Margarine and Shortening Market Report Overview
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The margarine & shortening market size is expected to be USD 13.95 billion in 2022 and the market is projected to touch USD 15.69 billion by 2030, exhibiting a Compound annual growth rate (CAGR) of 1.3% during the forecast period.
An attribute of a shortening is that it is a fat that is solid at room temperature and may be used to give dishes, like pastries, a crisp and brittle feel. Butter, soybeans, margarine, vegetable oils, and fat are some types of fat that are used as shortening. Vegetable oils like soybean, cottonseed, or refined palm oil, which are typically liquid at room temperature, are the most often used raw materials in the production of shortening.
COVID-19 Impact: Closure of Supermarkets, Malls, and Sales Channels Hampered the Market
The worldwide margarine and shortening markets have seen slow development as a result of the COVID-19 pandemic's breakout in 2020. Because of the strict lockdown enforced by governments throughout the world, retail outlets, malls, supermarkets, and other sales channels have been compelled to close or remain closed. To generate income and boost sales, however, a number of firms have moved their attention to e-commerce platforms during the shutdown. The current increase in offline sales is due to the gradual lifting of government lockup restrictions in a number of nations.
LATEST TRENDS
"Baking Industry to Augment the Market With the Forecast Period"
The bakery industry continues to be a pioneer in the applications of margarine & shortening fats because of their essential role in baking. Due to their capacity to include significant amounts of bubbles, which produces an end product with a thin, delicate structure, shortenings are now being employed more and more for creaming applications. Margarine & shortening usage in cookies and cakes is second only to that of sugar in terms of volume. To retain the hygroscopic character of cakes, cake shortening, or icing shortening as it is more often known, incorporates emulsifiers in its composition.
Margarine and Shortening Market Segmentation
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- By Type Analysis
By type, market is segmented into margarine and shortening. The margarine segment will dominate the market in the coming years.
- By Application Analysis
Based on applications, the market is classified into food industry, household and catering. The food industry segment will lead the global share through 2030.
DRIVING FACTORS
"Expanding Processed Food Industry to Propel the Market Demands"
The demand for shortening and margarine is being driven by the expanding processed food industry. Pasta and noodles are examples of manufactured foods that are used as staple meals in various countries. For dry-ready meals, dried noodles, spaghetti, and many other processed food items, the preparation time is fairly brief. Shortening fats are frequently used in bread products due to their numerous functional benefits, including improved elasticity, a higher smoke point, and a longer shelf life.
"Health Benefits of Functional Meals and Beverages to Boost the Demands"
Both the basic nutritional content of the food and the various health benefits that functional meals and beverages with functional nutrients supplement. These nutrients consist of fatty acids, prebiotics, vitamins, minerals, amino acids, and protein. Functional goods have grown in importance in recent years due to the increased knowledge of the consumer health sector. Customers are choosing functional foods and drinks as a result of rising product research and innovation initiatives. The demand for and sales of margarine and shortening products have been impacted in recent years by customers' move from bakeries and sweets to functional meals and beverages. The market for margarine and shortening was thus able to develop very slowly as a result of these reasons.
RESTRAINING FACTORS
"Obesity Pandemic and Lifestyle Pandemic to Create Market’s Hinderance"
It is a widely known and accepted fact that the majority of shortening fats on the market are made up of unhealthy saturated fats, and in some cases, they also contain a sizable amount of trans-fats. One of the main obstacles to the global market for shortening fats is the growing health concerns surrounding the obesity pandemic and other lifestyle pandemics for unhealthy fats, as well as the rapid emergence of substitutes like dietary fibers with partial replacement efficiencies.
Margarine and Shortening Market REGIONAL INSIGHTS
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"North America’s Margarine & Shortening Market to Grow Exponentially with the Forecasted Period"
With a thriving bakery industry, North America and Europe are two important markets for margarine and shortening fats. Consumers are showing a larger propensity for "healthy indulgence," especially when it comes to goods that have just been cooked, such breads, cakes, pies, and rolls. There are still a lot of independent and private label bakers operating in these developed countries, which results in a fragmented baking sector. Under the condition that the customer demand for organic, clean-label, and extremely convenient goods is sufficiently met, this creates a significant opportunity for makers of shortening fats. Shortenings should be reformulated by the makers to contain less trans fatty acids. Large bread conglomerates like Grupo Bimbo, S.A.B. have already begun using shortenings with little to no trans fatty acids in their goods.
With value-adding playing a crucial role, the margarine and shortenings markets in Europe are likewise anticipated to have respectable growth rates. Shortenings that have been fortified, particularly those with essential oils and other micronutrients, are becoming more and more popular with both customers and bakers. Due to their functionality and nutritional characteristics, such margarines and shortenings are considered to be ingredients of excellent quality. In the near future, the Asia Pacific margarine and shortening market is anticipated to see the quickest development trajectory due to the widespread appeal of baked products and solid consumer dynamics.
KEY INDUSTRY PLAYERS
"Key Players Focus on Partnerships to Gain a Competitive Advantage "
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.
List of Market Players Profiled
- Upfield (Netherlands)
- Bunge (U.S.)
- NMGK Group (Russia)
- Con Agra (U.S.)
- Fuji Oil (Japan)
- BRF (Brazil)
- Yildiz Holding (Turkey)
- Grupo Lala (U.S.)
- Nam Chow (Thailand)
- Cargill (U.S.)
- ADM (U.S.)
- J.M. Smucker (U.S.)
- AAK (Sweden)
- Wilmar (Singapore)
- COFCO (China)
- Uni- President (China)
- Mengniu Group (China)
- Yili Group (China)
- Bright dairy (China)
- Dairy Crest (U.K.)
REPORT COVERAGE
The market research study examines the worldwide market in detail, focusing on important elements such as leading players, product/services or type, and leading end-use applications. Aside from that, the research analyses major advancements and provides insights into lighting market trends. In addition to the causes indicated above, the paper includes a number of other factors that have contributed to recent growth.
REPORT COVERAGE | DETAILS |
---|---|
Market Size Value In |
US$ 13.95 Billion in 2022 |
Market Size Value By |
US$ 15.69 Billion by 2030 |
Growth Rate |
CAGR of 1.3% from 2022 to 2030 |
Forecast Period |
2023-2030 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Types & Application |
Frequently Asked Questions
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What value is the margarine & shortening market expected to touch by 2030?
Over the research period, margarine & shortening market will be reaching USD 15.69 billion in 2030.
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What CAGR is the margarine & shortening expected to exhibit by 2030?
The margarine & shortening market is expected to exhibit a CAGR of 1.3% by 2030.
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Which are the driving factors of the margarine & shortening market?
Expanding processed food industry and health benefits of functional meals and beverages are the driving factors of the margarine & shortening market.
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Which are the top companies operating in the margarine & shortening market?
AAK, ADM, Dairy Crest and Yili Group are the top companies operating the margarine & shortening market.