The Global Powdered Fats Market size is expected to reach $3 billion by 2030, rising at a market growth of 4.7% CAGR during the forecast period.
Consumers are increasingly seeking products with simpler and more natural ingredients. Coconut-derived fats often fit into the "clean label" trend, being perceived as more natural and less processed compared to some other alternatives. Consequently, the coconut source segment would acquire nearly 10% of the total market share by 2030. As the production and availability of coconut-derived products increase due to expanded cultivation and processing capabilities, the demand for coconut-derived fats grows accordingly. Some of the factors impacting the market are rapidly expanding food processing industry, cost-effectiveness of fat powders and market perception of healthiness.
The expanding food processing industry is a pivotal driver of economic growth and innovation globally. As societies undergo rapid urbanization and lifestyles become increasingly fast-paced, there is a burgeoning demand for convenient and readily accessible food options. Moreover, the globalization of food industries and increased international trade have further fuelled the expansion of the food processing industry. As the industry continues to evolve and consumer demands diversify, the demand for this form of fats is likely to remain robust and is expected to experience further growth. Additionally, these fats offer a compelling, cost-effective advantage in various industries, especially within food production and manufacturing. Their economic viability stems from several inherent characteristics that make them favourable compared to liquid fats. Moreover, the stability in pricing and regulatory compliance further enhances their cost-effectiveness. These fats may offer greater price stability compared to their liquid counterparts, making them less susceptible to market fluctuations. These factors collectively position these fats as an economically advantageous choice for various industries seeking efficient and cost-effective ingredients in their production processes.
However, the market perception of healthiness plays a pivotal role in shaping consumer choices and influencing the demand for products like this form of fats. One of the primary challenges lies in the misconception that these fats might be less healthy or natural compared to their liquid counterparts. Consumers often associate powdered forms with increased processing or additives, assuming they might contain more artificial elements or additives that could compromise their nutritional value. Moreover, there's a prevailing belief that liquid fats might be more 'natural' or 'fresh,' especially when derived from natural sources like oils. This deeply ingrained perception influences consumer preferences, leading them to perceive these fats as more processed or artificial, which could negatively impact their acceptance and demand. Hence, the negative perception of these fats may hamper the growth of the market in the coming years.
Based on processing technology, the market is segmented into spray drying, drum drying, freeze drying, and others. The freeze-drying segment registered a remarkable revenue share in the market in 2022. The nourishing characteristics of raw materials are maintained by freeze-drying technology, which also retains their natural flavor, vitamins, and minerals, as well as bioactive enzymes. The beverage industry is currently experiencing a surge in demand for freeze-dried fats due to their versatility in being integrated into a variety of applications, including juices, smoothies, and yogurt.
By source, the market is divided into palm & palm kernel, coconut, milk, sunflower, canola, corn, and others. The milk segment procured a significant revenue share in the market in 2022. The expected growth drivers for this segment include increased utilization of milk fats in infant foods and the inclusion of essential nutrients such as vitamin C, vitamin B12, and thiamine. Moreover, it is utilized in manufacturing diverse caramel confections, confection coatings, nougat centers, malted milk, and milk chocolate.
On the basis of application, the market is classified into dairy & non-dairy products, bakery & confectionery, frozen desserts, baby food & infant formula, supplements & nutritional products, beverages, sauces, dressings, & condiments, and others. The frozen desserts segment witnessed a significant revenue share in the market in 2022. The frozen bakery and desserts sector has witnessed the introduction of a multitude of novel products in recent times. Health and wellness are receiving increased consumer attention. Innovative flavors and gluten-free, low-fat products have emerged as a consequence. Consumer demand for frozen desserts with desirable textures, creamy consistency, and prolonged shelf life aligns with the benefits offered by this form of fats, driving their demand in the segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 2.1 Billion |
| Market size forecast in 2030 | USD 3 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 4.7% from 2023 to 2030 |
| Number of Pages | 288 |
| Number of Table | 448 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Source, Processing Technology, Application, Region |
| Country scope |
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| Companies Included | Kerry Group plc, Royal FrieslandCampina N.V., Aarkay Food Products Ltd., Insta Foods, Vreugdenhil BV, Zeon Lifesciences Ltd., LUS Health Ingredients BV and Glenstal Foods Ltd. |
| Growth Drivers |
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| Restraints |
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Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region witnessed the largest revenue share in the market. As a result of urbanization, rising disposable incomes, and shifting consumer preferences, the food and beverage sector in the Asia Pacific is expanding at a rapid rate, which increases the demand for ingredients such as these fats to satisfy a variety of culinary needs. These fats have applications in various industries, including food and beverage, pharmaceuticals, and cosmetics. This diversity in applications contributes to the growing demand as various sectors expand in the region.
Free Valuable Insights: Global Powdered Fats Market size to reach USD 3 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Kerry Group plc, Royal FrieslandCampina N.V., Aarkay Food Products Ltd., Insta Foods, Vreugdenhil BV, Zeon Lifesciences Ltd., LUS Health Ingredients BV and Glenstal Foods Ltd.
By Processing Technology
By Source
By Application
By Geography
The Market size is projected to reach USD 3 billion by 2030.
Rapidly expanding food processing industry are driving the Market in coming years, however, Market perception of healthiness restraints the growth of the Market.
Kerry Group plc, Royal FrieslandCampina N.V., Aarkay Food Products Ltd., Insta Foods, Vreugdenhil BV, Zeon Lifesciences Ltd., LUS Health Ingredients BV and Glenstal Foods Ltd.
The expected CAGR of this Market is 4.7% from 2023 to 2030.
The Palm & Palm Kernel segment led the Market by Source in 2022; thereby, achieving a market value of $1 billion by 2030.
The Asia Pacific region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $1 billion by 2030.
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