The global market for animal fat reached a volume of nearly 28.64 MMT in 2024. The market is further expected to grow at a CAGR of 2.70% between 2025 and 2034, to reach a volume of 37.38 MMT in 2034.
As per the animal fat market dynamics and trends, the North American region is anticipated to increase significantly, owing to the rising use of edible animal fat in the food and non-food sectors. Butter, for example, is widely consumed by customers in countries such as the United States. Secondly, tallow is used in the production of animal feed in the industrial sector in North America.
The animal fat demand is also being augmented by the increase in the demand for tallow, which is used in animal food and biodiesel. Moreover, several key players are striving to maintain their presence by adopting strategies such as collaborations and partnerships to gain a competitive edge over their rivals in the global marketplace. For example, in November 2018, Darling Ingredients Inc. (NYSE: DAR) acquired the Poland-based food grade animal fat processing facility of PPH Conto Ltd in Lubien Kujawski. This will enable Darling Ingredients to expand its service portfolio not only in Poland but across Europe for both customers and suppliers.
As per the U.S. Energy Information Administration, in 2021, world biodiesel production was reported at 13.96 billion gallons, equivalent to 332.51 million barrels (911 thousand barrels per day), which contributed to the animal fat industry revenue. World biodiesel consumption was slightly higher at 13.77 billion gallons, or 327.77 million barrels, averaging 898 thousand barrels per day. The growing production of biodiesel amidst the rising concerns of environmental pollution and sustainability is contributing to an increased demand for animal fat as feedstock. Additionally, in 2022, U.S. biodiesel production reached 1.62 billion gallons, corresponding to 38.62 million barrels, or an average of 106 thousand barrels per day. The U.S. also imported 250 million gallons of biodiesel (5,950 thousand barrels, equating to 16 thousand barrels per day) and exported 238 million gallons (5,671 thousand barrels, also averaging 16 thousand barrels per day), which contributed to the growth of the animal fat industry. U.S. biodiesel consumption for the same year was slightly higher than production at 1.65 billion gallons, which translated to 39.47 million barrels or 108 thousand barrels per day.
As per the animal fat market dynamics and trends, the North American region is anticipated to increase significantly, owing to the rising use of edible animal fat in the food and non-food sectors. Butter, for example, is widely consumed by customers in countries such as the United States. Secondly, tallow is used in the production of animal feed in the industrial sector in North America.
Animal Fat Market Trends
Tallow Expected to Dominate the Market Growth
Tallow is the leading animal fat type and accounts for 4.4% of the global oil and fat production, aiding the animal fat market value. Tallow is being driven by its rising demand from the biodiesel industry, where it accounts for nearly 9% of the biodiesel feedstock. Tallow is followed by lard as a significant type of fat, which accounts for 4.1% of the total oils and fat production. The tallow supply has increased owing to the accelerated growth in the global slaughter rates. The major producers of lard are China, Germany, Brazil, the United States, and Italy, while the major producers of tallow include the United States, Europe, China, Brazil, and Australia.Animal Fat Market Growth
Increase in Demand from the Foodservice Sector Augmenting the Market Growth
The growth of the animal fat market is being driven by the increase in demand from the foodservice sector and the rising application of lard as bread spreads in the baking industry. Due to the rise in demand from downstream sectors, such as biodiesel, food, oleochemical, and pet food industries, the market for animal fat is witnessing a robust growth. The demand for lard (as a spread for bread) from the German baking sector is growing, further enhancing the market growth. Food companies, especially the bakery sector, obtain lard to be used as a substitute for butter at a volume, which could be anywhere between 500-600 million tonnes on a half-yearly basis.The animal fat demand is also being augmented by the increase in the demand for tallow, which is used in animal food and biodiesel. Moreover, several key players are striving to maintain their presence by adopting strategies such as collaborations and partnerships to gain a competitive edge over their rivals in the global marketplace. For example, in November 2018, Darling Ingredients Inc. (NYSE: DAR) acquired the Poland-based food grade animal fat processing facility of PPH Conto Ltd in Lubien Kujawski. This will enable Darling Ingredients to expand its service portfolio not only in Poland but across Europe for both customers and suppliers.
Recent Developments
As per a report by the Washington Post, a few startups are planning to add animal fat to plant-based meats. This report from Feb 2024, states that some companies aim to combine lab-grown animal fat with wheat protein and spices for the production of pork-like plant-based bacon.Industry Outlook
According to USDA, in 2021, Argentina produced 3.00 million metric tons of beef and veal, Brazil 9.75 million metric tons, Canada 1.38 million metric tons, China 6.98 million metric tons, and the European Union 6.88 million metric tons. As per the animal fat industry analysis, Australia and the United States produced 1,895 and 12.73 million metric tons, respectively, among other countries. For 2022, Argentina's production of beef and veal was 3.14 million metric tons, Brazil 10.35 million metric tons, Canada 1.41 million metric tons, China 7.18 million metric tons, and the European Union 6.72 million metric tons. Production figures for Australia and the United States were 1,878 and 12.89 million metric tons, respectively.As per the U.S. Energy Information Administration, in 2021, world biodiesel production was reported at 13.96 billion gallons, equivalent to 332.51 million barrels (911 thousand barrels per day), which contributed to the animal fat industry revenue. World biodiesel consumption was slightly higher at 13.77 billion gallons, or 327.77 million barrels, averaging 898 thousand barrels per day. The growing production of biodiesel amidst the rising concerns of environmental pollution and sustainability is contributing to an increased demand for animal fat as feedstock. Additionally, in 2022, U.S. biodiesel production reached 1.62 billion gallons, corresponding to 38.62 million barrels, or an average of 106 thousand barrels per day. The U.S. also imported 250 million gallons of biodiesel (5,950 thousand barrels, equating to 16 thousand barrels per day) and exported 238 million gallons (5,671 thousand barrels, also averaging 16 thousand barrels per day), which contributed to the growth of the animal fat industry. U.S. biodiesel consumption for the same year was slightly higher than production at 1.65 billion gallons, which translated to 39.47 million barrels or 108 thousand barrels per day.
Wide Adoption of Animal Fat in Various Industries
- Animal fat is a byproduct of meat production, ensuring a steady, low-cost supply.
- Used in various industries including food production, biodiesel, cosmetics, and pharmaceuticals, offering multiple revenue streams and aiding animal fat demand growth.
- Animal fats can be positioned as sustainable alternatives in the biofuel and bioplastics industries due to their biodegradability.
Health Risks Associated with High Saturated Fat Can Slowdown Global Market
- High saturated fat content can be linked to health issues such as cardiovascular diseases, affecting consumer perception negatively.
- Stringent regulations concerning animal processing and fat usage in food and other products can limit animal fat demand growth.
- Fluctuations in global meat production can affect the availability and price of animal fats.
Rising Demand for Renewable Energy Sources Shaping the Global Market
- Increasing demand for renewable energy sources could drive the use of animal fats in biodiesel production.
- Research into new applications of animal fats in cosmetics and pharmaceuticals could open new animal fat market opportunities.
- Growing meat consumption in Asia and Africa could boost the availability of animal fats.
Growing Concerns of Environmental Impact of Animal Rearing Posing Threats to The Market
- Rising veganism and plant-based diets could reduce demand for animal-based products.
- Negative perception of the environmental impact of livestock farming could impact the demand of animal fat market.
- Economic downturns can affect meat consumption patterns, indirectly impacting animal fat production.
Key Price Indicators in Global Market
- Prices are directly influenced by the cost of livestock, as animal fat is a byproduct of meat production.
- Increased demand for biodiesel, which uses animal fats, can drive up prices and reduce animal fat market revenue.
- Higher meat consumption increases the supply of animal fats, potentially lowering prices.
- Legislation regarding animal processing and waste disposal can affect production costs and prices.
- The availability and price of plant-based oils can impact animal fat prices by providing cheaper or more sustainable alternatives.
Key Demand Indicators in the Global Animal Fat Market
- Increasing use of animal fats in biodiesel production drives is a crucial trend in animal fat market.
- Demand for animal fats in cooking, baking, and processed food products influences market dynamics.
- Usage in products like soaps, creams, and certain medications drives demand.
- Regions with a preference for traditional animal-based fats in cooking sustain market demand.
- Rising incomes in developing countries can lead to increased meat consumption and, consequently, animal fat production.
- Companies must adhere to strict regulations regarding animal processing, affecting competitive positioning.
- Innovation in processing and refining techniques can provide competitive advantages.
- Efficient logistics and processing capabilities can reduce costs and improve product availability, enhancing competitiveness.
- High standards in product quality and safety attract more customers and can set companies apart.
Animal Fat Industry Segmentations
Animal fat is a lipid content, which is extracted from animals, such as pigs, cows, and chickens. Physically, it is solid at room temperature, and chemically it is composed of triglycerides. It is also consumed in the form of dairy products such as cheese, milk, and butter.On the basis of type, the animal fat market is divided into:
- Tallow/Grease
- Lard
- Others
The significant applications of the market are:
- Biodiesel
- Animal Feed
- Oleochemical
- Pet Food
- Food Applications
- Others
Market Breakup by Region:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Competitive Landscape
The report gives a detailed analysis of the following key players in the global animal fat market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:- SARIA SE & Co. KG
- Darling Ingredients Inc.
- Ten Kate Vetten BV
- Baker Commodities Inc.
- Jacob Stern & Sons Tallow
- Tallow Products Pty Ltd
- Australian Tallow Producers
- Others
Animal Fat Market Regional Analysis
Asia Pacific and North America to be Among the Significant Regional Markets for Animal Fat
The Asia Pacific region is expected to have the highest animal fat market share due to the growth in consumption of animal fat. An increase in population and growing consumption of lard by the bakery sector, further enhance the global market growth. In emerging regions, such as the Asia Pacific, the demand has been driven by the inclination towards the consumption of lard instead of butter in baked products. China has achieved self-sufficiency in the production of pork and lard. An increase in the consumption of processed foods which utilise lard has bolstered the market for animal fat in the region.Animal Fat Market Report Snapshots
Animal Fat Companies
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Fats and Oils Overview
6 Global Animal Fat Market Analysis
7 North America Animal Fat Market Analysis
8 Europe Animal Fat Market Analysis
9 Asia-Pacific Animal Fat Market Analysis
10 Latin America Animal Fat Market Analysis
11 Middle East and Africa Animal Fat Market Analysis
12 Market Dynamics
14 Trade Data Analysis (HS Code: 15161)
15 Price Analysis
16 Competitive Landscape
Companies Mentioned
The key companies featured in this Animal Fat market report include:- SARIA SE & Co. KG
- Darling Ingredients Inc.
- Ten Kate Vetten BV
- Baker Commodities Inc.
- Jacob Stern & Sons Tallow
- Tallow Products Pty Ltd
- Australian Tallow Producers
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 179 |
| Published | August 2025 |
| Forecast Period | 2025 - 2034 |
| Estimated Market Value in 2025 | 28.64 MMT |
| Forecasted Market Value by 2034 | 37.38 MMT |
| Compound Annual Growth Rate | 2.7% |
| Regions Covered | Global |
| No. of Companies Mentioned | 8 |
