Animal fats and oils including tallow, lard, and milk fat are extensively used in manufacturing of biodiesel which is considered as a potential renewable and eco-friendly fuel alternative for petroleum-based diesel. The growing production and consumption of biodiesel across the globe to meet the rising demand for clean fuels is creating high demand for animal fats and oils. Animal fats and oils are considered suitable feedstock for biodiesel production process owing to their renewable, non-toxic and biodegradable nature.
The global animal fats and oils market is estimated to be valued at US$ 279.3 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing usage of animal fats and oils in biodiesel production is expected to propel the market growth over the forecast period. Government policies and subsidies promoting biodiesel consumption to reduce dependence on petroleum imports are encouraging biodiesel producers to increase their production capacity. This is anticipated to boost the demand for animal fat and oil supplies which are vital raw materials for the biodiesel manufacturing process. The surging biodiesel production worldwide is projected to present lucrative growth opportunities for animal fats and oils market players during the forecast period.
Porter's Analysis
Threat of new entrants: Low due to high capital requirement to established processing facilities and distribution networks. Also, established brands have strong customer loyalty.
Bargaining power of buyers: Moderate as buyers have a variety of options to choose from and can force prices down. However, switching costs are low.
Bargaining power of suppliers: High as raw materials like vegetable oils and animal fats are essential and have few substitutes. Suppliers can influence prices.
Threat of new substitutes: Moderate as alternative oils continue to emerge but traditional oils still dominate cooking needs and preferences.
Competitive rivalry: High due to many global and regional players competing on price and innovation.
SWOT Analysis
Strength: Established production and supply chain infrastructure. Wide applications in food, pharmaceutical and industrial sectors boost consistent demand.
Weakness: Fluctuating supply of raw materials drives price volatility. Environmental concerns around intensive livestock farming.
Opportunity: Growing health-conscious population boosts demand for healthier plant-based and saturated fat-free options. Emerging economies in Asia Pacific and Latin America show rising incomes and consumption.
Threats: Stringent regulations around transfats and waste disposal increase compliance costs. Consumer preference for newer substitutes poses threat.
Key Takeaways
The Global Animal Fats And Oils Market Size is expected to witness high growth. Regional analysis shows Asia Pacific dominates due to large population and rapid economic growth in countries like India and China. Consumption is projected to grow at over 8% annually in the region during the forecast period.
Key players operating in the Animal Fats and Oils market include Medtronic Plc, Koninklijke Philips N.V., GE Healthcare, FreeScale Semiconductors, Omnivision Technologies, Inc., Smiths Medical, Analog Devices, Inc., Honeywell International, Inc., Broadcom Limited, Danaher Corp., LORD Corporation, OSI Systems, Inc., Avago Technologies Limited, Measurement Specialties, Micro-Epsilon Messtechnik, Amphenol Advanced Sensors, and Sensirion AG. Regional players cater to domestic needs while international brands dominate throughR&D and global supply chains.
The global Animal Fats and Oils market size for 2023 is US$ 279.3 Bn growing at a CAGR of 10% during the forecast period of 2023 to 2030. Changing diets and growing applications in diverse sectors will drive further opportunities. However, sustainability issues and evolving consumer preferences remain key challenges. Innovation in new product formulations and technologies aim to tap the substantial future potential.
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https://www.newswirestats.com/animal-fats-and-oils-market-size-share-growth-outlook-2023/
