Global Medium Chain Triglycerides (MCT) Market By Source, (Coconut, Palm, and Others), By Form, (Dry and Liquid), By Fatty Acid Type, (Caprylic Acid, Caproic Acid, Capric Acid, and Lauric Acid), By Application, (Dietary Supplements, Pharmaceuticals, Food and Beverages, Cosmetics and Personal Care, And Others), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Medium Chain Triglycerides (MCT) Market size is expected to be worth around USD 2.6 Billion by 2033 from USD 1.5 billion in 2023, growing at a CAGR of 6.9% during the forecast period 2024 to 2033.

MCT is a triglyceride oil, which is widely used as a health supplement. It is commercially extracted in different forms from coconut or palm kernel oil. The extraction is performed using spray drying, fractionation, micro-encapsulation, and other purification methods.

Consumption of MCT oil significantly supports weight management. It is a plant-based ingredient, widely used in various fitness formulae, and protein shakes, and directly consumed in fat-loss diets. It is used as a base formula to manufacture various lipid formulations that are further used in cosmetics and personal care products.

Consumers are currently looking for vegan, cruelty-free, gluten-free weight management sources due to the rapid expansion of the niche market. This is attributed to the increasing awareness regarding health and well-being among consumers.

The growing global overweight-to-obese population is another factor contributing to the surge in demand for MCT oil. Additionally, the increasing prevalence of lifestyle-based diseases such as diabetes, obesity, and CVD is causing major concerns among the world population.

For instance, according to the data published by the World Health Organization (WHO) on March 1, 2024, about 890 million people across the world were living with obesity while about 2.5 billion adults were overweight in 2022.

Key Takeaways

• In 2023, the medium chain triglycerides (MCT) market generated a revenue of USD 1.5 billion, with a CAGR of 6.9%, and is expected to reach USD 2.6 billion by the year 2033.
• The source held a major share of the market, with the coconut segment taking the lead in 2023 with a market share of 58.3% as it is a rich source of MCT oil and is widely available across the globe.
• By form, the dry form segment accounted for a significant share of 60.2% as it is easy to combine with different products and efficient for prolonged storage & transportation.
• By fatty acid type, the caprylic acid segment among the other sub-segments held a significant share of the market with 37.4% of the gelatin market.
• By application, food & beverage accounted for the dominant share of 65.3%.
• Asia Pacific led the market by securing a market share of 55.4% in 2023.
• Studies are being conducted to use MCT oil to improve the cognitive abilities of children with autism as the ketones in this oil provide instant energy for vital brain functions.
• Coconut and palm kernel oil have a duopoly as the main sources of raw material for MCT oil extraction.
• Players in the market are incorporating automation in their business processes with the help of advanced technologies such as AI and blockchain. They are also focused on reducing overall carbon footprint by adopting IoT networks in supply chain operations.

By Source Analysis

Based on the source, the market is categorized into coconut, palm, and others. The coconut segment held a major market share in 2023, claiming a market share of 58.3% owing to the multiple benefits of MCT oil extracted from coconut. Coconut-extracted MCT has a high concentration of MCT oil which provides good yield to the manufacturers.

Coconut is available in abundance across a majority of global landscapes which makes it convenient for local manufacturers. The oil has a mild flavor and pleasant aroma that provides an ideal base for the production of MCT derivatives. Furthermore, the multifaceted benefits of coconut oil are expected to drive the segment in the coming years.

The palm segment is projected to grow at a significant CAGR during the projection period owing to the wide availability of palm trees, similar to that of coconut trees. Palm tree takes less time to completely mature compared to the coconut tree which is beneficial from the manufacturer’s perspective. It is considered more sustainable to grow palm trees than coconut considering the resources and energy spent to gain the desired yield.

Palm trees use less oil compared to coconut trees, generate easily manageable wastes, and promote biodiversity. Dedicated organizations such as Roundtable on Sustainable Palm Oil (RSPO) are consistently focused on promoting innovative palm oil products in the market. The surging popularity of niche products and simplified regulatory structure for palm kernel oil products is projected to drive this segment in the coming years.

By Form Analysis

The medium chain triglycerides (MCT) market is segmented based on form into dry and liquid. The dry segment had a tremendous growth rate, with a market share of 60.5% owing to the ease of handling of the product. Powdered MCTs are generally manufactured using spray drying or fractionation techniques.

The powdered substrate is easier to measure, handle, and distribute, compared to its oil form. It is conveniently incorporated into all other forms of supplements. Moreover, the powdered MCT is convenient for distant shipment and can be stored for longer durations. It also promotes seamless supply chain operations which is projected to boost the segment in the coming years.

By Fatty Acid Type Analysis

Considering fatty acid type, the market is divided into caprylic acid, caproic acid, capric acid, and lauric acid. Among these, caprylic acid held a significant share of 37.4% due to its unique antimicrobial properties. It is widely used in cosmetics and personal care products as it boosts skin health with the help of antioxidants.

Products such as moisturizers, cleansing milk, eye & facial creams, anti-aging creams, and makeup cosmetics are majorly added with caprylic acid. Additionally, the product also improves gastrointestinal health by naturally reducing the growth of yeast on the intestine walls, which is expected to create multiple opportunities for the segment to grow in the coming years.

By Application Analysis

Considering application, the market is divided into dietary supplements, pharmaceuticals, food and beverages, cosmetics and personal care, and others. Among these, food & beverage held a significant share of 65.3% due to increasing global demand for clean-label, vegan, and organic foods and health supplements.

Growing consumer interest in clean-label food products is mainly associated with the rising awareness regarding cruelty and unethical treatment of animals that are tamed to gain raw materials. It has given a rise in demand for plant-based or vegan food & food ingredients. This along with the rising consumption of frozen or packaged meals, necessitates authentic plant-based sources such as MCTs, that assure consumers of cruelty-free, plant-based genuine food products.

For instance, according to the data published by the World Animal Foundation (WAF) on January 1, 2024, there were about 88 million people across the world following the vegan lifestyle. Additionally, the MCTs enhance the flavor and texture of food while increasing the product’s shelf life. This is a value-added feature from manufacturers’ perspective which is anticipated to drive the segment during the projection period.

Key Market Segments

By Source

• Coconut
• Palm
• Others

By Form

• Dry
• Liquid

By Fatty Acid Type

• Caprylic Acid
• Caproic Acid
• Capric Acid
• Lauric Acid

By Application

• Dietary Supplements
• Pharmaceuticals
• Food and Beverages
• Cosmetics and Personal Care
• Others

Drivers

Increasing consumption of protein supplements drives the market.

MCT oil provides an instant energy boost for the body as it is easily broken down into our digestive system. It is hence added to the pre-workout supplements and protein powders to enhance their nutritional profiles. It effectively aids issues associated with fat absorption and promotes fat loss, thus is an ideal addition to the weight loss formulations.

It is odorless & tasteless and available in powdered form. It is imparted in several functional food formulations such as nuts, grains, dairy, poultry, fish, and vegetable, to enrich them with vital nutrients. Additionally, the rising awareness regarding MCT oil as a protein supplement is expected to drive the market.

Growing demand for plant-based weight management solutions is expected to fuel the market.

This is mainly attributed to the increasing demand for cruelty-free food. These food products ensure customers that no animals are being used or harmed during the manufacturing process. International animal welfare foundations such as PETA and the WAF are continuously spreading awareness regarding animal cruelty encouraging consumers to purchase plant-based foods such as MCT oil, which further fuels the market.

Moreover, the oil easily breaks down into energy, thereby increasing the metabolism. As a result, it caters to rising vegan consumers looking for effective weight management solutions. These factors are expected to boost the market during the projection period.

Restraints

The high production cost of MCT oil restrains the market.

Fluctuating costs of raw materials such as coconut and palm kernel oil is a challenging factor for budding businesses that do not own private farms of these trees. This increases the transportation and supply chain expenses, which potentially reduces the profit margins for several businesses.

The extraction of MCT oil is followed by its purification process which requires running high power input equipment. These factors consequently increase overall production cost and ultimately the product cost which is likely to hamper the market in the coming years.

Opportunities

Growing demand for health and wellness supplements is expected to create lucrative opportunities for the market.

The global burden of chronic diseases such as diabetes, obesity, and cardiovascular diseases (CVDs) is constantly on the rise. Therefore, the global healthcare regulatory bodies are taking initiatives to aware maximum consumers about do’s and don’ts for a healthy lifestyle. For instance, according to data published by the NIH on September 16, 2023, about 17 million global deaths happen due to the prevalence of non-communicable diseases or chronic diseases worldwide.

Products such as weight loss supplements, meal replacement shakes, protein powders, energy drinks, and other dietary supplements are widely purchased globally. Moreover, increasing applications of MCT oil in pharmaceutical and therapeutic applications are expected to create immense opportunities for the market in the coming years.

Increasing applications of MCT in healthcare and medicine drive the market.

MCT supplements are naturally anti-inflammatory and possess antibacterial properties. Hence, they are added to the drugs promoting gut health by inducing good gut bacteria. According to the 2018 and 2021 reports by the National Institute of Health (NIH), MC supplements help enhance endurance and are hence widely used by athletes to enhance anaerobic output during endurance runs.

The studies suggest that MCT also delays the progression of neurological disorders such as Dementia or Alzheimer’s disease among elderly patients. The growing scope for advanced studies in the subject matter of MCT is expected to create immense opportunities for the market during the forecast period.

Latest Trends

The increasing popularity of the ketogenic diet drives the market.

Ketogenic diets aim to shift one’s metabolism from carbohydrates to proteins thereby promoting fat loss during ketosis. However, the ketogenic diet may not be suitable for all body types. This is one of the reasons why MCT has gained popularity.

For instance, according to the 2021 report published by the NIH, MCT is capable of inducing ketosis without consuming keto-diet food. Furthermore, the people following ketogenic diets require keto-friendly food products in the form of pills, shakes, or powders to fulfill the on-the-go meal requirements which is projected to drive the market in the coming years.

Geopolitical Impact Analysis

Several geopolitical factors make a significant impact on the global medium chain triglycerides (MCT) market, thereby altering its growth parameters and dynamics. Factors such as global recession significantly impact the prices of raw materials, machinery, and equipment used in MCT manufacturing.

The trade war between China and the US has led to increased regulations and heavy tariffs on the import of goods and materials from China into the US, which is one of the factors affecting the global market dynamic ever since 2020.

Additionally, the Green Deal initiative of the EU has encouraged the players trading with the market in Europe to seek sustainable ways of conducting everyday industrial operations. Stringent trade regulations and altering political scenarios across diverse economies are expected to drive the market during the projection years.

Regional Analysis

Asia Pacific is leading the medium-chain triglycerides (MCT) Market.

Asia Pacific dominated the market with the highest revenue of 0.831 billion commanding a share of 55.4% of the market, owing to the increasing health consciousness among the adult demographic. Emerging economies such as India and China have a significant burden of patients suffering from chronic diseases, such as obesity and CVD.

The countries have taken promising initiatives toward strengthening regulations in pharmaceutical and food & beverages industries to promote healthcare awareness. The region has a considerable older demographic that is highly prone to chronic health conditions. This encourages players in the region to diversify their product portfolio with MCT oil derivatives and to market them right and meet the right consumer base. The region has a booming fitness industry with an increasing percentage of health-conscious consumers.

Consumers are increasingly going to fitness centers, gyms, yoga centers, and other institutes promoting health & well-being. This has encouraged the food and pharmaceutical industries to avail a range of products, genuinely delivering clean-label health supplements by collaborating with such organizations. Countries such as Indonesia, Japan, India, Turkey, and China have elongated coastal areas that leverage local MCT manufacturers with added profit margins. Moreover, the growing vegetarian and vegan population in the region is anticipated to drive the market in the Asia Pacific during the assessment period.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

The major players in the medium chain triglycerides (MCT) market are driving innovation and expansion by executing various business strategies to dominate the competitive ground.  BASF SE, Koninklijke DSM N.V., Dupont, Lonza Group Ltd., and Croda International Picare the major players known for diversified MCT production and supply chain network. These key players along with other industry participants collectively influence the MCT market’s growth, supply, and demand dynamics.

Top Key Players

• BASF SE
• Croda International Pic
• Dupont
• Emery Oleochemicals Group
• KLK Oleo
• IOI Oleo GmbH
• Koninklijke DSM N.V.
• Lonza Group Ltd
• Musim Mas Holdings
• Now Foods
• P&G Chemicals
• Stepan Company
• Sternchemie GmbH & Co. KG
• Wilmar International Limited
• Others

Recent Developments

• On May 23, 2024, BASF announced its expansion in performance material capacity in India, at Ultramid PA and Ultradur PBT. The company aims to cater to the increasing demand from consumers in India and Asia Pacific for a range of its products.
• On November 7, 2022, IOI Oleo GmbH announced the launch of WITARIX MCT powder and expanded its portfolio. The company claims to be setting higher standards with this product, as it has high MCT loading (70%), it is readily miscible with other powders, it is Vegan, Kosher, and Halal, it can be processed hot or cold in the final application, and is suitable for sports nutrition, nutritional supplements, value-added foods, special diets, ketogenic nutrition.

Report Scope

Medium Chain Triglycerides (MCT) Market

Published date: Aug 2024

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