Tallow Market

The tallow market is expected to decline in both volume and value over the period from 2022 to 2030. Consumption, production, imports, and exports of tallow are analyzed, with key countries like the United States, Singapore, Australia, and Brazil highlighted as major players in the market. Growth rates in consumption, production, import prices, and export prices are also discussed, providing a comprehensive overview of the global tallow market trends.

Market Forecast

The tallow market is expected to start a downward consumption trend over the next eight-year period. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -4.2% for the eight-year period from 2022 to 2030, which is projected to depress the market volume to 4.8M tons by the end of 2030.

In value terms, the market is forecast to contract with an anticipated CAGR of -1.8% for the period from 2022 to 2030, which is projected to bring the market value to $7.6B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Tallow

In 2022, approx. 6.7M tons of tallow were consumed worldwide; falling by -7.3% on the previous year's figure. The total consumption volume increased at an average annual rate of +2.3% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Global consumption peaked at 7.2M tons in 2021, and then dropped in the following year.

The global tallow market revenue declined modestly to $8.8B in 2022, falling by -3.8% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated a measured expansion from 2012 to 2022: its value increased at an average annual rate of +3.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +66.1% against 2016 indices. As a result, consumption attained the peak level of $9.2B, and then reduced slightly in the following year.

Consumption By Country

The country with the largest volume of tallow consumption was the United States (3M tons), accounting for 45% of total volume. Moreover, tallow consumption in the United States exceeded the figures recorded by the second-largest consumer, Brazil (1.1M tons), threefold. Singapore (577K tons) ranked third in terms of total consumption with an 8.6% share.

In the United States, tallow consumption expanded at an average annual rate of +4.9% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of consumption growth: Brazil (+6.1% per year) and Singapore (+14.2% per year).

In value terms, the United States ($4B) led the market, alone. The second position in the ranking was held by Singapore ($1.6B). It was followed by Brazil.

From 2012 to 2022, the average annual growth rate of value in the United States stood at +7.2%. The remaining consuming countries recorded the following average annual rates of market growth: Singapore (+13.4% per year) and Brazil (+7.5% per year).

In 2022, the highest levels of tallow per capita consumption was registered in Singapore (100 kg per person), followed by Belgium (12 kg per person), the United States (8.9 kg per person) and Brazil (5 kg per person), while the world average per capita consumption of tallow was estimated at less than 0.1 kg per person.

From 2012 to 2022, the average annual rate of growth in terms of the tallow per capita consumption in Singapore stood at +13.3%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Belgium (-2.0% per year) and the United States (+4.2% per year).

Production

World Production of Tallow

In 2022, global production of tallow reduced modestly to 7M tons, falling by -2.3% on 2021 figures. The total output volume increased at an average annual rate of +2.4% from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years. The pace of growth appeared the most rapid in 2019 with an increase of 8.1%. As a result, production attained the peak volume of 7.3M tons. From 2020 to 2022, global production growth remained at a lower figure.

In value terms, tallow production contracted to $6.4B in 2022 estimated in export price. The total output value increased at an average annual rate of +1.3% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2021 when the production volume increased by 14% against the previous year. As a result, production reached the peak level of $6.8B, and then contracted in the following year.

Production By Country

The United States (2.7M tons) remains the largest tallow producing country worldwide, accounting for 39% of total volume. Moreover, tallow production in the United States exceeded the figures recorded by the second-largest producer, Brazil (1.1M tons), threefold. Australia (503K tons) ranked third in terms of total production with a 7.2% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in the United States amounted to +1.4%. The remaining producing countries recorded the following average annual rates of production growth: Brazil (+6.3% per year) and Australia (+0.2% per year).

Imports

World Imports of Tallow

In 2022, purchases abroad of tallow decreased by -6.9% to 1.9M tons for the first time since 2019, thus ending a two-year rising trend. Over the period under review, total imports indicated a notable expansion from 2012 to 2022: its volume increased at an average annual rate of +2.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2020 when imports increased by 36% against the previous year. Over the period under review, global imports hit record highs at 2.1M tons in 2021, and then contracted in the following year.

In value terms, tallow imports soared to $3B in 2022. In general, imports, however, recorded a strong increase. The growth pace was the most rapid in 2020 when imports increased by 63% against the previous year. Global imports peaked in 2022 and are likely to continue growth in the near future.

Imports By Country

The United States (554K tons) and Singapore (466K tons) represented roughly 53% of total imports in 2022. Belgium (117K tons) took the next position in the ranking, followed by Malaysia (101K tons) and the Netherlands (88K tons). All these countries together held near 16% share of total imports. Brazil (75K tons), Canada (56K tons), China (46K tons), Spain (42K tons), the Philippines (32K tons) and Germany (32K tons) followed a long way behind the leaders.

From 2012 to 2022, the biggest increases were recorded for Singapore (with a CAGR of +144.1%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($945M), Singapore ($754M) and Belgium ($191M) were the countries with the highest levels of imports in 2022, with a combined 63% share of global imports.

Singapore, with a CAGR of +129.2%, saw the highest rates of growth with regard to the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

In 2022, the average tallow import price amounted to $1,566 per ton, picking up by 32% against the previous year. Overall, the import price recorded notable growth. The pace of growth appeared the most rapid in 2021 an increase of 40%. Global import price peaked in 2022 and is likely to see steady growth in years to come.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was China ($2,058 per ton), while Germany ($1,075 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by China (+7.3%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Tallow

In 2022, approx. 2.2M tons of tallow were exported worldwide; surging by 11% against 2021. The total export volume increased at an average annual rate of +2.3% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations throughout the analyzed period. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

In value terms, tallow exports soared to $3.2B in 2022. Over the period under review, exports saw a strong expansion. The most prominent rate of growth was recorded in 2021 with an increase of 55%. Over the period under review, the global exports hit record highs in 2022 and are expected to retain growth in the immediate term.

Exports By Country

In 2022, Australia (468K tons), distantly followed by the United States (286K tons), Canada (260K tons), France (140K tons) and New Zealand (120K tons) represented the main exporters of tallow, together committing 58% of total exports. The following exporters - Argentina (98K tons), Malaysia (94K tons), Uruguay (93K tons), Brazil (84K tons), Germany (83K tons), India (77K tons), Ireland (63K tons) and Paraguay (59K tons) - together made up 29% of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by India (with a CAGR of +186.9%), while the other global leaders experienced more modest paces of growth.

In value terms, the largest tallow supplying countries worldwide were Australia ($724M), Canada ($446M) and the United States ($379M), with a combined 49% share of global exports. France, New Zealand, Brazil, Malaysia, Germany, Uruguay, India, Ireland, Paraguay and Argentina lagged somewhat behind, together accounting for a further 38%.

In terms of the main exporting countries, India, with a CAGR of +182.2%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average tallow export price amounted to $1,431 per ton, growing by 25% against the previous year. Overall, the export price enjoyed noticeable growth. The pace of growth was the most pronounced in 2021 when the average export price increased by 54% against the previous year. Over the period under review, the average export prices attained the maximum in 2022 and is expected to retain growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Canada ($1,717 per ton), while Argentina ($648 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Canada (+5.8%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform