Australia Animal Fat Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

Key Market Trends and Insights:

• The Australian Capital Territory dominated the Australia animal fat market in 2024 and is projected to grow at a CAGR of 3.2% over the forecast period.
• By product, the lard segment is projected to witness a CAGR of 3.4% over the forecast period.
• By application, biodiesel is expected to register 4.2% CAGR over the forecast period due to government support for clean energy.

Market Size & Forecast:

• Market Size in 2024: 515.52 KMT
• Projected Market Size in 2034: 686.12 KMT
• CAGR from 2025-2034: 2.90%
• Fastest-Growing Regional Market: Australian Capital Territory

The Australia animal fat industry is increasingly export-driven, with growing demand from the United States, China, and Southeast Asia. As per the COMTRADE database, Australia exported animal, vegetable fats and oils, cleavage products worth USD 275.71 million to United States in 2024. Export volumes and values continue to rise, fueled by international biofuel mandates and industrial applications. This incentivizes Australian producers to maintain compliance with foreign regulations, further professionalizing the sector and ensuring resilience against domestic market fluctuations.

Consumers in Australia increasingly seek products with simple, recognizable ingredients, boosting demand for natural animal fats in foods and skincare. Tallow is perceived as a clean-label ingredient due to its minimal processing and traditional use. This trend benefits animal fat producers as brands emphasize transparency and natural sourcing. Additionally, animal fats are favored in niche markets like artisanal cooking and natural cosmetics, where synthetic or highly processed fats are less appealing, supporting premium pricing and product differentiation in the Australia animal fat market.

Australia Animal Fat Market Report Summary

Description

Value

Base Year

2024

Historical Period

2018-2024

Forecast Period

2025-2034

Market Size 2024

515.52

Market Size 2034

686.12

CAGR 2018-2024

Percentage

XX%

CAGR 2025-2034

Percentage

2.90%

CAGR 2025-2034 - Market by Region

Australian Capital Territory

3.2%

CAGR 2025-2034 - Market by Region

Western Australia

3.1%

CAGR 2025-2034 - Market by Product

Lard

3.4%

CAGR 2025-2034 - Market by Application

Biodiesel

4.2%

2024 Market Share by Region

Victoria

24.3%

Recent Developments

September 2025

Craig Mostyn Group launched a new poultry tallow rendering line at its Talloman plant in Perth, Western Australia. This AUD 20 million upgrade will process an additional 50,000 tons annually, converting chicken by-products into valuable poultry tallow for use in stock feed, aqua feed, pet food, and biofuel industries.

August 2025

Canberra-based food-tech company Nourish Ingredients received the United States regulatory approval for its flagship product, Tastilux fat, which enhances flavor and mouthfeel in alternative proteins. This milestone enables the company to begin immediate commercial sales to American food manufacturers.

July 2023

Nourish Ingredients, an Australian startup using precision fermentation to create animal-like fats for meat alternatives, secured AUD 5.8 million in government funding. The support aims to boost innovation, talent development, and commercial readiness as the company prepares for its product launch scheduled for late 2024.

April 2022

Oceania Biofuels constructed a groundbreaking renewable fuels facility in Queensland to convert animal fat, used cooking oil, and canola into sustainable aviation and diesel fuels. This innovative project, which started construction in 2023, aims to reduce carbon emissions and promote circular economy practices.

Key Trends and Drivers

Growing Demand for Biofuels

The increasing global focus on reducing carbon emissions has significantly boosted demand for biofuels in Australia. In March 2024, Jet Zero Australia secured AUD 29 million from Idemitsu, Qantas, and Airbus to build a renewable fuels refinery in Queensland. Animal fats, especially tallow, are a critical feedstock for biodiesel and sustainable aviation fuel production. The biofuel industry not only supports tallow demand but also encourages innovations in refining fats into cleaner fuels, enhancing the economic and environmental sustainability of the animal fat sector.

Diversification in Industrial Applications

Animal fats are no longer limited to food uses in Australia as their application spans cosmetics, soaps, lubricants, and oleochemicals. This industrial diversification reduces reliance on volatile food markets and taps into growing sectors like personal care and green chemicals. The ability to convert tallow and other fats into biodegradable products aligns with consumer demand for sustainable alternatives. Australia’s rendering industry has evolved technologically to meet these new specifications, increasing product quality and enabling exports to specialized global markets.

Emphasis on Circular Economy and Sustainability

In the Australia animal fat market, production exemplifies circular economy principles by utilizing meat industry by-products that would otherwise be waste. In January 2025, Berge Bulk, in collaboration with BHP, powered an entire iron ore voyage from Australia to China using B100 biodiesel, sourced from tallow, used cooking oil, and vegetable oil. This focus improves public perception of animal fats, positioning them as eco-friendly alternatives to synthetic fats or fossil fuel derivatives, thus driving demand from both consumers and industrial buyers seeking sustainable sourcing.

Influence of Paleo and Keto Diets

The popularity of low-carb, high-fat diets like paleo and keto has created renewed culinary interest in animal fats, including tallow and lard. These diets emphasize natural fats for energy and satiety, encouraging consumers to cook with animal fats rather than vegetable oils. This dietary shift also inspires new food product development featuring animal fats, expanding market potential beyond traditional cooking applications. In October 2024, Few & Far launched a premium Wagyu beef tallow, made from 100% Australian Wagyu, aimed at professional kitchens and food businesses.

Regulatory Environment and Compliance

Strict animal welfare laws, environmental regulations, and food safety standards influence production and sourcing practices, adding to the Australia animal fat industry share. Firms comply with frameworks set by organizations like Meat & Livestock Australia and government agencies. Renewable energy incentives encourage biofuel-related fat production, while waste disposal rules govern rendering operations. While compliance costs exist, they also open access to premium markets demanding certified sustainable and ethically sourced animal fats.

The EMR’s report titled “Australia Animal Fat Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Tallow/Grease
• Lard
• Others

Key Insight: Tallow/grease is the most dominant segment, largely due to the country’s massive beef industry and advanced rendering infrastructure. Australia is the world’s largest exporter of tallow, with uses spanning biofuel production, animal feed, soaps, lubricants, and even food applications. As per the Australian Bureau of Statistics, Australia exported 517,364t of tallow during the first 11 months of 2024, exceeding 504,409t of 2023. Companies also heavily rely on tallow as feedstock, making it central to Australia’s push toward carbon-neutral energy and value-added waste utilisation.

Market Breakup by Application

• Biodiesel
• Animal Feed
• Oleochemical
• Pet Food
• Food Applications
• Others

Key Insight: Biodiesel is a strong application of the animal fat market in Australia, especially using tallow as feedstock. The country exports large volumes to global biofuel markets. Companies like Just Biodiesel, Oceania Biofuels, and Jet Zero Australia rely heavily on animal fats to produce renewable diesel and sustainable aviation fuel (SAF). Tallow’s chemical stability and low carbon footprint make it ideal for decarbonizing transport. Shell Australia also opened a biodiesel blending facility using tallow. Government support for clean energy further boosts biodiesel as the primary driver.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Key Insight: Victoria plays a major role in the Australia animal fat industry, largely through its rendering plants and biodiesel infrastructure. Victoria hosts several small-scale food-grade tallow producers, catering to niche culinary and health-conscious markets. For instance, Melbourne-based Moo Remedy launched its organic grass-fed tallow cooking fat, promoting a clean-label alternative for chefs and home cooks. the state’s supportive clean energy agenda and access to agricultural waste streams make Victoria a strong secondary hub in the animal fat value chain.

Australia Animal Fat Market Share

Lard to Witness Considerable Usage in Australia

Lard, rendered from pig fat, represents a smaller portion of the Australia animal fat market due to lower domestic pork processing volumes and limited industrial demand compared to tallow. Traditionally used in baking and frying for its rich flavor and flakiness, lard has niche appeal among gourmet chefs and followers of keto or paleo diets. Moreover, Australia imports significant volumes of pork, reducing domestic lard production. Thus, lard remains a specialty fat with limited commercial scale in Australia’s broader fat economy.

Rising Animal Fat Applications in Animal Feed & Oleochemicals in Australia

Animal fat, particularly tallow and lard, is widely used in livestock and poultry feed for its high caloric content and energy density. Australia’s large cattle and sheep processing sectors ensure a consistent supply of rendered fats for domestic feed markets. As per the Australian Bureau of Statistics, Australia produced 246,003 tonnes of lamb in 2023. This segment ensures steady domestic demand and helps producers manage rendering by-products year-round in a circular agricultural system.

The oleochemicals segment in the Australia animal fat industry is gaining traction, with uses in the production of soaps, detergents, lubricants, candles, and industrial materials. Tallow serves as a sustainable raw material, especially in regions where environmental regulations discourage petrochemical alternatives. Australian-rendered fats are exported to Asia and Europe for oleochemical manufacturing. This segment offers consistent demand and higher margins due to specialty applications, particularly as industries shift toward biodegradable and renewable raw materials.

Australia Animal Fat Market Regional Analysis

CAGR 2025-2034 - Market by

Region

Australian Capital Territory

3.2%

Western Australia

3.1%

New South Wales

XX%

Victoria

XX%

Queensland

XX%

Others

XX%

New South Wales & Australian Capital Territory to Accrue Higher Animal Fat Demand

New South Wales (NSW) dominates the Australia animal fat market given its large number of meat processing establishments, rendering plants, and export facilities. The large beef and sheep industries in the region provide a constant supply of raw fat material. KS7 lamb containing more than 7% intramuscular fat was introduced in Sydney in September 2025 by Kinross Station, Endeavour Meats, and Meat & Livestock Australia. Furthermore, NSW is also a place of biofuel pioneers and a backer of renewable energy policy, reinforcing its leadership in both production and export of animal fats.

The Australian Capital Territory (ACT) is heavily invested in the production of large volumes of animal fat, playing a valuable contribution to both the local economy and the overall Australian agricultural industry. This contribution comes in the form of high-tech processing plants that transform animal by-products into commodity fats applied in food processing, cosmetics, pharmaceutical, and biofuel industries. Strategic positioning and effective regulatory systems facilitate sustainable and efficient production methods with the aim of fulfilling both environmental and market requirements

Competitive Landscape

Major players in the Australia animal fat market are diversifying, pursuing sustainability programs, and seeking strategic collaborations. Large players are also growing their product lines beyond historic tallow to encompass rendered fats applied in biofuels, oleochemicals, and animal feed, allowing them to capture wider markets and lower dependence on food-grade use. With sustainability, market players are allocating funds to green rendering technologies and waste minimization to suit global ESG trends and consumer choices.

By embracing renewable energy sources and greater traceability, firms hope to satisfy both local and export market requirements. Export-focused strategies are equally important, too, since Australia sends a large quantity of animal fat to territories. Companies are partnering with worldwide distributors and using free trade agreements to secure long-term supply deals and access premium markets. Moreover, automation investments and upgrades also enhance efficiency and consistency of products, providing firms with a competitive advantage.

SARIA SE & Co. KG

Established in 1975, SARIA SE & Co. KG is based in Selm, Germany. SARIA SE & Co. KG has gained recognition for converting animal by-products into useful materials for agriculture, energy, and pharmaceutical industries. SARIA focuses on sustainable practices and has developed renewable energy solutions.

Darling Ingredients Inc.

Darling Ingredients Inc., founded in 1882, is based in Irving, the United States, and is a world leader in transforming edible and inedible bio-nutrients into sustainable products. Darling has led innovation in renewable diesel to minimize carbon emissions and optimize waste material utilization.

Ten Kate Vetten BV

Based in Almelo, Netherlands, Ten Kate Vetten BV was established in 1920. The company has been recognized for its technological advancements in render processes. Ten Kate specializes in the optimization of product purity and consistency while maintaining stringent environmental and food safety regulations.

Baker Commodities Inc.

Founded in 1937 and headquartered in Vernon, the United States, Baker Commodities Inc. specializes in its effective rendering operations and environmentally friendly recycling of animal by-products. Its innovations comprise cutting-edge fleet tracking and rendering technology that allows real-time monitoring across the agriculture and energy sectors.

Other players in the Australia animal fat market are Jacob Stern & Sons Tallow, Australian Tallow Producers, Tallow Products Pty Ltd, ALFA LAVAL, Ridley Corporation Limited and others.

Key Features of the Australia Animal Fat Market Report

• Comprehensive Market Analysis: Includes detailed quantitative data and industry forecasts up to 2025.
• Segmentation Insights: Breaks down animal fat types, sources, and key end-use applications.
• Regional Trends: Covers market dynamics across Australian states and territories, including major producers.
• Competitive Landscape: Profiles top players and analyses their strategies and market shares.
• Price and Supply Chain Analysis: Evaluates production costs, trade flows, and distribution channels.
• Growth Drivers and Challenges: Identifies key factors influencing market demand and potential constraints.

Why Choose Expert Market Research?

• Trusted Industry Insights: Relied on by top firms for accurate, up-to-date market intelligence.
• Experienced Analysts: Our team combines global expertise with deep local market understanding.
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• Proven Track Record: Delivering actionable insights across agriculture, food, and animal product markets.

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