Tallow Oil Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Biodiesel, Cleaning, Animal Feed, Leather, Cosmetics & Personal Care, Others), By Region and Competition, 2020-2030F

Market Overview

Global Tallow Oil Market was valued at USD 5918.98 Million in 2024 and is expected to reach USD 8091.55 Million by 2030 with a CAGR of 2.83%. Tallow oil, derived primarily from rendered animal fat mainly beef or mutton is valued for its versatility, cost-effectiveness, and relatively stable supply chain, especially in comparison to plant-based oils. The resurgence of interest in traditional, animal-derived ingredients in the cosmetics and personal care sector is also influencing the market. Consumers seeking natural and biodegradable alternatives to synthetic compounds are contributing to the increased adoption of tallow oil in skincare formulations and artisanal soap production.

Despite its advantages, the tallow oil market faces several challenges. Ethical and religious concerns surrounding the use of animal-derived ingredients pose a barrier in certain regions, particularly in countries with large vegetarian populations or specific dietary restrictions. Moreover, fluctuations in livestock production and raw material availability can impact pricing and supply consistency.

Key Market Drivers

Growth in Animal Feed Industry

The global tallow oil market is witnessing notable expansion, significantly driven by the rising demand within the animal feed industry. The global production of compound feed currently exceeds one billion tonnes per year. The commercial feed manufacturing industry generates an estimated annual revenue of over USD 400 billion. According to projections by the United Nations Food and Agriculture Organization (FAO), global food demand is expected to increase by 60% by 2050. In the same period, the production of animal proteins is anticipated to grow at an average annual rate of approximately 1.7%, with meat output projected to expand by nearly 70%, aquaculture by 90%, and dairy production by 55%. Tallow oil, a rendered form of animal fat primarily derived from beef or mutton, has gained traction as a valuable ingredient in livestock nutrition due to its high calorific value, digestibility, and role in enhancing feed palatability. This trend is particularly pronounced in emerging economies, where the rising consumption of meat and dairy products is accelerating the need for cost-effective, energy-dense feed formulations.

As livestock producers increasingly seek to optimize feed efficiency and animal performance, the inclusion of fats and oils like tallow has become essential. Beef tallow and pork lard generally contain approximately 40% saturated fats, primarily comprising myristic, palmitic, and stearic acids. In contrast, chicken fat has a lower saturated fat content, typically ranging between 30% and 33%. For comparison, soybean oil contains about 14% saturated fats, while canola oil is significantly lower at around 6%. As a result, tallow and lard are typically solid at room temperature, whereas chicken fat, although generally remaining in liquid form, is highly viscous and approaches a semi-solid state. Tallow oil provides concentrated energy, which is crucial for promoting weight gain in meat animals and enhancing milk yield in dairy cattle. Its affordability compared to vegetable oils makes it an attractive alternative, especially in regions where agricultural margins are under pressure. Consequently, tallow oil is being adopted in commercial feed blends for poultry, swine, and ruminants on a growing scale.

Growth in Cosmetic Industry

The continued expansion of the global cosmetic industry has emerged as a significant catalyst for the growth of the tallow oil market. As beauty and personal care products increasingly emphasize natural and sustainable ingredients, tallow oil rendered from animal fat has found renewed relevance due to its emollient properties, skin compatibility, and biodegradable nature.

Tallow oil is widely used in the formulation of moisturizers, soaps, balms, and anti-aging creams, thanks to its rich composition of fatty acids that closely resemble human skin sebum. The use of beef tallow as a moisturizer has emerged as a viral trend on social media, gaining momentum within the skincare sector due to its perceived skin-nourishing properties and natural composition. Sourced from animal fat, beef tallow contains a blend of mono- and polyunsaturated fats along with a high concentration of saturated fatty acids. These elements enhance the ingredient’s formulation stability, rich consistency, and alignment with the skin’s natural lipid structure. This characteristic makes it highly effective in restoring skin hydration and improving barrier function. With consumer demand shifting toward high-performance, nature-derived cosmetic products, manufacturers are incorporating tallow oil as a key ingredient to meet clean-label preferences and reduce reliance on synthetic alternatives.

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Key Market Challenges

Sustainability and Ethical Concerns

Sustainability and ethical concerns represent a significant challenge for the global tallow oil market, particularly as environmental awareness and consumer scrutiny continue to shape purchasing decisions and regulatory landscapes. While tallow oil is often promoted as a by-product of the meat industry contributing to waste reduction and circular economy practices its origin from animal fat raises complex issues related to ethics, animal welfare, and sustainability.

From an ethical standpoint, the use of animal-derived ingredients has come under increasing criticism, especially among vegan, vegetarian, and environmentally conscious consumer segments. This sentiment is particularly strong in regions such as Europe and parts of Asia, where lifestyle trends and cultural or religious beliefs discourage the use of products sourced from animals. As a result, manufacturers in industries such as cosmetics, personal care, and food processing face mounting pressure to shift toward plant-based or synthetic alternatives, which are perceived to be more humane and ethically acceptable.

Key Market Trends

Rising Demand of Tallow Oil in the Leather Industry  

The increasing utilization of tallow oil in the leather industry has emerged as a notable trend influencing the dynamics of the global tallow oil market. In September 2024, Solidaridad East and Central Africa inaugurated a pilot tannery waste treatment facility at the Colba Tannery Factory in Mojo, Ethiopia, aiming to enhance the sustainable management of tannery by-products such as tallow oil. As a traditional and reliable softening and conditioning agent, tallow oil continues to play a critical role in leather processing, particularly in the finishing and fatliquoring stages. Its unique composition of triglycerides and fatty acids provides excellent lubrication and flexibility to leather fibers, enhancing the durability, texture, and aesthetic appeal of the final product.

With the resurgence of demand for high-quality leather goods spanning footwear, apparel, automotive interiors, and luxury accessories tanneries are witnessing renewed activity, especially in developing economies with strong manufacturing bases. This resurgence is translating into heightened demand for tallow oil, which remains a preferred choice due to its cost-efficiency, performance consistency, and ease of integration into traditional tanning processes.

Segmental Insights

Sales Channel Insights

Based on Sales Channel, Direct have emerged as the fastest growing segment in the Global Tallow Oil Market in 2024. Direct transactions eliminate intermediaries, reducing costs and lead times, which is particularly valuable for industries relying on consistent and high-quality tallow oil supplies, such as cosmetics, pharmaceuticals, and soaps. Furthermore, the rise of digital platforms and e-commerce has empowered producers to connect directly with clients across diverse geographic regions.

End Use Insights

Based on End Use, Cleaning have emerged as the fastest growing segment in the Global Tallow Oil Market during the forecast period. Tallow oil possesses excellent surfactant and emulsifying properties, making it highly effective in the formulation of cleaning products such as soaps, detergents, and industrial cleaners. Its ability to break down grease and oils efficiently positions it as a preferred raw material in cleaning formulations. The rising demand for biodegradable and environmentally friendly cleaning agents has significantly boosted the use of tallow oil. Unlike synthetic alternatives derived from petrochemicals, tallow oil is a natural, renewable resource, which appeals to both manufacturers and environmentally conscious consumers seeking sustainable product options.

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Regional Insights

Based on Region, North America have emerged as the dominating region in the Global Tallow Oil Market in 2024. The region benefits from a well-established and large-scale meat processing industry, which provides a consistent and substantial supply of tallow as a byproduct. This supply stability underpins the region's ability to meet growing demand across multiple sectors. There is an increasing consumer preference for natural and sustainable ingredients within the personal care and cosmetics industries in North America. This trend has expanded the use of tallow oil in skincare and cosmetic formulations, further reinforcing the market’s growth.

Recent Development

• In March 2025, Savor launched a pioneering ‘butter’ product created without the use of cows, plants, or microbes, offering a novel alternative to traditional fats such as tallow oil. The company noted that the official labeling for this butter alternative is still under review. It has achieved self-GRAS (generally recognized as safe) status in the United States and is targeted at applications in baking, confectionery, and dairy sectors, where tallow oil has traditionally been used. A cocoa butter equivalent is expected to be introduced shortly. The 25,000-square-foot pilot production facility located in Batavia, Illinois, currently has the capacity to produce metric tons of fat.
• In May 2025, Bowen announced a USD 250 million initiative to support green fuels derived from canola, sugarcane, tallow, and cooking oils. This strategic investment in eco-friendly fuels responds to the rising global demand for sustainable aviation fuel. According to Energy Minister Chris Bowen, the USD 250 million will be allocated as grants managed by the Australian Renewable Energy Agency to accelerate Australia’s production of low-carbon fuels. These fuels, including sustainable aviation fuel, are produced from agricultural feedstocks such as sugarcane, tallow, canola, and cooking oils, and have demonstrated the potential to reduce aircraft emissions by up to 80% compared to conventional jet fuel.
• In April 2025, the American Fuel & Petrochemical Manufacturers (AFPM), which includes stakeholders involved in tallow oil refining and processing, launched a targeted campaign aimed at legislators in six key states. Representing major oil and gas companies such as Chevron and ExxonMobil, alongside producers of renewable feedstocks like tallow oil, AFPM disclosed an eight-figure advertising investment focused on local markets in Michigan, Minnesota, New Mexico, North Carolina, Texas, and Washington. The campaign comprises television commercials, digital media, and print advertisements, strategically directed at select lawmakers including Democrats the industry hopes to persuade to oppose California’s stringent vehicle emissions standards, which could impact the use of tallow oil-based biofuels in transportation fuels.
• In January 2025, Berge Bulk and BHP collaborated to execute a groundbreaking iron ore shipment from Australia to China, powered exclusively by B100 biodiesel. The Berge Lyngor, a 206,330 DWT Newcastlemax bulk carrier, is transporting iron ore on this voyage. B100 biodiesel, derived from vegetable oil, animal fat, tallow, and/or waste cooking oil sourced from restaurants and industrial kitchens, achieves an approximate 84% reduction in well-to-wake greenhouse gas (GHG) emissions compared to an equivalent volume of conventional fossil fuel oil. Berge Bulk has committed to developing and operating a vessel with zero Scope 1 emissions by 2030 and aims to achieve a zero Scope 1 emissions fleet across its operations by 2050.

Key Market Players

• Tyson Foods, Inc.
• Frigol S.A
• Minerva Foods SA
• Tres Lomas
• Darling Ingredients
• KARAN BEEF (Pty) Ltd
• Al Hamd frozen foods Pvt. Limited
• Madina frozen foods export Pvt. Ltd
• West Coast Reduction Ltd.
• Petrobras Biocombustível

Report Scope

In this report, the Global Tallow Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Tallow Oil Market, By Sales Channel:

o   Direct

o   Indirect

• Tallow Oil Market, By End Use:

o   Biodiesel

o   Cleaning

o   Animal Feed

o   Leather

o   Cosmetics & Personal Care

o   Others

• Tallow Oil Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Tallow Oil Market.

Available Customizations:

Global Tallow Oil Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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