Fat Powder Market

By Source;

Soybean Oil, Canola Oil, Coconut Oil, Palm Oil and Sunflower Oil

By Product;

High-Fat and Low-Fat

By End-Use;

Industrial, Food Service Provider and Retail

By Sales Channel;

B2B and B2C

By Packaging Format;

Pouches & Sachets, Carton Packs, Tins and Bulk Packaging

By Geography;

North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)
Report ID: Rn072403654 Published Date: August, 2025 Updated Date: September, 2025

Fat Powder Market Overview

Fat Powder Market (USD Million)

Fat Powder Market was valued at USD 2,432.27 million in the year 2024. The size of this market is expected to increase to USD 3,244.04 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 4.2%.


Fat Powder Market

*Market size in USD million

CAGR 4.2 %


Study Period2025 - 2031
Base Year2024
CAGR (%)4.2 %
Market Size (2024)USD 2,432.27 Million
Market Size (2031)USD 3,244.04 Million
Market ConcentrationHigh
Report Pages323
2,432.27
2024
3,244.04
2031

Major Players

  • Archer Daniels Midland Company (ADM)
  • FrieslandCampina
  • Fonterra Co-operative Group Limited
  • Glanbia Plc
  • AAK AB
  • Carbery Group
  • Ingredion Incorporated
  • Royal FrieslandCampina
  • DSM Nutritional Products
  • Lipoid GmbH

Market Concentration

Consolidated - Market dominated by 1 - 5 major players

Fat Powder Market

Fragmented - Highly competitive market without dominant players


The Fat Powder Market is gaining significant traction as a versatile ingredient widely used in food processing, dairy alternatives, and nutritional formulations. Known for enhancing texture, flavor, and shelf-life, fat powders are becoming essential across multiple industries. Nearly 55% of food manufacturers rely on these powders for their ability to deliver consistent quality and improve product stability, making them a crucial component of modern food innovation.

Rising Demand for Functional Ingredients
The market is witnessing growth due to the increasing consumer preference for functional foods and convenient nutrition solutions. With almost 50% of consumers showing interest in food products fortified with healthier fat alternatives, manufacturers are increasingly adopting fat powders to meet evolving dietary needs. This shift reflects a broader demand for versatile and value-added food ingredients.

Advantages in Processing and Storage
One of the major drivers for the fat powder market is its superior handling, transport, and storage benefits compared to traditional liquid fats. Nearly 60% of processors opt for fat powders due to their extended shelf-life and ease of integration into dry food mixes. These advantages contribute significantly to reducing production costs and ensuring consistent product quality.

Innovation in Formulations
Technological progress in microencapsulation and spray-drying techniques is further expanding the scope of fat powders. Around 40% of new product launches in the food and beverage sector highlight fat powders as a key component. These innovations not only enhance nutritional value but also improve solubility and stability, making fat powders a preferred choice for diverse applications.

  1. Introduction
    1. Research Objectives and Assumptions
    2. Research Methodology
    3. Abbreviations
  2. Market Definition & Study Scope
  3. Executive Summary
    1. Market Snapshot, By Source
    2. Market Snapshot, By Product
    3. Market Snapshot, By End-Use
    4. Market Snapshot, By Sales Channel
    5. Market Snapshot, By Packaging Format
    6. Market Snapshot, By Region
  4. Fat Powder Market Dynamics
    1. Drivers, Restraints and Opportunities
      1. Drivers
        1. Increasing consumer demand for convenience foods
        2. Rising awareness about health and nutrition
        3. Growth in bakery and confectionery sectors
      2. Restraints
        1. Fluctuating prices of raw materials
        2. Stringent regulations on food additives
        3. Impact of COVID-19 pandemic on supply chains
      3. Opportunities
        1. Growing market for functional foods and supplements
        2. Expansion in emerging economies
        3. Technological advancements in production
    2. PEST Analysis
      1. Political Analysis
      2. Economic Analysis
      3. Social Analysis
      4. Technological Analysis
    3. Porter's Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of Substitutes
      4. Threat of New Entrants
      5. Competitive Rivalry
  5. Market Segmentation
    1. Fat Powder Market, By Source, 2021 - 2031 (USD Million)
      1. Soybean Oil
      2. Canola Oil
      3. Coconut Oil
      4. Palm Oil
      5. Sunflower Oil
    2. Fat Powder Market, By Product, 2021 - 2031 (USD Million)
      1. High-Fat
      2. Low-Fat
    3. Fat Powder Market, By End-Use, 2021 - 2031 (USD Million)
      1. Industrial
      2. Food Service Provider
      3. Retail
    4. Fat Powder Market, By Sales Channel, 2021 - 2031 (USD Million)
      1. B2B
      2. B2C
    5. Fat Powder Market, By Packaging Format, 2021 - 2031 (USD Million)
      1. Pouches & Sachets
      2. Carton Packs
      3. Tins
      4. Bulk Packaging
    6. Fat Powder Market, By Geography, 2021 - 2031 (USD Million)
      1. North America
        1. United States
        2. Canada
      2. Europe
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Nordic
        7. Benelux
        8. Rest of Europe
      3. Asia Pacific
        1. Japan
        2. China
        3. India
        4. Australia & New Zealand
        5. South Korea
        6. ASEAN (Association of South East Asian Countries)
        7. Rest of Asia Pacific
      4. Middle East & Africa
        1. GCC
        2. Israel
        3. South Africa
        4. Rest of Middle East & Africa
      5. Latin America
        1. Brazil
        2. Mexico
        3. Argentina
        4. Rest of Latin America
  6. Competitive Landscape
    1. Company Profiles
      1. BASF SE
      2. Royal FrieslandCampina (FrieslandCampina Kievit)
      3. Fonterra Co-Operative Group Limited
      4. Arla Foods Group (amba)
      5. International Flavors & Fragrances Inc.
      6. Barry Callebaut AG
      7. Kerry Group plc
      8. Glanbia PLC / Glanbia Nutritionals
      9. Lactalis Group / Lactalis Ingredients
      10. Corman SA
      11. HoCHDORF Group (HOCHDORF Swiss Nutrition AG)
      12. Nestlé S.A.
      13. FutureCeuticals
  7. Analyst Views
  8. Future Outlook of the Market