Fat and oil experts are responding to trends for healthier products with minimal processing and fewer chemicals as consumers don’t want to see labels packed with additives to extend shelf life. Consumers are closely monitoring the type and amount of fat and oil in their packaged products, and, as food becomes increasingly personalized, they are basing their purchasing decisions on specific ingredients. Moreover, the amount of fat and type of oil are important factors when determining which packaged foods to purchase.

From salad dressings to cakes, breads to chips and cereal bars, consumers demand a clean label but will not compromise on taste.

Artisanal claims 
Interestingly, artisanal-style claims are coming to the fore in fats and oils. This is partly connected to the rise of the storytelling trend – highlighted as Innova Market Insights’ Top Trend for 2020 – wher brands use an authentic narrative to “win with words.” However, it also gives companies a chance to reference those low impact processing methods consumers are looking for. 

“Our Specialty Oil product group has seen a significant increase in demand for extra virgin oils vs fully refined oils. These are oils that are produced in an artisanal way of cold-pressing, with a simple filtration step before packing,” Mark Bolier, business unit manager for oils & fats at Tradin Organic, tells FoodIngredientsFirst. 

“Oils such as hemp, flax, pumpkin and our Sunvado Avocado oil, have an excellent natural taste profile that is protected in this way. Both the cosmetic ingredient industry as well as oil bottlers are more and more interested in these unprocessed, natural oils,” he says. 

In terms of storytelling within its oils and fats business, Tradin Organic is “very excited”  about the opportunities of Sunvado, the company’s organic avocado oil factory in Ethiopia. 

“The extra virgin oil we produce there is of excellent quality with a lot of market potential,” Bolier continues. 

“In addition, we are proud of the positive social impact the project is having on the local population and the many avocado farmers involved. Besides avocado oil, innovation wise we are working on projects in the area of organic plant-based sources of Omega 3 (as an alternative to rather than fish oil) and certified organic essential oils and aromas,” he explains.

Another great example of combining good storytelling with producing a sustainable product comes from Bunge Loders Croklaan (BLC) which recently unveiled its first shea processing plant in Tema, Ghana, pegged as the largest of its kind in Africa.

The new facility is a fully automated solvent fractionation plant that processes raw shea butter made from locally collected and crushed shea nuts. Alongside this, the company is actively developing partnerships with local crushers, which in turn, increases the holistic gains for local women’s cooperative groups.

In food, shea – which is dubbed locally as coming from the “tree of life” – is primarily used for the confectionery and bakery industry with its most common use as an ingredient in cocoa butter equivalents (CBEs) used in chocolate products. It also performs well in bakery products such as puff pastry and cakes as well as other applications such as ice cream. 

“Shea is a vegetable oil that has a very similar fat composition to that of cocoa butter. It is very well suited for blending with other vegetable fats and oils like palm and cocoa butter and it has many functional properties that can be used in different food applications,” Dr. Hans Omvlee, Supply Chain & Trading Director at BLC, tells FoodIngredientsFirst.

“We currently employ 73 employees in our Ghana facility. An additional 14 employees are based in Burkina Faso. The majority of employees, including management, at our Ghana facility are experienced and skilled Ghanaians,” Dr. Omvlee remarks.

The opening of the new facility coincides with the launch of the specialty oils and fats supplier’s “wher Life Grows” campaign, which operates with the aim of a resilient and sustainable shea supply chain across Africa.

Its key objective is to empower shea-collecting women, create socio-economic value in their communities and conserve and regenerate the shea landscape in the region. 

Sixteen million women in Africa living in rural communities and their families depend on the shea industry to financially support their households and contribute to their communities.

According to Innova Market Insights data, the use of fats and oils in F&B launches has declined globally, showing a 1 percent year-over-year decrease when comparing 2019 and 2018 launches. 

In 2019, the top categories of global product launches tracked with fats and oils were Bakery (24 percent), Snacks (14 percent) and Confectionery (10 percent) with vegetable oil being the top ingredients among the fats and oils tracked. 

The top positionings of global product launches tracked with fats and oils in 2019 were No Additives/Preservatives (17 percent), Gluten-Free (13 percent) and Vegetarian (11 percent). 

Fats and oils are elements of nutrition
Echoing the sentiment that consumers want to know wher their food comes from and how it contributes to overall health and well-being, is Michelle Pietz, Technical Sales, Refined Oils at ADM Oilseeds.

“Fats and oils are important elements of proper nutrition, and consumers increasingly recognize the role of these ingredients in a balanced diet. The various fat and oil ingredients available today allow for product differentiation and make it possible to develop products with a great taste and texture while simultaneously targeting appealing label claims around nutrition content, clean label, non-GMO and sourcing,” she tells FoodIngredientsFirst.

The rising interest in vegetarian, vegan and flexitarian lifestyles as well as growing demand for sustainably produced F&B products, also has an impact on oil and fat selecion. 

It’s important to get this selection right in plant-based products such as meat alternatives, stresses Pietz, since these ingredients affect flavor and texture characteristics. 

Clean label: Single source and straightforward labeling 
Virtually all categories of F&B are affected by the growing need for clean labels as consumers have come to expect products to line up to modern health and wellness values. 

In addition to ADM’s expansive portfolio of edible oils, its solutions are supported by expert formulators who know how to optimize even the most challenging of formulations to deliver a finished product with a clean label and pleasant flavors and textures to create an exciting eating experience for the consumer, notes Pietz.

“Our oil portfolio includes corn oil, cottonseed oil, various forms of sunflower oil, peanut oil, canola oil, soybean oil, including high oleic soybean oil, flaxseed oil, palm oil, coconut oil and more. We offer a range of modification options including blending and interesterification for added value and functionality. ADM is always evolving and enhancing our global fats and oils portfolio, we have expanded our non-GMO and expeller-pressed oils to provide our customers the options they need to meet the needs of their consumers,” she explains. 

ADM also offers canola and soybean oil which are widely used and familiar to consumers. “Both soybean and canola oil have excellent value propositions and are derived from a singular source which allows for straightforward labeling,” Pietz notes. 

“ADM also offers specialty oils like sunflower, coconut and corn oil which generally resonate positively with consumers who often perceive them as close to nature.”

Meanwhile, a recent global “FATitudes study” from Cargill has revealed that 68 percent of consumers worldwide are closely monitoring the type and amount of fat and oil in their packaged food. 

This year, approximately 6,600 primary household grocery shoppers were surveyed in 12 countries including the US, Germany, China, Brazil and the UK.

The study revealed that nearly two-thirds (61 percent) of US consumers avoid certain fats or oils, and among those who rank as “clean label seekers,” 83 percent report avoiding certain fats or oils, like saturated and trans fats.

Overcoming technical challenges
Back at ADM, Pietz talks about how to overcome some technical challenges in the fats and oil space. Some of these challenges often arise when developing functional solid fat solutions, especially when limitations exist with “free-from” initiatives. 

“With technical experts and oil research centers on two different continents, we draw on knowledge and experience from a wide variety of technical challenges,” she says. 

“Functionality like solid fat content, melt points and crystal form change as you move between fat sources. Each source has its own special characteristics, and mimicking consistent functionality for processing needs or eating qualities is a complex process. ADM has worked on a global scale to gain the combined technical ingenuity and lipid modification knowledge required for these situations,” she notes.

What’s coming next in fats and oils?
ADM says it will continue to evaluate oil sources that provide positive nutrition attributes and offer oils like omega 3. “We are also focused on advancements that bring oxidative stability to oils. Additionally, we invest in production capabilities to deliver the best quality oil in the most efficient ways while remaining mindful of our resources,” says Pietz.

“We anticipate that the oils and fats market will become more specialized as consumers continue looking for sustainable, clean label products featuring domestically-sourced ingredients.”

Tradin Organic also forecasts growth in oils and fats to come from the food ingredients sector and stresses that its product assortment is well catered to focus on those growth markets.