Edible fats and oils innovations are increasingly driven by health-conscious consumers and climate-aware markets, leading to a shift toward cleaner labels, better nutrition, and sustainable sourcing. From reducing saturated fats to adopting regenerative agriculture and exploring substitutes — manufacturers are retooling their strategies to deliver on performance, taste, and responsibility.

An integral component of cooking and diets globally, fats and oil provide versatility and flavor enhancement in foods. While they remain a dietary staple, consumer preferences for oil products are constantly evolving, with nearly 40% of consumers globally saying that rich flavor or taste makes the F&B experience “impressive,” indicates Innova Market Insights data.

Food Ingredients First speaks with Uelzena Ingredients, AAK, and Cargill to understand how companies are trying to solve the “complex puzzle” of balancing stability and texture of fats with sensory experience, while reformulating to appeal to consumers’ taste buds.

“The edible oils and fats industry is influenced by consumers who prioritize transparency, sustainability, and culinary experiences. Our research has identified four key cultural drivers:  ‘unlock time and money,’ ‘treasure planet,’ ‘proactive health & wellness,’ and ‘experience & attention economy,’” says Marieke Otten, head of Insights & Strategic Marketing at AAK.

Financial pressure is urging consumers to prefer options that save time and effort while being economically appealing. They are also increasingly concerned about environmental issues and make purchasing decisions based on companies’ sustainability practices.

“There is a shift from a product-based economy to an experience and attention economy, wher consumers value the impact of products and services on their lives.”

For Anja Brand, brand manager at Uelzena Ingredients, sustainability, and clean labeling are continuing trends. 

“Consumers want natural, minimally processed products without artificial additives. Butter and concentrated butter naturally fulfill these requirements. Especially when they come from sustainable regional dairy farming.”

Reconsidering dairy fats

Brand continues that milk fats give foods a distinctive, natural flavor that is “difficult to imitate with margarine or vegetable fats.”

“I would like to dispute the old prejudice that vegetable oils and fats are generally better or healthier than dairy fats. Butter and butterfat are only minimally processed and do not require any chemical hardening or emulsifiers, as is often the case with margarine,” she asserts.

“They contain no artificial additives and only very few natural trans fats, which are often a problem with hydrogenated vegetable fats.”

Schaffrath also asserts that Cargill’s TrendTracker 2024 research confirms that consumer scrutiny over ingredient lists continues to shape purchasing decisions.

“Ingredient avoidance trends remain strong, particularly regarding fats and oils, with 40% of global product launches now including low/no/reduced fat claims. However, ingredient-seeking behavior is also on the rise, with Omega-3 and plant-based oils ranking among the top health-driven choices in Europe.”

Navigating cost, regulation, and consumer shifts

Lucas Hardy, head of the Innovation Center of Excellence at AAK, highlights scarce resource management, consumer confidence and spending power, and the “continual introduction of new regulations” as the multiple drivers of change impacting the edible oils industry today.

“We also know we cannot overcome these challenges ourselves and are active in a number of initiatives. We are a corporate member of the European Institute of Innovation & Technology Food Accelerator Network and Food Bioprocessing Hub focussed on increasing the role of biotech in food manufacture.” 

Schaffrath adds that the industry is also grappling with price volatility and raw material availability. 

“The edible oils supply chain has been under pressure from geopolitical shifts, climate variability, and economic uncertainty, all of which have contributed to fluctuating costs and supply constraints. Managing these disruptions requires a combination of supply chain agility, sustainability programs, and close collaboration with customers to ensure reliable sourcing and stable pricing.”

“TrendTracker 2024 highlights that 76% of European consumers cite the cost-of-living crisis as a major concern, influencing how they selec food products. As a result, there is a heightened demand for value-driven solutions, including affordable and sustainable alternatives in the oils and fats category,” she adds.

Advancing sustainability

AAK’s head of R&D Kim Olofsson tells us that the company recently installed new bio-boilers at its Aarhus site in Denmark to reduce CO2 emissions by 50,000 metric tons annually, for a 90% reduction in scope 1 and 2 emissions for the site.

The plant-based oil and fat supplier along with Lund University, has also received a grant from the Swedish Foundation to research the feasibility of replacing organic solvents used in oil production with “green and sustainable supercritical CO2 in the factories.”

Meanwhile, Cargill has turned to Responsibly Sourced Palm Oil-certified palm products in Europe, alongside sustainable coconut, rapeseed and high oleic sunflower oils to provide its customers with products that are fully traceable to sustainable sources, shares Schaffrath.

“Beyond palm oil, we are also investing in regenerative agriculture through our Cargill RegenConnect program. This initiative partners with farmers to implement regenerative practices for crops like soy, canola, and sunflower.

Replacing palm oil

Uelzena develops customized fat components with specific functional and nutritional properties, says Brand.

“The addition of high-melting butterfat fractions to butter, for example, ensures better plasticity and heat resistance compared to normal butter, which makes it easier to process. This specialty butter is ideal for applications such as puff pastry, croissants and chocolate, as it improves the structure and texture.”

“However, high-melting milk fat fractions could also help in the reformulation of products to replac palm oil or other hydrogenated fats. By replacing hydrogenated fats or palm oil, we facilitate a consumer-friendly declaration,” she notes.

The low-melting fractions can improve butter’s creaminess and spreadability, facilitating dosing and incorporation into the products. 

Exploring alternatives

In the future, Brand expects butterfat to become more important as a “natural alternative to hydrogenated fats or palm fat, which has been particularly criticized.”

“And even if a plant-based diet is currently the trend, there is also a growing countermovement toward full-fat, animal products (e.g. keto and low-carb diets). In Asia and other growth markets, demand for dairy fats is also increasing, particularly as an alternative to vegetable oils.”

She believes countries such as China and India offer the potential for butterfat products, as the popularity of Western nutrition is increasing in these regions.

For AAK’s Olofsson, “alternative and novel oils, such as microbial or lab-grown fats,” are expected to play a significant role in the future of the edible oils industry. 

“These innovations offer sustainable and renewable options that can replac traditional animal-based fats, contributing to important food functionality and a more sustainable and environmentally friendly food system.”