forecast period 2020-2025.
- Detailed analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market will be provided in the Vegetable Fats Market report.
- Higher price of raw materials of vegetable fats are anticipated to hamper the market growth of the Vegetable Fats Industry.
Type – Segment Analysis
Unsaturated vegetable fats held the largest share in the type segment of Vegetable Fats Market in 2019 and is estimated to grow at a CAGR of 5.23% during the forecast period 2020-2025. Unsaturated fats are considered the healthy fats and they are important to be included as part of a healthy diet. These fats help reduce the risk of high blood cholesterol levels and have other health benefits when they replace saturated fats in the diet. Unsaturated fats include polyunsaturated fatty acids and monounsaturated fats. Both mono and polyunsaturated fats, when eaten in moderation and used to replace saturated or trans fats, can help lower cholesterol levels and reduce the risk of heart disease. As a result, rising awareness about health and lifestyle standards have resulted in a considerable growth of this segment in the past few years. Saturated Vegetable fats is set to be the fastest growing segment and is estimated to register the highest CAGR during the forecast period 2020-2025, owing to recommendations by health organizations around the world for saturated fat intake and replacing with highly processed vegetable oils, such as canola oil, to decrease heart disease risk and promote overall health.
Application – Segment Analysis
Food Industry held the major share in the application segment of Vegetable Fats Market in 2019. Eating foods that contain healthy vegetable fats as a replacement for saturated fats and trans-fats in the daily diet can help keep the heart healthy by improving the body cholesterol. In recent years, focus on vegetarian diets, awareness about health benefits and recommendation of vegetable fats in place of animal fats by health professionals have resulted in significant market growth in recent years. Food Industry is forecast to continue growing at the fastest rate with the highest CAGR during the forecast period 2020-2025, owing to launch of shifting consumer demand for healthier fat containing foods and increasing key investments in product development by major market players.
Geography – Segment Analysis
Europe dominates the geography segment of Vegetable Fats Market with a share of more than 39.8% in 2019, followed by North America. Increasing awareness about the health benefits offered by vegetable fats, growing consumer demand for ethnic food recipes in several parts of the region and growth of fusion restaurants in the region have helped in the growth of Vegetable Fats Market infrastructure in this region. North America held the second place in the geography segment share of the market, owing to developing eating habits of the people, growing awareness about the benefits of vegetable fats and oils, shifting consumer lifestyle towards healthier diet and presence of key market players in this region.
Asia-Pacific is estimated to grow at the fastest rate at a higher CAGR during the forecast period 2020-2025. This is owing to rapidly increasing market of food and beverage industry, growing awareness about benefits of vegetable fats, and increasing disposable income of the common person.
Drivers – Vegetable Fats Market
- Growing demand for rich and high-quality oils and fats
Animal products and some processed foods, especially fried fast food, are generally high in saturated fats, which have been linked to increased blood cholesterol levels. Replacing foods high in saturated fats with alternatives higher in monounsaturated and polyunsaturated fats tends to improve blood cholesterol levels. It is important to select lower saturated fat varieties of core foods such as dairy products and meats. People are gradually becoming aware of the need for replacing vegetable fats with animal ones. This reduces the risk of chronic disease development and increase an average person’s life expectancy. This is set to drive the market growth in the forecast years 2020-2025.
- Changing consumption habits of consumers
COVID-19 is set to permanently change consumer behavior. Consumer attitudes, behaviors and purchasing habits are changing and many of these new ways is set to remain post-pandemic. While purchases are currently centered on the most basic needs, people are shopping more consciously, and taking care of their health by choosing proper diet. This is projected to drive the demand for vegetable fats, and consequently help in market growth during the forecast period 2020-2025.
Challenges – Vegetable Fats Market
- Higher price of raw materials of vegetable fats
Though demand of vegetable fats is high, they are produced at a lesser rate when compared to animal fats. As a result, there are lesser number of factories and hence, the production is law, and raw materials prices are high. This would result in higher selling prices of vegetable prices. Thus, it is anticipated to hamper the market growth during the forecast period 2020-2025.
Vegetable Fats Industry Outlook
Product launches, mergers and acquisitions, joint ventures and R&D activities are key strategies adopted by players in the Vegetable Fats Market. In 2019, Vegetable Fats Market share is consolidated by the top players present in the market. Vegetable Fats Market top 10 companies are Archer Daniels Midland Company, Unilever PLC, Kite Hill, Cubiq Foods, Carapelli Firenze S.P.A., Richardson Oilseed Ltd., J-Oil Mills Inc., CHS Inc., United Plantation Berhad and Ajinomoto.co among others.
- In May 2020, international sustainable food investor, Blue Horizon Ventures joined MOIRA CAPITAL PARTNERS on a leading healthy fats project with Cubiq Foods, completing the financing round amid the COVID crisis. The objective is to replace animal fats in processed meat products, dairy derivatives and saturated vegetable fats (such as coconut oil) in vegan food products.
- In March 2020, Kite Hill announced about its expanding vegan products into a new category with a plant-based butter alternative featuring almond milk as the major ingredient.