1. Trans Fats Drive Technology and Market Trends
for Edible Oils and Fats
W.F. Kee
Research Analyst
Technical Insights
June 12, 2008

2. Focus Points
• Technology Overview
• Issue of Trans Fatty Acids
• Industry Trends
• R&D Initiatives at Corporations and Research Institutions
• Overview of Frost & Sullivan’s Existing Research
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3. Types of Edible Oils and Fats
Major Vegetable Oils Major Animal Fats
• Canola / Rapeseed • Butter
• Coconut • Ghee
• Corn • Lard
• Cottonseed • Tallow
• Groundnut / Peanut
• Olive
• Palm
• Sesame seed
• Soybean
• Sunflower
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4. Fatty Acid Composition (% wt.)
Saturated Monounsaturated Polyunsaturated
γ - Linolenic
Type of Oil Lauric Myristic Palmitic Stearic Oleic Linoleic
(GLA)
C12:0 C14:0 C16:0 C18:0 C18:1(n-
C18:1(n-9) C18:2(n-
C18:2(n-6) C18:3(n-
C18:3(n-3)
Canola oil 4.0 2.0 56.0 26.0 10.0
Coconut oil 44.6 16.8 8.2 2.8 5.8 1.8
Corn oil 0.1 0.1 12.5 2.0 31.1 52.5 1.2
Cottonseed oil 0.1 0.8 23.9 2.7 18.2 52.4 0.2
Olive oil 0.0 13.7 2.7 69.5 11.7
Palm oil 0.2 1.2 43.8 4.7 45.5 9.2 0.2
Palm kernel oil 50.0 16.0 8.2 2.1 15.5 2.2
Palm olein 0.3 1.1 40.5 4.2 41.8 11.9 0.3
Palm stearin 0.2 1.4 61.1 4.7 25.8 6.5 0.3
Sesame seed oil 0.0 9.0 5.4 39.1 44.7 0.3
Soybean oil 0.0 0.1 10.6 3.9 21.9 53.4 7.5
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5. Processing of Edible Oils and Fats
Extraction
Degumming
Refining / Neutralization
Bleaching
Deodorization
Fractionation
Hydrogenation / Partial Hydrogenation
Interestification
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6. Food Applications for Oils and Fats
Cooking &
Salad Oils
Shortening Cocoa Butter
(Baking & Equivalents /
Frying Fats) Replacements
Food
Applications
Margarine & Butterfat
Spreads Alternatives
Food
Dressings
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7. Sources of Trans Fats
Cakes (24%)
Shortening
(4%)
Margarine (17%)
Hydrogenated /
Partially
Hydrogenated
Food
Chips and Snacks Cookies (10%)
(5%)
Fried Foods (8%)
Note: Beginning Jan 1, 2006 - Labeling of Trans Fats in Foods is Mandatory in the U.S.
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8. Reduction of Trans Fats
Modification
of Incorporation
Hydrogenation of
Process Tropical Oils
Reduction of
Reduction of
Trans Fats
Trans Fats
Genetically
Modified
Oilseeds
Interestification
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9. Industry Trends
2012
1. Heart & brain healthy
2. Diet therapy
2010
3. Environment- friendly
1. Heart healthy
2008
2. Brain healthy
1. Low trans fats
2. Low saturated fats
3. High unsaturated fats
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10. Roadmap for Non-Food Applications
2008 2010 2014 2017 2022
Skincare and Organic
personal care Lubricants and electronics
products fuel additives derived from
vegetable oils
Rigid plastics for
Paints and the automotive
coatings and building
industries
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11. R&D Initiatives by Industry Participants
• Monsanto, U.S.: Soybeans with mid-oleic and
low-linolenic acid
• Bio-Extraction Inc. (BioExx), Canada: High protein oil extraction
• Bunge, U.S.: Reduction of trans fats using proprietary process
• Cognis, Germany: Recovery of sterols from degummed oil residues
• Desmet Ballestra, Belgium: Improved crystallizer design
• Kao Corp, Japan: New composition of diglyceride-containing cooking oil
• Unilever, the Netherlands: Statin-enriched soybean oil
• Proteus Industries, U.S.: Protein barrier to reduce oil and fat content
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12. R&D Initiatives by Industry Participants
• Eindhoven University of Technology, the Netherlands: Gas assisted
mechanical expression (GAME)
• European Membrane Institute, France: Enzymatic membrane separation
• Malaysian Palm Oil Board (MPOB), Malaysia: High-oleic palm olein and
palm stearin
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13. Research Highlights
• Trans fats is the biggest issue affecting the edible oil industry
today
• Hydrogenation or partial hydrogenation identified as main culprit
• Physical alternatives to hydrogenation
• Blending with tropical oils
• Interestification of a mixture of triglycerides
• Biological alternative
• Genetically modified oilseeds – confined to non-EU regions
• High growth expected for non-food applications
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14. Related Research
• Innovations in Food Contact Materials
• Advances in Food Biotechnology
• Dairy Food Processing
• Global Developments in Animal Feeds and Feed Additives
• Advances in Medical and Specialty Nutrition
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15. Your Feedback is Important to Us
What would you like to see from Frost & Sullivan?
Growth Forecasts?
Competitive Structure?
Emerging Trends?
Strategic Recommendations?
Other?
Please inform us by taking our survey.
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16. For Additional Information
Steve Lee
Strategic Account Manager
Chemicals, Materials and Food, Asia Pacific
(65) 6890 0914
steve.lee@frost.com
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