Assessment on Interesterified Fats Industry: Before and After COVID-19 Crisis, Fact.MR Report

The interesterified fats industry is projected to grow at a healthy CAGR of 5% between 2019 and 2029. Changes in regulations to limit the amount of fats in processed foods is the key factor bolstering revenue. The growth of consumption for processed or convenience foods will continue to aid the growth of the interesterified fats market. The growth of the market in the near future can also be widely attributed to the demand from the chocolate industry, reveals Fact.MR in its new study.

“Interesterified fats have a reduced concentration of trans fats which boosts its scope of application in confectionery products as a viable alternative to cocoa butter, supporting market growth” says the Fact.MR report.

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Interesterified Fats Market – Key Takeaways

  • The enzymatic process based interesterified fats segment will gain substantial demand, nearly a quarter of the overall market share.
  • Soybean oil based interesterified fats will remain a major market, driven by easy availability of raw materials.
  • The food processing segment is leading with more than 50% of the global market share, and is projected to witness significant growth during the forecast period.
  • North America and Europe will cumulatively account for more than 60% of the global market, while South and East Asia will display higher growth rates.

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Interesterified Fats Market – Key Driving Factors

  • The applications of interesterified fats in the chocolate industry is a major factor driving the demand in the global market.
  • Strict regulations to minimize the consumption of trans fats ingredients contributes to the growth of global market.
  • Widespread incorporation in the rapidly expanding food processing industry is increasing adoption rates, bolstering growth.
  • Vertical integration strategies being used by major manufacturers is pushing the interesterified fats market.

Interesterified Fats Market – Key Constraints

  • Health risks from interesterified fats are comparable to that of consuming trans fats, which is a major challenge being faced by the industry.

The Coronavirus Impact

As the coronavirus continues to spread, taking a growing toll on the global population and economy, processed food companies have been hit hard, as supply chains have been significantly disrupted. With many production plants going through temporary closures, the demand and production of interesterified fats has witnessed a substantial decline.

With substantial production coming out of affected areas in China, companies are anticipating restrictions in market growth for the months ahead. On the other hand, government aid in numerous countries towards the sector will help to minimize losses during this period, until shipments resume to normal levels.

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Competition Landscape

The global interesterified fats market is largely consolidated. The leading players profiled in the report include, but are not limited to Fuji Oil Holdings, ADM, Wilmar International, Mewah International Inc, bunge Ltd., Oleo-Fats, and Cargill Inc. Market leaders are investing in optimization of supply chains to industries in multiple application areas, to bolster sales revenues. Manufacturers are channeling their efforts towards the development of domestic markets, collaborations, and vertical integration strategies, as indicated by the Fact.MR report.

About the Report

This 170-page study offers readers a comprehensive market forecast of the interesterified fats market. Global, regional and country level analysis of the latest industry trends impacting the interesterified fats market are covered in this Fact.MR study. The report offers compelling insights on the interesterified fats market on the basis of interesterification process (chemical and enzymatic), source (soybean oil, palm oil, groundnut oil, coconut oil, rapeseed oil, sunflower oil, cottonseed oil, and other vegetable oils), and end use (food processing, food service, bakery & confectionary, and others) across seven regions (Middle East and Africa, Oceania, South Asia, East Asia, Europe, Latin America, North America).

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