Interesterified Oil Market

In the last few years, food regulatory authorities and governments all over the world have attempted to pass legislation limiting the quantity of trans fats in food products. This attempt has resulted in a major growth in the global interesterified oil market, which is expected to grow at a steady growth rate in the years to come.

The Food and Drug Administration (FDA) voted in May 2018 to make trans-fats illegal in the US starting in from May 2019 onwards. REPLACE, a legislation cum step-by-step guideline to do away with industrially manufactured trans-fatty acids from the entire food supply system worldwide, was launched by the WHO in that year only. Although regulatory adjustments have established a sizable source of revenue for the global interesterified fats market in the last few years, the following years is likely to be crucial for expansion of the market as new regulations are implemented in key nations.

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Food processing makes up for about half of the total demand for interesterified fats and it is predicted to play an important role in the development of the market in the years to come. Food processing industries come with a lesser demand for interesterified fats per unit of end product, but their aggregate sales of completed products are substantial.

Interesterified oil is manufactured by modifying fatty acids that involve a chemical reaction causing the rearrangement of the fatty acid chain. This reduces the melting point and rancidification of the oil, making it low in fatty acid content and also improving its functionality to a great extent. It is mostly used in the food industry as a frying and baking agent and its consumption is relatively healthy for the cardiac patients. In the modified fats and specialty oils industry, the interesterified oil market has gained considerable momentum noting its health benefits. Beverages are also expected to boost the growth of the interesterified oil market because of its wide usage in nutritional beverages for patients experiencing involuntary weight loss and recovering from illness.

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Interesterified Oil Market: Segmentation

The interesterified oil market is segmented on the basis of source and end use.

On the basis of source, the interesterified oil market is segmented as palm oil, sunflower oil, canola oil and others. From the palm source, it is sometimes obtained from the fruit or from palm kernel.

On the basis of end use, the interesterified oil market is segmented as food industry and personal care industry. The food industry is further segmented as bakery, confectionary, dairy, snacks, cereals, spreads, beverages, feed industry and others. The bakery and snacks segment make up most of the market share in the interesterified oil market. In confectionary, its usage is prominent in the chocolate production. It is used for the manufacture of cocoa butter equivalents (CBE). The others segment include its usage in the chemical industry, as in the replacement for paraffin wax and in the production of candle making.

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Interesterified Oil Market: Drivers, Restraints, and Trends

The interesterified oil is widely used in the preparation of oil blends and butter, especially margarine. Its tremendous application in the food and personal care industry is an important factor in boosting the growth of the interesterified oil market. Nowadays consumers are more conscious of the ingredients used in the food products. The buying habits of consumers are variably affecting the food ingredients market. However, the market is saturated in most countries and consumers are also opting more and more for substitutes in the specialty fats and oils industry. The emergence of substitutes like other partially hydrogenated oils may hinder the growth of the market. Also, the interesterified oil is known to impart rancid flavor to the food products, unlike other hydrogenated fats and oils. The replacement of chemical interesterification by enzymatic interesterification is the new trend in the oil industry. Enzymatic interesterification is relatively economical as the production require lower temperature, results in less oil loss and preserves the quality of the oil. Both economic and qualitative benefits of the interesterified oil are proving to be a key driving factor in the growth of the interesterified oil market. Another driving factor for the continuous growth of the interesterified oil market is that it is a convenient raw material for the production of the food products. Maintaining the stability and quality of the product with different raw materials and yet avoiding fluctuations in the prices of the final product is a difficult feat, and hence, the processing of oil and obtaining interesterified oil as a raw material is feasible for the oil manufacturers.

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Interesterified Oil Market: Regional Outlook

In North America, the continuous growth in the development of substitutes of trans fat is indirectly boosting the growth of the interesterified oil market. The demand for clean label products and consumer sensitivity towards ingredients and fats included in food products in both Europe and North America may affect the growth of the interesterified oil market. In Asia Pacific, emerging new technologies and tremendous market potential is fueling the growth of the interesterified oil market. In the Middle East and Africa, expansion in the food industry may boost the growth of the interesterified oil market.