Margarine & Shortening Market By Product Type (Margarine, Shortening) , By Source (Vegetable, Animal) By Form (Solid, Liquid) By End User (Residential, Food Service, Industrial) By Application (Bakery, Confectionery, Snacks & Savory, Industrial, Others) By Distribution Channel (Direct, Supermarkets/Hypermarkets, Departmental Stores, Online, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Margarine & Shortening Market
The margarine & shortening market was valued at $26.8 billion in 2023 and is projected to reach $36.5 billion by 2033, growing at a CAGR of 3.1% from 2024 to 2033.
Margarine & shortening are substitutes for butter utilized in baking and cooking purposes. Both are derived from vegetable oil; however, shortening is a form of solid fat with no water content and margarine contains milk solids & water. While both the substitutes have a high saturated fat content, the quantity is higher in shortening as compared to margarine.
Rise in shift toward plant-based products is a key driver of the margarine & shortening market as both are obtained from vegetable oils. In addition, high shelf life of margarine & shortening in comparison to butter propels the development of the market significantly. A notable trend gaining prominence in the margarine & shortening market is the introduction of gourmet flavors. Several brands are focusing on crafting butter substitutes with diverse infused flavors such as garlic, olive oil, or herbs to elevate the appeal of using them for cooking.
However, high saturated fat content of margarine & shortening deters the health-conscious segment of individuals from consuming them, hampering the development of the market. Furthermore, stringent competition from comparatively healthy alternatives such as olive oil and plain butter restrains the market growth significantly. On the contrary, advancements in churning and processing techniques are poised to present lucrative opportunities to boost the sales of margarine & shortening by improving their taste & texture and enhancing their shelf-life. Techniques such as ohmic heating, pulsed light & closed plasma, and high-pressure processing are currently acquiring traction in the production of margarine & shortening.
Segment ReviewThe margarine & shortening market is segmented into product type, source, form, end user, application, distribution channel, and region. On the basis of product type, the market is bifurcated into margarine and shortening. Depending on source, it is divided into vegetable and animal. As per form, it is classified into solid and liquid. As per end user, it is categorized into residential, food service, and industrial. By application, it is segmented into bakery, confectionery, snacks & savory, industrial, and others. According to distribution channel, it is classified into direct, supermarkets/hypermarkets, departmental stores, online, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of product type, the margarine segment held a high share of the market in 2023.
Depending on source, the vegetable segment acquired a high stake in the market in 2023.
As per form, the solid segment was the highest shareholder in 2023.
By application, the bakery segment dominated the market in 2023.As per end user, the food service segment accounted for a high share of the market in 2023.
According to distribution channel, the direct segment garnered a high share in the market in 2023.
Region wise, Europe was the highest revenue generator in 2023.
Competition AnalysisThe major players in the global margarine & shortening market include Upfield BV, Conagra Brands Inc., Richardson International Limited, Associated British Foods PLC, Vandemoortele, Fediol, Wilmar International Ltd., Cargill Incorporated, J.M. Smucker Company, Premium Vegetable Oils Sdn Bhd, and Fuji Oil Co., Ltd. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy Product TypeMargarine
Shortening
By SourceVegetable
Animal
By FormSolid
Liquid
By End UserResidential
Food Service
Industrial
By ApplicationBakery
Confectionery
Snacks Savory
Industrial
Others
By Distribution ChannelDirect
Supermarkets/Hypermarkets
Departmental Stores
Online
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA
Key Market PlayersUpfield BV
Conagra Brands Inc.
Richardson International Limited
Associated British Foods PLC
Vandemoortele
Fediol
Wilmar International Ltd
Cargill Incorporated
J.M. Smucker Company
Premium Vegetable Oils Sdn Bhd
Fuji Oil Co., Ltd