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Research Reports

The Pho And Nonpho Based Oils And Fats Market To Ride On The Curve Of Innovation


The market for non-PHO based oils and fats is concentrated in the countries of South East Asia such as Thailand, Malaysia, and Indonesia. Key players in the global non-PHO based oils and fats market are importing non-PHO oils and fats from these countries at very low price points and supplying these oils as private label products to other regional markets. Manufacturers are also investing in R&D to produce non-PHO oils and fats with value-added offerings to enhance their global market presence and expand their customer base. The global non-PHO based oils and fats market is set to witness sustained growth in the coming years, owing to increased adoption among people resulting from an awareness of the health benefits associated with these oils. Persistence Market Research forecasts revenue from the sales of non-PHO based oils and fats to rise to around US$ 301 Bn by the end of 2026, up from about US$ 185 Bn estimated by 2018 end.

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Global Non-PHO Based Oils and Fats Market: Factors Impacting Revenue Growth

The exponential growth in revenue in the non-PHO based oils and fats market can be attributed to the following main factors:

Health benefit positioning: With consumers becoming more aware about the types of food products they consume, there has been an increase in the launch of food products with enhanced health benefits. Manufacturers operating in the non-PHO based oils and fats market are introducing products with low saturated fats while maintaining extended product shelf life, freshness, and enhanced taste. This is pushing revenues in the global market for non-PHO based oils and fats.

Increasing instances of cardiovascular diseases: Cardiovascular diseases have been officially deemed to cause a significant number of deaths across the globe and people are refraining from consuming food products with a high content of trans-fats. Food manufacturers are including non-PHO oils and fats in their products to cater to the demands of health-conscious consumers. This is fueling global market revenue growth significantly.

Regulations pertaining to the elimination of trans-fatty acids from food products: With increasing awareness around the ill effects of consuming fatty food products, food safety authorities around the globe are implementing stringent rules and regulations limiting the use of trans-fats in food production. This is triggering global demand for non-PHO oils and fats in the food and beverages sector.

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Growing demand for non-PHO alternatives in the bakery industry: The bakery industry has been witnessing significant growth over the last few years and there is a steady increase in demand for fats with better taste, texture, and shelf life. Manufacturers in the oils and fats industry are upping their product portfolio to include high-stability oils, tropical oils, hydrogenated fats, interesterified fats, and other customized blends. Further, frying oils are being replaced by non-PHO alternatives to deliver enhanced taste and feel. This is boosting the application of non-PHO oils and fats in the bakery sector.

New Food Processing Technologies Trending the Global Non-PHO Based Oils and Fats Market

Health awareness continues to drive consumer preferences for food and beverage products resulting in enhanced efforts by manufacturers to launch low-fat products in the global market. For instance, several manufacturers have moved to palm oil blends for production purposes. Certain Tier-1 companies have adopted a new technology called interesterification in food processing, which eliminates the formation of trans-fatty acids during food production. Another trend observed in the global market for non-PHO based oils and fats is the use of soybean. Oil produced from certain hybrid varieties of soybean contains no trans-fats and comes with a high oleic acid content, leading to enhanced stability in the produced cooking oil without the need for hydrogenation.

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