Medium Chain Triglycerides (MCT) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Medium Chain Triglycerides (MCT) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Medium Chain Triglycerides (MCT) Market is projected to register a CAGR of over 8% during the forecast period (2022-2027).

The food and beverages and personal care and cosmetics markets account for the largest share of the medium chain triglycerides market. The medium chain triglycerides are used in diet as a fat supplement and also provides immunity to the body. The pandemic created more interest in working on immune system thus increasing the market. However, the countries such as India, United States, and China which contributes the largest share of medium chain triglycerides are effected by covid-19 pandemic. The food and beverage industries were effected in these countries. For instance, with over 7.3 million employees, the food and beverage industry accounts for 3% of India's GDP and is the country's single largest employer. The nationwide lockdown sent the restaurant industry into a tailspin, with some estimates predicting that nearly a quarter of all restaurants were closed by the end of 2020. According to the National Restaurant Association of India, India's USD 50 billion restaurant industry lost an estimated value of around USD 9 billion in 2020.

Key Highlights

• In the medium term, the major factors driving the market studied are increasing demand of dietary supplements in food and rising penetration of MCT's in personal care & cosmetics products.
• On the flipside, the availability of substitutes such as mineral oil and unfavorable conditions arising due to the COVID-19 outbreak are the major restraints, which are expected to hinder the growth of market.
• Asia-Pacific region is projected to experience the fastest growth across the globe owing to increasing consumption from countries such as China, India, and Japan.

Key Market TrendsIncreasing Demand from Food & Beverages Segment

• Medium chain triglycerides are produced by processing coconut and palm kernel oil. They comprise medium chain fatty acids and are slightly yellowish in color. They are insoluble in water and are miscible with alcohol and methylene oxide.
• The increasing demand for medium chain triglycerides as a substitute for normal fat in diet owing to properties such as helps in maintaining a healthy weight, supports in reducing stored body fat by increasing metabolism, and helps in better digestion and giving more energy, is propelling the medium chain triglycerides market.
• Additionally, the growing popularity of medium chain triglycerides among athletes, body-builders, and sportsmen owing to its ability to enhance their performance is further expected to positively impact the medium chain triglycerides market.
• The revenue from the food & beverages market is expected to grow at a CAGR of over 5% during the forecast period and would reach over USD 260 billion by 2024. Also, according to U.S. Department of Agriculture, The Consumer Price Index for all food in United States increased 0.3 percent from December 2020 to January 2021. This is likely to create ample opportunities for the growth of the medium chain triglycerides market during the forecast period.
• Owing to all the above-mentioned factors for medium chain triglycerides, the segment studied is expected to grow rapidly over the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region is expected to witness the fastest growth in the market for medium chain triglycerides during the forecast period. In countries like China, India, and Japan, owing to increasing demand from various end-user industries like personal care & cosmetics, pharmaceuticals, and food & beverages, the demand for medium-chain triglycerides such as caprylic, capric, and lauric has been increasing in the region.
• Medium chain triglycerides are used in sports drinks, nutritional bars, and energy foods. They are used as food emulsifiers and also help in enhancing the properties of hot and cold beverages, and help in adding distinct flavors to food products. Due to these factors, the demand for medium chain triglycerides is increasing in the region, which will stimulate its market during the forecast period.
• Medium chain triglycerides have various benefits on the health of individuals if they are consumed on daily basis. The benefits associated with them include help in reducing the risks associated with hormonal imbalances, weight gain, gut problems, and cognitive disorders. These factors are expected to positively impact the medium chain triglycerides market in the region.
• Additionally, the demand for medium chain triglycerides is expected to increase as they provide immunity against harmful viruses, bacteria, parasites, and fungi. Also, coconut oils help in treating problems related to inflammations due to antioxidant properties.
• Furthermore, the increasing consumption of medium chain triglycerides in cosmetics products like creams, lotions, gels, ointments, foams, and fragrances and flavorings is expected to further propel the medium chain triglyceride market from countries such as China, India, and South Korea. According to the Ministry of Food and Drug Safety, the market of the cosmetics industry in South Korea in the year 2019 was around South Korean won 10.11 trillion and the production value was amounted to around South Korean won 16.26 trillion. This is anticipated to provide lucrative opportunities for the growth of the medium chain triglycerides market.
• Some of the major companies operating in Asia-Pacific region are – BASF SE, Stepan Company, and DuPont.
• The aforementioned factors, coupled with government support, are contributing to the increasing demand for medium chain triglycerides during the forecast period.

Competitive Landscape

The Medium Chain Triglyceride (MCT) market is fragmented with top players accounting for a marginal share of the market. Some of the key companies in the market include BASF SE, Stepan Company, DuPont, Croda International Plc, and Wilmar International Ltd, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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