MARKET RESEARCH

PRESENTATION

SPECIALTY FATS & OILS

MARKET

ROHAN KUMAR SHARMA

MBA20B51 | MBAMKT2
 INTRODUCTION
Specialty Fats and Oils Market Size in 2019 is estimated to be $19.17 Billion and is projected to grow
with a CAGR of 6.4% during the forecast period of 2020-2025. Specialty fats are the distinct group of
vegetable fats that are consumed as alternatives for other types of fat products. Specialty oils are used
as dietary supplements and finds exceptionality among commodity oils. Specialty fats & oils are
designed to mold, coat, fill and in extrusion in the various applications. The consumption of dairy and
confectionery products is increasing nowadays which is driving the growth of the specialty fats & oils
market. Molding, coating, filling, and extrusion are some basic applications in the confectionery that use
specialty fats and oils. Specialty fats provide properties such as superior gloss, gloss retention, bloom
resistance, and product temperature resistance. In addition, these provide excellent melting profile and
flavor-releasing properties. High-income countries have experienced a growth in the production and
consumption of ultra-processed food, mainly bakery products, such as pastries, bread, cakes, and
cookies. Shortenings and specialty oils, such as cake oils are increasingly used to enhance the product
performance and ensure higher consumer acceptance. These factors have accelerated the growth of this
segment.

GEOGRAPHICAL OVERVIEW
Asia-Pacific is one of the major markets for specialty fats and oils which constitute 40% of overall market
and is also estimated to be the fastest growing region over the forecast period 2020-2025. The demand
for specialty oils and fats in the region is likely to remain concentrated in China and India, owing to a
large consumer base and application in the countries. Also, the increased consumer spending on food
purchases and growing demand for processed foods is the major defining factor behind the growth.
China ranks second, with about 14% of the total world production of fats and oils in 2015, and the
country is a major producer of soybean and canola oils. The North America is expected to witness a
significant growth in the specialty fats and oils market during the forecast period. China consumed
about 35 million tons of vegetable oil, whereas India consumed about 23.8 million tons.

DROC OVERVIEW

 DRIVER
Fluctuations in global Cocoa Production - Cocoa beans are among the key ingredients being
used in the production of chocolate. However, in the recent past, the overall production of cocoa
beans has been slightly hampered due to uncertain climatic conditions that are being endured in top
cocoa-producing countries. With the rising demand for cocoa as an ingredient on the one hand, and
a decline in the production rate on the other, specialty fats offer an alternative solution. Specialty
fats such as cocoa butter equivalents, cocoa butter replacers possess a similar set of characteristics
as that of cocoa. Moreover, specialty fats are less expensive than cocoa butter.

 RESTRAINT
Health concerns pertaining to the excessive consumption of fats and oils - Excessive
consumption of hydrogenated fats & oils increases the level of LDLs (low-density lipoproteins)
 and decreases the level of HDLs (high-density lipoproteins) in the blood, thereby increasing the
risk of the thrombosis. This is because the PUFA in vegetable oils oxidize automatically during
food processing, resulting in the production of inflammatory peroxides and hydro peroxides.
Thus, awareness about the negative health effects of the inclusion of trans-fatty acids is
affecting the confectionery fats & shortenings market, and in turn, the confectionery ingredients
and specialty fats & oils market.

 OPPORTUNITY
Rise in demand for natural cosmetic products - Over the years, there has been a growing
preference for natural products over artificial chemicals in the beauty and personal care
industry. The culmination of factors such as the rise in the number of the millennial population
specifically in the Asia Pacific region, a surge in online presence and use of the internet, increase
in per capita income a growing awareness toward sustainable and environmentally-friendly
products has all together driven the market for organic cosmetics and personal care products.
This has resulted in an increase in the demand for specialty ingredients such as palm oil, olive oil
to be used in the beauty and personal care industries in the recent past.

 CHALLENGES
High dependence on imports, leading to high costs of end products - There is a
significant gap between the demand and supply of oilseed processed products, such as edible
oil, owing to the limited availability of oilseeds in some domestic markets. India and European
countries import palm oil on a large scale from Indonesia and Malaysia, which are the leading
producers, owing to the favorable climatic conditions of these countries. Palm oil is widely used
in the confectionery products sector, which experiences high demand in India and other
European countries.

SEGMENT OVERVIEW

On the basis of type, the Specialty Fats & Oils market has been segmented as follows:

 Specialty Fats
o Cocoa Butter Equivalents
o Cocoa Butter Substitutes
o Cocoa Butter Replacers
o Cocoa Butter Improvers
o Dairy Fat Replacers
o Others (kokum and mango)
 Specialty Oils
 o Palm oil
o Coconut oil
o Soybean oil
o Sunflower oil
o Rapeseed oil
o Others (olive and peanut)

On the basis of application, the Specialty Fats & Oils market has been segmented as follows:

 Chocolates & confectionery

 Bakery products
 Processed foods
 Animal nutrition
 Dairy products
 Infant nutrition
 Others (cosmetics and pharmaceuticals)

On the basis of form, the Specialty Fats & Oils market has been segmented as follows:

 Dry
o Liquid

On the basis of region, the Specialty Fats & Oils market has been segmented as follows:

 North America
 Europe
 Asia Pacific
 Rest of World (RoW)
Rest of the World (RoW) includes South America, the Middle East, and Africa.

COMPETITOR ANALYSIS
Key Market Players

 Cargill
 Incorporated(US)
 Wilmar International(Singapore)
 Bunge Limited(US)
 AAK AB(Sweden)
 Mehwah International(Singapore)
 IOI Loders Croklaan(Malaysia)
 OTHER PLAYERS
 Mahindra(Australia)
 D&L Industries, Fuji Oil(Japan)
 Muslim Mas(Singapore)
 IFFCO(UAE)
These major players in this market are focusing on increasing their presence through expansions &
investments, mergers & acquisitions, partnerships, joint ventures, and agreements. These companies
have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing
facilities along with strong distribution networks across these regions.

GEOGRAPHICAL LOCATION
 North America
o U.S.
o Canada
o Mexico
o Rest of North America
 Europe
o UK
o Germany
o France
o Spain
o 5 Italy
o Russia
o Rest of Europe
 Asia-Pacific
o China
o Japan
o 3 India
o South Korea
o Australia
o ASEAN
 o Rest of Asia Pacific
 Rest of the World Brazil
 Latin America
o Brazil
o Argentina
o Rest of Latin America
 Middle East
o Israel
o Saudi Arabia
o UAE
 Africa
o South Africa
o Rest of Middle & South Africa

COVID – 19 IMPACT
As this virus continues to spread rapidly at a global level, countries across the globe are trying to prevent
further contagion by taking measures, such as social distancing, contact tracing, self-quarantining,
surveillance, communication, and testing. The supply and demand for specialty fats & oils in the global
market has shifted as a response to the coronavirus crisis, with an increasing uncertainty related to
prices. Palm oil, which is the largest type of oil produced globally, faced the impact as demand dropped
across the world, trade was disrupted, and production got hampered in Indonesia and Malaysia,
according to the top producers of the vegetable oils such as Wilmar International and Mehwah Group
that operate in the region. The bakery and confectionery industries observed a spike in sales, with
people stocking up on these products during lockdowns. The bakery and confectionery industries also
observed a spike in sales, with people stocking up on these products.

RECENT HIGHLIGHTS

 In November 2019, BASF (Germany), Cargill, Procter & Gamble (P&G) (US), and the Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (Germany) entered in a partnership
under the development PPP (Public-Private Partnership). the program, to establish a certified
coconut oil supply chain and improve the livelihood of coconut farmers in the Philippines and
Indonesia. This would strengthen the company’s supplies for coconut oil in the countries.
 In December 2019, Cargill and nine other prominent palm oil producers—Bunge Limited, Golden
Agri Resources, Musim Mas, Unilever, Wilmar, Nestlé, PepsiCo, Sime Darby Plantation, and
Mondelez International—announced a collaboration to support and fund new radar-based
forest monitoring systems, which would not only help detect deforestation but also help
companies improve sustainability in commodity supply chains.
 In February 2019, AAK acquired Dutch company, MaasRefinery B.V, a major oilseeds refinery, to
increase its production capacity, and support existing production facilities and enable continued
growth.
 TABLE OF CONTENT
Chapter 1 Research Objective
1.1 Need of the Research Report
1.2 Client Objectives
1.3 Offered Solutions
Chapter 2 Recommendations
2.1 Executive Summary
2.1.1 Market Overview
2.1.2 Competitive Insights
2.1.3 Segmental Analysis
2.1.4 Geographical Market Details
2.2 Lead Generation
2.3 Consultant
2.4 Return on Investment
Chapter 3 Research Methodology
3.1 Scopes & Definition
3.2 Paid Sources
3.3 Primary Data Collection
3.3.1 Email Surveys
3.3.2 Telephonic Interviews
3.3.3 Face to Face Interviews
3.4 Secondary Data Collection
3.4.1 Annual Reports
3.4.2 Government Publications
3.4.3 Trade Data
3.4.4 Association Data
3.4.5 Research Papers/ Blogs/ News Articles
3.5 Expert Advisory Panel
3.6 Data Analytics Model
Chapter 4 Market Overview
4.1 Parent Market Overview
 4.2 Patent Analysis
4.3 PESTEL Analysis
4.3.1 Political
4.3.2 Economical
4.3.3 Social
4.3.4 Technological
4.3.5 Legal
4.4 SWOT Analysis
4.4.1 Strengths
4.4.2 Weakness
4.4.3 Opportunities
4.4.4 Threats
4.5 Regulations
4.6 Value Chain/ Supply Chain Analysis
4.7 Procurement & Vendor Analysis
4.8 Porters Five Analysis
4.8.1 Threat of new entrants
4.8.2 Bargaining power of suppliers
4.8.3 Bargaining power of buyers
4.8.4 Threat of substitutes
4.8.5 Competitive rivalry
Chapter 5 Regional Analysis
Market Estimation and Forecast, 2021 - 2028 (USD Billion)
5.1 North America Market
5.1.1 U.S.
5.1.2 Canada
5.1.3 Mexico
5.1.4 Rest of North America
5.2 Europe Market
5.2.1 UK
5.2.2 Germany
5.2.3 France
 5.2.4 Spain
5.2.5 Italy
5.2.6 Russia
5.2.7 Rest of Europe
5.3 Asia Pacific Market
5.3.1 China
5.3.2 Japan
5.3.3 India
5.3.4 South Korea
5.3.5 Australia
5.3.6 ASEAN
5.3.7 Rest of Asia Pacific
5.4 Rest of the World
5.4.1 Latin America
5.4.1.1 Brazil
5.4.1.2 Argentina
5.4.1.3 Rest of Latin America
5.4.2 Middle East
5.4.2.1 Israel
5.4.2.2 Saudi Arabia
5.4.2.3 UAE
5.4.3 Africa
5.4.3.1 South Africa
5.4.3.2 Rest of Middle & South Africa
Chapter 6 Company Profile
6.1 Cargill
6.1.1 Introduction
6.1.2 Financial Overview
6.1.3 Product Portfolio
6.1.4 Recent Developments
6.1.5 SWOT Analysis
6.2 Wilmar International
6.2.1 Introduction
6.2.2 Financial Overview
6.2.3 Product Portfolio
6.2.4 Recent Developments
6.2.5 SWOT Analysis
6.3 Bunge Limited
6.3.1 Introduction
6.3.2 Financial Overview
6.3.3 Product Portfolio
6.3.4 Recent Developments
6.3.5 SWOT Analysis
6.4 Mehwah International
6.4.1 Introduction
6.4.2 Financial Overview
6.4.3 Product Portfolio
6.4.4 Recent Developments
6.4.5 SWOT Analysis
6.5 AAK AB
6.5.1 Introduction
6.5.2 Financial Overview
6.5.3 Product Portfolio
6.5.4 Recent Developments
6.5.5 SWOT Analysis
6.6 IFFCO
6.6.1 Introduction
6.6.2 Financial Overview
6.6.3 Product Portfolio
6.6.4 Recent Developments
6.6.5 SWOT Analysis
6.7 Musim Mas
6.7.1 Introduction
 6.7.2 Financial Overview
6.7.3 Product Portfolio
6.7.4 Recent Developments
6.7.5 SWOT Analysis
6.8 Fuji Oil
6.8.1 Introduction
6.8.2 Financial Overview
6.8.3 Product Portfolio
6.8.4 Recent Developments
6.8.5 SWOT Analysis
6.9 IOI Loders Croklaan
6.9.1 Introduction
6.9.2 Financial Overview
6.9.3 Product Portfolio
6.9.4 Recent Developments
6.9.5 SWOT Analysis
Chapter 7 Competitor Analysis
7.1 Company Ranking
7.2 Key Innovators
7.3 Market Leader
7.4 Emerging Players
7.5 Strategic Alliances
7.6 Competitive Matrix of 12 Companies
Chapter 8 Specialty Fats & Oil Market by Type Estimation and Forecast, 2021 - 2028 (USD
Billion)
8.1 Specialty Fats
8.1.1 Cocoa Butter Equivalents
8.1.2 Cocoa Butter Substitute
8.1.3 Cocoa Butter Replacers
8.1.4 Cocoa Butter Improvers
8.1.5 Dairy Fat Replacers
8.1.6 Others (kokum & mango)
 8.2 Specialty Oils
8.2.1 Palm Oil
8.2.2 Coconut Oil
8.2.3 Soybean Oil
8.2.4 Sunflower Oil
8.2.5 Rapeseed Oil
8.2.6 Others (Olive & Peanut)
Chapter 9 Specialty Fats & Oil Market by Application Type Estimation and Forecast, 2021 -
2028 (USD Billion)
9.1 Chocolate & Confectionary
9.2 Bakery Products
9.3 Processed Foods
9.4 Animal Nutrition
9.5 Dairy Products
9.6 Infant Nutrition
9.7 Others (Cosmetics & Pharmaceuticals)
Chapter 10 Specialty Fats & Oil Market by Form Estimation and Forecast, 2021 - 2028 (USD
Billion)
10.1 Dry
10.1.1 Liquid
Chapter 11 Specialty Fats & Oil Market by Region Estimation and Forecast, 2021 - 2028 (USD
Billion)
11.1 North America
11.2 Europe
11.3 Asia Pacific
11.4 Rest of World (ROW)
Chapter 12 Appendix
11.1 Data Sources
11.2 Abbreviations
11.3 About US
11.4 Disclaimer
11.5 Key Notes