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 CAGR of 2.70% between 2025 and 2033, to reach a volume of 36.40 MMT in 2033. The increasing demand for animal fats in various industries such as biodiesel, animal feed, and oleochemicals, combined with a growing focus on sustainability, is fueling the growth of this market. As industries continue to seek reliable and sustainable sources of raw materials, animal fats are proving to be an essential component in numerous applications. This blog post explores the current trends, market dynamics, and future prospects of the global animal fat market, highlighting the key factors driving growth in the coming years.

Global Animal Fat Market Overview

Animal fats, derived from the tissues of animals such as cattle, pigs, and poultry, are widely used in several industries, including agriculture, food production, and chemicals. These fats offer various benefits, such as high energy content, nutritional value, and functional properties, making them crucial in multiple applications. The global animal fat market continues to evolve, driven by the increasing demand for biodiesel, animal feed, oleochemicals, and pet food, among others.

With the rising global population and subsequent demand for food products, along with greater awareness around sustainability, animal fats have become a resource-efficient solution. They offer a renewable, high-value raw material for various products, contributing significantly to market growth in the upcoming years.

Market Segmentation

By Type

1. Tallow/Grease

Tallow, which is rendered from beef or mutton fat, is one of the most widely used forms of animal fat. Tallow has a broad range of applications, including biodiesel production, animal feed, and the manufacture of oleochemicals. As the demand for biodiesel continues to rise, tallow remains a key feedstock due to its abundance and versatility. Furthermore, its use in animal feed provides essential nutrients, contributing to livestock growth and productivity. With its cost-effectiveness and sustainability credentials, tallow is expected to remain a dominant product type in the market.

2. Lard

Lard, primarily derived from pig fat, is another significant animal fat type used in various applications. Lard is most commonly used in food processing, especially in baking and cooking, due to its ability to enhance flavor and texture. Additionally, lard finds applications in the production of biodiesel and in animal feed, where it serves as an important energy source. The rising demand for high-quality animal-based products, particularly in premium pet food and processed foods, is expected to fuel the growth of lard in the global animal fat market.

3. Others

Other animal fats, including fish oil, poultry fat, and specialized fats from different animals, also have notable market applications. Fish oil is particularly important in the animal feed industry due to its high omega-3 fatty acid content, which supports animal health. Poultry fat, on the other hand, is used extensively in pet food and animal feed. While these fats represent a smaller share of the market compared to tallow and lard, they continue to grow due to their nutritional value and the increasing demand for specialty ingredients in various sectors.

By Application

1. Biodiesel

The biodiesel sector is one of the primary drivers of the animal fat market. Animal fats, particularly tallow and used cooking oil, are valuable feedstocks for biodiesel production. As the world increasingly seeks sustainable alternatives to fossil fuels, the demand for biodiesel has been growing rapidly. Animal fats are considered an important renewable resource for biodiesel, providing an efficient, eco-friendly solution. The global push for cleaner energy sources and stricter regulations on carbon emissions is expected to propel the demand for biodiesel, thus expanding the animal fat market.

2. Animal Feed

Animal fats are an essential ingredient in the production of animal feed, offering high-energy content and improving the nutritional profile of feed. As the global demand for meat and dairy products grows, so too does the need for effective and nutritious animal feed. Fats from animals like cattle and poultry are used to enhance the energy content of feed, making it more efficient for livestock production. The increasing awareness about sustainable agriculture and the growing demand for meat globally are key factors contributing to the growth of this application.

3. Oleochemicals

Oleochemicals, derived from animal fats, are widely used in industries such as personal care, soaps, detergents, lubricants, and cosmetics. These chemicals are used to create products like soaps, biodiesel, surfactants, and glycerin. The demand for oleochemicals is on the rise, driven by consumer interest in eco-friendly products and sustainable raw materials. As manufacturers continue to favor renewable sources, animal fats remain a key ingredient in oleochemical production, supporting market growth in this application.

4. Pet Food

The pet food industry is another key segment driving the animal fat market. Pet owners increasingly demand high-quality food for their pets, and animal fats play an essential role in formulating nutritious and flavorful pet food. Fats, particularly those derived from beef, poultry, and pork, contribute to the flavor, texture, and nutritional value of pet food products. As the pet food market grows, fueled by the increasing number of pet owners and their willingness to spend on premium products, the demand for animal fats in this application is expected to rise significantly.

5. Food Applications

Animal fats are also widely used in the food industry, especially in cooking and baking, where they serve as a key ingredient in the preparation of various products such as pastries, snacks, and processed foods. Lard, tallow, and other animal fats contribute to the flavor, texture, and consistency of food products. However, the demand for animal fats in the food industry is facing increasing competition from plant-based fats and oils. Despite this, animal fats continue to be in demand in specific niches such as premium cooking oils, processed meats, and flavorings.

6. Others

Other applications of animal fats include the production of pharmaceuticals, textiles, and leather. In pharmaceuticals, animal fats are used in the production of ointments, creams, and cosmetics, where they contribute to texture and moisturizing properties. In the textile industry, fats are used in the finishing process, and in leather production, they are used in the tanning process to create soft and durable products.

Regional Analysis

North America

The North American animal fat market is expected to grow significantly, driven by increasing demand for biodiesel and animal feed. The United States is the largest consumer of animal fats, particularly in the biodiesel and pet food industries. Government regulations promoting the use of renewable energy sources and the growing interest in sustainable agriculture are expected to support market growth in this region.

Europe

In Europe, the demand for animal fats is being driven by the growing biodiesel and oleochemical industries. The European Union’s focus on sustainability and reducing carbon emissions is contributing to the increased use of animal fats in biodiesel production. Additionally, the demand for animal fats in food applications remains stable, particularly in countries with a strong preference for traditional cooking methods.

Asia-Pacific

The Asia-Pacific region is expected to witness the highest growth in the animal fat market, particularly due to the growing demand for animal feed and biodiesel. Countries like China and India are experiencing significant increases in livestock farming and energy production, which are driving the demand for animal fats. The pet food industry is also growing rapidly in this region, further boosting market growth.

Rest of the World

The rest of the world, including Latin America, Africa, and the Middle East, is experiencing steady demand for animal fats, particularly in the production of animal feed and biodiesel. As agriculture and energy sectors continue to expand in these regions, the use of animal fats is likely to grow in the coming years.

Market Dynamics

SWOT Analysis

• Strengths: Versatility in multiple industries, sustainability as a renewable resource, established market demand.
• Weaknesses: Ethical concerns surrounding animal-derived products, reliance on livestock farming, and fluctuations in raw material availability.
• Opportunities: Rising demand for biodiesel, increasing focus on sustainability, and growth in the pet food market.
• Threats: Competition from plant-based oils and fats, regulatory challenges, and price volatility.

Porter’s Five Forces Analysis

• Bargaining Power of Suppliers: The market is influenced by the availability of livestock and the control exerted by meat processing companies.
• Bargaining Power of Buyers: Large buyers in sectors like biodiesel and animal feed hold significant power to drive prices.
• Threat of New Entrants: The high barriers to entry, including the need for specialized processing and infrastructure, make it difficult for new entrants.
• Threat of Substitutes: Plant-based oils and synthetic fats are increasingly seen as substitutes for animal fats, posing a threat to market growth.
• Industry Rivalry: High competition among major players such as Cargill, Tyson Foods, and JBS is intensifying market rivalry.