Fats and oils still essential in food production, IHS Says
Partially hydrogenated oils (PHOs)—once common ingredients in foods ranging from chocolate candy to frozen pizza—are nearing the end of the line as part of the U.S. food supply, but the global outlook for fats and oils remains positive, according to new analysis from IHS
In June 2015, the U.S. Food and Drug Administration (FDA) announced that PHOs were no longer generally recognized as safe and that their use in foods would be phased out of the U.S. market by June 2018.
PHOs, which extend the shelf life of processed foods, are the major source of artificial trans-fats in the food supply. Because trans-fats have been linked to coronary heart disease, food producers are seeking healthier alternatives.
“The U.S. phase-out of PHOs in the food supply is part of a widespread trans-fat reduction trend,” said Rita Wu, principal analyst, renewables and nutrition at IHS Chemical and lead author of the IHS report. “Denmark began restricting foods’ trans-fat content in 2004, and other European nations have since followed suit. The European Commission is currently weighing a European Union-wide ban on trans-fats.”
Despite reduced demand for PHOs, however, the outlook for the fats and oils market remains positive. Few agricultural products surpass fats and oils in utility and ubiquity. Fats and oils—including salad oils, cooking oils, frying fats, shortenings and butter—are essential ingredients for food and non-food uses are significant as well.
“Worldwide consumption of fats and oils is expected to grow at an average annual rate of 2 percent to 3 percent, during the next five years,” Wu said “The Asia Pacific region, which is already the largest consuming region, will drive demand growth. In China, food uses will be the engine of consumption growth, while biodiesel production will propel demand in Indonesia. Palm oil and soybean oil, which are already the largest consuming oils, will continue to drive growth. Sunflower oil, canola oil and palm kernel oil will also see above-average growth.”
Category: Features, Wellness and Complementary Therapies
