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Application of Fat Replacers in Dairy Products to Create Growth Opportunities

Fat Replacer Market to Register 5.9% Growth during 2018-2027

The increasing demand for fat replacer in convenience foods & beverages, as well as bakery products and potential health benefits of fat replacer, are the key growth factors defining the Fat Replacer market. Also, the increase in health awareness among urban population and changing lifestyle due to rapid urbanization are the key parameters which boost the growth of the fat replacer market.



The prominent market players are strategically focusing on the introduction of enhanced product offerings to capture the maximum market share and improve the overall profitability. Urban consumers are aware of the new products that offer several benefits are available in the market which is the major driving forces for the consumer inclination towards fat replacers. The shifting preference towards consumption of dietary products among consumers owing to rising awareness regarding the various health benefits it offers, including normalized bowel movement, reduced cholesterol levels, controlled blood sugar levels and also aiding in maintaining healthy body weight is a significant factor driving the growth of the global market.


The North America market has been estimated to dominate the fat replacer market, accounting for the maximum revenue share of the market by 2018-end. Europe and Asia-Pacific markets are expected to account for over 25.7% and 21.8% revenue share, respectively, of the global fat replacer market by 2028 end. Among the emerging markets, APEJ is estimated to exhibit a significant CAGR of 6% over the forecast period of 2018-2027, followed by MEA with 4.9%, and Latin America with CAGR 4.6%.


To provide in-depth insights on the pattern of demand for fat replacer market, the market is segmented on the basis of ingredient type; it includes carbohydrate-based fat replacer, protein-based fat replacer, and lipid-based fat replacer. The carbohydrate-based fat replacer is expected to dominate the fat replacer market over the forecast period in terms of value, which accounted for 53.4% value share in 2018.


Also, due to the increase in demand for low-calorie content foods by consumers, the prominent fat replacer vendors and distributors are strategically entering in the APAC market with an objective to target the opportunities in the region. The fat replacer market in Europe and the North American region is matured, and hence, companies are targeting emerging markets to increase their sales revenues.


North America Region Critical in the Fat Replacer Market

The North America region is estimated to account for 37.2% market share in the global Fat Replacer market in 2018, and this share is expected to grow by a massive rate of 284 BPS. This highly populated continent is spearheaded by the rapid economic growth in U.S and customers in this country will continue to demand the maximum fat replacer. The market value of over US$ 1,304.9 Mn in 2027 makes North America the behemoth in the global fat replacer market.


Global Fat Replacer Market: Competition Dashboard

Fact.MR has profiled some of the most prominent companies active in the global fat replacer market such as Cargill, Incorporated, Kerry Group Plc, Archer Daniels Midland Company, Royal DSM NV, Associated British Foods Plc, Ingredion, Inc., Tate & Lyle Plc, Ashland Global Holdings, Inc., FMC Corporation, Corbion NV, and others. The key players in fat replacer market are focusing on differentiated product offerings in order to expand their customer base and to enter the new markets.


Global Fat Replacer Market: Key Insights

The fat replacer market has grown consistently at a CAGR of 5.9%, and the fat replacer market has been expanding at a greater pace. The convenience food & beverages and dairy products application is optimistic about fat replacer and is boosting the market competitiveness. Also, the changing consumption trends towards healthy food products is expected to stimulate the growth of the fat replacer market.


The insights presented here are from a research study on Fat Replacers Market by Fact.MR



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