The animal fats and oils market is primarily driven by the rising demand for low cholesterol and trans fat alternatives. Animal fats such as butter, lard, and tallow contain high amounts of saturated fats and cholesterol. Increasing health awareness among consumers due to rising prevalence of cardiovascular diseases have prompted consumers to shift from animal fats to healthier plant-based oils. Animal fats are used in various food applications such as bakery products, dairy products, confectionery goods etc. However, substituting animal fats with vegetable oils can help reduce saturated fat and cholesterol content in food products.

The global animal fats and oils market is estimated to be valued at US$ 321.76 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the Animal Fats And Oils Market Size are Johnson Controls, Honeywell, Schneider Electric, Siemens Healthineers, Philips, GSK, AbbVie, Pfizer, Merck & Co., Novartis. These players are focusing on developing enriched and fortified animal fat products to tap the health-conscious consumer base.
Rising demand for plant-based milk substitutes made from animal fats like butter is expected to present lucrative opportunities for market players. Plant-based milk alternatives made from butter contain higher fat content than nut or grain-based milk and thus offer better taste.
Advancements in fat splitting technologies allow production of fractionated fats that contain specific fatty acid profiles catering to specific health and nutritional needs. Fractionated fats yield products like anhydrous milk fat and butter oil.

Market drivers
Increasing vegan and vegetarian population worldwide is one of the key drivers for the animal fats and oils market. According to statistics, over 5% of the global population follows a vegan or vegetarian diet. The avoidance of all animal products means these consumers rely solely on plant-based substitutes for fats and oils as well. Growing preference for premium and organic products is another factor propelling the demand for animal fats and oils in developed regions. High quality grass-fed and organic animal fats command premium prices in markets of North America and Europe.

Current Challenges in Animal Fats and Oil Market

The animal fats and oils market is facing various challenges which are hampering its growth. Rise in obesity and related health issues due to high fat consumption is a major concern. Several health organizations recommend limiting consumption of saturated and trans fats which are present in animal fats. Stringent regulations regarding the use of antibiotics and growth hormones in animal feed are challenging players. Sustainability issues around intensive animal farming are also impacting the market. High cost of production due to rising animal feed costs is reducing profit margins. Switch to plant-based oils by food manufacturers due to changing consumer preference for vegetarian and vegan products is another challenge.

SWOT Analysis
Strength: High nutritive value and stability at high temperatures during cooking.
Weakness: Contains high levels of saturated fats leading to health issues. Regulations around usage of animal growth promoters.
Opportunity: Growing demand for premium dairy and meat products will boost usage of animal fats. Innovation of new products with functional benefits.
Threats: Substitution threat from vegetable and plant-based oils. Concerns around sustainability and animal welfare practices.

Geographical Regions with high market value
North America and Europe account for the largest share in terms of value currently due to high consumption of dairy and meat products. However, growth is expected to be higher in Asia Pacific region owing to rising meat consumption in countries like India and China driven by rising incomes.

Fastest growing region
Asia Pacific region is expected to witness fastest growth during the forecast period supported by changing diets and Western influence. Countries like India, China, Indonesia, Vietnam offer huge opportunity due to rising expenditure power of middle class on premium foods. Growth will be led by dairy and poultry segments in this region.

Get more insights on- Animal Fats And Oils Market