The global animal fat market size reached a volume of nearly 28.64 million metric tons (MMT) in 2024. The market is further expected to grow at a compound annual growth rate (CAGR) of 2.70% between 2025 and 2034, reaching a volume of 36.40 MMT by 2034. This growth is driven by a combination of factors such as increasing demand from industries like biodiesel, animal feed, oleochemicals, and food processing. Animal fats have been integral to a wide range of applications for centuries, and as industries evolve, so does the demand for these versatile products.
In this blog post, we will explore the dynamics of the global animal fat market, examine its key segments, discuss market trends, and analyze the factors contributing to its expected growth in the coming years.
Understanding the Animal Fat Market
Animal fats, derived from the tissues of various animals such as cattle, pigs, sheep, and poultry, are essential ingredients in many industrial processes. Tallow (beef fat) and lard (pork fat) are the most commonly used animal fats, but others such as poultry fat and fish oil also play a role. These fats are valuable due to their energy-dense properties, their ability to be processed into biodiesel, and their use in a wide array of consumer goods like soaps, cosmetics, and food products.
Animal fat production is a by-product of the meat industry, yet its value extends far beyond the food sector. It serves as a sustainable source of raw materials for industries ranging from energy production to oleochemicals and pet food. The global animal fat market, valued at 28.64 MMT in 2024, is expected to continue expanding due to rising demand from multiple sectors.
Market Segmentation by Type of Animal Fat
The animal fat market is primarily segmented based on the type of fat. The most notable categories include tallow, lard, and other animal fats.
Tallow/Grease
Tallow, derived primarily from cattle and sheep, is one of the most significant animal fats in the global market. It is widely used in the production of biodiesel, as a lubricant in industrial processes, and as a key ingredient in animal feed. Tallow also finds applications in soap production and as a raw material for various oleochemical products.
The growing demand for biodiesel as a renewable energy source has significantly boosted the demand for tallow. As governments and industries seek sustainable alternatives to fossil fuels, animal fats like tallow are becoming increasingly important in the production of biofuels. This, combined with its use in other industrial applications, makes tallow a crucial component in the animal fat market.
Lard
Lard, derived from pigs, is another major segment of the animal fat market. Known for its high-quality fat content, lard has long been used in food production, particularly in baking, frying, and processing. In recent years, however, lard has gained popularity in health-conscious food markets due to its versatility and relative stability compared to other fats.
Apart from its food applications, lard is used in cosmetics, pharmaceuticals, and as a base for ointments. The increasing demand for high-quality, traditional fats in food and non-food products continues to drive the demand for lard globally.
Other Animal Fats
Other animal fats, including those from poultry, fish, and other livestock, also contribute to the global market. Poultry fat, for instance, is often used in animal feed, while fish oil is a valuable source of omega-3 fatty acids, making it critical for both the food industry and pet food production.
The lesser-known animal fats, such as goat fat and duck fat, are often niche products with specialized applications, particularly in culinary and high-end food sectors. These fats are also used in some cosmetic and pharmaceutical products.
Market Segmentation by Application
Animal fats are used in a wide range of applications across different industries, including biodiesel, animal feed, oleochemicals, pet food, and food processing. Each application has unique drivers and trends contributing to the growth of the market.
Biodiesel
One of the primary growth drivers for the animal fat market is its use as a feedstock for biodiesel production. Animal fats, particularly tallow, are increasingly used in biofuel production due to their availability and energy density. As countries around the world look to reduce carbon emissions and transition to renewable energy sources, the demand for biodiesel made from animal fats continues to rise.
Governments’ policies to promote green energy, coupled with stricter environmental regulations on carbon emissions, are driving this shift. The market for biodiesel made from animal fats is expected to expand significantly in the coming years, especially in regions like Europe and North America, where renewable energy targets are becoming more stringent.
Animal Feed
Animal fats are also widely used in the production of animal feed, as they provide essential nutrients and energy to livestock and poultry. These fats are particularly important in formulating high-energy feed for animals raised for meat production, as they improve the overall digestibility and nutritional profile of the feed.
The rising demand for meat, particularly in developing economies where disposable incomes are growing, is a key factor driving the demand for animal fats in animal feed. This is especially true in countries like China and India, where the poultry and livestock sectors are expanding rapidly.
Oleochemicals
Oleochemicals, which are chemicals derived from animal fats and vegetable oils, have a wide range of applications in industries such as soap and detergent manufacturing, personal care, and the production of bio-based chemicals. Tallow, in particular, is a major raw material in the production of fatty acids, fatty alcohols, and glycerol, which are used in products like soap, cosmetics, and biodiesel.
The growing demand for green, biodegradable, and renewable chemicals is driving the adoption of animal fats in the oleochemical industry. With increasing consumer preference for sustainable products, oleochemicals derived from animal fats are gaining popularity.
Pet Food
Animal fats are also essential ingredients in pet food, as they enhance the flavor and nutritional value of pet food products. The increasing pet ownership around the world, particularly in regions like North America and Europe, is driving the demand for high-quality pet food. Animal fats improve the palatability of pet food and provide essential fatty acids for pets, contributing to the market’s growth.
Food Applications
Animal fats continue to play a significant role in food production, particularly in the baking and frying industries. Lard and tallow are used in food processing for their texture and flavor-enhancing properties. They are particularly popular in traditional cuisines and among consumers seeking natural, unprocessed ingredients.
Despite growing concerns over the health implications of saturated fats, there remains a steady demand for animal fats in food products due to their traditional and familiar qualities. The increase in demand for high-quality, artisanal, and organic foods also contributes to the continuing use of animal fats in food applications.
Regional Analysis
The global animal fat market is spread across several regions, each with its unique dynamics and growth drivers.
North America
In North America, the United States and Canada are major players in the animal fat market. The U.S. has a highly developed biodiesel industry, which consumes a large portion of animal fats, especially tallow. Additionally, the U.S. is a major producer of meat, which drives the demand for animal fats in animal feed and food products.
Europe
Europe is another significant market for animal fats, driven by the EU’s focus on sustainability and renewable energy. The demand for biodiesel made from animal fats is growing, particularly in countries like Germany, France, and the UK, which have stringent green energy regulations. Additionally, the oleochemical industry in Europe is expanding as more manufacturers turn to bio-based alternatives.
Asia-Pacific
The Asia-Pacific region, especially China and India, is witnessing rapid growth in the animal fat market. The rising demand for meat, coupled with a growing middle class, is driving the demand for animal fats in animal feed and food applications. In particular, China is a major importer of animal fats for biodiesel production, making the region a critical market for future growth.
Latin America and the Middle East
In Latin America, Brazil is a leading exporter of animal fats, particularly tallow. The growing meat production industry in the region contributes to the demand for animal fats in feed and biodiesel. In the Middle East, animal fats are also used in food products and biodiesel production, although the market is smaller compared to other regions.
Market Dynamics: SWOT Analysis
Strengths
- Abundant supply of animal fats due to large-scale meat production industries
- Versatility of animal fats in multiple applications such as biodiesel, oleochemicals, and food processing
- Sustainability of animal fats as biofuel feedstock compared to petroleum-based fuels
Weaknesses
- Ethical concerns regarding the sourcing of animal fats
- Price fluctuations due to the volatility in the livestock and meat production industries
Opportunities
- Rising demand for renewable energy and sustainable biofuels (biodiesel)
- Growing pet food market and increasing meat consumption in developing countries
- Technological innovations in fat extraction and processing
Threats
- Competition from plant-based alternatives and synthetic oils
- Regulatory changes that may affect the use of animal fats in food and feed applications