Solid Fats Market Overview
Solid Fats Market size is estimated to reach $1.2 billion by 2027, growing at a CAGR of 5.6% during the forecast period 2022-2027. Solid fats change into solid at room temperature. They are derived principally from animal foods and can also be prepared from vegetable oils by way of the dehydrogenation process. Some typical examples of solid fats include lard and shortening. Coconut oil is 100% fat, 80-90% of which is saturated fat. This provides it with a robust texture at cold or room temperatures. Fat includes tinier molecules termed fatty acids, and there are numerous kinds of saturated fatty acids in coconut oil. The fat in liquid milk is solid fat. Milk fat is solid at room temperature. However, it is suspended in liquid milk by the process of homogenization. Typically, palm oil includes nearly 50% saturated fatty acids, 40% monounsaturated fatty acids, and 10% polyunsaturated fatty acids. Palm oil and its constituents are increasingly utilized in foods like cooking oils, margarine, shortenings, and confectionery products. Typically, liquid fats are derived from plant oils and are unsaturated fats. Olive, canola, corn, soybean, safflower, and sesame oils all are derived from plants. Rapeseed oil is soaring in unsaturated fats and vitamins E and K. It includes a beneficial ratio of omega-3 to omega-6 fats, which can positively affect heart health.
The surging intake of baked products like cakes and pastries including solid fats and with coconut oil as a novel constituent is set to drive the Solid Fats Market. The elevated utilization of lard as biodiesel feedstock in countries like Germany and the U.S. is set to propel the growth of the Solid Fats Market during the forecast period 2022-2027. This represents the Solid Fats Industry Outlook.
The report: “Solid Fats Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Solid Fats Market.
By Type: Lard, Ghee, Shortening, Compound Cooking Fats
By Distribution Channel: Supermarkets And Hypermarkets, Convenience Stores, Food And Drink Specialists, Others.
By Geography: North America (U.S, Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia, Rest of South America), and Rest Of The World (Middle East, Africa).
- Geographically, Europe Solid Fats Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the existence of countries like Spain which has an imported value of 34,851 USD thousand for lard, rendered, or otherwise extracted (excluding lard stearin and lard oil) as per Trade Map (www.trademap.org) and Spain is also one of the largest importers of palm oil in the European region.
- Solid Fats Market growth is being driven by the boost in the preference for lard in place of butter in baked goods where coconut oil may be utilized as a novel ingredient, by consumers in regions with accelerated growth like the Asia-Pacific region. However, intake of animal products and by-products like lard is not environment friendly, resulting in a massive amount of pollution, bringing about climate change and this is one of the major factors hampering the growth of the Solid Fats Market.
- Solid Fats Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Solid Fats Market report.
Solid Fats Market: Market Share (%) by Region, 2021
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Solid Fats Market Segment Analysis – By Type:
The Solid Fats Market based on type can be further segmented into Lard, Ghee, Shortening, Compound Cooking Fats (CCF), and Others. The Lard Segment held the largest market share in 2021. This growth is owing to the surging intake of lard in different parts of the world owing to its affordability. Coconut oil is derived from matured coconuts. The proliferating advantages of lard like being heat-stable for cooking and a good source of vitamin D3 are further propelling the growth of the Lard segment.
Furthermore, the Ghee segment is estimated to grow with the fastest CAGR of 6.5% during the forecast period 2022-2027 owing to the extensive health advantages of ghee like including antioxidants, assistance in weight loss, enhancing digestive system, and decreasing inflammation apart from the application of coconut oil for cooking.
Solid Fats Market Segment Analysis – By Distribution Channel:
The Solid Fats Market based on distribution channel can be further segmented into Supermarkets And Hypermarkets, Convenience Stores, Food And Drink Specialists, and Others. The Supermarkets And Hypermarkets Segment held the largest market share in 2021. This growth is owing to the prominence of supermarkets/hypermarkets as one of the focal points for buying food products including solid fats like ghee with accessibility to products from different brands in one physical location. Coconut oil is used in food preparation and personal care products. The soaring purchases witnessed in supermarkets and hypermarkets owing to the accessibility of fixed shelves for Solid Fat products are further propelling the growth of this segment.
Furthermore, the Online Stores segment is estimated to grow with the fastest CAGR of 6.1% during the forecast period 2022-2027 owing to the extensive purchases of Solid Fats like ghee, coconut oil, and palm oil, currently available on eCommerce based websites with quick home-delivery options at discounted rates, effortlessly accessed through mobile applications and other online channels right at home with just the click of a button.
Solid Fats Market Segment Analysis – By Geography:
The Solid Fats Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and Rest of the World. Europe (Solid Fats Market) held the largest share with 45% of the overall market in 2021. The growth of this region is owing to the existence of countries like Spain, Netherlands, Slovakia, Denmark, and U.K. being top importers of lard, rendered or otherwise extracted (excluding lard stearin and lard oil), as per the trade map, in the European region. Virgin coconut oil is beginning to be utilized in high-end products in keeping with the health and wellness trend. The surging application of coconut oil in food and personal care products is further propelling the growth of the Solid Fats Market in the European region.
Furthermore, the North America region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like the existence of countries like Mexico and the U.S., being top importers of lard, rendered or otherwise extracted (excluding lard stearin and lard oil), as per the trade map, in the North American region. The surging application of palm oil in everyday products in countries like the U.S. is further fuelling the progress of the Solid Fats Market in the North American region.
Solid Fats Market Drivers
Surging Applications Of Coconut Oil Are Projected To Drive The Growth Of Solid Fats Market:
Coconut oil is derived from the kernel of matured coconuts cultivated from coconut palm and is soaring in saturated fats. Coconut oil is a typical edible oil in some nations. Any kind of coconut oil is good for baking applications owing to fats being solid at room temperature. This makes coconut oil perfect for application in baked goods like vegan cookies and pie crusts, where the application of solid fat assists in the development of a light and soft product. Coconut oil is utilized as a cooking fat, hair oil, body oil, and industrial oil. Saturated Fatty Acids (SFAs) in coconut oil raise serum HDL cholesterol greater than LDL cholesterol to provide a more favorable lipid profile compared to dietary carbohydrates. Currently, it has been demonstrated that displacing high-PUFA vegetable oils by 75% with coconut oil in the diet of broilers is related to a decreased fat deposition and boosts lipoprotein lipase, hepatic lipase, and total lipase actions, thereby influencing favorably lipid profile. The surging applications of coconut oil are therefore fuelling the growth of the Solid Fats Market during the forecast period 2022-2027.
Soaring Applications Of Palm Oil Are Expected To Boost The Demand Of Solid Fats:
One portion size of 14 g of Palm Oil includes 120 calories. Furthermore, it includes total fat of 14 g with the daily value of 18% of the daily value with saturated fat of 6.7 g constituting 34% of the daily value. The four chief conventional applications of palm oil in food products are for cooking/frying oil, shortenings, and margarine and confectionary fats. Palm oil is utilized favorably in both solid fat products and in the liquid cooking oil sector specifically in industrial frying uses. It provides numerous technical properties desirable in food applications, like resistance to oxidation, which contributes towards the lengthier shelf life of end products. Palm oil is perfectly suited for application as a constituent in shortenings and margarine owing to the existence of 20 – 22% solid fat content (SFC) at 20°C, which assists in the formulation of fat products with a plastic range. The soaring applications of palm oil are therefore driving the growth of the Solid Fats Market during the forecast period 2022-2027.
Solid Fats Market Challenges
Disadvantages Of Coconut Oil Are Hampering The Growth Of The Solid Fats Market:
One tablespoon of coconut oil includes 13.5 grams of total fat. Every gram of fat is equivalent to 9 calories. Therefore, one tablespoon of coconut oil includes 120 calories. Furthermore, there is 0g of protein, 14 g of fat of which 12 g is saturated, 1 g is monounsaturated and 0.5 g of polyunsaturated. There is 0 mg of cholesterol. Coconut oil offers no fiber and little to nil vitamins or minerals. Coconut oil is 100% fat. The medium-chain triglycerides in coconut oil can navigate the gut lining simply and effortlessly. However, they can also pull across toxins (termed endotoxin or LPS) from the bacteria in the gut. When someone acquires a bad infection and is hospitalized, his/her gut integrity breaks down and begins to discharge tiny quantities of these toxins to the immune system encircling the gastrointestinal (GI) tract. This brings about a complete cascade of inflammation, and numerous times need powerful antibiotics and steroids to remove mentioned inflammation. It turns out that a side effect of partaking in great quantities of coconut oil is that the triglycerides can bring about identical inflammation. These issues are thus hampering the growth of the Solid Fats Market.
Solid Fats Industry Outlook:
Product launches, technological innovation and advancement, packaging data, strategic alliances, joint ventures and acquisitions, and greater investment in R&D are key strategies adopted by players in the Solid Fats Market. Key companies of this market are:
- Always Fresh
- Pepe’s Ducks Ltd
- Bunge Limited
- Cargill Incorporated
- Conagra Foodservice Inc.
- US Dreams
- Ancient Organics
- Pure Indian Foods
- In March 2022, the Gujarat Cooperative Milk Marketing Federation (GCMMF Ltd), which markets milk and a series of milk products under the brand name Amul, declared the introduction of Amul Fresh Milk and Curd in Vijayawada. Andhra Pradesh Dairy Development Cooperative Federation Managing Director Babu A introduced Amul fresh milk and curd together with officials of the GCMMF Ltd. Addressing on the occasion, Babu pronounced that milk is being sourced transparently from women dairy farmers in 1,400 villages in the State presently and the count of villages will be raised by another 3,000 in the coming two to three months.
- In March 2021, Grüninger introduced a creative custom-flavoring procedure for clean label better-for-you bakery fats. Grüninger AG established a novel technology to generate palm-free, vegan, and vegetarian margarine in which any off-note flavors successfully taste-masked. At the core of the procedure is an organic rosemary extract-derived antioxidant that can be custom-flavored to match particular applications.
- In February 2020, Cargill financed $6.4 million to extend its food pilot capacities at its North American Pilot Development Center in Savage, Minn., allowing bakery customers to raise their speed-to-market with novel products. The novel facility will permit the edible oils business to conduct multi-scale, continued piloting, commencing with the cleansing of novel vegetable oils and mixes and concluding with creative shortening solutions for bread, cakes, cookies, frying, and additional applications. Additional food constituents, inclusive of those utilized for confectionery products and infant nutrition, can be piloted at the site also.