Powdered Fats Market Size To Reach $3.17 Billion By 2030

Powdered Fats Market Growth & Trends

The global powdered fats market size is projected to reach USD 3.17 billion by 2030 and is anticipated to grow at a CAGR of 4.4% from 2023 to 2030, according to a new report by Grand View Research, Inc. The growth of this market can be attributed to the growing popularity of low-carb diets among health conscious consumers and the resultant need for fats derived from novel sources such as palm, coconut, and sunflower. In low-carb, high-fat diets, people often use powdered fats to add healthy fats to their meals or beverages. One of the popular sources of powdered fats in these diets is Medium-Chain Triglycerides (MCT) oil powder.

With a rising emphasis on health and nutrition, consumers are seeking products that align with specific dietary preferences and lifestyles. The demand for keto-friendly products has driven the market for powdered fats, especially those high in omega 3, 6, and 9. The market for vegan products is expanding rapidly as more consumers adopt plant-based diets for ethical, health, and environmental reasons. Companies are attempting to expand their range of powdered fat, deriving it from new sources rather than conventional ones such as palm fats and milk fats to cater to this growing demand for vegan and healthier sources of powdered fats.

Growth in manufacturing technologies has led to the development of encapsulation techniques in powdered fat manufacturing. It will limit the oxidation of fat powders, thereby providing a long shelf-life. According to a 2023 article, ‘Edible oil to powder technologies: Concepts and advances’ on ScienceDirect, the advantages of microencapsulated and nano-emulsion-based powdered fats from edible oil are highlighted in retarding the oxidation process. Nano-encapsulated oil powder has been found to preserve the quality of oil during storage and has a significant impact on maintaining its quality.

Among sources, palm and palm kernel dominated the market in 2022. The demand for coconut-based products is anticipated to grow at the fastest CAGR during the forecast period. Powdered fats are processed using key technologies, such as spray drying, drum drying, and freeze drying. Spray dried powdered fats are expected to witness the fastest CAGR during the forecast period.

In April 2023, Germany-based Berg + Schmidt expanded its presence in the Middle East to cater to the rising demand for feed additives. Through the establishment of a warehouse in the UAE, Berg + Schmidt is looking to improve the distribution of its specialty products, such as BergaFat fat powders, lecithin, and trace minerals.

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Powdered Fats Market Report Highlights

• Based on source, palm and palm kernel are the most preferred sources o powdered fats worldwide. The segment held a revenue share of 34.9% in 2022. The dominance of this segment can be attributed to the high melting point of palm-derived fats and the low chances of rancidity, which make them the preferred choice in applications such as bakery products, confectionery, and snacks

• Based on applications, the main applications for powdered fats include bakery & confectionery, dairy & non-dairy products, and beverages segments. The beverages segment is projected to grow at a CAGR of 4.6% during the forecast period, driven by the increasing use of powdered fats in instant and ready-to-drink (RTD) beverages to improve their shelf life

• In animal feed, the growth of powdered fats is driven by their high energy content, making them a dense source of calories and essential fatty acids for livestock. Powdered fats are easily digestible, enhancing the overall energy intake and promoting weight gain in animals

• Product demand in the Middle East & Africa region is expected to grow at a CAGR of 4.7% during the forecast period, driven by the rising number of countries working toward enhancing food security through several initiatives, such as boosting agricultural infrastructure and local production

Powdered Fats Market Segmentation

Grand View Research has segmented the global powdered fats market based on source, processing technology, application, and region:

Powered Fats Source Outlook (Revenue, USD Million, 2017 - 2030)

• Palm & Palm Kernel

• Coconut

• Milk

• Sunflower

• Canola

• Corn

• Others

Powered Fats Processing Technology Outlook (Revenue, USD Million, 2017 - 2030)

• Spray Drying

• Drum Drying

• Freeze Drying

• Others

Powered Fats Application Outlook (Revenue, USD Million, 2017 - 2030)

• Dairy & Non-dairy Products

• Bakery & Confectionery

• Frozen Desserts

• Baby Food & Infant Formula

• Supplements & Nutritional Products

• Beverages

• Seasonings & Flavorings

• Sauces, Dressings, & Condiments

• Others

Powered Fats Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Spain

  • Italy

  • Netherlands

  • Belgium

• Asia Pacific

  • China

  • India

  • Japan

  • Australia & New Zealand

• Central & South America

  • Brazil

  • Argentina

  • Colombia

  • Peru

  • Chile

  • Guatemala

  • Honduras

  • El Salvador

• Middle East & Africa

  • South Africa

List of Key Players in the Powdered Fats Market

• Kerry Group plc

• Royal FrieslandCampina N.V.

• Aarkay Food Products Ltd.

• Insta Foods

• Castle Dairy s.a.

• Zeon Lifesciences Ltd.

• LUS Health Ingredients BV

• Hill Natural Extract

• Tiba Starch & Glucose Manufacturing Co. S.A.E