Rise in health conscious consumers drives innovation in plant-based foods
The fats and oils market is set to witness significant growth when it comes to plant-based foods
This is as a result of the increasing demand from health-conscious consumers, according to The Business Research Company’s Fats and Oils Global Market Report 2023.
Consumers’ growing preference for healthier food options has fuelled the demand for fats and oils, especially those with specific flavours and dietary benefits. In recent years, the processing of specialty oils has become more sophisticated, allowing for the preservation of flavour and nutrients.
A report by Avendus Capital revealed that health-focused foods and beverages accounted for 11% of India’s $88 billion packaged foods and beverages market in 2020.
This share is projected to reach 16% or $30 billion by 2026. Furthermore, the number of health-conscious consumers is expected to rise from 108 million in 2020 to 176 million in 2026. These factors indicate a promising market outlook driven by the increasing demand from health-conscious individuals.
According to the fats and oils market report, the global market size is projected to grow from $181.6 billion in 2022 to $195.6 billion in 2023, achieving a compound annual growth rate (CAGR) of over 7%. The market is further expected to expand to $251.3 billion by 2027, with a CAGR of over 6%.
The global fats and oils market comprises several players, and Bunge Limited leads the competition with a market share of 5.6%. Other significant competitors include Wilmar International Limited, Archer Daniels Midland Company (ADM), Mewah International, AAK AB, Cargill, Incorporated, The Nisshin Oillio Group, Musim Mas Group, Fuji Oil, and Associated British Foods.
Companies operating in the specialty fats and oils market are focusing on innovative fat technologies to drive customer innovation in plant-based foods. Additionally, sustainability is a key trend in the industry, with companies adopting various sustainable options.
For instance, Cargill, in collaboration with CUBIQ Foods, aims to develop and commercialise innovative fat technologies that enable the creation of plant-based alternative foods with enhanced flavour, improved nutritional content, and essential fatty acids.
Furthermore, CSM Ingredients inaugurated an Innovation Center dedicated to fats, oils, and emulsifiers in Germany. The centre aims to explore new sustainable frontiers through research on microbial oils, enzyme technology, and plant-based solutions.
Asia Pacific dominated the fats and oils market in 2022, accounting for 52.1% of the total market share, followed by Western Europe and other regions. Looking ahead, Africa and South America are projected to be the fastest-growing regions in the fats and oils market.
The comprehensive fats and oils market report covers the historic period from 2017 to 2022, the forecast period from 2022 to 2027, and provides further forecasts for the period from 2027 to 2032. The report evaluates the market across regions and major economies within each region.