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, to reach a volume of 36.40 MMT by 2034. This growth is driven by the increasing demand for animal fats across various industries, including biodiesel production, animal feed, oleochemical production, and food processing. As more industries focus on sustainability and seek alternative sources of raw materials, the global animal fat market is expanding, offering new opportunities and challenges for producers, suppliers, and end-users.
In this blog post, we will explore the dynamics of the global animal fat market, its various segments, key applications, regional insights, and market drivers and restraints that will shape its future growth between 2025 and 2034.
Market Overview
Animal fats, including tallow, lard, and other types of fat derived from animals, have been used for centuries across different industries. While traditionally used in food products, their applications have expanded into biodiesel production, animal feed, oleochemical manufacturing, and even pet food. The market is driven by factors such as increasing global industrialization, rising demand for animal-based products, and growing consumer awareness regarding sustainability.
The rise of renewable energy sources, such as biodiesel, is one of the most significant drivers for the animal fat market. Biodiesel production from animal fats provides an eco-friendly alternative to conventional diesel fuel, contributing to reduced greenhouse gas emissions. As a result, demand for animal fats as a feedstock for biodiesel is expected to increase in the coming years. Additionally, the ongoing development of the pet food industry and the growing consumption of animal fats in food processing are also fueling market expansion.
Market Segmentation by Type
Tallow/Grease
Tallow, derived from the fatty tissues of cattle and sheep, is one of the most commonly used animal fats in various applications. Tallow is primarily used in biodiesel production, where it serves as a renewable feedstock. The biodiesel industry continues to expand as countries and corporations seek to reduce their dependence on fossil fuels and achieve energy sustainability targets. Tallow is also used in the production of animal feed, where it enhances the energy content and nutritional value of the feed.
Additionally, tallow is an important ingredient in the oleochemical industry, used to produce soaps, detergents, and lubricants. The growing demand for sustainable and biodegradable products in the consumer goods sector is expected to keep the demand for tallow strong. Moreover, with advancements in technology making the process of extracting and refining tallow more efficient, this segment is likely to see continued growth.
Lard
Lard is a form of animal fat derived primarily from pigs and is commonly used in food applications, such as frying oils, shortening, and baking products. It is known for its high melting point and smooth texture, making it ideal for specific cooking and food processing applications. Lard also has applications in animal feed, where it is used to provide essential fatty acids and improve the digestibility of feed for livestock.
While lard has historically been a key ingredient in the food industry, there has been a shift toward plant-based fats and oils in recent years due to health concerns associated with animal fats. However, lard is still prevalent in many traditional and gourmet food applications. The growing interest in artisanal food products and regional culinary preferences ensures that the demand for lard will remain significant over the forecast period.
Others
Besides tallow and lard, other types of animal fats, such as poultry fat and fish oil, are also widely used in various industries. Poultry fat is a valuable source of omega-6 fatty acids and is commonly used in animal feed, pet food, and oleochemical applications. Fish oil, derived from fish such as salmon and sardines, is rich in omega-3 fatty acids, which are crucial for both animal and human health. Fish oil is in high demand for use in animal feed formulations, especially in aquaculture, and in the pharmaceutical industry for producing supplements.
Other types of animal fats, including mutton fat, can also be used in specialty food and industrial applications, though their use is more niche compared to tallow and lard.
Market Segmentation by Application
Biodiesel
One of the key drivers for the animal fat market is the increasing use of animal fats in biodiesel production. Biodiesel, made from renewable resources such as animal fat, vegetable oil, or used cooking oils, is a more environmentally friendly alternative to conventional diesel fuel. The global push toward renewable energy and carbon-neutral fuels is expected to continue driving demand for animal fats as feedstock for biodiesel production.
Governments across the world, particularly in the United States, Europe, and Asia-Pacific, are introducing policies to promote the use of biodiesel and reduce reliance on fossil fuels. This, combined with growing concerns about climate change, makes biodiesel a key growth segment for the animal fat market.
Animal Feed
Animal fat plays a critical role in the formulation of animal feed, where it serves as an energy-dense ingredient. It is used to enhance the nutritional value of animal feed, especially for livestock like cattle, poultry, and pigs. Animal fats improve the energy content, palatability, and digestibility of feed, helping animals grow more efficiently.
As global demand for meat, dairy, and other animal-based products continues to rise, the need for high-quality animal feed is also increasing. This trend, particularly in developing economies where agriculture and animal farming are expanding, presents significant growth opportunities for the animal fat market.
Oleochemicals
Oleochemicals, which are chemicals derived from natural fats and oils, are used in a wide range of products, including soaps, detergents, biodiesel, lubricants, and cosmetics. Animal fats such as tallow are a key source of oleochemicals. The shift toward more sustainable and environmentally friendly consumer products has fueled the demand for oleochemicals derived from animal fats.
As consumers increasingly prefer eco-friendly, biodegradable, and sustainable products, the oleochemical industry is expected to see strong growth, boosting demand for animal fats in this application.
Pet Food
Animal fats are also commonly used in the formulation of pet food. They are a vital source of energy and essential fatty acids, ensuring that pets receive the proper nutrition. The global pet food market has grown significantly, driven by rising pet ownership and increasing spending on pet care products. As a result, the demand for animal fats in pet food is expected to grow over the forecast period.
Food Applications
Animal fats are widely used in food applications, such as frying oils, baking, and in processed food products. Lard, in particular, is valued for its culinary properties, offering a unique texture and flavor to many traditional foods. Despite health concerns regarding saturated fats, animal fats remain popular in certain regions and markets where consumers prefer traditional, high-quality food products.
Regional Analysis
The global animal fat market is experiencing growth across multiple regions, with varying demand based on regional industries and consumption patterns.
- North America: North America is a significant market for animal fats, driven by the growing biodiesel industry and the increasing demand for animal feed and pet food. The United States, in particular, is one of the largest consumers of animal fats due to its strong agricultural sector and renewable energy policies.
- Europe: Europe has been a key player in the biodiesel industry, and the region continues to prioritize renewable energy sources. As European countries push for green energy alternatives, the demand for animal fats in biodiesel production is expected to remain high. Additionally, traditional food applications like lard-based products are still prevalent in certain European countries.
- Asia-Pacific: Asia-Pacific is anticipated to be the fastest-growing market for animal fats, driven by the region’s expanding livestock industry, increasing demand for animal-based food products, and growing interest in biodiesel production. Countries like China and India are major consumers of animal fats, particularly for use in animal feed and food processing.
- Latin America and the Middle East & Africa: These regions are witnessing growth in animal fat consumption, driven by rising demand for animal feed in emerging markets and increased production of biodiesel in countries with strong agricultural and livestock industries.
Market Dynamics
Key Drivers
- Sustainability Trends: Increasing demand for biodiesel as a renewable energy source.
- Growth in Animal Farming: Rising demand for animal products driving the need for high-quality animal feed.
- Technological Advancements: Innovations in animal fat processing, improving efficiency and reducing costs.
- Rising Pet Ownership: The growing pet food industry driving demand for animal fats.
Key Restraints
- Health Concerns: Growing awareness of the health risks associated with animal fats, particularly in food products.
- Environmental and Ethical Issues: Concerns related to animal welfare and the environmental impact of animal fat production.
Opportunities
- Bio-based Products: Rising demand for sustainable, bio-based products in industries like oleochemicals and cosmetics.
- Emerging Markets: Increased consumption of animal fats in developing economies.
Threats
- Competition from Plant-Based Oils: The rise of plant-based oils and fats as alternatives to animal fats in food processing and biodiesel.
- Fluctuating Raw Material Prices: Volatility in animal fat prices due to changes in the livestock industry.
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Ellie Cross