Vegetable Fats Market Growth Analysis Report 2019 to 2025 with Key Players Unilever PLC, ADM, IFFCO, Conagra Foods, Wilmar International
Positive application outlook across food and industrial sector for culinary works, perfume formulations, biofuel feedstock, and soap manufacturing will drive the vegetable fats market over the forecast timeframe. The tightening of regulatory guidelines pertaining to recycling and disposal of petrochemical-derived lubricants across biofuel industry has provided new growth avenues for vegetable fats market.
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• Unilever PLC
• Archer Daniels Midland Company
• United Plantation Berhad
• Conagra Foods
• Wilmar International Ltd.
Expansion of the processed foods industry, predominantly in emerging economies is expected to drive vegetable oils consumption over the forthcoming years. Global processed fruits & vegetables market registered over USD 230 billion in 2017. The vegetable fats market is expected to gain traction owing to growing demand for products with qualities such as low-fat, low-calorie, and low-cholesterol. Presence of unorganized sector, price volatility, and shrinking arable land for oilseeds and oil crops are the major factors hindering the industry growth.
The global vegetable fats market is dominated by palm oil consumption followed by soybean oil. Factors such as low production cost along with its ability to substitute trans-fat will support the overall industry development. The use of palm oil for cooking and other food applications has gained traction in several countries of Asia Pacific along with certain parts of Africa and Latin America.
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Significant adoptions made by food manufacturers to fulfill the demand for products with high nutritional content has significantly increased the use of soybean oil as a primary ingredient in food as it has zero trans-fat, minimal saturated fat value, and lesser calories content. Additionally, soybean oil is expected to witness increased demand from the healthcare industry as it is a rich source of vitamins, minerals, and omega-3 fatty acids.
Unsaturated fats accounted for over 60% of the market share in 2018. Increasing consumption of unsaturated fat by health-conscious people will positively influence the business growth. Growing consumption of food products that are rich in mono and polyunsaturated fats owing to its ability to reduce the risk of heart diseases will drive the vegetable fats market growth.
The food segment is expected to surpass 270 kilo tons by 2025. Positive application outlook for food applications to enhance the taste and texture in spreads & dressings, snacks & savory, frying, and bakery driving the vegetable fats market growth. Changing consumer preferences and improved standard of living has led the customers to opt for more healthier consumable fat options.
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Asia Pacific vegetable fats market is anticipated to witness substantial growth owing to the expansion of the convenience food sector. India and China dominate the regional market owing to changing lifestyles and rising disposable income. Additionally, the biofuel generation sector is expected to provide strong business outlook for manufacturers with growing need for fossil fuel substitutes.
The vegetable fats market is highly competitive in nature owing to the presence of companies including, Archer Daniels Midland Company, Conagra Foods, Unilever PLC, and IFFCO. The other notable industry players include Richardson Oilseed Ltd., Carapelli Firenze S.P.A., J-Oil Mills Inc., United Plantation Berhad, CHS Inc., Wilmar International Ltd., and Ajinomoto Co. Industry players opt for supply chain agreements with suppliers and distributors to ensure the effective flow of their products across all regions.
The key strategies implemented by industry participants include new product launches, geographical expansions, R&D investments, and mergers & acquisitions. For instance, In June 29th, 2018, Archer Daniels Midland Company announced the acquisition of Probiotics International, a probiotic supplement manufacturer for USD 240 million. This acquisition enabled the company to strengthen its product portfolio and position in the health & wellness sector.
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