A Retrospective Analysis of Fats and Oils Market

Fats And Oils Market

Fats and Oils – Comprehensive Summary

Fats and oils belong to the group of organic substances and are an integral part of human diet. They are also widely used for industrial purposes and are soluble components in organic solvents. At an ordinary room temperature, fats are in solid state and oils are in the liquid state. Usually, fats and oils are derived from plants or animal sources. Fats are the trimesters of glycerol, triglycerides, and other fatty acids. Fats and oils are used in butter, cooking oil, animal feeds, fatty acids, paints, biodiesel, personal care products, greases, and lubricants and in many other applications.

Fats and Oils are available in the market in the form of Edible fats and oils that are used as staples in diets, inedible ones and for other industrial applications. Diet fats & oils are concentrated forms of energy and play a crucial role in promoting the growth of cells. Edible fats and oils are abundant sources of essential fatty acids (EFA).

These oils have substantial effects on cholesterol levels depending on whether they are monounsaturated or polyunsaturated. Fats and oils are high-energy food substances and contain about 9 calories per gram of fat. Compared with the carbohydrates and proteins, they have high energy density. Dietary fats are highly useful for hormone growth of the human body.

Study of Global Fats and Oils Market –Market Analysis

The global Fats and Oils Market is estimated to reach USD 199.96 billion in 2016, growing at a CAGR of 4.4%, and is expected to reach USD 248 billion by the end of 2021. The growth in global fats and oils market is the result of an increase in the consumption of animal products. Consumption of processed foods and changes in the consumer eating habits are the driving factors that boost up the need for fats and oils. Growing population with the changes in lifestyle is also one of the primary factors towards the fats and oils market growth.

The global fats and oils market consists of products such as palm oil, olive oil, sunflower oil, soybean oil, and rapeseed oil. Owing to the low cost and neutral taste, palm oil is the most profitable product among others in fats and oils global market.

During 2016, the global fats and oils market of Latin America accounted for a maximum revenue growth in the world market. Indonesia is the other region, which accounts for 18% of global production of palm oil followed by China, which contributed towards 14% of soybean oil production. Both North America and Brazil followed by China have their prominent share towards the growth of global fats and oil market share.

Asia Pacific region leads in the fats and oils market followed by Europe, Japan, and North America considering the high standard living of the people in those regions and the high intake of animal products. In the overall market, Asia Pacific and Middle East & Africa markets are projected to witness growth over the next few decades owing to the gradual increase in population growth.

Health benefits of Fats and Oils – Transporting fat-soluble vitamins

There are some notable benefits on health when fats and oils are used in food. Fat enhances the taste of food and keeps the body satisfied for a longer time. Each gram of fat includes twice the kilojoules (energy) of carbohydrates or proteins. Below are some of the major benefits of fats and oils specifically in the food and beverages industry:

  • Better reproductive health
  • Enhances bone strength
  • Good source of energy
  • Improve the immune system
  • Helps in proper functioning of nerves and brain
  • Consuming healthy Fats and oils helps in maintaining healthy skin and other tissues

Overall, the growth of population and increase in the consumption of healthy foods is driving the fats and oils market in terms of revenue. Some companies might change the formulations of oil to provide better quality edible oils to overcome the health issues that would increase the prices of oils. Asian Pacific and Europe regions are projected to expand their market share of revenues whereas North America and Rest of the World are estimated to exhibit sluggish growth in the global fats and oils industry.

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