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LONDON, GREATER LONDON, UNITED KINGDOM, June 25, 2025 /EINPresswire.com/ -- What Is The Growth Trajectory Of The Fats And Oils Market?
One cannot help but marvel at the rapid growth witnessed in the fats and oils market size. In recent past, the industry has climbed from a robust $182.94 billion in 2024 to a significant $196.61 billion in 2025, marking a compound annual growth rate CAGR of 7.5%. This historic period saw emerging markets flourishing with strong economic growth, a steady increase in world population, and changing dietary patterns that largely contributed to market expansion.
What Does The Future Hold For The Fats And Oils Market?
It is noteworthy that the fats and oils market size is expected to further skyrocket in the forthcoming years, potentially reaching a staggering $256.35 billion in 2029. This implies a compound annual growth rate CAGR of 6.9%. A variety of factors can be attributed to the expected boom during the forecast period – government support, a rising demand for vegetable oil in the energy and cosmetic industries, an increase in demand from health-conscious consumers, and a growing demand in the food service and retail industries. To add to this uptrend, the industry has witnessed major shifts, such as a keen interest in cooking oils produced by fermentation and with a clean, neutral taste, a high smoke point, a focus on leveraging E-Commerce platforms, and the development of novel fat technologies and automated cooking oil management systems.
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What Are The Propulsion Factors Behind The Fats And Oils Market Growth?
The growth of the fats and oils market can also be attributed to one major driver – falling prices of crops due to overcapacity. Many countries across the globe are experiencing these trends, which is expected to result in low raw material costs for fats and oils manufacturing companies. Furthermore, a unique market structure has emerged, with key industry players including Bunge Limited, Wilmar International Limited, and Archer Daniels Midland Company ADM among others. These major companies are focusing on innovative product launches, such as plant-based fat, aiming to provide a sustainable and healthier alternative to traditional fats. This is a major emerging trend that emphasizes the transition towards dietary fats and oils derived from plant sources rather than animal sources.
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How Is The Fats And Oils Market Segregated?
An interesting facet of the fats and oils market is its segmentation, which offers deeper insights into its workings:
1 By Type: Fats, Oils
2 By Product Type: Palm Oil, Sunflower Oil, Olive Oil, Soybean Oil, Rapeseed Oil, Other Product Types
3 By Source: Plants, Animals
4 By Distribution Channel: Supermarkets Or Hypermarkets, Convenience Stores, E-Commerce, Other Distribution Channels
5 By Application: Food And Beverages, Personal Care, Pharmaceutical, Animal Feed, Other Applications
The subsegments of the market further delve into:
1 By Fats: Butter, Lard, Tallow, Margarine, Shortening
2 By Oils: Palm Oil, Soybean Oil, Sunflower Oil, Olive Oil, Coconut Oil, Rapeseed Oil Canola Oil, Corn Oil
What Is The Geographic Distribution Of The Fats And Oils Market?
From a regional perspective, Asia-Pacific was the largest player in the fats and oils market in 2024, with Western Europe following close on its heels. The report covers an extensive array of regions including, North and South America, Asia-Pacific, Western Europe, Eastern Europe, Middle East, and Africa.
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