Global Shortenings Market Size By Source (Vegetable, Animal), By Key Ingredient (Oil, Lard), By Variant (Liquid Shortening, Solid Shortening), By Application (Confectionery Products, Savory Snacks), By Process (Fractionisation, Hydrogenation), By Geographic Scope And Forecast

Shortenings Market Size And Forecast

Shortenings Market size was valued at USD 8.89 Billion in 2023 and is projected to reach USD 25.40 Billion by 2030, growing at a CAGR of 18.50% from 2024 to 2030.

The shortenings market is driven by the rising demand for bakery products and convenience foods as well as the expanding popularity of natural and organic ingredients. Additionally, shifting consumer tastes and concerns about the health effects of trans fats have an impact on the industry. The Global Shortenings Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Shortenings Market Definition

Shortenings are fats or oils that solidify at room temperature and are added to a variety of food items to improve their flavor, mouthfeel, and texture. They are frequently used in food processing applications like baking, frying, and others. Vegetable oils like soybean, cottonseed, or palm oil are commonly used to make shortenings. These oils have undergone partial hydrogenation, which turns some of their liquid unsaturated lipids into solid saturated fats. The fat’s stability and shelf life are improved by this procedure, improving its suitability for usage in a variety of food products.

Shortenings can also be produced using animal fats like lard or butter in addition to vegetable oils. However, because of their availability and lower price, vegetable shortenings are more frequently utilized. Food products containing shortenings include fried dishes like doughnuts and french fries as well as baked products like cookies, cakes, and pastries. They also serve as the foundation for margarine, a vegetable oil-based butter alternative.

Global Shortenings Market Overview

The shortenings market is expanding as a result of the rising demand for bakery goods and convenience meals. The use of shortenings in food products is rising as a result of customers’ busy lifestyles and increasing demand for ready-to-eat meals and snacks. Shortenings, such as low-fat and trans-fat-free shortenings, have been used in the creation of new and inventive goods as a result of advancements in food processing technology. Owing to the more wholesome alternatives they provide customers, these products are propelling the shortenings market’s expansion. The shortenings industry is expanding as a result of the rising demand for fried foods such as chicken nuggets, french fries, and doughnuts. These dishes demand superior fat with the ability to endure high temperatures and have an appealing flavor and texture.

However, the shortenings market is significantly constrained by health issues associated with the intake of trans fats. Since trans fats are known to raise the risk of heart disease, several nations have put restrictions on their usage of food items in place. As a result, manufacturers are switching to more expensive, but potentially healthier, low-fat or trans-fat-free shortenings. The profitability of the shortenings market may be impacted by fluctuations in the price of raw materials like vegetable oils. Any major pricing changes have the potential to affect production costs and, eventually, product prices.

Nevertheless, the shortenings market has a chance due to the rising trend toward natural and organic components in food products. More health-conscious consumers are seeking products made with natural and organic components. Shortenings derived from organic or natural sources represent a profitable market opportunity for manufacturers. The expansion of emerging markets, notably in Asia-Pacific, offers the shortenings industry a chance. The demand for processed meals and bakery products will probably rise as these markets develop and become more affluent, which will raise the need for shortenings.

Global Shortenings Market Segmentation Analysis

The Global Shortenings Market is segmented based on Source, Key Ingredient, Variant, Application, Process, and Geography.

Shortenings Market, By Source

• Vegetable
• Animal

Based on Source, the market is divided into vegetable and animal. The vegetable segment is anticipated to hold the largest market share as when used in baking and cooking, vegetable shortening is strongly preferred over animal shortening. The market for vegetable shortening is driven by the expanding processed food sector. Pasta and noodles are examples of processed foods prepared with vegetable shortening that is eaten in many nations as a staple diet. The demand for vegetable shortening is being driven by the expanding food processing industry.

Shortenings Market, By Key Ingredient

• Oil
• Lard
• Butter
• Tallow
• Others

Based on key Ingredient, the market is split into oil, tallow, butter, lard, and others. The oil segment holds the largest market share as it may be used to make a variety of shortenings that can be applied to a variety of food products, including baked products and fried dishes. Vegetable oils are often seen as healthier due to their lower levels of saturated fats and trans fats when compared to animal fats like tallow, butter, and lard. They are therefore more enticing to food producers and customers who care about their health. In addition, compared to animal fats, vegetable oils are more commonly available, and their costs are often more stable. These oils are ideal ingredients for making specialized shortenings because they can be tailored to meet specific needs, such as melting point, texture, and flavor. They are also thought to be more environmentally friendly than animal fats because they have a smaller carbon footprint.

Shortenings Market, By Variant

• Liquid Shortening
• Cake/Icing Shortening
• All Purpose Shortening
• Solid Shortening
• Others

Based on Variant, the market is divided based on segments such as liquid shortening, cake/icing shortening, all purpose shortening, solid shortening, and others. The all purpose shortening segment is projected to show trends during the forecast period as they are suitable for a variety of food preparation methods, including baking, frying, and cooking. They may be altered to produce a range of textures, including flaky, soft, and creamy. It may therefore be used in a variety of baked items. Owing to their decreased water content, they have a longer shelf life than other shortenings. Due to its increased stability, it can be kept in storage for extended periods of time without going bad or rotting. In comparison to specialty shortenings like cake/icing shortening or liquid shortening, they are often more affordable. It is therefore the best option for food producers looking for a flexible component that can be employed in a variety of product lines.

Shortenings Market, By Application

• Confectionery Products
• Bakery
• Savory Snacks
• Others

Based on Application, the market is divided into segments such as confectionery products, bakery, savory snacks, and others. The bakery segment is projected to show trends during the forecast period because they need less time and effort, consumers’ growing desire for convenience foods indirectly boosts the demand for bakery products. Owing to busy lifestyles, there is a growing need for convenience, which drives the market for shortening, thus driving the demand for bread products among consumers. Additionally, it is anticipated that the demand for bakery goods would be driven by the rapid expansion of the frozen food sector brought on by the rapidly expanding urban families in emerging nations.

Shortenings Market, By Process

• Fractionization
• Edible Oil Production Process
• Interesterification
• Hydrogenation

Based on process, the market is bifurcated into fractionization, edible oil production process, interesterification, and hydrogenation. The interesterification segment is projected to show trends during the forecast period as shortenings that contain fewer trans fats, which have been associated with a number of health problems, can be produced by interesterification. It can improve shortening’s functioning by enabling the creation of goods with desired sensory and textural qualities, and it can be used to alter the melting point and texture of the finished product. This enables the production of customized shortenings that cater to the unique requirements of food producers and consumers. Interesterification is a more environmentally friendly alternative to hydrogenation since it may employ a range of vegetable oils without creating trans fats.

Shortenings Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of The World

Based on regional analysis, the global shortenings market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The region of Asia Pacific holds the largest market share owing to the large population, which creates a high demand for food items, particularly processed meals and bakery goods, both of which make extensive use of shortening. More people are relocating to cities and towns in the region, which is rapidly urbanizing. With a rise in the desire for convenience foods and snacks, this shift has caused changes in eating patterns and lifestyles. Shortenings are used more often in certain meals, which increases consumption. Western-style food products, which frequently include shortenings, are becoming more and more popular with consumers in the Asia-Pacific region. This pattern is especially noticeable in China and India, where there is an increase in the demand for fried meals and bakery goods. Consumption is increasing as a result of the expansion of the economies in the Asia-Pacific region. Shortenings are heavily used in processed meals and baked goods, thus this greater purchasing power is driving up demand for such items. Governments in the Asia-Pacific region are encouraging the expansion of the food processing sector by providing firms with incentives and subsidies. Shortenings are widely used in processed meals and baked goods, therefore this assistance has increased their production.

Key Players

The “Global Shortenings Market” study report will provide a valuable insight with an emphasis on the global market. The major players in the market are Cargill, Mallet & Company, Bunge Limited, Palsgaard, Conagra Brands, Riken Vitamin, Wilmar International Limited, Stratas Foods, International Foodstuff Company Holdings Limited, Carotino SDN BHD, Manildra Group, J.M. Smucker, Associated British Foods PLC, Edible Oils Ltd., AAK AB, Archer Daniels Midland Company, Ventura Foods LLC, and Others.

Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

Key Developments

• Bunge had an agreement in 2020 with Seara Alimentos S.A., to transfer their Brazilian margarine and mayonnaise assets, which included three production facilities and the brands used for these two products. It also streamlined operations in Brazil around the companies’ core competencies while offering excellent value for a trustworthy company. It also demonstrated a crucial stage in the requirement for portfolio-wide optimization. The companies also agreed to supply, toll manufacturing, and trademark license agreements as part of this arrangement. Bunge’s portfolio still contains other branded goods such as packaged oils, shortenings, and specialty oils.
• In March 2022, Sarawak Oil Palms Berhad (SOPB) launched two bakery products – The Crescent Margarine and Shortening. Both products are made at the recently constructed, cutting-edge Specialty Fats factory in Bintulu, preventing lengthy transportation times and product quality deterioration. Crescent Margarine and Shortening are ideal baking partners since they are particularly prepared to suit regional taste preferences and the hot environment.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the global shortenings market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. Porter’s five forces model can be used to assess the competitive landscape in the global shortenings market, gauge the attractiveness of a certain sector, and assess investment possibilities.