Global Plant-Based Fats Market - 2023-2030

Overview

Global Plant-Based Fats Market reached US$ 70.8 billion in 2022 and is expected to reach US$ 258.9 billion by 2030, growing with a CAGR of 17.6% during the forecast period 2023-2030.

As more people embrace plant-based diets that prioritise cutting back on or eliminating animal products from their diets, the industry is expanding. Thus, the market has emerged as a crucial element for individuals who are dedicated to following these dietary options. At the same time, consumers are choosing plant-based fats in order to reduce their ecological impact and solve ethical issues related to animal agriculture due to increased environmental knowledge and concerns.

Throughout the food, there is a vibrant and steadily expanding market for plant-based fats. The increasing demand from consumers across the World for more sustainable and ethical food options is the main driving factor of the market growth during the forecast period. Numerous plant-based foods, sourced from seeds, nuts and coconuts, are increasingly becoming popular.

Similarly, North America dominates the plant-based fats market, capturing the largest market share of over 1/3rd. In North America, plant-based fats have grown more readily accessible. They are frequently available at fast-food chains, specialty health food stores, and standard grocery stores. This is now more convenient for consumers to incorporate plant-based fats into their cuisines due to their prevalent availability.

Dynamics

Dietary Trends and Health Consciousness

According to WHO Report 2022, Cardiac and vascular diseases collectively known to as CVD include valvular heart illness, and cerebrovascular disease. A stroke or heart attack constitute over four of each five deaths of CVD, and thirty percent of these fatalities occur prematurely for individuals under the age of 70.

Plant-based fats have been integrated into dietary plans for individuals managing and preventing chronic conditions like heart disease or diabetes. Health-conscious consumers dealing with specific health concerns have turned to plant-based fats as a part of their holistic approach to condition management.

Health-conscious consumers frequently prioritize transparency in food labeling and cleaner ingredient lists. Plant-based fats are viewed as a transparent and clean-label choice, resonating with individuals who wish to comprehend and govern what they ingest. The demand stemming from health and wellness trends has spurred substantial product innovation in the food industry.

Consumers are increasingly prioritizing healthier eating habits, which has instigated a noteworthy transformation in fat consumption patterns. Historically, saturated and trans fats held a prominent place in plant-based products. However, with scientific research establishing links between these fats and various health risks, including heart disease, consumers are actively seeking more health-conscious alternatives. This alteration in dietary preferences serves as a pivotal market driver.

Increasing Preferences for Plant-Based Diets

Consumers are shifting towards vegan diets, which is driving the market growth. Around 88 million people around the world identify as vegans, according to statistics from the World Animal Foundation's 2023 study. That represents roughly 1.1% of the world's population, which is over 8 billion people. The average yearly growth of food and beverage launches with plant-based fats and vegan claims climbed by 21% and 58%, respectively, globally between 2018 and 2021.

In the U.K, there are at least 5,38,000 vegans between the ages of 15 and 40, accounting for 45% of the population, according to a Vegoconomist survey. Compared to the preceding ten years, this indicates a rise of around 300 percent. Companies switch from producing animal fat to plant-based fat foods in order to satisfy this market need. By giving customers what they want from their products, these companies draw in additional customers.

Taste and Texture Challenges

The plant-based fats market faces a constant quest to replicate the taste and texture of traditional animal-based fats. Although plant-based products have made substantial advancements, achieving an exact match remains a complex undertaking. For instance, replicating the creaminess of butter, the flakiness of lard in pastries, and the melt-in-the-mouth texture of animal fats in meat dishes poses difficulties for plant-based alternatives.

These taste and texture limitations can discourage consumers, especially those accustomed to the unique attributes of animal fats. Culinary professionals, including chefs and bakers, also encounter challenges when adapting plant-based fats to their recipes, leading to inconsistencies and quality compromises in the final dishes. Extensive research and development efforts continue to improve the sensory experience of plant-based fats, but achieving parity with animal fats across all culinary applications remains a significant challenge, limiting market growth.

Regulatory and Labeling Complexities

The plant-based fats market contends with regulatory and labeling complexities. Defining and regulating what qualifies as "plant-based fat" can be intricate, leading to discrepancies in product labeling and claims. These discrepancies can create confusion among consumers seeking to make informed choices. For instance, labeling certain plant-based butter alternatives as "butter" can trigger legal disputes and opposition from the dairy industry, posing obstacles to market expansion.

Furthermore, varying labeling regulations and standards across regions and countries can complicate matters for manufacturers looking to expand globally. Navigating these regulatory challenges and ensuring adherence to labeling requirements can be resource-intensive and may hinder market expansion efforts.

As the demand for plant-based fats continues to rise, standardizing regulations and implementing clear, consumer-friendly labeling practices are essential to foster trust and confidence in these products. Addressing these regulatory and labeling complexities is vital for the long-term success and acceptance of plant-based fats in the market.

Segment Analysis

The global plant-based fats market is segmented based on type, source, application and region.

Increased Demand for Sunflower-based Fats

The sunflower segment held 35.5% of the global market share. Sunflower-based fats, like sunflower oil, present an allergen-friendly alternative. They are naturally devoid of common allergens like nuts and soy, making them suitable for individuals with food allergies or sensitivities. This allergen-friendly attribute has broadened the appeal of sunflower-based fats in the market.

Sunflower-based fats have found a niche in the creation of plant-based meat and dairy substitutes. These fats are harnessed to replicate the desirable textures and mouthfeel of traditional animal-based products, aiding manufacturers in recreating the sensory experiences consumers are familiar with. Food producers are actively engaged in innovation to craft an array of sunflower-based fat products that closely mimic the taste and functionality of traditional animal-based fats.

These products include margarine, salad dressings, and spreads. Such innovations facilitate the adoption of sunflower-based fats in consumers' daily culinary endeavors. In May 2022, in a survey by Consumer VOICE (Voluntary Organisation in the Interest of Consumer Education) to evaluate the safety and quality of edible oils sold in the nation.

Gemini, the flagship brand of Cargill and the market leader in the edible oil category in Maharashtra, was ranked as the best quality sunflower oil brand in India. Based on the results of a laboratory study on 23 sunflower brands assessed on 20 quality indicators in accordance with Agmark, FSSAI (Food Safety & Standards Authority of India) laws, Gemini sunflower oil, which had less percentage of saturated fat was ranked first in terms of quality.

Geographical Penetration

Demand for Specialty Fat Products in North America

The North America plant-based fats market held the largest market share of 40.3% in 2022 in the Plant-based fats market analysis. A growing number of individuals are searching for healthier substitutes for conventional animal-based fats as they become more health conscious. Since they typically have higher quantities of smaller amounts of less appealing fatty acids and beneficial unsaturated fats, fats derived from plants are increasingly accepted owing to their healthier lipid content.

In accordance with recent studies, the rate of American deaths due to cardiovascular diseases related to being overweight surged thrice between 1999 and 2022. Obesity remains a significant planetary health burden and a key risk factor for cardiovascular disease. In the meantime, 42% of Americans have been affected, up almost 10%, according to American Heart Association data for 2023. To reduce the possibility of diseases like heart disease, obesity, and some forms of carcinoma, individuals are turning to these plant-based lipids.

There is growing awareness of how eating habits affect the environment. Because traditional animal husbandry emits more greenhouse gases, more water, and more land is used, and this is commonly accepted to have a greater ecological imprint. Because of this, many North American customers are moving to plant-based fats in an attempt to lessen their impact on the environment.

Competitive Landscape

The major global players in the market include: Cargill, Inc., ADM, Bunge Limited, Wilmar International, IOI Group, AAK AB, Fuji Oil Holdings Inc., United Plantations Berhad, Avena Foods Limited and EFKO Group.

COVID-19 Impact Analysis

The plant-based fats market experienced significant repercussions from the COVID-19 pandemic, with both immediate and long-term effects. In the early stages of the crisis, there was a surge in demand for essential goods, including plant-based cooking oils, due to consumer stockpiling. Home cooking became the norm, driving up the market for plant-based fats. However, supply chain disruptions, labor shortages, and logistical challenges had adverse consequences on production and distribution.

With the evolving pandemic, health-conscious consumers increasingly turned to plant-based fats that aligned with their dietary and nutritional requirements, further boosting market demand. Market players adapted by promoting health attributes and expanding their presence on e-commerce platforms to cater to changing consumer preferences.

Russia-Ukraine War Impact Analysis

The conflict between Russia and Ukraine significantly impacted the plant-based fats market, particularly in relation to global supply chains and trade dynamics. Ukraine is a major producer of sunflower oil, a prominent plant-based cooking oil. The war disrupted sunflower oil production and exports, causing fluctuations in global oil prices.

The geopolitical turmoil and its effect on sunflower oil supply exposed the vulnerability of the global plant-based fats market to geopolitical factors and the risks associated with relying on a single supplier. In response, the market began exploring alternative sources for crucial ingredients and oils to mitigate these risks and enhance supply chain resilience.

Moreover, the geopolitical instability resulting from the Russia-Ukraine conflict had implications for commodity markets and currency exchange rates, affecting the overall cost structure of the plant-based fats market. Fluctuating exchange rates and geopolitical uncertainties added to the market's complexity.

By Type

• Saturated
• Unsaturated
• Trans

By Source

• Sunflower
• Coconut
• Soybean
• Canola
• Groundnut
• Palm Kernel
• Others

By Application

• Snacks and Convenience Foods
• Salad Dressings
• Cooking and Frying
• Baking
• Nutritional Supplements
• 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 March 2023, OleoPro, the first ingredient launched from food tech startup Shiru, is powered by artificial intelligence. OleoPro is a plant-based fat made of unsaturated oil and plant proteins. OleoPro may reduce saturated fats in plant-based products by 90%, brown when cooked, and maintain its form at room temperature. It also gives plant-based applications a juicy mouthfeel.
• In November 2022, Hong Kong-based Omni Foods introduced their exclusive line of vegan fat, OmniNanoTM. Through an emulsification process including water and oil, they can imitate animal fat in plant-based meat substitutes. The juiciness, flavor, and texture of Omni's plant-based meats are said to be enhanced by the added fat.
• In January 2022, CP Foods and American company Lypid collaborated to create better-tasting plant-based beef. Lypid's vegan fat will create a better experience for consumers. Lypid is the creator of "vegan fat," a brand of fats that mimic the flavour of conventional meats by using oils derived from plants. The texture, melting point, and oil content of the vegan oils are identical to those of animal fats.

Why Purchase the Report?

• To visualize the global plant-based fats market segmentation based on type, 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 plant-based fats market-level with all segments.
• The 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 plant-based fats market report would provide approximately 64 tables, 61 figures and 212 Pages.

Target Audience 2023

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