Animal Fat Market: Trends, Growth, and Future Outlook (2025-2033)

The global animal fat market size reached a volume of nearly 28.64 MMT (million metric tonnes) in 2024. The market is further expected to grow at a CAGR of 2.70% between 2025 and 2033, reaching a volume of 36.40 MMT by 2033. Animal fats are integral to a wide array of industries, from food production to biodiesel manufacturing. The increasing demand for sustainable, high-performance raw materials, coupled with the rise of the biofuel industry, has set the stage for steady growth in the animal fat market over the next decade. This blog post will explore the various types of animal fats, their key applications, market drivers, and the regional dynamics shaping the future of this sector.

Market Overview

Animal fats, derived from various sources such as cattle, pigs, and poultry, play a crucial role in industries ranging from food and pet care to biofuels and oleochemicals. The primary types of animal fats are tallow (or grease), lard, and other fats such as poultry fat and fish oil. These fats possess unique properties—such as high energy content, versatility in industrial applications, and a range of functional characteristics—that make them irreplaceable in certain sectors. Additionally, as global interest in renewable energy and sustainable materials grows, animal fats have found increasing demand in biodiesel production.

In recent years, consumer awareness surrounding sustainability and the increasing push for green energy solutions have provided a significant boost to the global animal fat market. With a projected growth rate of 2.70% over the next several years, the market's potential is evident. But what exactly is driving this growth? Let's take a closer look at the key factors contributing to the increasing demand for animal fats.

Market Segmentation

By Type

1. Tallow/Grease

Tallow, often referred to as grease, is a type of animal fat primarily sourced from cattle and sheep. It is most commonly used in biodiesel production, animal feed, and oleochemicals. Tallow is a valuable feedstock for the renewable energy sector, where it is converted into biodiesel, an environmentally-friendly alternative to petroleum-based fuels. The growth of the biodiesel industry is one of the key drivers behind the rising demand for tallow, as governments and businesses alike focus on reducing carbon emissions and increasing the use of sustainable energy sources.

2. Lard

Lard is a fat derived from pigs, widely used in food production, especially in baking and cooking. It provides an exceptional flavor and texture, which is why it is commonly used in the production of pastries, sausages, and fried foods. In addition to its culinary applications, lard is also used in the animal feed industry and in the creation of cosmetics and personal care products. However, its use is somewhat limited by health concerns over saturated fats, particularly in Western markets, although the trend toward natural and organic products is supporting its continued demand.

3. Others

Other types of animal fats, such as poultry fat and fish oil, are also used in various industrial applications. These fats are often utilized in the production of animal feed, pet food, and in the oleochemical sector. Fish oil, known for its omega-3 fatty acid content, is also used in dietary supplements and pharmaceuticals. Though they represent a smaller portion of the market compared to tallow and lard, these fats have niche applications that are gaining traction, especially in regions with large fishing industries.

By Application

1. Biodiesel

One of the most significant and rapidly growing applications for animal fats is biodiesel production. Animal fat-based biodiesel serves as a renewable alternative to traditional fossil fuels, and with growing environmental concerns, many countries are increasing their focus on clean energy solutions. Animal fats like tallow and grease are used to produce biodiesel through a process called transesterification. This demand for biodiesel is expected to rise due to the implementation of stricter environmental regulations and increasing government incentives for biofuels, thus contributing to the growth of the animal fat market.

2. Animal Feed

Animal fats are an essential component in the production of animal feed, particularly for livestock. These fats are used to improve the nutritional value of animal feed, ensuring that livestock receive sufficient energy and essential fatty acids for optimal growth and health. With the rising demand for meat, dairy products, and eggs worldwide, the demand for animal feed—and consequently, animal fats—has increased. In emerging markets where meat consumption is growing rapidly, such as in parts of Asia and Latin America, animal fats are becoming increasingly critical in livestock nutrition.

3. Oleochemical

Animal fats are also used in the production of oleochemicals, which are fatty acids and other chemicals derived from natural fats and oils. These oleochemicals are essential ingredients in the production of a wide range of products, from detergents and soaps to cosmetics and lubricants. As companies look to replace petroleum-based chemicals with more sustainable, bio-based alternatives, animal fats are gaining traction as a key raw material in the oleochemical industry. The growing shift towards green chemistry and sustainable product formulations further boosts the demand for animal fats in oleochemicals.

4. Pet Food

Pet food manufacturers are increasingly turning to animal fats as a primary ingredient to enhance the taste, texture, and nutritional value of pet food products. Animal fats, especially those derived from poultry, beef, and pork, are rich in essential fatty acids, which are important for pet health. As pet ownership rises globally, particularly in regions like North America, Europe, and Asia Pacific, the demand for high-quality pet food products is driving growth in the animal fat market. Furthermore, with increasing interest in premium pet food, animal fats are sought after for their role in providing better flavor and nutritional profiles.

5. Food Applications

Animal fats are also extensively used in the food industry, particularly in processed foods. Lard and tallow are often used in cooking oils, snack foods, processed meats, and bakery products. Despite concerns over the health impacts of saturated fats, the demand for traditional animal fats in food applications remains robust, particularly in regions where culinary traditions rely heavily on these ingredients. The growing interest in natural and minimally processed foods is contributing to the sustained use of animal fats in the food industry.

Regional Analysis

1. North America

In North America, particularly the United States, animal fats are increasingly used in biodiesel production, driven by government incentives and a strong push for renewable energy. The growing demand for animal feed, driven by the robust livestock industry, is another key factor supporting market growth. The pet food sector is also expanding rapidly in North America, where consumers are increasingly willing to spend on premium pet food, which often contains animal fats for better taste and nutritional value.

2. Europe

Europe has a well-established market for biodiesel, with several countries actively promoting the use of renewable energy sources. Animal fats are a vital feedstock for biodiesel production in the region. Additionally, Europe’s oleochemical industry, which produces a variety of bio-based chemicals, is also benefiting from the use of animal fats. As consumer preferences for sustainable and natural products grow, demand for animal fats in food and cosmetics is also increasing in Europe.

3. Asia Pacific

Asia Pacific is experiencing rapid growth in the demand for animal fats, driven by increasing meat consumption, rising pet ownership, and the expanding biodiesel industry. Countries like China and India, with large populations and growing economies, represent significant opportunities for the animal fat market, particularly in the food and feed sectors. The region is also seeing a rise in demand for biodiesel as part of its broader efforts to reduce air pollution and transition to cleaner energy sources.

4. Latin America and Middle East & Africa

In Latin America, the livestock industry is expanding, especially in Brazil and Argentina, leading to increased demand for animal fats in animal feed and food production. The Middle East and Africa are emerging as important markets, where both food and biodiesel applications are growing. As governments in these regions push for renewable energy alternatives, the use of animal fats in biodiesel production is expected to rise.

Market Dynamics

Drivers

• Rising Demand for Biodiesel: Animal fats play a crucial role in the production of biodiesel, which is becoming an increasingly important renewable energy source as the world seeks to reduce carbon emissions.
• Growth in Meat Production: The increasing global demand for meat and animal-based products drives the need for animal fats in animal feed and food applications.
• Sustainability and Green Chemicals: The growing demand for eco-friendly and bio-based products across industries, including oleochemicals, is a key driver for animal fats.

Restraints

• Health Concerns: The consumption of animal fats is sometimes associated with health risks such as cardiovascular disease, which may limit their use in certain food products.
• Volatility in Raw Material Prices: Fluctuations in the prices of livestock can impact the cost of animal fats, creating market instability.

Opportunities

• Technological Advancements: Innovations in biodiesel production and oleochemical technologies create opportunities for more efficient use of animal fats.
• Expanding Pet Food Market: Rising pet ownership and consumer interest in premium pet products provide significant growth potential for animal fats in pet food formulations.

Competitive Landscape

The global animal fat market is competitive, with major players like JBS S.A., Cargill, Inc., Bunge Limited, and Wilmar International leading the way. These companies are investing in sustainable practices, expanding their biodiesel production capabilities, and developing new applications for animal fats in oleochemicals and food products. Strategic partnerships, acquisitions, and technological innovations are key factors in maintaining a competitive edge in this market.