Tallow Market Size, Share & Trends Analysis Report By Application (Pharma, Personal Care & Cosmetics, Food & Beverages), By Distribution Channel (B2C, B2B), By Animal Source (Cattle/Bovine, Pig), And Segment Forecasts, 2023 - 2030

Report Overview

The global tallow market size was estimated at USD 8.1 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030. The market growth for tallow is majorly driven by factors, such as the rising consumption of meat products coupled with the rising usage of tallow in the pharmaceutical and cosmetic industry. There is an increased demand for meat and meat products. This trend has led to higher production levels in the meat industry, resulting in a greater supply of tallow as a byproduct. The availability of tallow from meat processing facilities can influence its market demand and utilization in various industries. Furthermore, the increasing number of industrial meat processing facilities is another key factor driving product demand.

These facilities handle large volumes of animal carcasses and generate substantial amounts of fat byproducts. Tallow, being a valuable and versatile component, is extracted and utilized for various purposes, including industrial applications and animal feed. In addition, tallow is utilized in the production of various cosmetics and skincare products. It possesses excellent moisturizing and emollient properties, making it beneficial for skin hydration and nourishment. Tallow's natural fatty acid composition makes it compatible with the skin's lipid barrier, aiding in moisturization and protection. The UK-based skincare company Remnant Beauty offers lard-based night cream and tallow-balm moisturizer.

Animal Source Insights

The cattle/bovine segment held the largest share of 46.8% in terms of revenue in 2022. Easy availability of cattle/bovine-based tallow is the primary factor driving the growth of the segment. This availability can make beef tallow a more economically viable option compared to other types of tallow, especially in regions where beef and mutton consumption and production are prevalent. Flavor & ingredient manufacturer, Synergy offers a wide range of beef flavors including roasted beef, steak, pan juice, and tallow flavors.

The sheep/goat tallow segment will witness the fastest CAGR of 7.1% from 2023 to 2030. Sheep tallow possesses distinct characteristics that make it desirable for specific applications. Compared to other animal fats, sheep tallow has a higher melting point, which makes it suitable for products that require solid fats, such as candles and soaps. Its higher stearic acid content contributes to the hardness and stability of the end products.

Application Insights

The food & beverage segment held the largest share of 34.01% in terms of revenue in 2022. Factors, such as higher shelf stability coupled with ideal preservative properties, are driving the demand for the segment. Considering the increasing concerns about the health risks associated with trans fats, tallow has been explored as a potential alternative to partially hydrogenated oils, which are a significant source of trans fats. Tallow can serve as a natural, non-hydrogenated fat option in food manufacturing, providing functional properties without any negative health implications of trans fats.

On the other hand, the pharma, personal care & cosmetics segment showcased a significant CAGR of 6.2 % during the forecast period. The growing consumer preference for natural and sustainable ingredients has driven the demand for tallow owing to its renewable nature. It is derived from animal sources, and when sourced responsibly, it can be considered a byproduct of the meat industry, reducing waste and promoting sustainability.

Distribution Channel Insights

The distribution channel segment is bifurcated into the B2B and B2C segment. The B2B segment held the largest share of 68.07% in 2022. The product demand in the B2B sector from food manufacturers arises from the need for specific fat properties, such as stability at high temperatures for frying applications or as an ingredient in baked goods. Tallow has applications in the food processing and production sector. It is commonly used in the manufacturing of shortenings, margarine, and cooking oils. It can provide functional benefits, such as enhancing flavor, improving texture, and increasing the shelf life of food products.

The B2C segment is anticipated to grow at a CAGR of 6.2 % during the forecast period. The increasing consumer interest in natural and organic products has sparked a growing product demand. As a natural product, tallow is preferred by individuals seeking alternative cooking ingredients or those interested in traditional food preparation methods. The demand for natural and organic options is likely driving the demand for tallow in these markets.

Regional Insights

In terms of region, the Asia Pacific region held a dominant revenue share of 45.1% in 2022. Tallow is a common ingredient in the production of soaps, detergents, and other personal care products. The growth of the personal care industry in Asia Pacific is driving the demand for tallow. In addition, tallow is a cost-effective ingredient compared to some alternatives used in soap and detergent production. Its availability as a byproduct of the meat industry can make it a readily accessible and affordable option for manufacturers, especially in regions with a strong livestock sector.

Furthermore, the market for tallows in Australia & New Zealand showcased a significant CAGR of 4.5% over the forecast period owing to the easy availability of bovine for tallow manufacturing. The North America region is expected to witness a CAGR of 6.6% owing to the high demand for tallow in the feed industry in the United States. The increasing demand for meat and dairy products, coupled with the growth of the livestock industry, contributes to the need for tallow as a feed ingredient.

Key Companies & Market Share Insights

The global market is characterized by intense competition, mainly attributed to several players operating in the global industry. Various companies operating in the market continuously introduce innovative products to cater to consumer demand. Some of the prominent players in the global tallow market include:

• Saria SE & Co. KG

• Darling Ingredients

• Cargill

• Ajinomoto Co. Inc

• Vantage Specialty Chemicals

• Jacob Stern & Sons Inc

• Australian Tallow Producers

• Parchem

• Baker Commodities Inc.

• Cailà & Parés

Tallow Market Report Scope

Global Tallow Market Report Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the tallow market report on the basis of animal source, application, distribution channel, and region:

• Animal Source Outlook (Volume, Kilo Tons; Revenue, USD Million, 2017 - 2030)

  • Cattle/Bovine

  • Sheep/Goat

  • Pig

  • Others

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2017 - 2030)

  • Food & Beverage

  • Animal/Pet Feed

  • Pharma, Personal Care & Cosmetics

  • Others

• Distribution Channel Outlook (Volume, Kilo Tons; Revenue, USD Million, 2017 - 2030)

  • B2B

  • B2C

    • Online Sales

    • Hypermarkets/Supermarkets

    • Wholesale Stores

    • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • South Korea

  • Central & South America

    • Argentina

    • Brazil

  • Middle East & Africa

    • South Africa

    • UAE