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Tom Clark
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Specialty Fats and Oils Market: Smart Packaging and Shelf Stability

The specialty fats and oils market is expected to experience steady growth as demand for nutritious, functional, and application-specific fat solutions continues to rise.

The global specialty fats and oils market was valued at USD 14.12 billion in 2023 and is projected to reach USD 23.78 billion by 2030, growing at a CAGR of 7.4% from 2024 to 2030. Market growth is driven by rising demand for nutritional and functional food products, increased consumption of bakery and processed foods, ongoing technological advancements, and continuous innovation within the global food industry.

A key factor supporting market expansion is the growing health consciousness among consumers and the increasing preference for foods with enhanced nutritional value. As consumers become more attentive to health and wellness, food manufacturers are responding by developing products that align with evolving dietary preferences, such as low-trans-fat, clean-label, and functional fat solutions. This trend is expected to sustain innovation and broaden the application scope of specialty fats and oils across food and beverage categories.

Rising awareness regarding early childhood nutrition and development has also significantly contributed to market growth. Specialty fats and oils are critical ingredients in infant formula, baby food, and other infant nutrition products, as they help replicate the lipid composition required for healthy growth and development. In January 2021, Bunge Loders Croklaan (BLC) launched a high-quality lipid ingredient designed to more closely replicate the nutritional profile of human milk fat, supporting manufacturers in developing premium infant nutrition solutions.

Key Market Trends & Insights

  • North America accounted for a revenue share of 23.9% in 2023
  • The U.S. held a significant portion of regional revenue in 2023
  • By product type, specialty oils dominated the market with a 72.3% revenue share in 2023
  • By application, the confectionery segment led the market with a 54.5% revenue share in 2023

Download a free sample PDF of the Specialty Fats And Oils Market Intelligence Study by Grand View Research.

Market Size & Forecast

  • 2023 Market Size: USD 14.12 Billion
  • 2030 Projected Market Size: USD 23.78 Billion
  • CAGR (2024–2030): 7.4%
  • North America: Largest market in 2023

Competitive Landscape

The specialty fats and oils market is highly competitive, with the presence of several multinational and regional players contributing to innovation and market growth. Key companies are leveraging strategies such as strategic partnerships, capacity expansions, technology upgrades, and long-term supply agreements to strengthen their market position and meet evolving consumer demand.

Prominent market participants include Cargill, Liberty Oil Mills Ltd., Wilmar International Limited, Henry Lamotte Oils GmbH, and the Savola Group, among others, which continue to play a vital role in shaping product innovation and market dynamics.

Key Specialty Fats and Oils Companies

The following companies are among the leading players in the global specialty fats and oils market and collectively command a significant share of industry revenue:

  • Bunge Limited
  • Wilmar International Limited
  • Golden Agri-Resources Ltd
  • Kuala Lumpur Kepong Berhad
  • Sime Darby Plantation Sdn Bhd
  • Cargill
  • Liberty Oil Mills Ltd.
  • Henry Lamotte Oils GmbH
  • Savola Group
  • IOI Corporation

Recent Developments

  • June 2024: Blommer Chocolate, a prominent cocoa processor in North America, launched Elevate, a new product offering confectioners a cost-effective alternative to cocoa butter. The introduction addresses rising cocoa product prices and cost pressures faced by the confectionery industry.
  • February 2024: Chevron Lummus Global commenced operations of the largest specialty food-grade white oil hydroprocessing unit at Hongrun Petrochemical (Weifang) Co., Ltd. in China, strengthening production capacity for high-purity food-grade oils.

Explore Horizon Databook – the world’s most comprehensive market intelligence platform by Grand View Research.

Conclusion

The specialty fats and oils market is expected to experience steady growth as demand for nutritious, functional, and application-specific fat solutions continues to rise. Increasing health awareness, expanding infant nutrition applications, and continuous innovation by key industry players are anticipated to support long-term market expansion. As manufacturers focus on clean-label formulations and cost-effective alternatives, specialty fats and oils will remain integral to the evolving global food and nutrition landscape.