Industrial Fat Fraction Market

Industrial Fat Fraction Market Outlook (2024 to 2034)

The global industrial fat fraction market is valued at US$ 12.69 billion in 2024 and is forecasted to expand at a CAGR of 3% to reach US$ 17.04 billion by 2034.

More customers are encouraged to live a healthy lifestyle due to the rising prevalence of health problems including diabetes, obesity, and high blood pressure. As a result, their propensity to eat functional foods is higher. Additionally, as cellphones and the Internet become more widely used worldwide, buyers are researching a product's origin, ingredients, manufacturing method, and others before making a purchase. Customers often compare prices; and this is a tendency that is increasingly common among millennial customers and is expanding to other areas. Growing millennial knowledge of the negative effects of pesticides, antibiotics, and food additives is leading to a rise in the use of organic goods, particularly in developed areas. All these factors are pushing the demand for industrial fat fraction.

The market for milk fat fractions is expanding due to the rising demand for functional food components, which is particularly seen in the food and beverage industry. More individuals are consuming healthy meals because of increased health consciousness, and as a result, they are favoring low-fat dairy products. The creation of novel milk fat fractions with improved functional characteristics and increased stability shows this tendency. The use of these fractions in food systems is expanding as well, with a concentration on baked goods, dairy products, and confections. Additionally, the industry is faced with both possibilities and problems due to the growing trend of plant-based dairy substitutes, which is also contributing to the overall expansion of the industrial fat fraction market growth.

Growing demand for high-quality dairy products, advancements in extraction and processing techniques, and rising purchasing power in potentially high growth countries are some of the primary factors propelling the market. There is a wide selection of food and beverages accessible, and government initiatives aim to promote healthy eating and support the market's further expansion. The market is expanding due to the growing need for specialized fat fractions, which are targeted towards particular goods.

Report Attributes	Details
Industrial Fat Fraction Market Size (2024E)	US$ 12.69 Billion
Forecasted Market Value (2034F)	US$ 17.04 Billion
Global Market Growth Rate (2024 to 2034)	3% CAGR
Canada Market Growth Rate (2024 to 2034)	2.8% CAGR
China Market Value (2034F)	US$ 1.87 Billion
Mexico Market Share (2024E)	21.9%
East Asia Market Share (2034F)	23.1%
Key Companies Profiled	SPX Flow; Bel Group; Kerry Group; Fonterra Cooperative Group; Dairy Crest Group; Glanbia; FrieslandCampina; Tetra Pak; Arla Foods; GEA Group; Lactalis Group; Alfa Laval; GEA Niro; Amul

What is Making the Sales Escalate for Industrial Fat Fraction?

“World Population Spiking Every Decade Making the Demand Jump For Baby Feeding Products”

The population of the world was projected by the United Nations Department of Economic and Social Affairs to be 7.6 billion in 2017. By 2030, it is forecasted to rise to around 1 billion, and by 2050, it will reach 9.8 billion.

It is anticipated that the need for baby feeding products would rise due to this population's continuous growth. Because of the large number of infants and growing urbanization in China and several other Asia Pacific countries, there is a substantial need for baby formula. One of the main reasons driving the need for baby feeding products in the Asia-Pacific region is the region's growing population and high birth rates. Over the past several years, these regions are likewise seeing a significant decrease in the infant death rate.

“Expanding Food and Beverage Industry Stimulating Sales”

The functional food and beverage industry presents significant growth prospects for butter fat fraction due to growing consumer awareness of the health benefits associated with consuming these products, which include supporting a healthy gut, supporting neuronal and cognitive development, and supporting a healthy microbiota, among other benefits.

Butter fat fraction is used as a component in baby formula and medical nutrition because of the poor manufacturing yield and high cost. The way that consumers approach healthier goods is changing; rather than concentrating just on functional elements, they are placing more value on natural products and avoiding those that, although seeming low in fat, include several chemicals, preservatives, and stabilizers. In addition, customers value their health holistically and are not ready to forgo flavor. Because butter and spreads having more natural components that is trusted for their quality, thereby more people are moving away from margarine.

“Widespread Applications of Milk Fat Fraction Accelerating Popularity”

There are more options for the use of milk fat fractions due to the fast growing food and beverage sector. Fractions of milk fat is added to a variety of food products to enhance its flavor, texture, and nutritional content. Additionally, these components are adaptable and are added to a wide range of products, including dairy products, baked foods, and nutritional supplements.
Nowadays, people are more concerned about their health than ever and want to eat wholesome food free of dangerous ingredients. Parts of milk fat is added to food as a natural, healthful way to boost its nutritional value. Several vital minerals, including vitamins A and D, are included in this component.

What are the Major Threats for Companies Offering Industrial Fat Fraction?

“Alternate Cost Effective Products Available in the Market Limiting Sales”

Due to their great availability and low cost, manufacturers of baby formula, functional foods, and drinks are turning to alternatives instead of dairy-based value-added fractions such phospholipids. The expansion of the market as a whole is severely constrained by these nearly functionally equivalent substitutes for dairy-based value-added fractions.

As of right now, commercializing the aforementioned goods is quite costly as it calls for sophisticated equipment and scientific know-how to extract these fractions from dairy sources. Clinical investigations based on these substances are few in number. These investigations employ a range of these fractions' compositions and concentrations. Because of these different characteristics, the resulting data is not comparable, which makes it more difficult and time-consuming for different regulatory authorities to approve these substances for use in food and drinks. Low yield production is another issue the value-added fraction market is facing, thereby damaging the industrial fat fraction market size.

Country-wise Analysis

With more people focusing on healthy diets along with a variety of tastes and mixtures, the use of industrial fat fraction is increasing worldwide, few of the prominent countries contributing to this market involves the United States, China, Canada, and South Korea. The United States market is forecasted to hold a strong industrial fat fraction market share in North America.

Why is the United States Becoming Major Share Holder in the North America Region?

“Established Food and Beverage Industry Increasing Sales”

Attribute	United States
Market Value (2024E)	US$ 1.02 Billion
Growth Rate (2024 to 2034)	2.8% CAGR
Projected Value (2034F)	US$ 1.34 Billion

The United States is becoming a major shareholder in the North America region for the industrial fat fraction market due to several factors. Firstly, the United States has a well-established food and beverage industry that is experiencing significant growth. This growth is leading to an increased demand for industrial fat fractions, which are commonly used in the production of several food and beverages. Moreover, the United States has a strong infrastructure and distribution network, making it an attractive market for companies looking to expand their presence in the region. The country's economy and consumer purchasing power make it an appealing destination for investment in industrial fat fraction. As a result, the United States is forecasted to play a major role in driving the growth and development of the market in the North America region.

What is Contributing to Increasing Strength of China in East Asia?

“Cheap Labor Helping the Country Increase Exports of Raw Materials”

Attribute	China
Market Value (2024E)	US$ 1.39 Billion
Growth Rate (2024 to 2034)	3% CAGR
Projected Value (2034F)	US$ 1.87 Billion

China's increasing industrial strength in East Asia is attributed to several factors, with the availability of cheap labor playing a significant role. The abundance of inexpensive labor in China has enabled the country to significantly reduce production costs, making its exports of raw materials more competitive in the global market. This has allowed China to expand its industrial output and increase its exports, thereby strengthening its position in East Asia. China's large-scale infrastructure investments and technological advancements have further contributed to its industrial prowess in the region. The combination of these factors has bolstered China's economic influence, allowing the country to emerge as a dominant force in East Asia's industrial landscape. As a result, China's increasing industrial strength is fundamentally reshaping the dynamics of the region's economic and trade activities.

Category-wise Evaluation

There are several product types available in the market; some of the major options includes blended products with value added fats.

Which Product Type is Significantly Making Profits in the End Market?

“Blended Products with Melting Characteristics Registering More Profits”

Attribute	Blended Products with Different Melting Characteristics
Segment Value (2024E)	US$ 6.5 Billion
Growth Rate (2024 to 2034)	2.8% CAGR
Projected Value (2034F)	US$ 8.57 Billion

Blended products with several melting characteristics are proving to be significant in generating profits in the end market. By combining several materials with distinct melting points, these blended products offer unique properties and performance advantages, appealing to a broader customer base. The ability to tailor the melting characteristics of the final product to specific applications is resulting in increased demand and higher profit margins. Furthermore, the versatility of blended products allows for greater flexibility in meeting diverse market needs, further contributing to their profitability. As a result, investing in the development and production of blended products is a strategic approach for increasing profits in the end market.

Business Competition

Key players in the industrial fat fraction market are focusing on new products to escalate their profits, some of these products includes.

• The Arla Food Ingredients Group introduced Lacprodan Premium MFGM-10, a new ingredient, in September 2021. It is a dry-blend variant of its phospholipid- and ganglioside-rich MFGM component. Manufacturers lower their expenses of energy generation and consumption thanks to it. Additionally, it provides additional versatility in producing several formulas from a single base powder.

Fact.MR provides detailed information about the price points of key industrial fat fraction suppliers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new report.

Key Segments of Industrial Fat Fraction Market Research

• By Product Type :

  • Blended Products with Value Added Fats
  • Blended Products with Different Melting Characteristics

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa