Powdered Fats Market Share, Size, Trends, Industry Analysis Report, By Source, By Processing Technology (Spray Drying, Drum Drying, Freeze Drying, Others), By Application, By Region, And Segment Forecasts, 2024 - 2032
- Published Date:Mar-2024
- Pages: 117
- Format: PDF
- Report ID: PM4384
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global powdered fats market was valued at USD 2.33 billion in 2023 and is expected to grow at a CAGR of 4.4% during the forecast period.
Growth is propelled by the increasing demand for the healthier fats their foods & the rising use of powdered fats. Surge in demand for healthy fats, driven by consumer preferences for indulgent foods with a plant-based, low-fat content, and featuring organic fats. Consumers are becoming more conscientious about their food choices, seeking distinctive sensory experiences, and prioritizing factors such as clean labels, plant-based ingredients, & sustainability. Consequently, there is a growing interest in the powdered fats.
The 2020 Dietary Guidelines for Americans underscored the importance of reducing trans fats and restricting saturated fats, advocating for the use of plant-based oils such as canola, corn, and soybean. A 2021 FATitudes survey conducted by Cargill revealed that consumers are becoming more attentive to fats and oils in packaged foods, with 53% of Americans being vigilant about their choices. Furthermore, ADM's proprietary research in 2021 found a growing demand for clean-label products, with 69% of consumers expressing a preference for simple and recognizable ingredients.
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Commonly employed processing techniques for the manufacturing of powdered fats include spray drying, drum drying, encapsulation, & fluidized bed drying. Among these methods, spray drying is a primary manufacturing technique in the industry, especially suitable for the heat-sensitive fats. The resulting spray-dried powdered fats find applications in a variety of food products such as bakery items, confectionery, beverages, dairy alternatives, & as nutritional supplements. This process involves removing moisture from the fat source, thereby extending the shelf life of the end products.
Industry Dynamics
Growth Drivers
- Convenience and Shelf Stability:
In the dairy industry, these powdered fats play a crucial role in enhancing shelf-life by resisting oxidation & rancidity, thereby ensuring the longevity of the dairy products. Demand for the dairy products, encompassing both traditional and non-dairy alternatives, remains robust. This has propelled the use of powdered fats in a range of products, including cheese, ice creams, & non-dairy creamers. With the increasing popularity of plant-based options, powdered fats derived from the natural sources find application in the non-dairy creamers. This aligns with the growing consumer demand for lactose-free & plant-based products, reflecting a shift toward healthier and sustainable dietary choices.
Report Segmentation
The market is primarily segmented based on source, processing technology, application and region.
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By Source |
By Processing Technology |
By Application |
By Region |
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By Source Analysis
- Palm kernel segment accounted for the largest market share in 2023
Palm kernel segment accounted for the largest share. Powdered fats derived from palm are characterized by a high melting point, which reduces the risk of rancidity, making them a preferred choice for applications requiring stable fats. This includes the production of bakery items, confectionery, and snacks. Additionally, palm fats play a crucial role in the animal feed industry due to their capability to seamlessly blend into animal feed during preparation.
There is a growing emphasis on sustainable sourcing of palm fats in the food industry. powdered fats Market companies are responding to this trend by providing palm fats with certifications for sustainability. For instance, Castle Dairy offers a spray-dried powder containing 80% fully refined palm oil that holds certification for sustainability according to the Roundtable on Sustainable Palm Oil (RSPO) SG standards.
Coconut based fats segment will grow rapidly. The increasing demand for healthier alternatives within the oils & fats industry is propelling the growth of fats sourced from natural, entirely plant-based origins, particularly high-quality coconut oil.
By Application Analysis
- Bakery & confectionery segment held the significant market share in 2023
Bakery segment held the significant market share. The preference for fat-filled milk powder in bakery and confectionery applications is driven by its higher fat content, which enhances the richness and flavor profile of the end products. As consumers become more conscious of their dietary choices and seek products with cleaner labels and natural ingredients, the demand for such fat-filled milk powder aligns with these evolving preferences.
Especially in European markets, where consumers are known for their meticulous examination of ingredient lists, the trend toward clean-label and all-natural bakery products is particularly pronounced. This shift in consumer behavior is influencing the product choices made by manufacturers in the bakery & confectionery sector, contributing to the prominence of fat-filled milk powder in this industry segment.
Dairy & non-dairy segment is expected to gain substantial growth rate. Dairy products, in particular, face challenges related to limited shelf life, making the use of powdered fats crucial. Powdered fats contribute to the stability of dairy products, particularly in extending their shelf life. Their resistance to oxidation and rancidity plays a key role in ensuring the longevity of these products.
The increasing demand for plant-based alternatives, particularly from lactose-intolerant consumers, is a notable trend. In response to this shift, convenience store operators are expanding their product portfolios by introducing plant-based milk alternatives like almond milk and innovative items to meet the changing preferences of consumers. This trend is expected to boost the demand for coconut powder used in coffee creamers & plant-based milk smoothies.
Regional Insights
- Asia pacific dominated the global market in 2023
APAC dominated the global market. The increasing demand for ready-to-eat and processed foods in this region has prompted numerous manufacturers to provide powdered fats for various applications. Powdered fats are gaining popularity in food applications due to their ability to deliver concentrated flavor and texture. Additionally, traditional oils and butter are considered less cost-effective for industrial production. To meet the escalating demand for processed foods in the region, both emerging and established players are diversifying their offerings by providing a wide range of powdered fats.
In China, an increase in meat consumption and a strong consumer demand for processed foods are contributing to the growing need for powdered fats. The heightened awareness of nutrition and health among Chinese consumers has resulted in a significant portion seeking a diet rich in proteins.
North America will grow with substantial pace. The increasing popularity of the non-dairy milk alternatives & the vegan products is a key driver behind the heightened demand for these powders in the region. Responding to this growing demand, numerous companies are introducing products that enhance richness and provide a desirable mouthfeel. For instance, All American Foods, has introduced Pro Mix high-fat powders designed to enhance creamy flavor & texture in various food applications such as gravies, dips, & soups.
The rise in popularity of ketogenic diets in the United States is fueling the demand for products with low-carb and high-fat content. This trend has attracted health-conscious consumers actively seeking such products. Consequently, numerous key players in the powdered fats industry are capitalizing on this trend by introducing products that align with the preferences of consumers following ketogenic diets in the country.
Key Market Players & Competitive Insights
Established players leverage their longstanding relationships with suppliers, distributors, and clients to fortify their robust positions in the market. Key strategies employed by these major companies include portfolio diversification and the acquisition of quality standard certifications.
Some of the major players operating in the global market include:
- Aarkay Food Products Ltd.
- Castle Dairy s.a.
- Hill Natural Extract
- Insta Foods
- Kerry Group plc
- LUS Health Ingredients BV
- Royal FrieslandCampina N.V.
- Tiba Starch & Glucose Manufacturing Co. S.A.E
- Zeon Lifesciences Ltd.
Recent Developments
- In March 2021, LUS Health Ingredients introduced a novel line of vegan powdered fats named Veganergy. This range encompasses a diverse array of vegan fats sourced from plants, meticulously formulated to replicate the texture and flavor characteristics of conventional animal-based fats.
Powdered Fats Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 2.43 billion |
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Revenue forecast in 2032 |
USD 3.43 billion |
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CAGR |
4.4% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
By Source, By Processing Technology, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
Powdered Fats Market report covering key segments are source, processing technology, application and region.
Powdered Fats Market Size Worth $ 3.43 Billion By 2032.
The global powdered fats market is expected to grow at a CAGR of 4.4% during the forecast period.
Asia pacific is leading the global market.
The key driving factors in Powdered Fats Market are Convenience and Shelf Stability.
