by Margarine and shortening are butter substitutes that are used for cooking and baking purposes. They are made from vegetable oils and fats and are free of cholesterol and lactose. Margarine has become a popular substitute for butter due to its affordable price point and suitability for various cooking applications. It can be used to sauté and fry foods and is also used in baked goods such as cakes, pastries, and desserts to add moisture and tenderness. Shortening is primarily used for baking and confectionery applications as it creates flaky pastry and tender cookies and cakes. The global margarine and shortening market is gaining traction due to the rising health-conscious consumer base seeking low-calorie, low-fat alternatives to butter. Additionally, growing demand for convenience foods and bakery products is propelling market growth.
The global margarine and shortening market is estimated to be valued at US$ 15.75 Bn 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 key trends:
One of the key trends in the margarine and shortening market is product innovation. Manufacturers are focusing on developing new products with plant-based and clean label ingredients to cater to consumer demand. For instance, Upfield launched a range of plant-based spreads under the brand Flora ProActiv in Europe made from healthy fats like sunflower and rapeseed oils. Similarly, Bunge launched a non-hydrogenated shortening product called PureCrisco which contains no partially hydrogenated oils (PHOs). Rising health consciousness is propelling product innovation with lower-calorie, healthier ingredients.
Porter’s Analysis
Threat of new entrants: The margarine and shortening market require high capital investment for manufacturing facilities and R&D which acts as a barrier for new companies.
Bargaining power of buyers: The market has several buyers in food industry as well as household consumers but individual consumer households have low bargaining power due to limited purchase volume.
Bargaining power of suppliers: Major suppliers for raw materials like palm oil, soybean oil have significant influence over prices due to consolidated supply market.
Threat of new substitutes: Products like butter provide competition but ability to provide similar functionality at lower prices provide an edge over substitutes.
Competitive rivalry: Large companies dominate the market but there is high competition based on pricing, promotion, product innovation which ensures competitive prices.
Key Takeaways
The Global Margarine And Shortening Market Demand is expected to witness high growth. North America dominates the market currently due to high consumption whereas Asia Pacific is expected to be the fastest growing region backed by increasing consumption in countries like China and India.
Regional analysis comprises- Europe is a major market for margarine and shortening led by countries like Germany, France and UK. Strong demand from food processing and foodservice industries drives growth.
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. Large players focus on new product development and capacity expansions to consolidate their position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
