Margarine and shortening are butter substitutes made from vegetable oils and water or milk. They are often used as spreads for bread and in baking and cooking. Margarine and shortening have historically been positioned as affordable and healthier alternatives to butter, containing little or no cholesterol and often with unsaturated fats. They come in different forms like sticks, tubs and sprays according to end user needs. Common flavors available are regular, garlic and herb varieties appealing to different cooking cultures. Margarines and shortenings are extensively used in mass produced bakery products, puff pastries, sauces and ready meals where their consistency and fat distribution properties provide texture and mouthfeel. Baking industries rely on shortening for pastry, biscuits and snacks for structural integrity and flakiness.
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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The margarine and shortening market growth is driven by increasing health consciousness among consumers who prefer using margarines and shortenings as butter substitutes considering their lower saturated fat and calorie content. As per health organizations such as American Heart Association, margarines and shortenings when consumed in moderation as part of a balanced diet, can help reduce risk of heart diseases. This has boosted their demand in home cooking as well as food services industry. However, as the market is highly competitive, manufacturers are focusing on product innovation to gain consumer traction. New product launches featuring additional health benefits such as vitamin fortification, plant-based formulations are expected to offer lucrative opportunities. Further, growth of ready-to-eat product segment relying on these fats and oils for texture and shelf-stability has also augmented the market growth over the forecast period.
Segment Analysis
The margarine and shortening market can be segmented into margarine and shortening. Margarine holds the larger market share currently owing to its increasing usage in baking and spreading applications. It is a cheaper substitute for butter and is more versatile as well. Margarine accounted for over 60% share of the global margarine and shortening market in 2023.
PEST Analysis
Political: The governments are promoting products with lower trans-fats to curb health issues. Regulations related to partially hydrogenated oils will further boost margarine demand.
Economic: Rising income levels and urbanization are increasing demand for convenience foods prepared using margarine and shortening. Lower prices compared to butter also aid market growth.
Social: Growing health consciousness is prompting consumers to prefer margarine over butter due to lower saturated fat content. Shortening finds usage in baking owing to its stability.
Technological: Manufacturers are investing in new formulations to match butter-like texture while providing health benefits. They are also introducing products without partially hydrogenated oils.
Key Takeaways
The Global Margarine And Shortening Market Growth is expected to witness high over the forecast period supported by rising demand for convenience foods and health benefits of these products.
Regional analysis: North America dominates the margarine and shortening market currently owing to large scale usage of these products in bakery and confectionary applications. Europe holds the second largest share and high demand in countries like Germany, UK, and France is aiding regional growth.
Key players: Key players operating in the margarine and shortening market are 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. Key players are focusing on new product launches to match evolving tastes and preferences. They are also emphasizing on clean label and non-GMO options.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it