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Vegetable Fats Market Size - By Type (Saturated, Unsaturated [Monosaturated Fat, Polyunsaturated Fat], Trans), Product (Soybean, Canola, Palm Oil, Palm Kernel, Groundnut, Sunflower, Coconut), Application (Food, Industrial) & Global Forecast, 2023-2032

  • Report ID: GMI2161
  • Published Date: Nov 2023
  • Report Format: PDF

Vegetable Fats Market Size

Vegetable Fats Market size is estimated to record more than 5% CAGR from 2023 to 2032, due to the increasing awareness of health and wellness among consumers. According to a report published by the Journal of Agriculture & Food Research, 44% of the consumers are willing to pay an average of 9% additional price for health and wellness food products. Many vegetable fats, such as olive oil, avocado oil, and coconut oil have proven to be healthier alternatives to traditional animal fats, considering a lower percentage of saturated fats and additional beneficial nutrients. As consumers seek to make healthier dietary choices, the demand for these vegetable fats as a core part of a balanced and nutritious diet continues to rise.
 

Vegetable Fats Market

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Additionally, a supply side surge has been a great booster for the market, specifically the food industry's shift towards healthier and plant-based products. Vegetable fats are commonly used in the formulation of a wide range of food products, including baked goods, snacks, and spreads, to meet the growing demand for plant-based and clean-label options. The versatility of vegetable fats in various culinary applications makes them a core component for food manufacturers looking to cater to evolving consumer preferences for healthier, sustainable, and plant-based options. The increasing focus on reducing reliance on animal-derived fats will further create opportunities for vegetable fats market expansion.

 

There is a perception of higher costs associated with some vegetable fats compared to cheaper alternatives like palm oil, that is restraining the vegetable fats industry expansion. While vegetable fats such as avocado oil or extra virgin olive oil are considered healthier options, they often come at a premium price point, making them less accessible for price-sensitive consumers and food manufacturers. This pricing disparity results in limitations in the broader adoption of healthier vegetable fats, especially in products where cost considerations play a significant role in the formulation process. Furthermore, the complex supply chain and potential seasonal variations in vegetable fat production further leads to price instability, hindering the market growth.
 

COVID-19 Impact

The COVID-19 pandemic had a dual impact on the vegetable fats market. On one hand, increased consumer focus on health and wellness boosted demand for perceived healthier vegetable fats, as home cooking became more prevalent owing to shut down of eateries & cafe. However, supply chain disruptions and economic uncertainties led to supply side shortages and price fluctuations, negatively affecting the market dynamics. Fortunately, the eventual resilience by adapting to changing consumer preferences enabled the market to improve overall performance and regain the upward trajectory.
 

Vegetable fats Market Trends

As health-conscious consumers seek to reduce their saturated fat intake and embrace cleaner diets, vegetable fats such as avocado oil, coconut oil, and olive oil are gaining significant traction. These fats are lauded for their potential health benefits, including heart health and weight management, and are being incorporated into a wide range of food products. The rise of plant-based diets, driven by environmental and ethical concerns, has added to market demand, as vegetable fats often play a central role in plant-based culinary creations.
 

Another significant trend in the vegetable fats market is the emphasis on sustainability and responsible sourcing. Consumers are increasingly seeking products with eco-friendly and socially responsible attributes. In response, many companies are investing in sustainable farming practices and transparent supply chains to meet these demands.
 

For instance, in June 2022, Unilever and Genomatica announced the launch of a $120m venture to scale alternative ingredients. The venture a to advance the commercialization and expansion of plant-based alternatives in everyday cleaning and personal care products, which can effectively replace conventional feedstocks such as palm oil and fossil fuels. The paradigm shift toward environmental consciousness and ethical business practices will drive the market outlook in the coming years.
 

Vegetable Fats Market Analysis

The unsaturated vegetable fats segment is poised to notable growth over 2023-2032, on account of wider cognizance about nutritional benefits of the product among health-conscious consumers.
 

  • Increasing awareness of the adverse health effects associated with saturated fats has led consumers to opt for products containing unsaturated fats. This had led to higher demand for vegetable fats with a higher proportion of unsaturated fats, such as monounsaturated and polyunsaturated fats, which are perceived as healthier alternatives.
     
  • Unsaturated fats offer various nutritional benefits, including cardiovascular health support and improved lipid profiles. They also possess functional properties that are highly valued in food processing, such as better stability and resistance to oxidation.
     

The vegetable fats market from coconut segment is witnessing high demand and will register more than 6.5% CAGR through 2032, backed by product’s versatile applications in food & beverages sector.
 

  • Consumers are increasingly seeking natural and healthier alternatives in their diets. Coconut oil is perceived as a more health-conscious choice due to its medium-chain triglycerides (MCTs), which are believed to have potential health benefits, including weight management and improved metabolism.
     
  • Coconut oil is used in a wide range of applications, from cooking and baking to personal care and cosmetics. This versatility makes it a preferred choice for manufacturers looking to incorporate a single ingredient into multiple product categories, simplifying supply chains and reducing costs.
     

The vegetable fats market share from industrial application will observe gains at over 5% CAGR over the forecast period, owing to the rising production of oleochemicals as well as the surging demand for biofuels.
 

  • The increasing demand for biofuels, such as biodiesel, has led to a significant uptick in the use of vegetable oils as feedstocks. These oils are used in the production of biodiesel due to their renewable and environmentally friendly nature.
     
  • They are also used as base oils in industrial lubricants, offering a sustainable alternative to petroleum-based lubricants.
     
  • As industrial sectors seek sustainable and biodegradable alternatives to petrochemicals, vegetable oils become essential feedstocks for oleochemical production, which is used in the manufacturing of a wide range of products, including soaps, detergents, cosmetics, and industrial chemicals.
     

Asia Pacific vegetable fats market is set for strong growth with over 5.5% CAGR between 2023 and 2032, favored by the increasing population, rising disposable incomes, and changing dietary preferences. Consumers are shifting toward healthier and plant-based options in countries like India and China where traditional cooking methods often involve vegetable fats such as palm oil and coconut oil.
 

Additionally, the food processing sector in the Asia-Pacific region has been expanding rapidly, further boosting the use of vegetable fats as ingredients in various food products. Companies operating in the region are adopting strategies to cater to the evolving trend of sustainability and natural ingredients, shaping the region market dynamics.
 

Vegetable Fats Market Share

The prominent industry player, Unilever plc, has been actively focused on innovation, introducing a range of healthier vegetable fat products in response to the growing consumer demand for plant-based and healthier food options. The firm also emphasizes on sustainability, committing to sourcing sustainable palm oil and reducing its environmental footprint, aligning with the trend of eco-conscious consumer preferences. Additionally, the company leverages its extensive distribution network and established brand presence to effectively penetrate and expand within the vegetable fats market. Similar efforts are being leveraged by other vegetable fats industry players, namely:

  • Archer Daniel Midland Company
  • Unilever Plc
  • IFFCO
  • Conagra Foods
  • Carapelli Firenze
  • Richardson oilseeds ltd

Vegetable Fats Industry News

  • In October 2023, Wesson, a 124 year old company known for its vegetable oils, announced that it is leveraging the consumer desire for alternative dairy products by launching its plant-based butter. The product will have two variants: olive oil based and canola oil based and will cater to health conscious customers.
     
  • In May 2023, Unilever plc. announced that it is working to increase supplies of sustainable and deforestation-free palm oil by sourcing directly from producers on the ground. This not only benefits the local environment, but is beneficial for smallholders, independent mills, and the company’s own supply chains.
     

The vegetable fat market research report include in-depth coverage of the industry with estimates & forecast in terms of volume in million kilo tons & revenue in USD billion from 2018 to 2032 for the following segments:

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Market, By Type

  • Saturated
  • Unsaturated

Market, By Product

  • Soybean
  • Canola
  • Palm Oil
  • Coconut Oil
  • Groundnut
  • Sunflower
  • Palm Kernel

Market, By Application

  • Food
  • Industrial

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE

 

Authors: Kunal Ahuja, Tushar Malkani

Frequently Asked Questions (FAQ) :

The market size of vegetable fats is set to grow at 5% CAGR during 2023 to 2032, led by the increasing awareness of health and wellness among consumers.
The coconut segment is witnessing high demand and will register more than 6.5% CAGR through 2032, backed by product’s versatile applications in food & beverages sector as consumers are increasingly seeking natural and healthier alternatives in their diets.
Asia-Pacific market is set to witness 5.5% CAGR through 2032, favored by the increasing population, rising disposable incomes, and changing dietary preferences.
Archer Daniel Midland Company, Unilever PLC, IFFCO, Conagra Foods, Carapelli Firenze, and Richardson Oilseeds Ltd.

Vegetable Fats Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 11
  • Tables & Figures: 290
  • Countries covered: 23
  • Pages: 300
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