Shortenings

Shortenings

Global Shortenings Market to Reach US$6.2 Billion by 2030

The global market for Shortenings estimated at US$4.6 Billion in the year 2023, is expected to reach US$6.2 Billion by 2030, growing at a CAGR of 4.4% over the analysis period 2023-2030. Oil Ingredient, one of the segments analyzed in the report, is expected to record a 4.9% CAGR and reach US$2.2 Billion by the end of the analysis period. Growth in the Butter Ingredient segment is estimated at 4.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.2 Billion While China is Forecast to Grow at 7.1% CAGR

The Shortenings market in the U.S. is estimated at US$1.2 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.3 Billion by the year 2030 trailing a CAGR of 7.1% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.5% and 3.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.0% CAGR.

Global Shortenings Market - Key Trends and Drivers Summarized

Why Are Shortenings Vital in the Food Industry Today?
Shortenings play a crucial role in the food industry, particularly in baking and confectionery, due to their ability to create desirable textures, improve shelf life, and enhance flavors. Traditionally made from hydrogenated vegetable oils, shortenings are used in a variety of applications, including biscuits, cakes, pastries, and deep-fried foods. They provide the flakiness in pie crusts, the tenderness in cookies, and the lightness in cakes, making them indispensable for both home bakers and large-scale food processors. The demand for shortenings has remained robust, fueled by the growing consumption of baked goods and snack foods across the globe, especially in emerging markets where urbanization and changing lifestyles drive demand for convenient and ready-to-eat products.

How Are Innovations in Shortening Formulations Impacting the Market?
Innovations in shortening formulations are significantly impacting the market by addressing health concerns and consumer preferences for natural and clean-label ingredients. The shift towards non-hydrogenated shortenings, which contain lower trans fats, is a direct response to the growing awareness about the health risks associated with trans fats and saturated fats. Producers are now focusing on developing plant-based, high-oleic, and specialty shortenings that provide the same functional benefits as traditional shortenings while aligning with consumer trends for healthier, vegan, and allergen-free products. Moreover, advancements in fat crystallization and emulsification technologies are enabling the development of shortenings that improve the texture, stability, and aeration in baked products, catering to the increasing demand for high-quality bakery items.

Which Market Segments Are Driving the Growth of Shortenings?
Types of shortenings include all-purpose shortenings, emulsified shortenings, liquid shortenings, and specialty shortenings, with all-purpose and emulsified types being the most widely used due to their versatility in various cooking and baking processes. Applications span across bakery, confectionery, snacks, and dairy products, with the bakery segment dominating the market due to the high consumption of bread, cakes, cookies, and pastries. End-users of shortenings include commercial bakeries, foodservice operators, and household consumers, with commercial bakeries leading the market due to the scale of production and the need for consistent product quality. Asia-Pacific is emerging as a high-growth region driven by rising urbanization, changing dietary habits, and expanding bakery sectors.

What Are the Key Drivers of Growth in the Shortenings Market?
The growth in the shortenings market is driven by several factors, including the rising demand for bakery and confectionery products, technological advancements in fat processing and emulsification, and the growing popularity of plant-based and non-hydrogenated shortenings. The development of specialty shortenings for gluten-free, organic, and clean-label products with improved functional properties for laminated dough, frying, and icing is driving market adoption among commercial bakeries, foodservice operators, and specialty food producers. The focus on enhancing shortening performance for stability, texture, and shelf-life is expanding the market reach among snack foods, frozen desserts, and ready-to-eat meals. The growing emphasis on sustainable and ethically sourced ingredients, coupled with increasing investments in R&D for zero-trans-fat, low-saturated-fat, and high-oleic shortenings, is creating new opportunities for market growth. Additionally, the rising use of shortenings in emerging markets with growing urbanization and consumer preferences is further supporting market expansion.

Select Competitors (Total 42 Featured) -

• AAK AB
• Archer Daniels Midland Company
• Associated British Foods PLC
• Bunge Ltd.
• Cargill, Inc.
• Conagra Brands, Inc.
• International Foodstuff Company Holdings Limited (IFFCO)
• Manildra Group
• Ventura Foods, LLC.
• Wilmar International Ltd.

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