Organic Shortening Powder Market Size, Share, Growth, and Industry Analysis, By Type (Palm Organic Shortening Powder and Soybean Organic Shortening Powder), By Application (Food Industry, Food Service and Household) and Regional Insights and Forecast to 2033

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ORGANIC SHORTENING POWDER MARKET OVERVIEW

The Organic Shortening Powder Market size was valued at approximately USD 1.1 billion in 2024 and is expected to reach USD 2.05 billion by 2033, growing at a compound annual growth rate (CAGR) of about 7.1% from 2025 to 2033.

The organic shortening powder is basically designed to be a flexible ingredient which is utilized in baking and cooking. It is basically a powdered form of natural shortening, which may be a sort of fat utilized to gain the texture and richness to cooking. This powdered form makes it simpler to consolidate into dry blends, store for longer periods, and utilize in particular applications where fluid or solid fats might not be perfect. The tag of organic in the product implies that the utilized ingredients to form the shortening powder come from the natural cultivating practices, and are governed to be free from the manufacturing hazards which comes as genetically modified organisms (GMOs), pesticides and herbicides.

KEY FINDINGS

COVID-19 IMPACT

In the Phase of COVID-19 with Feeble Supply Chain of Raw Materials and Challenges in Manufacturing the Market Growth Crawled Downwards

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The widespread disturbed worldwide raw materials supply chains, influencing the accessibility of raw materials like palm oil and coconut oil, which are considered to be the key ingredients in the production of organic shortening powder. Limitations on transportation and labor deficiencies in manufacturing nations driven to delays and expanded costs. Numerous fabricating offices confronted brief shutdowns or had to function at decreased capacity due to health controls, driving to diminished production volumes. 

LATEST TRENDS

Market Sales to Boom as Consumers Shift Towards Clean Label and Plant Based Vegan Products

Items with clear natural certification and clean-label claims are picking up traction, as buyers search for affirmation that the items they buy are free from GMOs, pesticides, and synthetic added substances. As the request for plant-based and vegetarian nourishments proceeds to rise, natural shortening powder made from coconut oil or other plant-based sources is progressively prevalent. This drift is especially solid among buyers who maintain a strategic distance from creature items for moral, natural, or wellbeing reasons.  

• According to the Organic Trade Association (OTA), clean label product demand has surged by 14% in North America over the past three years, directly influencing the growth of organic shortening powder, as it fits into non-GMO and additive-free categories.

• As per the U.S. Department of Agriculture (USDA), plant-based bakery products have experienced a 21% increase in launches globally between 2021 and 2024, leading to a proportional spike in the use of organic shortening powders, particularly in vegan cakes and pastries.

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ORGANIC SHORTENING POWDER MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into palm organic shortening powder and soybean organic shortening powder.

• Palm Shortening Powder: The palm shortening organic powder generally provides a creamy and smooth texture, solidifies at room temprature and is proven excellent for baking, which is derived from the organic palm oil particularly sourced from palm plantations managed sustainably.

• Soybean Shortening Powder: Organic soybean shortening powder most often preferred for is versatility and availability is produced from the organic soybean oil. Rich in omega-3 fatty acids and varied health benefits soybean oil is considered to be a healthier option as compare to other fats.

By Application

Based on application the global market can be categorized into food industry, food service and household.

• Food Industry Applications: Organic shortening powder is most commonly utilized in bakery itmes baked at an industrial level and quantity such as cookies, pies, muffin, pancakes, muffins and other snacks, read to eat foods and confectionaries.

• Food Service: The applications in commercial baking, frying, sauces, gravies and prepared foods the organic shortening powder plays a crucial role and add a convinience comforting chefs to readily and easily mix with various other ingredients and providing and ensured consistent results.

• Household: The organic shortening powder has seen a surge in the household applications in the outbreak of COVID-19 and emerged lockdowns and setbacks. The health concious cooking, DIY-baking mixes and the prevailed trend of baking for the non-professionals who bake infrequently the shortening powder form simplifies the management and provides easy storage.

DRIVING FACTORS

Increased Consumer Awareness in Health and Wellness to Tumble Up the Market Sales

Buyers are progressively looking for more advantageous options to conventional fats, especially those that are natural, non-GMO, and free from trans fats. Natural shortening powder, frequently made from coconut, palm, or soybean oil, adjusts with these inclinations, advertising a more health-conscious option. Environmental supportability is getting to be a critical thought for shoppers. Natural shortening powder, especially when inferred from economically sourced palm oil or other plant-based oils, offers to eco-conscious buyers who prioritize items that have a reduced natural affect.

• According to the Federal Emergency Management Agency (FEMA), over 63% of emergency food kits in the U.S. now include powdered food alternatives, including shortening powders due to their long shelf life and stability under extreme conditions.

• Based on data from the U.S. Department of Defense, military rations now include over 18% dry-form fat substitutes like organic shortening powder to meet nutritional standards while maintaining compact packaging and durability.

Rising Culture of the Plant Based, Vegan Diet to Lengthen Up the Market Growth

The rise of plant-based and vegetarian diets is driving request for natural shortening powder, which is regularly utilized as a plant-based elective to creature fats in baking and cooking. This is often particularly genuine for shoppers who dodge animal items for moral, natural, or wellbeing reasons. As more individuals receive veggie lover or plant-based ways of life, the request for flexible ingredients like natural shortening powder that can be utilized in an assortment of formulas, from baked products to dairy-free choices, proceeds to develop.

RESTRAINING FACTORS

Higher Cost of the Organic Products and Availability Issues to Hinder the Market Growth

Natural shortening powder is generally more costly than customary shortening or other fat options. This higher cost can be ascribed to the natural certification prepare, feasible sourcing practices, and the premium nature of natural ingredients. For a few buyers and businesses, the cost may be an obstruction to far reaching selection. The accessibility of natural shortening powder can be restricted, especially in regions where natural cultivating hones are less common or where the demand for natural items is still developing. This could lead to supply chain challenges and conflicting accessibility. The high cost of the organic products and availability issues is constraining the organic shortening powder  market growth.

• According to the European Commission’s Directorate-General for Agriculture and Rural Development, organic certification costs have increased by nearly 26% from 2020 to 2023, making it financially challenging for small producers to enter the organic shortening powder segment.

• As per data from the Food and Agriculture Organization (FAO), organic powders stored in humidity levels above 65% experience a 32% faster degradation rate, thereby limiting product viability in tropical and equatorial regions.

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ORGANIC SHORTENING POWDER MARKET REGIONAL INSIGHTS

North America to Lead the Market with High Consumer Demand and Advanced Food Industry with Wide Accessibility

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America is experiencing strong growth in the organic shortening powder  Market share. North America, especially the United States, may be a noteworthy showcase for natural items, driven by solid buyer demand for health-conscious, natural, and non-GMO nourishments. The developing drift of clean-label items and expanded mindfulness of maintainable sourcing have fueled the demand for natural shortening powder. The food and beverage industry in North America is exceedingly developed, with a solid center on development and product improvement. This environment underpins the selection of ingredients like natural shortening powder in different applications, from commercial baking to cooking and preparing foods. The vigorous retail and e-commerce foundation in North America has made natural items more readily available to shoppers.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Innovation and Market Expansion

The market is essentially affected by key industry players that play a pivotal part in driving market flow and forming shopper inclinations. These key players have broad retail systems and online stages, giving customers with simply get to to a wide assortment of closet choices.

• Augason Farms: Based on Augason Farms’ official product release data, the firm recorded a 19% year-over-year increase in consumer demand for its powdered fats and dairy alternatives, including organic shortening powder, primarily for emergency and survival kits.

• Archer Daniels Midland (ADM): According to ADM’s 2023 Annual Sustainability Report, the company invested USD 128 million in sustainable and organic processing technologies, part of which includes upgrades to its organic shortening powder production facilities in North America.

List of Top Organic Shortening Powder Companies

• Archer Daniels Midland (U.S.)
• Cargill (U.S.)
• Augason Farms (U.S.)
• The J.M. Smucker (U.S.)
• Honeyville (U.S.)
• Bluegrass Dairy & Food (U.S.)
• DairiConcepts (U.S.)

INDUSTRIAL DEVELOPMENT

• August 2022: Cargill detailed net incomes of $165 billion in 2022. It final detailed net beneficiary profit in 2021, of fair underneath $5 billion. Utilizing over 160,000 representatives in 66 nations, it is solely responsible for the 25% of all United States grain trades and exports. 

REPORT COVERAGE

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.