Global Oil and Fat Substitutes Market - 2023-2030

Overview

Global Oil and Fat Substitutes Market reached US$ 2.2 billion in 2022 and is expected to reach US$ 3.4 billion by 2030, growing with a CAGR of 5.8% during the forecast period 2023-2030.

Oils and fats play an important role as functional ingredients in the food industry. Oils and fats can lead to various health issues when consumed at excess levels. With the growing health concerns associated with the overconsumption of oils and fats, consumers are demanding oil and fat substitutes, in all food products.

Manufacturers are introducing oil and fat substitutes of various plant, animal and other origins. For instance, in November 2021, Mycorena, one of the fastest-growing food technology companies announced the launch of a fungi-based fat substitute ingredient for its use in the plant-based food industry. Through the development of myoprotein fat ingredients, the company marks its way into the application of high-fat dairy alternatives.

Various advancements taking place in the research field for the production of better fat and oil substitutes help in the wide expansion of the market. Researchers are approaching various fat-replacing fabrication methods of various types including anti-solvent precipitation and thermal-mechanical treatment help in better processing methods to improve product applications in various industries.

Dynamics

Growing Demand for Low-Fat or Fat-Free Products

Excessive consumption of unhealthy fats causes several health issues including heart problems. High levels of consumption of these unhealthy fats can lead to a disturbance in cholesterol levels. The imbalance in these cholesterol levels leads to high blood pressure can ultimately heart stroke. To maintain optimal heart health, consumers are vigorously choosing low and no-fat products with oil and fat substitutes, driving the market growth.

High fat induces more calories into the body. With the increasing obesity prevalence cases, consumers are changing their dietary preferences avoiding high fats and oils and switching to healthy alternatives. The World Health Organization statistics for 2022 report that more than one billion people are suffering from obesity worldwide. 650 million adults and 340 million adolescents are suffering from this condition. Obesity in children affects 39 million people.

Similarly, Epogee LLC, a U.S.-based food technology company, unveiled their latest low-calorie alternative fat technology, EPG, at the virtual 2020 Institute of Food Technologists Annual Meeting and Food Expo held in July 2020. The product is prepared from non-GMO plant-based oil and is claimed to reduce nearly 92% of calories from fat, without disturbing the taste and texture of the food product.

Increasing Application of Oil and Fat Substitutes in the Food Industry

Manufacturers are launching oil and fat substitutes that have equal capabilities mimicking the functionalities of dietary fat. The flavour and sensory characteristics of dietary fat can be easily replaced with the use of these substitutes. The high preference for these ingredients among consumers is driving the food industry manufacturers to take up the higher use of them in product preparations. Oil and fat substitutes are frequently used in bakery, confectionery and meat processing industries.

Manufacturers are developing oil and fat substitutes that enhance the flavor of the final product in the bakery industries. For instance, in June 2023, Gaven Technologies, an Israeli-based startup, announced the launch of FaTRIX, a vegan replacement for animal fats such as butter. In bakery products such as pastries, this plant-based fat can be used as a fat substitute.

The high demand for plant-based fat substitutes has a greater application in the production of plant-based products. For instance, in September 2022, THIS, a UK-based alternative meat brand, launched a new plant-based beef alternative with the use of a new fat substitute, made from olive oil. The fat substitute, olive oil helps in maintaining the good texture and taste of the product.

Processing Challenges and High Costs of the Oil and Fat Substitutes

Manufacturers face various challenges in the incorporation of oil and fat substitutes in food processing. These substitutes are claimed not to provide the exact taste and textural properties of natural ones. The stability and functionality of some of these substitutes don't match the characteristics of the natural fats, causing technical challenges for the manufacturers for their incorporation in food processing methods.

Plant-based and animal-based ingredients are used in the production of oil and fat substitutes. Manufacturers face challenges in the sourcing and procurement of key essentials needed for the production of these substitutes. The production of high-quality oil and fat substitutes results in the high price of the product, making it hard for the food manufacturers to use them in their product production, limiting the market growth.

Segment Analysis

The global oil and fat substitutes market is segmented based on type, form, source, application and region.

Increasing Demand for Plant-Based Products

The global oil and fat substitutes market is segmented based on source into plant-based and animal-based. The higher adoption of the veganism trend in the global population increased the plant-based source segment growth. The World Animal Foundation estimates that there are approximately 88 million vegans in the world.

With the high demand for plant-based products, manufacturers are producing placed-based alternatives for fats and oils for their use in vegan products. For instance, Shiru Inc., a biotechnology company that provides ingredients launched OleoPro, a plant-protein-based fat ingredient for its use in alternative protein food products, with 90% less saturated fat.

Geographical Penetration

Increasing Health Concerns Among Consumers in North America

North America dominated the global oil and fat substitute market with the increasing consumer adoption of low-fat products. United States, Canada and Mexico are the leading market growth. Excessive consumption of fats and oils is causing various health problems in the consumers of this region. Trust for America's Health Organization estimates that in the American region, 19 states have obesity rates greater than 35 % in 2022.

According to the Centers for Disease Control and Prevention May 2023, in United States, adults aged 20 and above are subjected to total cholesterol levels above 200 mg/Dl. It is estimated that adults with above 240 mg/DL reached 25 million in U.S., whereas 7 % of children aged between 6 to 19 are prone to high total cholesterol.

The growing health concerns related to the high consumption of oils and fats are motivating the consumers of this region to take up fat and oil substitute options. Most people prefer low and no-fat products. The presence of major market players such as Cargill Ltd and Ingredion helps in the wide expansion of the product in this region, positively affecting the market growth.

Competitive Landscape

The major global players in the market include: Cargill, Incorporated, ADM, Kerry Group, No Palm Ingredients, Ingredion, Ashland Inc., CP Kelco, Kern Tec, Corbion and Fiberstar, Inc.

COVID-19 Impact Analysis:

The outbreak of the COVID-19 pandemic moderately impacted the global oil and fat substitutes market. The sudden lockdown declaration halted processes at the oil and fats substitute production plants. The limited raw material and labor requirements availability decreased the production of the product. The disruption in the supply chain activities reduced the economic activity of the market due to decreased product sales.

The pandemic increased health consciousness among consumers and increased people's adoption of healthy products. The rising threat of obesity motivated consumers to take up less caloric and low-fat products, positively impacting the market growth. In addition, the increased use of these substitute products and the launch of new products increased the product demand.

Russia- Ukraine War Impact

The Russia-Ukraine war had a negative impact on many industrial sectors, including fat and oil substitute industry. The disturbances in the raw material sources and supply chain disruptions affected the global market growth. The war created import and export trade disruptions, resulting in economic disturbances. The political and economic uncertainty created due to the war had a negative impact on the oil and fat substitutes market.

By Type

• Carbohydrate-Based
• Protein-Based
• Lipid-Based

By Form

• Powder
• Liquid

By Source

• Plant-Based
• Animal-Based

By Application

• Processed Meat
• Bakery and Confectionery
• Beverages
• Convenience Food
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In November 2022, C 16 Biosciences, a biotechnology company, announced the launch of a palm oil alternative, prepared with the use of yeast.
• In May 2022, Epogee LLC, a U.S.-based food technology company introduced a new product offering, Esterified Propoxylated Glycerol, an alternative fat that can be used as a functional ingredient in plant-based products. The product has a reduced-calorie activity that helps in producing plant-based meat with fewer calories.
• In May 2021, Cubiq Foods, a food technology company that provides fat-replacement solutions launched Go! Drop, a fat substitute. The product is claimed to have reduced saturated fats and 20% less oil. It enhances the juiciness and flavor of the product adding fewer calories to it.

Why Purchase the Report?

• To visualize the global oil and fat substitutes market segmentation based on type, form, source, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of oil and fat substitutes at the market with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global oil and fat substitutes market report would provide approximately 69 tables, 67 figures and 218 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies