Updated Oct 24, 2022 08:33

Animal Fats Market in Canada

Market Overview
In , the Canadian animal fats market decreased by -% to $ for the first time since 2016, thus ending a four-year rising trend. In general, consumption, however, showed a measured increase. As a result, consumption reached the peak level of $, and then fell markedly in the following year.

In value terms, animal fats production fell significantly to $ in estimated in export price. Overall, production, however, recorded resilient growth. The most prominent rate of growth was recorded in 2011 with an increase of % against the previous year. Animal fats production peaked at $ in , and then fell notably in the following year.


Consumption
In , animal fats consumption in Canada rose modestly to tons, increasing by % on the previous year's figure. Overall, consumption enjoyed tangible growth. As a result, consumption attained the peak volume of tons. From to , the growth of the consumption remained at a lower figure.

The revenue of the animal fats market in Canada reached $ in , remaining stable against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption recorded a noticeable increase. As a result, consumption reached the peak level of $. From to , the growth of the market remained at a lower figure.


Market Forecast
Driven by increasing demand for animal fats in Canada, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Affected by an intensive growth in domestic production, which will gradually displace imported products from the market, the share of imports decreased from % in 2007 to % in . Canada domestic supply is expected to continue its growth. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Canada remains a net exporter of animal fats; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.