Edible animal fat Market Expected to Reach $64.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Edible animal fat Market," The edible animal fat market size was valued at $41.8 billion in 2021, and is estimated to reach $64.7 billion by 2031, growing at a CAGR of 4.5% from 2022 to 2031.

The rendering and subsequent separation via presses or centrifuges are used to produce fat from meat stock. The leftovers are dried and fed to animals, and the same pattern can be seen in the production of fish oil, wherein the dried solid residue is sold as fish meal.

The Edible animal fat Market Trends is majorly driven by an increase in demand for animal fats and oils from the food service sector and the rise in use of lard in the baking industry as bread spreads. In addition, the market for animal fat has expanded rapidly as a result of increased demand from downstream industries such as biodiesel, food, oleo chemical, and pet food. Consumers in developing regions, such as Asia-Pacific, prefer lard over butter in baked goods, thus driving the Edible animal fat Market Demand.

Lard is another type of animal fat that is used in the feed and oleo chemicals industries. The German baking sector is witnessing increased demand for lard (as a bread spread), which is driving Edible animal fat Market Growth. On annual basis, food companies, particularly those in the bakery industry, obtain lard to be used as a substitute for butter in quantities ranging from 500 to 600 million tons. The demand for tallow, which is used in animal feed and biodiesel, is boosting the growth of the Edible animal fat Industry.

China has achieved self-sufficiency in pork and lard production. The increase in consumption of lard-based processed foods has boosted the market for animal and marine fats and oils. Furthermore, tallow is preferred over palm oils in the soap-making industry, as it is a higher quality raw material. Tallow supply has further increased as global slaughter rates have increased considerably.

China has achieved self-sufficiency in pork and lard production. The increase in consumption of lard-based processed foods has boosted the market for edible animal fats. Furthermore, tallow is preferred over palm oils in the soap-making industry, as it is a higher quality raw material. Tallow supply has further increased as global slaughter rates have increased considerably.

The outbreak of the COVID-19 pandemic in 2020 has hampered the growth of the global edible animal fat market. Retail stores, malls, supermarkets, and other sales channels have been forced to close or remain closed as a result of stringent lockdown imposed by governments all over the world. During the lockdown, however, several brands have shifted their focus to e-commerce platforms to generate revenue and increase sales. Offline sales are increasing at the moment, as government lockdown restrictions in several countries are being gradually lifted.

According to the Edible animal fat Market Analysis, the market is segmented into type, source, application, and region. On the basis of type, the market is categorized into butter, lard, tallow, and others. As per the source, it is divided into cattle, pigs, and others. Depending on the application, it is fragmented into non-food industry and food industry. The food industry is further bifurcated as bakery and confectionery, savory snacks, and convenience foods. Region wise, the animals and marine fats and oils market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Various types of animal fats available in the market include bovine fats, edible fats, inedible fats, and cattle fats. The market for edible animal fats has grown significantly as a result of factors such as rise in demand from the food & beverage and animal feed industries. Furthermore, rapid expansion of the oleo chemical industry demand is expected to open new avenues for the market players. Butter type segment held the major share in the edible animal fats market in 2021. 

Based on the source, the cattle segment gains a major traction in the market. The high demand of cattle is expected to grow more especially in China and USA. The strong disposable income of consumers and barbecue season have pushed the demand of cattle sourced animal fat.

Based on the application, the food industry held the major Edible animal fat Market Share in the market. The edible animal fat is being fit for human consumption in the food industry. It is usually used in bakery & confectionery products.

Regionally, Asia-Pacific witness a major growth rate during the Edible animal fat Market Forecast period. Increase in demand for edible animal fats from Asia-Pacific countries, particularly India, China, Malaysia, and Indonesia, drives the market. The demand from these countries' respective food sectors, which is supported by improvement in living standards and population growth, is driving the edible animal fats market. Moreover, increase in emphasis on biofuels, such as biodiesel produced from animal fats, is augmenting the demand for edible animal fats.

The key players in the global edible animal fats industry include Baker Commodities, Inc., Bunge Limited, COLYER FEHR GROUP, Darling Ingredients, PIERMEN B.V, SARIA A/S GmbH & Co. KG, Ten Kate Holding B.V., York Foods, Sanimax, and BRF. The players in the market has enourmous Edible animal fat Market Opportunity in the emerging nations. 

Key findings of the study

• On the basis of type, the butter segment held the major share in the market. The butter Edible animal fat Market Size was the highest revenue contributor to the market, with $18,682.1 million in 2021
• On the basis of source, the cattle segment was the dominating Edible animal fat Industry.
• On the basis of application, the non-food industry segment is expected to be the fastest growing segment during the forecast period, with the CAGR of 5.1%.
• On the basis of region, Asia-Pacific is expected to be the fastest growing segment during the forecast period with the CAGR of 5.2%.