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Fat Replacers Market

Fat Replacers Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

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Industry: Food & Beverage | Author Name: Mohit

Fat Replacers Market: Overview

Fat Replacers had a market value of USD 3.1 billion in 2021, with a CAGR of 6.1 percent projected over the forecast period. It is also known as fat substitutes, which are chemicals that replace all or a portion of the fat in a diet while retaining the original full-fat food's taste, texture, and mouth feel. Fat is not a single component but a collection of several compounds composed of a glycerol molecule and three distinct fatty acids. It is an important part of a healthy diet. It contains prostaglandin building blocks and essential fatty acids that help with cholesterol metabolism, transports fat-soluble vitamins and carotenoids throughout the body, and contains nine calories per gram.

Compounds used to substitute fat in various foods and beverages are known as fat replacers. Most fat substitutes are reformulated versions of already existing dietary components (starches, gums, cellulose, and others). According to NPR, the coronavirus epidemic has boosted obesity in the United States. More than sixteen states in the United States have above 35% obesity rate. Not only is immediate fast food consumption harmful to one's health, but stress and job loss caused by the pandemic have raised the obesity incidence in the United States. Over the projection period, the increased demand for low-calorie dietary products and innovative food components is expected to drive growth. The United States According to the USDA's Economics Research Service, global food retail sales are worth USD 4 trillion each year. The food and beverage business is predicted to increase significantly in the next years due to economic expansion, population growth, and rising consumer income. Over the forecast period, these macroeconomic indicators are expected to drive demand for fat mimetics. However, the poor taste of fat substitutes in comparison to fats and the nutrition issues associated with fat substitutes are likely to hinder the growth of the fat replacers market over the forecast period. Increased consumption of convenience foods, a rising number of people opting for dairy-free diets, and an increase in fat replacer research and development will generate opportunities for the market throughout the projection period. However, high fat replacer product pricing and undesirable fat replacer effects might provide a significant threat to the business.

Fat Replacers Market: COVID-19 Impact

Due to the ongoing COVID-19 pandemic, consumers are becoming more conscious about healthy diet, thus increasing their inclination toward low fat or fat-free food products, providing a lucrative opportunity for key players to innovate in the product type as well as in I ingredients to capture health-conscious consumer base. Due to a scarcity of raw materials and bottlenecks in the supply chain, production of fat replacers has been halted partially or completely during the Covid-19 pandemic. During the shutdown, distribution channels such as supermarkets, hypermarkets, specialized stores, and others were closed. This resulted in lower sales volumes and overall revenue. However, demand is expected to rise post-lockdown as distribution channels reopen and the supply chain recovers.

Fat Replacers Market: Drivers

Growing Interest in Health And Wellness Among People to Drive Market Growth

Dietary guidance and suggestions from various worldwide health organizations, as well as the overwhelming influence of the media, have resulted in a growing awareness of the negative consequences of excessive fat consumption and the benefits of healthy living. According to the World Health Organization, reducing total fat consumption to less than 30% of total calorie intake helps adults avoid harmful weight gain. Additionally, lowering saturated fat intake to less than 10% of total calorie intake and trans fat intake to less than 1% of total energy intake, and substituting them with unsaturated fats, lowers the risk of developing NCD. As a result, people are becoming more health conscious, changing their eating habits and nutrition. This is a driving element in the expansion of the fat replacers market, as it provides customers with low-fat and low-calorie food products without compromising the fundamental characteristics of their intakes. Furthermore, according to the American Dietetic Association, most fat replacers can be a safe and useful supplement for lowering the fat content of a diet when eaten in moderation by adults.

Rising in Obesity Risk to Drive Market Growth

The rise in obesity risk is predicted to drive demand for low-fat and fat-free foods and beverages. Many dairy product makers are switching to plant-based butter, which is less expensive and has numerous health benefits. Governments throughout the world are controlling the amount of fat in foods. There are rigorous regulations governing the selling of fatty acid-containing products. This is projected to drive demand for plant-based fat substitutes that do not contain any chemical additives. As the global obesity rate rises, customers are looking for low-fat or fat-free foods and beverages. As a result, food and beverage makers use protein-based, carbohydrate-based, and lipid-based fat substitutes. However, because fat substitutes alone cannot provide the requirements, food manufacturers also offer a combination of reduced fat products and fat substitutes. Most fat replacers on the market are reformulated versions of previously utilized food components.

Fat Replacers Market: Restraints

Government Policies to Hamper Market Growth

Most manufacturers have difficulty complying with the government's various laws and regulations. Furthermore, excessive fat container consumption creates various health difficulties in the human body, including heart attack, rising cholesterol, and others. Nutritional issues arise from the usage of fat surrogates. Other nutrients' bioavailability may be hampered by fat substitutes that are partially or completely indigestible. Similarly, fat substitutes may hurt proper gastric region function and vegetation.

Fat Replacers Market: Segment Overview

Carbohydrate-Based to Dominate Market due to its Aid in Preservation of Product's Texture, Moisture, And Flavour

The carbohydrate-based fat replacers segment maintains its market leadership in the industry studied. Carbohydrate-based fat replacers assist sustain texture, moisture, viscosity, and mouthfeel and continue to lead the market due to their position as GRAS drugs approved by the US FDA. Cellulose (Avicel® cellulose gel, MethocelTM, Solka-Floc) can partially or completely substitute fat in dairy products, sauces, frozen desserts, and salad dressings. Finely ground cellulose microparticles provide a non-caloric network with fat's smoothness and flow qualities. Fiber-based goods with almost no calories include locust bean, guar gum,  xanthan gum, gum arabic, pectins, and carrageenan. They have a thickening or gelling impact on the dish and encourage a creamy mouthfeel. Gums such as keltrol, kelcogel,  and SlendidTM can be used to make low-calorie and fat-free salad dressings. They can also lower the fat level of processed meals such as processed meats and sweets.

With an Increased in Obesity, Bakery & Confectionery Category Dominated Market

In the forecast period, the bakery & confectionery products segment held the largest market share. Because of the rising prevalence of obesity worldwide, people are looking for low-fat or fat-free meals and beverages. As a result, food and beverage makers use protein-based, carbohydrate-based, and lipid-based fat substitutes. However, because fat substitutes alone cannot provide the requirements, food manufacturers also offer a combination of reduced fat products and fat substitutes. Manufacturers are creating new fat-based fat substitutes. These products are likely to have a combination of fat and oil and are often used in products such as chips, baked goods, and snack meals.

Furthermore, the bulk of new low-fat goods created with fat substitutes is pending Food and Drug Administration certification. According to the United Nations, Food and Agriculture Organization milk and milk product consumption in the South East Asian region is anticipated to increase by 125% by 2030. Growing demand for dairy products, combined with healthy eating habits, is expected to drive growth in this business.

Fat Replacers Market: Regional Landscape

North America to Dominate Market due to Strong Consumer Spending Capacity

It is anticipated that the North American market will account for the largest revenue share. The United States continues to be the largest market for confectioneries and dietary processed food items. Demand for fat replacers is predicted to increase throughout the forecast period due to strong consumer spending capacity and an emphasis on maintaining a healthy lifestyle in the United States. The trend of keeping a nutritionally balanced diet in the United States is projected to be a driver in the next years. Recently, the region's demand for low-calorie food and beverages has increased. Over 60% of Americans are cutting back on food products high in saturated fats, which is a major factor in the stable growth of the fat replacers market in the United States.

The fastest expanding region for the fat replacers market due to a variety of causes such as increasing urbanization, a developing economy, a change in lifestyle, and a growth in nutrition and health awareness due to the growing impact of media and western culture. Because of these many causes, the market for fat substitutes in the region is likely to grow and develop in the coming years. Fat substitutes are chemically identical to lipids, proteins, and carbohydrates. As consumers become more aware of health dangers, they are modifying their dietary patterns and eating less fat. As a result of these considerations, fat substitutes have a huge market opportunity. Fat substitutes are a boon to society because excessive fat consumption can lead to obesity, high blood cholesterol, cancer, and coronary heart disease.

Global Fat Replacers Market: Competitive Landscape

In July 2021, Fresh, Authentic Tasty Brands completed its $442.5 million acquisition of Global Franchise Group from Serruya Private Equity and Lion Capital. As a result of the acquisition, FAT Brands has five new restaurant concepts. Moreover, in May 2019, With the NOVATION breakthrough, Ingredion introduced a new clean label starch to reduce fat and produce delicious textures. The unique product is corn-based starch, which allows for lower-fat and lower-calorie products and the production of healthier foods.

Few of the players in the Fat Replacers Market include Kerry Group (Ireland), ADM (US), DuPont (US), Cargill (US), Ingredion (US), FMC Corporation (US), Koninklijke DSM (Netherlands), and Ashland Inc (US).

Global Fat Replacers Market is Segmented as Below:

By Type

  • Carbohydrate-based
  • Protein-based
  • Lipid-based

By Application

  • Bakery & confectionery products
  • Dairy & frozen desserts
  • Convenience foods & beverages
  • Sauces, dressings, and spreads
  • Others (functional foods and processed meat)

By Form

  • Powder
  • Liquid

By Source

  • Plant
  • Animal

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Fat Replacers Market

  • Fat Replacers Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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