MEDIUM CHAIN TRIGLYCERIDES MARKET ANALYSIS

The Global Medium Chain Triglycerides Market was valued at US$ 876.1 Mn in 2023 and is forecast to reach a value of US$ 1,286.2 Mn by 2030 at a CAGR of 5.6% between 2023 and 2030.

The global medium chain triglycerides market is experiencing strong growth due to favorable growth in sports activities across the globe, rising strategic marketing activities by leading manufacturers to build a larger consumer base, and the increasing demand for functional food supplements. Moreover, increasing fitness awareness among people fuelled by government healthcare campaigns is expected to propel the growth of the medium-chain triglycerides market over the forecast period. Also, stringent government regulations regarding the quality of dietary supplements, ensures protection against adulteration and identification of banned ingredients. The NSF GMP certification process indicates that a manufacturer has gone through a stringent manufacturing audit process to meet the guidelines set by National Science Foundation. This is expected to regulate the quality of products in the market and may act as a restraining factor for the growth of manufacturers.

Global Medium Chain Triglycerides Market Drivers:

Rising Consumer Interest in Ketogenic and Paleo Diets that Emphasize Coconut Oil and MCTs

• In recent years, there has been growing interest among health-conscious consumers in following low-carb, high-fat diets like the ketogenic and paleo diets. These diets often encourage the use of Medium Chain Triglyceride (MCT) oils and coconut oil as healthier fat sources over other oils and fats. Coconut oil contains high amounts of MCTs. As more people adopt these diets and lifestyles that highlight MCT oils as an approved and beneficial fat source, the demand for MCT oil products could rise. For instance, the paleo diet which focuses on eating foods that were consumed during the Paleolithic era eliminates processed foods and emphasizes natural fats like coconut oil and avocados. The ketogenic diet is a very low-carb, high-fat diet that puts the body into ketosis, helping enhance fat burning. On this diet, around 75% of calorie intake comes from fats like MCT oil.
• According to a survey conducted by the International Food Information Council, 52% of Americans said they started following a ketogenic diet in 2022. As these diets advocating coconut oil and MCT oil use continue gaining followers, the demand for MCT oils could rise among dieters seeking approved fat sources. This growing consumer base adopting high-fat, low-carb diets could drive the expansion of the global medium chain triglycerides market.

Increasing Use of MCTs In Various Food, Beverage, and Supplement Products

• MCT oils are being increasingly incorporated as an ingredient in a range of prepared foods, beverages, and supplements to meet the consumer demand for products high in beneficial fats. Food and beverage manufacturers have introduced items like MCT oil coffee creamers, energy bars with MCTs, MCT oil salad dressings and mayonnaise, and protein powders blending MCTs with whey or collagen protein. The dairy industry is using MCT oil to produce MCT milk that offers the benefits of elevated ketones and energy. Supplement brands have expanded the offerings of MCT oil powders and pills for cognitive enhancement, appetite control, endurance, and other benefits.
• Several factors are driving increased use of MCT oil as a food and supplement additive. MCTs are more easily absorbed by the body than other fats and provide an efficient energy source. Adding MCTs allows companies to boost the fat content and creaminess of products, while maintaining a neutral flavor profile. MCTs are also prized for their versatility - they can be mixed into both savory and sweet foods without altering taste. Additionally, MCTs may extend the product shelf life due to their resistance to oxidation from heat or light exposure.

Global Medium Chain Triglycerides Market Opportunities:

• Rising Demand for Natural Cosmetic Products: The preference for natural products over artificial chemicals has increased in the beauty and personal care industry. Factors such as the increasing millennial population, specifically in the Asia Pacific region, and use of the Internet, growing per capita income, a rising awareness regarding sustainable and environment-friendly products have together driven the medium chain triglycerides market growth for organic cosmetics and personal care products. This has resulted in an increase in the demand for specialty ingredients, such as palm oil and coconut oil, for use in the beauty and personal care industries in recent years. Citing the significant growth of the organic beauty and personal care markets, some of the key manufacturers are now investing in and developing innovative cosmetic products that serve the requirements of target customers.
• Rising Adoption of MCTs as a Substitute for Coconut Oil- and Palm Oil-Based Fats: The rising adoption of MCTs as a substitute for coconut oil- and palm oil-based fats is a key factor driving growth in the global medium chain triglycerides market. MCTs are increasingly being used in food, beverage, dietary supplement, and personal care applications as a healthier and more sustainable alternative to coconut and palm oils. This is part of a broader consumer trend towards plant-based, sustainable ingredients. According to data from the United Nations Food and Agriculture Organization, the global palm oil production peaked around 2019-2020 at over 77 MN metric tons. However, sustainability concerns around palm oil cultivation methods have led to consumer backlash and companies looking for substitutes like MCTs in recent years.

Global Medium Chain Triglycerides Market Trends:

• MCTs are popular among athletes and fitness enthusiasts as they provide a quick source of energy and can help improve athletic performance. This trend is driving the demand for MCTs in the sports nutrition industry.
• Furthermore, MCTs are used in a variety of cosmetic products, such as lotions, creams, and hair care products, due to their moisturizing and emollient properties. The growing demand for natural and organic personal care products is driving the demand for MCTs in the cosmetic industry.

Global Medium Chain Triglycerides Market Restraints:

Fluctuating Prices of Raw Materials

The prices of raw materials used to produce MCTs, such as coconut oil and palm kernel oil, can be volatile and subject to fluctuations. This can impact the profitability of MCT manufacturers and make it difficult to maintain consistent pricing for customers.

COVID-19 Impact on the Global Medium Chain Triglycerides Market 

The global COVID-19 pandemic in 2020 had a negative impact on the food and beverage industry. MCTs are used in the pharmaceutical industry as excipients and in the formulation of drugs. The increased demand for pharmaceutical products during the pandemic could potentially boost the market. Customers should also be prepared to spend extra for high-quality food even if the price of a variety of medium-chain triglycerides, such as substances generated from plants and natural goods, is greater than the price of typical foods. The economic uncertainty caused by the pandemic could affect consumer spending and potentially lead to a decrease in demand for non-essential products, including certain products that contain MCTs. In conclusion, while the COVID-19 pandemic has presented challenges for the MCT market, it has also created opportunities for growth, particularly in the health and wellness sector.

Analyst Viewpoint

• The global medium chain triglycerides market is expected to witness steady growth over the forecast period driven by the expanding food and beverage industry. MCTs are widely used in various food applications such as dairy products, bakery, soups and sauces due to their benefits of being absorbed and metabolized easily. Rising demand for low calorie and healthy foods will also spur the adoption of MCTs.
• However, price fluctuations of coconut and palm kernel oil which are the key feedstocks may act as a restraint. Environmental concerns related to palm oil production is another factor that could hamper the market expansion.
• The North America region dominates the global MCT market and is expected to maintain its lead driven by India and China which account for significant consumption. These countries offer immense growth opportunities attributed to rising health awareness, growing middle class and changing dietary patterns. North America is also anticipated to offer lucrative prospects owing to increasing usage of MCTs in nutritional and dietary supplements.
• Suppliers need to focus on developing innovative formulations to enhance MCT properties and expand application scope. They must also emphasize on sustainable sourcing of raw materials and adopt eco-friendly production techniques. Collaborating with end-use industries will help gain insights on evolving needs. Overall, with steady growth projected in key end-use industries and rising

Global Medium Chain Triglycerides Market: Regional Insights

• Based on region, the global medium chain triglycerides market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.
• North America and Asia Pacific held a major share in the global medium chain triglycerides market, in terms of revenue in 2022. Asia Pacific is expected to replace North America as the dominant region in the market by 2030. The growing demand for dietary supplements in Asia Pacific, due to rising consumer awareness coupled with growing retail sector, is expected to the drive growth of the medium chain triglycerides market in the region over the forecast period.

Figure 1. Global Medium Chain Triglycerides Market, By Region

Global Medium Chain Triglycerides Market Segmentation:

The global medium chain triglycerides market report is segmented into fatty acid type, application, and region.

• Based on fatty acid type, the market is segmented into caproic acid, caprylic acid, capric acid, and lauric acid. Out of which, caprylic acid is expected to dominate the global medium chain triglycerides market over the forecast period. A study published in the Journal of Nutrition in May 2022 found that caprylic acid may help regulate appetite hormones like ghrelin and leptin. Another study from the European Journal of Clinical Nutrition in August 2021 found caprylic acid may support weight management when included in the diet.
• Based on application, the market is segmented into dietary supplements, pharmaceuticals, food and beverages, and beauty and personal care products.

Figure 2: Global Medium Chain Triglycerides, By Fatty Acid Type:  

Global Medium Chain Triglycerides Market: Key Companies Insights

The global medium chain triglycerides market is highly competitive. Major players operating in the global medium-chain triglycerides market include BASF SE, Wilmar International Limited, Lonza, Koninklijke DSM N.V., Stepan Company, Nutricia, Jarrow Formulas, E. I. du Pont de Nemours and Company, KLK Oleo, and The Procter & Gamble Company.

Global Medium Chain Triglycerides Market: Key Developments

In October 2020, BASF one of a global leading chemicals company has announced the expansion of its production capacity for PuriStar CLA and Tonalin CLA to meet the growing global demand for MCTs. This capacity expansion in Ludwigshafen, Germany enabled BASF to strengthen its position as a leading provider of essential omega-6 fatty acids.

Definition: Medium Chain Triglycerides (MCTs) are a type of saturated fatty acids that are commonly used in the food and beverages industry, as well as in the healthcare and personal care sectors. MCTs are composed of medium chain fatty acids, which are fatty acids with a chain length of 6 to 12 carbon atoms. MCTs are typically derived from natural sources, such as coconut oil and palm kernel oil, and are known for their unique properties including their ability to get easily digested and metabolized by the body.