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 2033, to reach a volume of 36.40 MMT in 2033. Animal fats, derived from various animals such as cattle, pigs, and poultry, have a broad range of applications across industries, including biodiesel production, animal feed, oleochemicals, and pet food. As the demand for sustainable products and alternative energy sources rises, animal fats are increasingly seen as a key resource in several emerging markets. This blog post will explore the market dynamics, key trends, regional analysis, and competitive landscape of the global animal fat market from 2025 to 2033.
Market Overview
Animal fat is a byproduct of the meat processing industry, and it plays a vital role in various sectors such as food production, energy, and chemicals. The most common types of animal fat include tallow, lard, and poultry fat. These fats are utilized for different purposes, ranging from biofuels to animal nutrition. The rising global population, the increasing demand for biodiesel, and the growing use of animal fats in oleochemical production are major factors driving the growth of the market.
However, challenges such as price fluctuations, ethical concerns, and consumer health perceptions regarding animal fats pose potential constraints. Despite these challenges, the market for animal fat continues to expand as industries seek more sustainable and cost-effective solutions to meet their production needs.
Market Segmentation
By Type
The animal fat market is segmented into different types based on the source and properties of the fats. The major categories include:
Tallow/Grease
Tallow is a rendered form of beef or mutton fat and is one of the most commonly used animal fats in various industries. It is widely used in the production of biodiesel due to its high energy content and availability as a waste product of meat processing. Tallow is also used in the production of soaps, candles, lubricants, and other oleochemical products. The increasing demand for renewable energy sources is one of the key drivers of tallow’s market growth.
Lard
Lard is pig fat that is rendered and refined to produce a high-quality fat used in food applications. Lard has applications in the food industry as a cooking fat, but it is also used in pet food production and industrial applications. With the growing interest in traditional and natural food products, the demand for lard is expected to rise in the coming years. Lard is also a valuable ingredient in the manufacture of biodiesel.
Others
Other types of animal fats include poultry fat, which is derived from chickens and turkeys, and fish oils, which are commonly used in the production of animal feed and pet food. These fats are often used in niche applications, depending on the region and specific market demands.
By Application
The animal fat market is also segmented based on its applications, which include the following:
Biodiesel
Animal fats are increasingly being used as feedstock for biodiesel production, as they provide a sustainable and renewable source of energy. Biodiesel is a cleaner alternative to petroleum-based fuels and can help reduce greenhouse gas emissions. The growing emphasis on renewable energy and the shift towards sustainable fuel sources is expected to boost the demand for animal fats in biodiesel production.
Animal Feed
Animal fats play a crucial role in the formulation of animal feed, providing essential nutrients and energy to livestock. These fats are particularly important in the production of high-quality animal feed for poultry, pigs, and ruminants. As the global demand for meat and dairy products continues to rise, the demand for animal feed—and consequently, animal fats—is expected to grow.
Oleochemicals
Oleochemicals, derived from animal fats, are used in a wide range of products, including soaps, detergents, cosmetics, and industrial lubricants. The versatility of animal fats makes them valuable in the oleochemical industry. With increasing consumer demand for biodegradable and sustainable products, the use of animal fats in olechemical production is expected to increase, further contributing to market growth.
Pet Food
Animal fats are a key ingredient in pet food formulations due to their high energy content and palatability. As the global pet food market continues to grow, driven by increasing pet ownership and demand for premium pet products, the use of animal fats in pet food is expected to rise.
Food Applications
Animal fats are used in food production, particularly for frying and baking. Lard, tallow, and other animal fats are essential in certain culinary traditions, where they are used to create rich flavors and textures. While concerns regarding the health impact of animal fats have led to the development of healthier alternatives, they still hold a significant share in the global food market.
Others
Other applications of animal fats include the pharmaceutical and cosmetic industries, where they are used in the production of creams, lotions, and ointments due to their emollient properties.
Regional Analysis
North America
The North American market for animal fat is driven by the United States, which is a significant producer of biodiesel and animal feed. The demand for animal fats in biodiesel production and animal feed is expected to grow as the U.S. pushes toward renewable energy and sustainable agricultural practices. Additionally, the large-scale meat processing industry in North America contributes significantly to the availability of animal fats.
Europe
In Europe, animal fats are primarily used in oleochemical production and as a feedstock for biodiesel. The European Union has stringent environmental policies that promote the use of renewable energy sources, including biodiesel. This trend is expected to drive the demand for animal fats in the region. Moreover, the EU’s regulations on animal feed production, including the use of animal fats in feed formulations, will continue to impact the market.
Asia-Pacific
The Asia-Pacific region is expected to witness the highest growth rate in the animal fat market. Countries like China, India, and Japan have large and growing livestock industries, which creates a significant demand for animal fats in animal feed. Additionally, the increasing urbanization and demand for biofuels in countries like China and India will drive the market for animal fats in biodiesel production.
Rest of the World
In Latin America, Africa, and the Middle East, there is growing interest in biodiesel production, as well as in using animal fats for industrial applications like oleochemicals. The demand for animal fats in pet food and food applications also plays a significant role in these regions.
Market Dynamics
Drivers
- Renewable Energy Demand: The increasing adoption of biodiesel as a cleaner and renewable fuel is a key driver of the animal fat market.
- Rising Livestock Production: The global demand for meat and dairy products is driving the need for animal fats in animal feed production.
- Sustainability Trends: The growing focus on sustainable and eco-friendly products is driving the use of animal fats in biofuels and oleochemicals.
Restraints
- Health Concerns: Rising concerns about the health impact of consuming animal fats, particularly in food applications, may hinder market growth.
- Ethical Issues: Growing awareness about animal welfare and ethical sourcing may limit the use of animal fats in certain applications.
Opportunities
- Technological Advancements: Innovations in the processing and refining of animal fats offer opportunities for better quality and expanded applications.
- Bio-Based Products: The increasing demand for bio-based products across various industries presents a significant opportunity for the animal fat market.
Competitive Landscape
The global animal fat market is highly fragmented, with numerous regional and global players involved in production and distribution. Key players include companies that specialize in rendering animal fats and producing high-quality tallow, lard, and other fat derivatives. Some major players in the market include:
- JBS USA
- Vion Food Group
- Fossil Farms
- Bunge Limited
- Wilmar International Limited
These companies focus on product innovation, strategic partnerships, and expanding their market presence to capitalize on the growing demand for animal fats in various applications.
MG Technologies