Tightening Regulations on Trans Fats to Open New Revenue Streams for Interesterified Fats Market
Over the past few years governments and food regulatory bodies across the globe are aiming to introduce laws to limit the amount of trans fats in food products.
This has led to significant increase in the demand of interesterified fats in the market which is projected to witness a CAGR of over 5% during the forecast period.
The Food and Drug Administration (FDA) in May 2018 decided to effectively ban trans-fats in the United States from May 2019 onwards.
During the same year, World Health Organization (WHO) released REPLACE, a law cum step-by-step guide to eliminate industrially produced trans-fatty acids from the global food supply.
While these regulatory calibrations created a significant revenue pool for interesterified fats market in the past half-decade, the forthcoming years can be pivotal for market growth as new regulations unfold across prominent countries.
Europe’s Stringent Regulatory Stance to Boost its Market Share
In 2018, Europe accounted for over a quarter of the market share in the global interesterified fats market and witnessed a CAGR of around 4% during 2014 – 2018; however, on the back of stringent regulations laid by European Commission, the regional market is projected to grow at around 5% CAGR during the forecast period.
In April 2019, the European Union (EU) adopted a regulation to curb the amount of trans fat in products such as snack foods.
European Commission the EU’s executive arm set the limit of trans fats at two grams per 100 grams fat in food.
The organization has set the enforcement limit for April 2nd 2021. This enforcement is expected to slowly replace trans fats with interesterified fats in the regional food value chain, proving to be a boon for the latter.
Food Processing will continue to be the Largest End Use Sector for Interesterified Fats
Food processing accounts for over half of the interesterified fats demand and is also expected to be lucrative in terms of market growth during the forecast period.
Food processing companies have lower requirement of interesterified fats per unit of finished products, however, their overall sales of final products is quite large.
This makes their average annual procurement significantly higher as compared to other industries. Food service companies have relatively higher per unit consumption of interesterified fats, however, their production is low as compared to food processing industry owing to which their average annual consumption of IE fats is relatively low.
Leading Players to Capture 3/4th Market Share
Global interesterified fats market is highly consolidated where more than 3/4th of the market share is accounted by four companies
- Wilmar International Limited
- Bunge Inc.
- Cargill Inc.
- Fuji Oil Holdings Inc.
are market leaders and have strong presence in all regions.
Tier 1 players are providing interesterified fats to industries operating in all application areas to add value to its revenue sales.
Tier 2 and 3 players in interesterified fats market are exploring opportunities within their domestic markets while they are also focusing on process optimization through strategies such as vertical integration and collaborations along the value chain.
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Global Interesterified Fats Market: Segmentation
Segmentation table of the global interesterified fats market has been provided below on the basis of product type, application, thickness, and region.
This taxonomy and the detailed table of content prepared are confidential and intended exclusively for the individual or entity with whom it is being shared. Reading, disseminating, distributing, or copying this to any party other than addressee(s) is unauthorized and prohibited.
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