Specialty Fats and Oils Market Report: Offering Attractive Opportunities

What are Specialty Fats and Oils?

Specialty fats are a set of vegetable fats that are primarily used as a substitute to traditional fats in a wide variety of products that includes confectionery, dairy products, infant formulas, etc. They are generally used as Cocoa butter substitutes and as dairy alternatives. However, specialty oils are used as dietary supplements as strategic raw materials in a variety of manufacturing areas. Examples of specialty oils include: Palm oil, soybean oil, olive oil and rapeseed oil.

Different Types, Forms, Functionality & Applications

There are various applications of specialty fats and oils. The bakery products that has use for these specialty fats and oils are dominating the market. This is owing to the increase in the production and the consumption of a variety of different bakery products. The increase in the disposable income of people as well as the demand of young people to try out a variety of different foods have resulted in the growth of the segment. By form, the dry segment is the dominating segment as dry fats and oils are convenient for the manufacturing use. The rising demand for a variety of products such as confectionery and chocolate are also driving the market.

Asia Pacific is the largest market for Specialty Fats and Oils

The global specialty fats and oils market is led by the APAC region. This is owing to the increase in the disposable income of the people that results in them having a greater purchasing power. The region has also seen an increase in the applications of such products. The rising awareness of people regarding their health have also resulted in the growth of the overall market as these specialty fats are also used as cacao butter substitutes as well as a dairy butter substitute. The increase in the demand for processed convenience foods have also resulted in the overall market growth. The Asia-Pacific region is also expected to have the highest growth rate in the coming years as well.

Market Drivers

The increase in the usage of specialty fats and oils in variety of different applications is a key market driver. Also, the rising awareness among people regarding the consumption of good fatty acids and the growing demand for the consumption of products that can be considered as natural in origin will lead to overall market growth. There is also an increase in the demand for confectionery products such as chocolate and this in turn will improve the overall market for specialty fats and oils as such products are used in the creation of a variety of confectionery products.

Specialty Fats and Oils industry outlook

The manufacturers of specialty fats and oils are adopting several strategies in order to stand out from the competition. Product launches and facility expansions are some of the strategies undertaken by key market players in the specialty fats and oils market. For instance, Cargill Inc., had announced the introduction of “CremoFLEX”, which is a brand new range of filling fats. These products can be formulated according to the needs of the manufacturer. The product range will contain 3 product types, namely, “CremoFLEX S”, “CremoFLEX F” and “CremoFLEX L”. Bunge Limited ad announced a new oil processing facility in China. The new facility will improve the company’s ability to deliver plant based specialty fats and oils for the food industry.

Specialty Fats and Oils top 10 companies include: Cargill, Wilmar International, Bunge, AAK AB, IOI Group, Manildra, D&L Industries, Fuji Oil, Musim Mas and Mewah International.