The global Margarine and Shortening Market is estimated to be valued at US$ 15.75 billion in 2023 and is expected to exhibit a CAGR of 1.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Margarine and Shortening Market is witnessing steady growth due to the increasing demand for healthier alternatives to traditional cooking fats. Margarine and shortening offer lower cholesterol and calorie content compared to butter, making them popular choices among health-conscious consumers. The growing awareness regarding the health risks associated with high consumption of saturated fats has led to a shift in consumer preferences towards plant-based spreads and shortenings.
However, the market faces certain obstacles, including the rising popularity of oil substitutes such as olive oil and coconut oil. Additionally, fluctuations in prices of raw materials, such as soybeans and palm oil, can affect the profit margins of key players in the industry.
Market Key Trends:
One key trend in the Margarine and Shortening Market is the increasing use of plant-based ingredients. Consumers are becoming more conscious of their dietary choices, leading to a rise in demand for plant-based and vegan options. Manufacturers are responding to this trend by introducing margarine and shortening products made from plant-based sources, such as vegetable oils and nuts.
For example, Upfield Holdings BV recently launched plant-based margarine under its brand, Flora. This product is made using 100% natural ingredients and contains no artificial preservatives or flavors. This innovative offering caters to the growing demand for healthy and sustainable alternatives to traditional spreads.
Segment Analysis:
The Margarine and Shortening Market is segmented based on the type of product, with margarine being a dominating sub-segment. Margarine is a popular choice for spreading on toast, using in baking, and as a substitute for butter. It offers a healthier option without compromising on taste and texture.
Margarine is further classified into various categories, such as regular margarine, light margarine, and whipped margarine. Regular margarine is the most commonly used type, accounting for a significant market share. It is widely used in households and in the food service industry for cooking and baking purposes.
Key Takeaways:
Market size-related content:
The global Margarine and Shortening Market is expected to witness high growth, exhibiting a CAGR of 1.5% over the forecast period. This growth can be attributed to the increasing consumer awareness regarding the health benefits of using healthier alternatives to traditional cooking fats. For example, margarine and shortening with lower cholesterol and calorie content.
Regional analysis-related content:
North America is projected to be the fastest-growing and dominating region in the Margarine and Shortening Market. The region’s growing health-conscious population and increasing demand for plant-based spreads are contributing to market growth.
Key players-related content:
Key players operating in the global Margarine and Shortening Market include Unilever, Conagra Brands, Bunge Limited, Wilmar International Ltd., Upfield Holdings BV, Cargill, Incorporated, Archer Daniels Midland Company (ADM), Fuji Oil Co., Ltd., Richardson International Limited, Dairy Farmers of America, AAK AB, NMGK Group, Puratos Group, Kerry Group, and Vandemoortele. These companies are focusing on product innovation, incorporating plant-based ingredients, and expanding their market presence to stay competitive in the market.
In summary, the Margarine and Shortening Market is experiencing growth due to the increasing demand for healthier alternatives and plant-based ingredients. Margarine dominates the market segment, with various types catering to different consumer preferences. North America is the fastest-growing region in the market, and key players are focusing on product innovation to stay competitive.
