Margarine & Shortening Market Size, Share, Growth, and Industry Analysis, By Type (Margarine, Shortening), By Application (Food Industry, Household, Catering) and Regional Forecast to 2032

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MARGARINE & SHORTENING MARKET OVERVIEW

The Margarine & Shortening Market size was USD 13950 Million in 2023 and is projected to reach USD 15894.1 Million by 2032, exhibiting a CAGR of 1.3% during the forecast period 2024-2032.

The margarine and shortening market is the market segment that contributes to the production of specialized products for the global food industry, which replace butter and lard for use in cooking, baking, and food processing. The reasons for the use of margarine, which is a product mainly from vegetable oil, and shortening, which is produced from animal fat or oils, is attributed to their ability to create textural and flavorful differences which are cheaper. Both products remain favorites due to increased shelf life, stability at room temperature and application in most foods related processes. This market is thus affected by changes in customer health preference, as there is growing demand for trans-fat-free, low calorie and fortified products. Since processed foods consume is increasing with the growth in the standards of living in the emerging economies, the margarine and shortening business is expected to increase steadily. Also, the latest developments in the hydrogenation of oils, removal of PHOs, and the modern methods to increase product sustainability in the food processing industry are providing impetus to market growth. However, natural blends such as butter and evolution in uses of plant-based oil are other threats to margarine consumption. Thus, it is important to note that the market sector of margarine and shortening is in an upward trajectory with a view to adopting healthy margarine formulations.

GLOBAL CRISES IMPACTING MARGARINE & SHORTENING MARKET - COVID-19 IMPACT

"Margarine & Shortening Market Had a Negative Effect Due to Supply Chain Disruption During COVID-19 Pandemic"

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

Unfavorable changes in the margarine and shortening market share were observed during the COVID-19 pandemic, mainly due to the disruptions in the supply chain alongside the alterations in consumer trends and economic effects on the primary applications. The circulation of lockdowns around the world and measurement to slow the spread of virus such as travel restrictions slowed down transportation and put negative impact on availability of crude raw material like vegetable oils internationally. The restaurants, bakeries and any other commercially established food marketers who sell to various categories of consumers recording a drop in demand due to their unfortunate and untimely shut down. The increase in home baking had increased the retail demand especially at the start but this was not enough to compensate for the decreased demand from the hospitality businesses. Also, increased economic risk made many customer desire to spend only on basic needs leaving behind spending on general and luxury food products such as margarine and shortening. In other circumstances the market was still recovering from logistical problems that have arisen from the growth of e-commerce and remain as a barrier to the smooth supply chain processes. These impacts emphasized the value of building flexibility and contingency in the supply chain to deal with outside risks.

LATEST TREND

"Rise of Sustainable and Eco-Friendly Materials Drives Market Growth"

Among the driving forces influencing growth of the margarine and shortening market today is increased consumer demand for solutions with no trans-fats, hydrogenated fats, and plant-based ingredients. Thanks to growing concern about health and changing diets, customers are opting for products they consider healthier and less harm to the environment. Many typical margarine products used to contain partially hydrogenated oils that caused trans fats; which are unhealthy. Because of this demand, manufacturers are reducing their use of hydrogenated products, and developing spreads and shortenings that do not contain trans fats. Moreover, with more and more populous countries turning towards plant-based food products, consumers prefer plant-based margarine, derived from olive, sunflower, and avocado oil. Many of these products are meant for the vegan and vegetarian markets, but they also appeal to the green consumer who is interested in products that have emissions with smaller carbon footprints. This tendency will transform the margarine and shortening industry in terms of innovation, changes in the product portfolio, and focused strategy to address the issue of sourcing raw materials sustainably.

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MARGARINE & SHORTENING MARKET SEGMENTATION

BY TYPE

Based on type, the global market can be categorized into Margarine, Shortening

• margarine: Margarine is a butter substitute prepared from vegetable oils for use as spread and in cooking or baking. It’s practically low cost and its usage makes it to be in demand for home use as well as for industries. Traditional margarines are, in general, trans-fat-free while modern retail margarines offer their lactose-addicted consumers a substitute for butter.

• shortening: Shortening is a solid fat, of vegetable, or animal origin used in baking because of its effect of producing flaky and tender dough in pastries and cookies. This is a major component in the food industry for use in the leavening process of baked and fried foods.

BY APPLICATION

Based on application, the global market can be categorized into Food Industry, Household, Catering

• food industry: The food industry involves production, processing, and distribution segments in which ingredients for example margarine and shortening are vital in cost effective production. These ingredients are essential for producing a range of foods including cakes and snacks because they fulfill the market requirements of cheap, stable and elastic fats.

• household: In households, margarine and shortening are known as substitute products of butter in preparing foods and baked products. They offer taste and body when used in basic culinary preparations; generally in home baking and are indispensable staples in most kitchen for they are used in the preparation of many plain and fancy dishes and cakes.

• catering: Food making companies in catering industries make use of margarine and shortening for bulk preparing of foods in view of the fact that they are relatively cheaper and also enhance standard flavors in recipes. These fats are used extensively in pastries, frying meats and vegetables, in baking, sautés, in sauces, dressings, and as spread for bread, among many other uses in catering and other types of food vending services.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions. 

DRIVING FACTORS"
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"Health-Conscious Consumer Preferences Boost the Market"

The margarine and shortening market growth has largely been benefited by the growing health conscious among the consumers. Consumers demonstrate a preference towards products that contain less fat and no trans-fat, and have less cholesterol. Increased adoption of plant-based foods has also learnt the use of margarine and shortening that are used in place of animal based fats. Such a trend has lead the manufacturers into devising new products that have vitamin supplements, omega 3 fatty acids and other health promoting nutrients. Therefore there is steadily a need for trans-fat free and non-hydrogenated variety of margarine to be in the market so as to capture those people with the sensitive health conscience.

"Expansion of Processed Food Industry Expand the Market"

The processed food industry has expanded exponentially globally, especially, in developing nations where there are concerts of change in lifestyle enhanced by evolving urbanization patterns through enhanced consumption of Convenience Foods. Shortening and margarine are used as constituents in virtually all processed foods, including bakery products and ready-to-eat foods; thus, they are strategic in this industry. With increasing consumer traffic for convenience foods like ready to eat foods and snack items, demands for basic, inexpensive materials like margarine and shortening increase as well. Therefore, the particular development of the processed foods sector has been an important driver towards the demand for these goods and caused manufactures to increase production, as well as refining the recipes.

RESTRAINING FACTOR

"High Cost of Professional Skates Potentially Impede Market Growth"

Although changes have been observed in margarine and shortening market, the there are some constraints that are caused by health risks related to trans fats, which used to be in partially hydrogenated oils. We also continue to experience persistent customer belief that margarine is unhealthy which affects its adoption mainly in the healthy conscious segment despite most manufacturers moving to non-hydrogenated oils. This negative association was able to limit market growth since consumers were seeking healthier fats as compared to the consumption of the certain food product.

OPPORTUNITY

"Expanding Ice Sports in Emerging Markets Create Opportunity for The Product in The Market"

The statistics also show that the increase in veganism and plant-based diets is a perfect opportunity to increase demand for margarine and shortening. Most people have switched from using animal fats and butter, which means that there is a market for margarine and shortening derived from vegetable oils such as olive, sunflower and avocado. This may also lead to increase in providing more innovative and new products in existing or more product differentiation that can reach out to more diversified customer base.

CHALLENGE

"Supply Chain Disruptions and Material Costs Could Be a Potential Challenge for Consumers"

The problem that is most strenuous for the margarine and shortening makers is procurement of the inputs like the palm oil, soy bean oil, and so on. There are now influences originating from price trend, supply chain vulnerability and environmental issues related to acquisition of palm oil that affect the market. Sustainability has to be achieved while at the same time delivering affordable goods to meet the demands of the consumers allied to the organizational objectives of not straining the environment.

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MARGARINE & SHORTENING MARKET REGIONAL INSIGHTS

NORTH AMERICA

North America especially United States margarine & shortening market is another large market for margarine and shortening owing to an already developed and huge food processing sector and fast-growing demand for processed foods. This has encouraged product development activities in the region especially those associated with low-fat and trans-fat free margarine and shortening. also stable market demand earned from home baking and healthier food options have been instrumental in supporting prominence and productivity differentiation in the market.

EUROPE

Europe has a huge demand for the margarine and shortening, as the people there are health conscious and prefer products made from plant based ingredients and are more conscious towards environmental standards. European consumers are especially informed about the effect of trans fats on their health hence putting pressure on producers to produce non-hydrogenated products. It has also been boosted by veganism coupled with plant-based dietary systems that have increased call for sustainable sourced raw materials to meet the rigorous standards of the EU and consumers.

ASIA

Urbanization across Asia together with its growing population’s need for processed foods makes the continent to play a big role in the margarine and shortening industry. The increase in the economic growth and the enhanced consumers’ lifestyle has inspired the use of margarine and shortening, which are main convenience foods. This market prospect needs to attract manufacturers to try to meet the increase in demand with cheaper products.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Global margarine and shortening market has faced stiff competition and big firms and the firms are searching for a way to meet the needs of the diverse customers. Some of the industry participants are Unilever Plc, Bunge Limited, Conagra Brands Inc and Wilmar International Limited. Unilever has majority share in the global market for margarine through its product called Flora, On the other hand Bunge Limited deals in shortening products which are meant for the commercial food sector. One of Conagra Brands’ margarine brands that dominate the North American markets are Parkay and Blue Bonnet. Wilmar International Limited is an Asia based company in the field of agribusiness; it provides fresh margarine, and likewise, shortening products to both, food service and retail industry that caters to evolving processed food market in Asia region. These companies are still evolving by targeting nutritional concerns like non-hydrogenated and sourced from plants, and Harvesting resources from sustainable sources.

LIST OF TOP MARGARINE & SHORTENING MARKET COMPANIES

• NMGK Group (Russia)
• ConAgra (U.S.)
• Fuji Oil (Japan)
• BRF (Brazil)
  

KEY INDUSTRY DEVELOPMENT

September 2024: Unilever said it is introducing the Flora plant based margarine which is vegan compliant to satisfy the growing demand of customers who observe a vegan diet

REPORT COVERAGE

The global market for margarine and shortening is expected to perform increased growth rates owing to the various factors such as increase in the consumer awareness for the healthy foods. It is for these reasons that manufacturers are now more inclined to create products that contain no hydrogenation, no trans-fat or are fortified. However, some constraints have been realized such as disruption of supply chain and competition from natural foods such as butter. In order to tackle these issues industry players are therefore focusing on innovation, sustainable sourcing and strategic market development. In general, the market is projected to remain on a rising trend although the main focus will be to market the products as healthy products with a higher concentration on division of products.