Tallow Fatty Acid Market Expected to Reach $173,094.5 million by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, “Tallow Fatty Acid Market by Type, Form, and End User: Global Opportunity Analysis and Industry Forecast, 2021–2030,”

The global tallow fatty acid market size was valued at $79,828.0 million in 2020, and is projected to reach $173,094.5 million by 2030, registering a CAGR of 6.9% from 2021 to 2030.

Tallow fatty acids are a family of fatty acids derived mainly from animal fat, more particularly of bovine origin. These acids are a mixture of saturated fatty acids (such as myristic, palmitic, and stearic) and unsaturated fatty acids (such as palmitoleic, oleic, and linoleic). It can be marketed retaining the same fatty acid distribution of tallow or can be performed prior to distillation partial hydrogenation that increases the stability of the product.

In 2020, Europe accounted for the largest tallow fatty acid market share of around 37.5% due to positive growth in the rubber and plastics industries, which fueled the overall growth of the Europe tallow fatty acid market. Tallow fatty acid is widely used in rubber and plastics industries due to its ability to provide stabilizing, lubricating, and gelling properties. However, emerging countries in North America are anticipated to witness increase in tallow fatty acid market demand during the forecast period, owing to rising healthcare spending and increasing market innovation in the U.S. and Canada, which are two major factors and tallow fatty acid market trends that are expected to drive the tallow fatty acid market growth. The presence of stringent government policies to maintain hygiene across the food & beverages and medical industries is a major factor driving the tallow fatty acid industry growth in the tallow fatty acid market.

Growth in value sales for the tallow fatty acid market is attributable to various factors such as surge in demand from downstream industries, including personal care, soap, and detergent industries. In addition, there is increased demand for tallow fatty acids in the food & beverages industry. The tallow fatty acid market is expanding due to strong growth in the food & beverages industry, which is being driven by rising consumer food spending and demand. Furthermore, it is used as an additive in the manufacture of a variety of food products. As a result, growth in the food & beverages industries is boosting the market for tallow fatty acids.

Tallow fatty acid has witnessed higher rate of penetration in North America as well as Europe regions. However, low availability has been observed for these products in some major parts of LAMEA region, which is attributable to low performing macro-economic factors such as internet penetration and aggressive marketing strategies by the manufacturers as well as lack of awareness among consumers in this region. Thus, lower penetration of such products limits the growth of the tallow fatty acid market.

During the outbreak of COVID-19, there occurred certain questions regarding the spread of COVID-19 through animal meat byproducts. According to the North American Renders Association (NARA), the COVID-19 virus can be killed in a few minutes at 50 to 70 degree Celsius temperature. Tallow fatty acid is obtained after rendering the meat of bovine origin animals at a temperature of 115 degree to 145 degree Celsius. Moreover, there is no documented case of disease outbreak by viruses from the byproducts of rendered animal. Therefore, the myths regarding the spread of COVID-19 through the rendered animal byproducts were busted by the associated authorities and organizations, and subsequently the demand for tallow fatty acid among consumers remained intact during the peak period of the pandemic. However, the pandemic had an adverse effect on the supply chain and distribution systems. COVID-19 has contributed to lack of animal fats supply, primarily on the market. Thus, products were in short supply.

The tallow fatty acid market is segmented on the basis of type, form, end user, and region. Based on type, the market is divided into monounsaturated fatty acid, polyunsaturated fatty acid, and saturated fatty acid. As per form, it is bifurcated into liquid and solid.

According to end user, the tallow fatty acid market is fragmented into animal feed, cosmetics and personal care industry, food & beverages industry, biodiesel, and others. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, Belgium, France, the UK, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, New Zealand, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and the rest of LAMEA).

The major players operating in the tallow fatty acid industry are Ajinomoto Co., Inc., Australian Tallow Producers, Baker Commodities Inc., Cargill, Darling industries, Darling Ingredients, Inc., Jacob Stern & Sons Tallow, SARIA SE & Co. KG, Parchem, Cailà & Parés, and Vantage Specialty Chemicals Inc.

Key findings of the study

• The global tallow fatty acid market size was valued at $79,828.0 million in 2020, and is projected to reach $173,094.5 million by 2030, registering a CAGR of 6.9% from 2021 to 2030.
• By type, the monounsaturated fatty acid segment was the highest contributor to the market, with $34,688.5 million in 2020, and is estimated to reach $69,273.4 million by 2030, at a CAGR of 6.0% during the forecast period.
• By form, the solid segment was the highest contributor to the market, with $50,862.1 million in 2020, and is estimated to reach $109,386.5 million by 2030, at a CAGR of 6.8% during the forecast period.
• By end user, the food & beverages industry segment was the highest contributor to the market, with $24,751.0 million in 2020, and is estimated to reach $50,081.7 million by 2030, at a CAGR of 6.2% during the forecast period.
• By region, Europe was the highest revenue contributor, accounting for $29,951.5 million in 2020, and is estimated to reach $59,025.2 million by 2030, with a CAGR of 5.9%.