Fat Replacers Market Size, Share & Trends Analysis Report By Product (Carbohydrate, Protein, Fat), By Application (Bakery & Confectioneries, Dairy & Frozen Desserts, Beverages, Processed Meat, Dressings), And Segment Forecasts, 2018 - 2025

Industry Insights

The global fat replacers market size was estimated at USD 1.53 billion in 2015 and is projected to grow at an estimated CAGR of 6.2% from 2016 to 2025. The growing demand for low-calorie dietary products and advanced food ingredients is anticipated to propel growth over the forecast period.

According to the U.S. Department of Agriculture’s (USDA) Economics Research Service, the global food retail sales is valued at USD 4 trillion annually. The food & beverage industry is expected to witness significant growth over the next few years, owing to economic development, growing population, and increasing consumer income. These macroeconomic indicators are projected to boost the demand for fat mimetic over the forecast period.

U.S. fat replacers market by product, 2014 - 2025 (USD Million)

The Evolving landscape of the food sector is anticipated to propel the demand for more refined products. Companies engaged in food manufacturing are continuously investing in research and development activities to develop products with minimal calories and enhanced taste.  

Product Insights

Fat replacers are categorized into three segments depending on their source of formulation, namely, carbohydrate, protein, and lipid-based. The carbohydrate-based ingredients such as guar gums, xanthan gum, modified starches, oat fiber, and polydextrose find maximum application in frozen desserts & meat and baked goods.

Protein-based products are expected to grow at the highest CAGR on account of its extensive use in dairy beverages and frozen desserts. They help enhance texture and mouthfeel and have heat resistant properties. 

Application Insights

Fat replacers are widely used in food and beverage processing. Major application segments include bakery & confectioneries, beverages, and convenience foods. The bakery and confectioneries segment occupied the largest share in 2015 and is projected to witness the highest growth over the forecast period. The beverages segment is also anticipated to register above-average growth rate over the coming years. 

Protein-based ingredients will probably experience tremendous potential in dairy & frozen desserts, beverages, and bakery & confectionery products. According to the Food and Agriculture Organization (FAO) of the United Nations, consumption of milk & milk products in the South East Asian region is expected to increase by 125% by 2030. The growing demand for dairy products coupled with healthy dietary habits is scheduled to fuel developments in this industry.

Positive outlook for the food & beverage sector in the Middle East and BRICS is anticipated to present itself as a key market driver over the forecast period. Expanding retail networks, new product launches, and population growth are expected to augment growth across the world.

Fat replacers market share by application, 2015

The beverage segment occupied the second-largest share in 2015. The growing consumption of skimmed milk across the world is one of the major factors promoting the growth of this sector. According to a survey conducted by the Calorie Control Council, 88% of adults consume low/reduced or fat-free foods & beverages, thus, triggering market growth.

Regional Insights

North American demand for low-calorie food & beverages has matured over the past few years, thereby, growing at a consistent rate from 2016 to 2025. The U.S. remains the largest market for confectioneries and dietary processed food products. The trend of maintaining a nutritionally healthy diet in the U.S. is expected to serve as a driver over the coming years.

Asia Pacific is anticipated to register a high growth rate from 2016 to 2025, owing to increasing population and rising nutrition requirement per person. According to the Indian Brand Equity Foundation, the Indian food industry was valued at USD 39.71 billion in 2016 and is projected to grow at a CAGR of 11% to reach USD 65.4 billion by 2018.

Fat Replacers Market Share Insights

Influential companies operating in the fat replacers market include Cargill Incorporated, FMC Corporation, Archer Daniels Midland Company, Ashland Global Holdings Inc., Kerry Group PLC., DKS Co Ltd., and Agritech Worldwide Inc.

Companies are engaged in new product developments and collaborations to enhance their product offerings. Over the coming years, companies are expected to experience huge sales on account of growing health consciousness.  

Report Scope

Segments covered in the report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global fat replacers market on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Carbohydrate based

  • Protein-based

  • Fat based

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Bakery & confectioneries

  • Dairy & frozen desserts

  • Beverages

  • Processed meat

  • Dressings, margarines, and spreads

  • Convenience foods

  • Others  

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • The U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Middle East and Africa

    • Saudi Arabia

  • Central & South America

    • Brazil