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Fat Replacer Market - Forecasts from 2023 to 2028

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  • 141 Pages
  • July 2023
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5853277

The global fat replacer market is expected to grow at a CAGR of 8.68% from a market size of US$2.3115 billion in 2021 to reach US$4.1385 billion in 2028.

Fat replacers, also referred to as fat mimetics or fat substitutes, are food additives meant to replicate the chemical, physical, and stability properties of regular fat with lower caloric content. They are used to manufacture low-fat and low-calorie products such as frozen desserts, processed meats, cheese, sour cream, salad dressings, snacks, and baked goods. They are also used as emulsifiers, binders, texturizers, and moisture retainers. Fat replacers are also added to food products to improve the product's mouthfeel, texture, flavor, bulk, and smoothness. Some commercially popular fat replacers include Cellulose, Dextrin, modified starches, Hydrocolloid gums, Maltodextrin, Pectin, Altered triglycerides, and Sucrose polyesters.

Low-calorie and low-fat foods are increasingly in demand among consumers becoming more health conscious. Moreover, rising incidences of chronic diseases and medical disorders such as obesity and cardiovascular disease caused by the consumption of high-fat product has also increased the demand for healthier products. Since fat replacers are added in low-fat and calorie products instead of regular fat, therefore, rising health consciousness is one of the primary driving factors of the mentioned market. Hectic life schedules, urbanization, and increasing personal income have also shifted consumer preferences towards mindful eating habits, driving the demand even further. Various FMCG brands are involved in continuous product launch activities to capitalize on the growing trend of fat-free food, which is further growing the demand for fat replacers.

However, high and volatile prices of raw materials and the availability of substitutes obstruct the growth of the global market for fat replacers during the projection period. Continuous product innovation and new product launches especially in countries such as the US or the UK, are providing new opportunities for key market players.

Growing health awareness due to the increasing prevalence of chronic diseases and obesity is boosting the demand for fat replacers.

Even though fat content adds aroma and improves the flavor & texture of the food products, its consumption can adversely affect one’s health and heart. High-fat diets increase the risk of heart disease, obesity, and other potentially deadly medical conditions. High blood cholesterol levels are more frequent in those who consume a fat-rich diet, increasing the risk of coronary heart disease. Using fat substitutes in food and beverage goods preserves the item's original qualitative qualities while minimizing the risks associated with fat consumption. Since fat replacements lack energy-dense fat molecules, products that use them have fewer calories than full-fat counterparts.

According to recent estimates by the Centers for Disease Control, every 34 seconds, one person in the U.S. dies from cardiovascular disease. In 2020, over 697,000 or one in every fifth individual in the country died from heart disease. Coronary heart disease is one of the most common types of cardiovascular disease diagnosed among people. Coronary heart disease has taken 382,820 American lives in 2020. High fat and lipid consumption also raise the prevalence of obesity among people. According to World Health Organization estimates, obesity kills approximately 4 million people every year. According to the World Obesity Federation, by 2030, one in every five women and one in every seven men will be obese.

North America is anticipated to hold a significant share of the global fat replacer market.

North America is anticipated to hold a substantial market share in fat replacer ingredients and products. This region will experience rapid expansion throughout the projection period due to the growing demand for low-fat and low calories products. Fat replacers are in high demand in markets like the United States and Canada. This region's market is also expanding due to the growing millennial population. This region's market is expanding due to the rising prevalence of chronic diseases caused by the consumption of fats. According to the Centers for Disease Control’s recent estimates in the United States, one person dies from cardiovascular disease every 34 seconds. The high obesity rate in countries such as US and Canada is also spurring regional market growth. Obesity affects 41.9 percent of individuals in the United States, according to statistics collected between 2017 and 2020 by the CDC. In addition, the prevalence of key market players such as Cargill.Inc, Archer Daniels Midland Company, CP Kelco U.S., Inc., and others also spur the growth of fat replacers in this region. The rising elderly population and healthcare expenditures, along with changing lifestyles and food innovation, have all contributed to market expansion during the forecast period in North America.

Market Developments:

  • In December 2021, the California Raisin Marketing Board released a whitepaper highlighting the functional benefits and prospects for California-grown raisins and raisin components as a fat substitute in baked goods. According to the whitepaper, California raisins performed well as a fat substitute in tested dishes such as fudge brownie bites due to their natural sugar and fiber content. Compared to the control formula, which contained 100% fat from butter and egg yolk, the California sultana paste formulas had lower overall calories, total fat, saturated fat, and cholesterol while retaining the intended moisture and texture.
  • In May 2022, Spanish food startup Cubiq Foods plans to introduce its first developed fat-based component for plant-based meat substitutes in the United States by 2023. Cubiq Foods' cell-based fat improves food flavor, enriches it with important fatty acids, and provides a solution to minimize trans fats and palm oil in a variety of formulations.
  • In November 2019, Bunge Loders Croklaan introduced a clean label and 'healthier' version of cocoa butter replacer for the confectionery sector called Couva 806NH to capitalize on the Middle East's thirst for more nutritious choices.

Market Segmentation:

By Source

  • Plant
  • Animal

By Type

  • Carbohydrate
  • Protein
  • Lipid
  • Others

By Form

  • Liquid
  • Powder

By Application

  • Processed Meat
  • Bakery and Confectionery
  • Beverage
  • Convenience Food

By Geography

  • North America
  • United States
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Others
  • Europe
  • United Kingdom
  • Germany
  • France
  • Spain
  • Others
  • Middle East and Africa
  • Saudi Arabia
  • UAE
  • Israel
  • Others
  • Asia Pacific
  • Japan
  • China
  • India
  • South Korea
  • Indonesia
  • Thailand
  • Others

Table of Contents

1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base, and Forecast Years Timeline
2.1. Research Data
2.2. Research Process
3.1. Research Highlights
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5.1. Introduction
5.2. Plant
5.3. Animal
6.1. Introduction
6.2. Carbohydrate
6.3. Protein
6.4. Lipid
6.5. Others
7.1. Introduction
7.2. Liquid
7.3. Powder
8.1. Introduction
8.2. Processed Meat
8.3. Bakery and Confectionery
8.4. Beverage
8.5. Convenience Food
9.1. Introduction
9.2. North America
9.2.1. United States
9.2.2. Canada
9.2.3. Mexico
9.3. South America
9.3.1. Brazil
9.3.2. Argentina
9.3.3. Others
9.4. Europe
9.4.1. United Kingdom
9.4.2. Germany
9.4.3. France
9.4.4. Spain
9.4.5. Others
9.5. Middle East and Africa
9.5.1. Saudi Arabia
9.5.2. UAE
9.5.3. Israel
9.5.4. Others
9.6. Asia Pacific
9.6.1. Japan
9.6.2. China
9.6.3. India
9.6.4. South Korea
9.6.5. Indonesia
9.6.6. Thailand
9.6.7. Others
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11.1. Cargill Inc.
11.2. Archer Daniels Midland Company
11.3. CP Kelco U.S., Inc.
11.4. Grain Processing Corporation
11.5. Tate & Lyle PLC
11.6. Corbion NV

Companies Mentioned

  • Cargill Inc.
  • Archer Daniels Midland Company
  • CP Kelco U.S., Inc.
  • Grain Processing Corporation
  • Tate & Lyle PLC
  • Corbion NV