The global specialty fats & oils market size is estimated to be USD 12.6 billion in 2020 and is projected to reach USD 19.8 billion by 2026, at a CAGR of 7.8% during the forecast period. One of the major factors driving the specialty fats & oils industry is the increasing gap between cocoa butter demand & supply. Also the increase in the consumption of confectionery and processed foods and rise in the demand for clean label food products have been driving the growth of this market.
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The Asia Pacific region is estimated to account for the largest share of the global specialty fats & oils market in 2020. The rising income, purchasing power, rapid growth of the middle-class population, and consumer demand for processed products present promising prospects for growth and diversification in the region’s specialty fats & oils sector. The application of specialty fats is estimated to increase at a higher rate due to the demand from the chocolate & confectionery industry. Countries such as China and India recorded the highest vegetable oil consumption. According to the Food and Agriculture Organization (FAO), in 2017, China consumed about 35 million tons of vegetable oil, whereas India consumed about 23.8 million tons.
The major vendors in the global specialty fats and oils market are Cargill Incorporated (US), Wilmar International (Singapore), Bunge Limited (US), Mewah International (Singapore), and AAK AB (Sweden).
Cocoa beans are among the key ingredients being used in the production of chocolate. However, in the recent past, the overall production of cocoa beans has been slightly hampered due to uncertain climatic conditions that are being endured in top cocoa-producing countries. With the rising demand for cocoa as an ingredient on the one hand, and a decline in the production rate on the other, specialty fats offer an alternative solution. Specialty fats such as cocoa butter equivalents, cocoa butter replacers possess a similar set of characteristics as that of cocoa. Moreover, specialty fats are less expensive than cocoa butter.
Over the years, there has been a growing preference for natural products over artificial chemicals in the beauty and personal care industry. The culmination of factors such as the rise in the number of the millennial population specifically in the Asia Pacific region, a surge in online presence and use of the internet, increase in per capita income a growing awareness toward sustainable and environmentally-friendly products has all together driven the market for organic cosmetics and personal care products. This has resulted in an increase in the demand for specialty ingredients such as palm oil, olive oil to be used in the beauty and personal care industries in the recent past.
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In highly developed and rapidly urbanizing nations, there is a rising focus on the emerging trend of feeding infants with infant formulas and infant food lipids, which are primarily mimicked based on the composition of mother’s milk. Because there were a lot of variations in mother’s milk from different regions of the world due to varied diets, the development of one such compound with optimal levels of nutrition was essential. Here, specialty fats and oils play a crucial role, as they need to be added to the product, to balance the overall fatty acid composition.