Interesterified Fat Market

Interesterified Fat Market Outlook (2024 to 2034)

Global interesterified fat market revenue is estimated at US$ 184.2 million in 2024 and has been projected to increase at a CAGR of 4.4% to climb to US$ 284.2 million by the end of 2034.

Interesterified (IE) fats are increasingly replacing trans-fats in products due to rising cardiovascular health issues across the world. Shortening and margarine bases are increasingly being made with the interesterification of fats instead of hydrogenation. As people across the globe are becoming more health conscious, they are replacing saturated and trans fats with healthier options. Interesterified fats offer an alternative to traditional fats because they contain less saturated fat while maintaining the same textural qualities. There is a growing awareness of chronic illnesses such as obesity and heart disease, which is a key factor responsible for the rising interesterified fat market size.

Enzymatically interesterified fats are being increasingly used in chocolate and baked goods. These fats are effective in altering the physical properties of the end product. Also, interesterified fats increase the melting point of chocolate and reduce trans fatty acid content in shortenings and margarines used in baking, which will be a key factor driving steady interesterified fat market growth going ahead. Both of these examples are becoming increasingly important in a globalized world that seeks durable and stable products while minimizing the possibility of unhealthiness.

Governments and regulatory bodies across the world are implementing new mandates to regulate the use of fats in food and beverages that lead to health complications and issues. These regulations are expected to be the backbone of interesterified fat demand growth over the next decade.

There are also uses of interesterified fats in a variety of applications in the food processing industry. These fats help in improving the taste, texture, and shelf life of a wide range of culinary products such as spreads, baked goods, and confections. This trend is expected to gain traction as the popularity of processed and quick foods grows, particularly among people living hectic lifestyles.

Report Attribute	Detail
Interesterified Fat Market Size (2024E)	US$ 184.2 Million
Forecasted Market Value (2034F)	US$ 284.2 Million
Global Market Growth Rate (2024 to 2034)	4.4% CAGR
East Asia Market Share (2024E)	24.4%
North America Market Share (2024E)	21.6%
Chemical Interesterification Process Segment Value (2034F)	US$ 164 Million
Revenue from Food Processing Segment Value (2024E)	US$ 58 Million
Key Companies Profiled	Cargill Incorporated; Willowton Group; Bunge (Loders Croklaan); AAK KAMANI Pvt. Ltd.; FUJI OIL CO. LTD.; Archer-Daniels-Midland Co.; Wilmar International Limited; Novozymes; Adams Group; Oleofinos; Glamptech Agro Process Pvt. Ltd.

What are the Key Reasons Driving Interesterified Fat Market Growth?

“Consumption of Trans-Fats Responsible for Various Health Problems”

The world has been experiencing a substantial increase in the prevalence of lifestyle disorders in recent years and this is expected to be a prominent factor driving the demand for interesterified fats over the coming years. Consumption of trans-fats and other saturated fat products has led to increased obesity, diabetes, and cardiovascular disorders, which have now become public health issues.

Rising awareness among consumers regarding health and fitness, growing demand for tropical fats in bakery products, increasing use of interesterified fats in food processing, regulatory bans on the use of trans-fats, and growing demand for healthy fatty food alternatives are other factors that are expected to influence the consumption of interesterified fats going ahead.

• In November 2022, the Philippines government announced a ban on all prepackaged foods that contain high amounts of trans-fat level as part of its mission to eliminate the presence of trans-fats by the end of 2023.

What are the Challenges Faced by Manufacturers of Interesterified Fat?

“Benefits of Partially Hydrogenated Oils Posing Challenge”

There are rising health-related issues due to the use of interesterified fats, as well as their shorter shelf life when compared to saturated fatty acids, which are likely to act as market restraints on the demand growth for interesterified fats. Emergence of substitutes, such as other partially hydrogenated oils, is posing significant challenges to manufacturers in this space.

Country-wise Insights

East Asia is estimated to account for 24.4% of the global interesterified fat market share in 2024, followed by North America, which is set to hold a market share of 21.6% in 2024. Increasing investments in the modernization of the interesterification process and enforcement of stringent laws against the use of trans and saturated fats in foods are expected to drive interesterified fat consumption in European countries such as the United Kingdom, Germany, and France. Similar interesterified fat market trends are being observed in South Korea where people have stuck to their standard diets and have a low trans-fat consumption level as compared to other countries.

Why is the United States a Key Market for Interesterified Fat Producers?

“Investments in R&D of Interesterified Fats in the United States”

Attribute	United States
Market Value (2024E)	US$ 28.4 Million
Growth Rate (2024 to 2034)	4.3% CAGR
Projected Value (2034F)	US$ 43 Million

Consumption of fast foods and high-cholesterol foods is extremely high in the United States, which is leading to a grave obesity issue among the general population of the country. Since obesity is becoming a public health issue in the country, the government and regulatory authorities are focusing on regulating the permissible limit of trans-fats in food products. These regulations and increasing consumer awareness about the benefits of interesterified fats are set to boost market growth in the United States across the forecasted period from 2024 to 2034. Rising investments in research and development of interesterified fats are also expected to drive market development and provide new opportunities for manufacturers of interesterified fats over the coming years.

Why Japan is a Lucrative Market for Interesterified Fat Manufacturers?

“Demand for Interesterified Fats Growing with High Number of Health-Conscious People”

Attribute	Japan
Market Value (2024E)	US$ 6.6 Million
Growth Rate (2024 to 2034)	6.3% CAGR
Projected Value (2034F)	US$ 12.2 Billion

Japan is expected to hold a market share of 14.8% in East Asia in 2024. The food habits of Japanese people are largely healthy and the population in the country is well within the recommended trans-fat intake range of the World Health Organization (WHO). Demand for interesterified fats in Japan is expected to rise at a steady pace population people. Meanwhile, there is an increasing influence of Western culture and growing demand for fast foods that is creating new opportunities for interesterified fat manufacturers and distributors.

Category-wise Insights

Based on the interesterification process, the market for interesterified fats is segmented into chemical and enzymatic, of which, the former is set to hold a market share of around 60% in 2024. Interesterified fats produced from chemical interesterification have changed physical properties such as crystallization capabilities and melting points. The process changes the composition of fats, and hence, is not as widely used as enzymatic interesterification by interesterified fat manufacturers.

Why Do Most Companies Opt for Enzymatic Interesterification?

“Simple & Efficient Nature of Enzymatic Interesterification”Top of Form

Attribute	Enzymatic
Segment Value (2024E)	US$ 74 Million
Growth Rate (2024 to 2034)	5% CAGR
Projected Value (2034F)	US$ 121 Million

Fats produced from enzymatic interesterification use a specific lipase catalyst to catalyze the reaction between a raw material such as palm oil and results in the production of triacylglycerols such as stearoyl-oleoyl-stearoylglycerol (SOS) and Palmitoyl-Oleoyl-Stearoylglycerol (POS) in interesterified fats. These interesterified fats are considered healthy alternatives to regular vegetable oils that cause many health complications such as high cholesterol and cardiovascular disorders. Interesterified fats produced through this process are free from waste by-products, simple to process, and cost-effective.

Which End-Use Industry Accounts for Significant Consumption of Interesterified Fat?

“Interesterified Fats Useful for Preserving Functional & Nutrition Properties of Food”

Attribute	Food Processing
Segment Value (2024E)	US$ 58 Million
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 266 Million

The food processing segment is set to account for 31.7% of the overall market share in 2024. Many food technologists are turning to interesterified fat as an alternate option. Interesterification is the process of rearranging fatty acids within and between triglyceride molecules using either a chemical catalyst or an enzyme. Although interesterified fats are useful for retaining the functional properties of food, the nutrition and health consequences of long-term interesterified fat consumption are less well understood.

• The Technical Committee on Dietary Lipids of the International Life Sciences Institute's North American Branch hosted a workshop to discuss the health effects of interesterified fats, identify research needs, and outline future study design considerations. The research concluded that interesterified fat production is a feasible and economically viable solution for replacing dietary trans fatty acids.

Competitive Landscape

Key players in the interesterified fat market are taking advantage of increasing bans on trans-fats and the negative publicity that is associated with them by fueling innovation and launching new products that could eliminate the use of trans fatty acids in food products.

• In December 2021, Cargill, a private American food organization, announced its intent to eliminate the use of industrially-produced trans-fatty acids (iTFAs) from its global edible oil product portfolio. The plans would also be in accordance with the new standards recommended by the World Health Organization (WHO) that will allow a maximum of 2 grams per 100 grams of oil/fats by 2023-end.
• In January 2023, BASF and Cargill expanded their partnership to provide high-performance enzyme solutions to animal protein producers across the United States.

Fact.MR provides detailed information about the price points of leading manufacturers of interesterified fat positioned across the world, sales growth, production capacity, and technological advancements, in this updated market report.

Segmentation of Interesterified Fat Market Research

• By Interesterification Process :

  • Chemical
  • Enzymatic

• By Source :

  • Soybean Oil
  • Palm Oil
  • Groundnut Oil
  • Coconut Oil
  • Rapeseed Oil
  • Sunflower Oil
  • Cottonseed Oil
  • Other Vegetable Oils

• By End-user Industry :

  • Food Processing
  • Food Service
  • Pharmaceuticals
  • Cosmetics & Personal Care
  • Bakery & Confectionery

• By Region :

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