Margarine and Shortening Market Sales Forecast to Reach USD 24.6 Billion by 2034
The global margarine and shortening market is showing mixed trends regionally but is projected to have moderate growth globally, driven primarily by evolving consumer demand and innovations in healthier fat alternatives.
The market, valued at approximately USD 24.6 billion by 2034, is witnessing significant growth due to consumer preference for healthier alternatives to traditional saturated and trans fats. Innovations like oleogels, a healthier subclass of organogels, are gaining traction, offering margarine and shortening products with better nutritional profiles.
In Europe, Italy's margarine and shortening market was valued at approximately $213 million in 2024, declining by 6.9% after two years of growth. However, German production remained stable, suggesting market stabilization and gradual growth after previous falling demand.
Projections suggest continued but moderate global market growth, supported by these factors, with innovation towards health-conscious formulations and maintained industrial use being key.
In North America, the market held a 38.9% share in 2024, valued at USD 7.7 billion. Asia Pacific sees rapid growth due to urbanization and rising incomes, though its share lags behind North America and Europe.
Businesses in the margarine and shortening market should focus on innovation, emphasizing plant-based, low-trans-fat, and clean-label products. Solid forms offer consistency, stability, and ease of measurement, making them preferred in bakeries, foodservice, and packaged food manufacturing.
Baking and pastry applications lead the application segment with a 56.1% share in 2024. Retail dominates the end-use segment at 67.2%, driven by daily cooking and baking needs. Supermarkets and hypermarkets capture 38.7% share of the distribution channel segment in 2024.
Strategic partnerships can strengthen market presence, as demonstrated by Associated British Foods PLC (ABF) and Bunge Limited, who have introduced high-performance shortening and margarine solutions emphasizing zero trans fats and non-GMO ingredients. Conagra Brands Inc. and AAK AB have also reformulated their products to remove artificial trans fats and hydrogenated oils.
Investing in sustainable sourcing, like non-GMO oils, enhances brand appeal. Targeting emerging markets like Asia-Pacific, driven by urbanization, can capture new consumer segments and drive revenue growth. Offering premium, artisanal products can also drive revenue growth.
The report provides insights into market drivers, restraints, opportunities, and challenges. It covers analysis by product type, source, form, application, end-use, and regional trends. Leveraging technology for advanced processing improves efficiency and product quality. The report also includes a detailed competitive landscape, market share analysis, and profiles of key industry players.
In summary, while some mature markets may face decline or stagnation, others show recovery, and global dynamics combined with product innovation support overall growth in the margarine and shortening market. The growth of this market significantly impacts the global economy, particularly in North America and Asia-Pacific, meeting evolving consumer needs.
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- The finance sector can benefit from the growth in the margarine and shortening market, with investments in businesses focusing on healthier and sustainable alternatives in food-and-drink industries.
- The retail sector, being a dominant end-use segment for margarine and shortening products, has an opportunity to capitalize on increased demand for higher-quality, plant-based, and clean-label items in the lifestyle category.
- Companies in the technology sector can contribute to improving efficiency and product quality in the margarine and shortening industry through leveraging advanced technology for data-and-cloud-computing solutions and automated production processes.
- Businesses operating in the energy industry may consider partnering with companies in the margarine and shortening market to meet the growing energy demands of expanded bakeries, foodservice establishments, and food manufacturing facilities.
