June 2024
The global powdered fats market size is evaluated at USD 2.45 billion in 2024, grew to USD 2.56 billion in 2025 and is projected to reach around USD 3.78 billion by 2034. The market is expanding at a CAGR of 4.41% between 2024 and 2034. The Asia Pacific powdered fats market size accounted for USD 830 million in 2024 and is estimated to grow at a CAGR of 4.51% during the forecast period.
The global powdered fats market size is calculated at USD 2.45 billion in 2024 and is projected to surpass around USD 3.78 billion by 2034, expanding at a CAGR of 4.41% from 2024 to 2034. The changing food preferences are driving the demand for the powdered fats market products as they provide an enhanced texture and nutritional value of the food. Also, the commercial use of these powders is increasing due to their longer shelf life.
The Asia Pacific powdered fats market size is evaluated at USD 830 million in 2024 and is projected to be worth around USD 1,300 million by 2034, growing at a CAGR of 4.51% from 2024 to 2034.
Asia Pacific dominated the global powdered fats market in 2023. The dominance of the region is attributed to leading countries like Malaysia, China, and India, which are leading producers of vegetable oils used to make powdered fats. This helps in attracting investments from multiple sources that boost the market growth in the region. Additionally, the region consists of the most populated countries, such as India and China, which consume processed foods on a large scale. The region is also witnessing more tourists, which is leading to the rising demand for powdered fats in the beverage industry.
North America is anticipated to register significant growth in the powdered fats market during the forecast period. The growth of the region is attributed to rising health awareness among the population who prefer healthier food options. Social media penetration in countries like the United States and Canada has also played a crucial role in spreading awareness regarding the benefits of plant-based food products. This attracts multiple investments in the food and beverage industry that will focus on innovating food products that require powdered fats. Additionally, the changing lifestyle dynamics in the region have significantly increased the demand for packed foods.
Powdered fats refer to a dry form of fats derived from dried fats that are then mixed with carriers like maltodextrin to create the powder. These powders are derived from vegetable oils and can be added to multiple food products. These powdered fats are gaining significant popularity as they are used in processed foods, dairy substitutes, baked goods, and others to enhance their flavor and taste. The powdered fats market is growing rapidly due to the versatility of these powders, which can be formulated into various fat contents according to the food product preferences. There is a rising demand for these products in the food and beverage industry due to their ease of storage in various environments.
How Does AI Help the Powdered Fats Market Grow?
Artificial Intelligence (AI) plays a crucial role in transforming the powdered fats market through constant improvements in product innovations and developments. AI algorithms analyze the datasets that track consumer consumption and their food preferences, such as vegan, low-fat, and many more. The emergence of AI has significantly boosted this process and made it easier to innovate regarding food product development. These tools also help test various food ingredients that would help create more sustainable food options in the food packaging industry.
Report Coverage | Details |
Market Size by 2034 | USD 3.78 Billion |
Market Size in 2024 | USD 2.45 Billion |
Market Growth Rate from 2024 to 2034 | CAGR of 4.41% |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Source, Processing, Application, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Increasing demand for processed foods
Changing lifestyles has been a major factor behind the increasing growth of the powdered fats market. The rising urban population has led to hectic work schedules, which has led to the demand for on-the-go food options. This has resulted in multiple innovations in the food and beverage industry that have been beneficial for the market. Using powdered fats has several benefits, like a longer shelf life, which makes them a preferable option for processed foods.
Increasing demand for bakery goods
The rise in the travel industry has been a major factor that benefits the use of bakery products like cakes, cookies, and other options that are easy to carry. People often carry these bakery goods, which has led to the growth of the powdered fats market. Additionally, many companies are investing heavily, which has increased the competition in the market.
Fluctuation in raw material prices
The powdered oils are mainly derived from palm oils, coconut oils, and other vegetable oils, and these are majorly produced in countries like Malaysia, which increases transportation rates and may affect the overall costs of the powdered fats market products. The production also depends on weather conditions which can also lead towards increasing prices.
Growing trend for vegan foods
The food industry has witnessed significant demand for vegan foods due to the increasing environmental concerns. This has resulted in the rising adoption of foods like dairy-free products, which require powdered fats to manage the texture of the food and maintain the flavor. This rising trend for veganism has attracted many funds that focus on innovating in the powdered fats market products.
Rising demand for clean-label foods
The rising health consciousness among individuals has led to the increasing demand for products that use natural ingredients and maintain transparency among the public. This benefits the use of oils like coconut, nuts, and avocado, which improve production sales among health-conscious individuals. These products are also easily available on e-commerce websites, helping increase overall sales of the powdered fats market products.
The palm & palm kernel segment registered the largest share of the powdered fats market in 2023. Palm oil is derived from the palm tree, which is widely used due to its multiple nutritional benefits and longer shelf life. Palm kernel oil is extracted from the seeds of the palm fruit, which has melting properties that are helpful in the conversion. The dominance of the segment is attributed to the well-established user base of palm oil in the food and beverage industry. Countries like Malaysia are among the major contributors to the growth of the segment due to massive production volume. The country contributed 25% of global production in 2023/2024, producing 19.7 million metric tons. Additionally, these oils are found to be cost-effective, which attracts multiple audiences.
The coconut segment is expected to grow at the fastest rate in the powdered fats market during the forecast period of 2024 to 2034. The increasing growth of the segment is attributed to the health benefits and unique flavor of coconut oils, which makes them popular. Medium-chain triglycerides (MCTs) also stand as a major growth factor that increases the demand for coconut-based fats as they are easily digestible and help improve metabolism. Coconut-based fats are growing rapidly due to the increasing trend of plant-based food. Additionally, the rising demand for coconut fats in dietary supplements is observed.
The spray drying segment dominated the global powdered fats market in 2023. The dominance of the segment is attributed to the wider use of this technology in the food industry. Spray drying is a method that uses hot gas to form liquid oil into a powder. This method is widely used to produce powder on a larger scale, which also becomes a cost-effective option for consumers. This is attracting multiple industries to invest in this technology.
The freeze-drying segment is expected to grow significantly in the powdered fats market during the forecast period of 2024 to 2034. Freeze drying, also referred to as lyophilization, is a technology where the water is removed from the fat through sublimation. The segment is growing efficiently due to the increasing demand for premium food products, which focus on the nutritional quality of the product. The rising disposable income is one of the major drivers that is increasing the expenditure capacity of individuals towards healthy products.
The bakery and confectionery segment stood dominant in the powdered fats market in 2023. The dominance of this segment is attributed to the increasing popularity of bakery products like cookies, cakes, breads, etc, which use powdered fats to enhance the texture of the product. The overall confectionery market has also been a major contributor to the growth of the market as they use these fats while making products like chocolates and candies. The increasing urbanization has led to an increasing demand for these packed bakery products, which can be consumed during their hectic schedules. Additionally, these packed food products often require a higher shelf life.
The dairy & non-dairy products segment is anticipated to grow rapidly in the powdered fats market during the forecast period of 2024 to 2034. The powdered fats market has been growing efficiently due to the increasing demand for dairy products like cheese, milk, and other products that use powdered fats to improve the product's texture. Non-dairy products like soy, vegan cheese, and other products are also gaining significant attention due to the rising veganism in the urban population. These changing consumer preferences are attracting more investments that focus on the innovation of new products.
Segments Covered in the Report
By Source
By Processing
By Application
By Geography
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