Global Tallow Market - the U.S. and Australia Remain the Largest Exporters

IndexBox has just published a new report "World: Tallow - Market Report. Analysis And Forecast To 2025". Here is a summary of the report's key findings.

Tallow Consumption Remains Stable

The global tallow market stood at X tons in 2016. Overall, the market was stable from 2007 to 2016, with only soft variations over the period. However, in value terms, market experienced wild fluctuations, finally accounting for $X, which was by X% more than the previous year (IndexBox estimates). From 2007 to 2010, market roller-coasted, then, it upsurged by X% in 2011, reaching its maximum point. In the next year it turned downward, falling steadily over the next four years; however, in 2016 it bounced back slightly.

Global Tallow Market Is Set to Pursue Modest Growth

Global food industry and, at a lesser extent, cosmetic industry constitute the key markets for animal fat consumption. On a global basis, expansion of these industries will remain the key driver of the tallow market.

Consumption of tallow varies by region and country. In developed countries, in addition to traditional consumption in food products, tallow is also used in the production of biofuels and oligochemicals. In particular, increased attention to new sources of energy and to the impact of the automobile sector on the environment propelled biodiesel production. Moreover, in the developing countries of Latin America, the consumption of animal fats is growing mainly due to an increase in biodiesel production. On the other hand, consumption of tallow is not uniform even within a single region: for example, in the EU, some countries exhibit demand for animal fats for biofuel production, while other countries use animal fats in the food industry, or both.

Main competition to tallow and animal fats in general comes from vegetable oils. However, this trend is more typical for developed countries, since the cost of vegetable oil production is much higher than that of animal fats, with animal fats being a by-product of the meat processing industry.

It is expected that in the future tallow consumption will depend on the development of animal husbandry, as well as on the demand from other consuming sectors. In the medium term, population growth and rising income levels will contribute to the growth in demand for meat, which will lead to the growth in supply of tallow. On the other hand, food, cosmetic and oleochemical industries will also grow due to the same basic factors. Together, all these conditions will contribute to the growth in consumption of tallow

The performance of the market is forecast to accelerate, with an anticipated CAGR of +X% for the period from 2016 to 2025, which is expected to bring the market volume to X tons by 2025.

The U.S., China and Brazil Together Consumed approx. X% of Total Market

The countries with the highest consumption were the U.S. (X%), China (X%), Brazil (X%), Mexico (X%), Australia (X%), Argentina (X%), Belgium (X%), India (X%) and Canada (X%), together comprising near X% of global consumption.

The highest annual growth rates of tallow consumption from 2007 to 2016 were recorded in China, with +X% growth, Australia, with +X%, Belgium, with +X% growth, and Brazil, with +X% growth.

Consequently, China significantly strengthened its share in terms of the global consumption from X% in 2007 to X% in 2016. Brazil (+X percentage points) also increased its share in global consumption; the shares of Australia and Belgium remained relatively unchanged.

Amongst the leading consuming countries, high levels of per capita consumption were recorded in Belgium (X kg/year in 2016), the U.S. (X kg/year), and Australia (X kg/year), which were significantly higher than the world average of X kg/year. In Belgium and Australia, per capita consumption grew annually by +X% and +X%, respectively, from 2007 to 2016. By contrast, in the U.S., the per capita consumption experienced a contraction.

The U.S. Dominates Global Tallow Production

Production of tallow retained its stable level over the period from 2007 to 2016, finally amounting to X tons in 2016.

The U.S. was the key world tallow producing country with an output of about X tons in 2016, which accounted for X% of total global output. The other major producers were Brazil (X%), Australia (X%), China (X%), Canada, Argentina, New Zealand, France, (X%, each), the UK and India (X% each). The remaining producers comprised approx. X% of total production.

In China, production levels increased by +X% annually from 2007 to 2016, largely attributed to growing cattle breeding industry. Australia (+X%) and Brazil (+X%) had a positive trend in tallow production; the U.S. (-X%) and Canada (-X%) contracted their output.

The Largest Importers Became less Dependent on Imports due to the Increase in Their Own Production

Tallow is a widely traded commodity, with the share of imports in total global consumption being about X% in 2016. High trade intensity is determined mainly by the substantial distances between the main countries of tallow manufacturing and some key consuming countries. However, by 2016, the share of imports in consumption decreased by X percentage points since the beginning of the period under review. This is primarily due to increasing domestic production in the largest importing countries. Thus, the growth in production was registered in the three largest tallow importers - China, Mexico and Belgium, with domestic production in these countries meeting a larger share of demand. The most noticeable decline in the share of imports took place in China: it fell from X% in 2007 to X% in 2016.

The U.S. and Australia Remain the Largest Exporters of Tallow

In 2016, the volume of global exports totalled X tons, which equated to $X. From 2007 to 2016, it experienced a mixed trend pattern. After a perceptible drop in 2009 it bounced back slightly in 2010, but then declined again over the next two years. Afterwards, the volume of exports levelled off through to 2015 and surged in 2016. In value terms, global tallow exports fluctuated wildly over the period under review, which was conditioned by fluctuations in export prices.

The U.S. (X tons in 2016) and Australia (X tons) were the main global suppliers of tallow with a combined share of X% of global exports. These countries were followed by New Zealand (X tons), Canada (X tons) and France (X tons), all lagging somewhat behind. From 2007 to 2016, tallow exports from the U.S. decreased by on average -X% per year; France (-X% per year) and Canada (-X% per year) also recorded a contraction in terms of exports. Meanwhile, exports from Australia and New Zealand increases by +X% per year and +X% per year, respectively. Despite being the largest global producers of tallow, Brazil and China did not export much of their production, meaning that it was consumed domestically.

China Emerged as the Top Tallow Importer

The volume of global imports totalled X tons in 2016, which amounted to $X. Imports trend pattern generally mirrored that of exports: these trade flows globally complement each other.

In 2016, China (X tons), Mexico (X tons), Belgium (X tons), and the U.S. (X tons) constituted the leading destinations of tallow imports, together comprising X% of the total figure. Amongst the major importing countries, China (+X% per year) and the U.S. (+X% per year) gained the highest annual growth rates from 2007 to 2016. Thus, the share of China in terms of the global imports increased significantly from X% in 2007 to X% in 2016, while the shares of the other countries remained relatively stable throughout the analysed period.

Do you want to know more about the global tallow market? Get the latest trends and insight from our report. It includes a wide range of statistics on

• tallow market share
• tallow prices
• tallow production
• tallow industry
• tallow sales
• tallow imports
• tallow exports
• tallow market forecast
• tallow price forecast
• key tallow producers

Source: IndexBox Market Intelligence Platform