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 includes products used as substitutes for butter and cooking oil in various culinary applications. Margarine is a non-dairy spread made from vegetable oils and is widely used in the baking and cooking industry. Shortening, on the other hand, is solid fat made from hydrogenated vegetable oil and is commonly used in baking and confectionery. The market offers a variety of margarine and shortening products, including butter blends, tub spreads, and industrial margarine, among others.

Market Dynamics:

The market for margarine and shortening is driven by two key factors. Firstly, the increasing consumer demand for healthier alternatives to butter and cooking oil is boosting the adoption of margarine and shortening products. Margarine made from vegetable oils is considered a healthier option as it is low in saturated fat, cholesterol-free, and contains essential omega-3 fatty acids. Shortening is also preferred by bakers and confectioners for its easy-to-use nature and ability to enhance the texture and flavor of baked goods.

Secondly, technological advancements in the production process of margarine and shortening are further propelling market growth. Manufacturers are constantly innovating to develop products with improved taste, texture, and nutritional profiles. For instance, the introduction of trans-fat-free margarine and shortening has gained significant traction among health-conscious consumers.

Segment Analysis:

The margarine and shortening market can be segmented based on product type, distribution channel, and application. Among the product types, tub spreads are dominating the market due to their convenience and versatility. Tub spreads are available in various flavors and are widely used in households for everyday cooking and spreading on bread and toast.

PEST Analysis:

Political:

Government regulations regarding the use of trans fats in food products are impacting the margarine and shortening market. Many countries have banned or restricted the use of trans fats due to their harmful effects on human health.

Economic:

Increasing disposable income and changing lifestyles are influencing consumer food choices. Margarine and shortening, being affordable alternatives to butter and cooking oil, are gaining popularity among price-conscious consumers.

Social:

Growing health consciousness among consumers is driving the demand for healthier food options. Margarine made from vegetable oils is perceived as a healthier option due to its low saturated fat content and cholesterol-free nature.

Technological:

Technological advancements in the production and processing of margarine and shortening are enabling manufacturers to develop innovative products with improved taste, texture, and nutritional profiles.

Key Takeaways:

– The global margarine and shortening market is expected to witness high growth, exhibiting a CAGR of 1.5% over the forecast period, due to increasing consumer demand for healthier alternatives and technological advancements.

– North America is the fastest-growing and dominating region in the margarine and shortening market. This can be attributed to the high consumption of processed food and increasing health consciousness among consumers in the region.

– 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.

In conclusion, the global margarine and shortening market is witnessing steady growth due to increasing consumer demand for healthier alternatives and technological advancements. Manufacturers are focusing on developing innovative products to cater to the evolving consumer preferences.