Global Shortening Fats Market Overview
Shortening Fats Market Size was estimated at 20.88 (USD Billion) in 2022. The Shortening Fats Industry is expected to grow from 21.47(USD Billion) in 2023 to 27.6 (USD Billion) by 2032. The Shortening Fats Market CAGR (growth rate) is expected to be around 2.83% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Shortening Fats Market Trends Highlighted
The shortening fats market is growing because of its various applications in bakery, confectionery, and cooking. There has been a tremendous shift in consumers towards baked and fried snacks and food products, which in turn is raising the market demand. Moreover, many people are disappointed due to the increasing demands and they recruit other non-dairy shortening, which is boosting the use of vegan shortening in bakery and confectionery items.
In order to take advantage of the growth, manufacturers work on innovations meant to introduce brand-new products that meet today’s consumer's veganism, health, etc. Besides, they are also penetrating new and emerging markets where there is an increasing shortening of the demand for fat consumption in the near future.
In addition to the above, the increasing acceptance of a vegan lifestyle and the increasing trend of bakes-it-myself also shape the market. The healthcare culture is also creating a shift in the population, with a craving for healthy food, and the traditional shortening of fats is being substituted with alternative fats. These plant-based oils will lead to increasing usage of plant-based oils, which will lead to increased demand for plant-based ingredients, especially palm oil, palm kernel oil and soybean oils.
Shortening Fats Market Drivers
Rising Demand for Convenience Foods
The demand for shortening fats is growing due to the increasing popularity of convenience foods such as frozen meals, snacks, and baked goods. These fats provide the desired texture, flavor, and shelf life of these products. The convenience of these foods, leading to an increase in their consumption by people with busy lifestyles, is creating demand for these fats and driving growth in the Shortening Fats Market Industry.
Expansion of the Food Service Industry
The food service industry, which is comprised of restaurants, cafes and bakeries, is a major consumer of shortening fats. This industry and the expansion of restaurants, especially in emerging markets, is a critical factor in the demand for shortening fats. They are used in frying, baking, and other food preparation methods, as well as in making sauces and dressings.
Health and Wellness Trends
While shortening fats has traditionally been associated with unhealthy diets, advancements in food technology have led to the development of healthier alternatives. Shortening fats derived from plant-based sources, such as palm oil and canola oil, are gaining traction due to their perceived health benefits. This shift towards healthier options is expected to support the growth of the Shortening Fats Market Industry.
Shortening Fats Market Segment Insights
Shortening Fats Market Type Insights
The Shortening Fats Market segmentation by Type is a crucial aspect of the industry, providing insights into the market dynamics and growth potential of different product categories. The market is segmented into three primary types 1) Vegetable Based Vegetable-based shortening fats are derived from plant oils, such as soybean oil, palm oil, and canola oil. These fats are increasingly popular due to their perceived health benefits and growing consumer preference for plant-based products. The Vegetable Based Shortening Fats Market is projected to reach USD 14.27 billion by 2024, exhibiting a CAGR of 3.2%.Key factors driving the growth of this segment include rising health consciousness, increasing demand for vegan and vegetarian products, and the availability of a wide range of vegetable-based shortening fats with varying functional properties. 2) Animal Based Animal-based shortening fats are obtained from animal sources, such as lard and tallow. These fats have been traditionally used in baking and cooking applications but have faced declining demand in recent years due to health concerns associated with saturated fats. The Animal Based Shortening Fats Market is expected to experience modest growth in the coming years, primarily driven by niche applications in certain regions and cultures.3) Others The 'Others' segment encompasses a diverse range of shortening fats, including hydrogenated vegetable oils and interesterified fats. Hydrogenated vegetable oils are produced by adding hydrogen to unsaturated vegetable oils, resulting in a solid or semi-solid consistency. Interesterified fats, on the other hand, are created by modifying the fatty acid composition of vegetable oils to achieve desired functional properties. The Others Shortening Fats Market is anticipated to grow at a moderate pace, driven by the development of innovative products and applications in the food industry.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Shortening Fats Market Packaging Insights
The packaging segment features heavily in the Shortening Fats Market, affecting product preservation, convenience, as well as, marketing strategies. Bulk packaging performs the best, accounting for over 55% of the market share by 2023. This can be attributed to its popularity, cost-effectiveness, and ideal industrial applications. Tubs and pails are growing in popularity owing to their ease of handling and storage, especially with the growth of retail outlets. In addition, increasing the demand for on-the-go as well as single-serve packages will continue to be popular.The other types of packaging, such as flexible pouches and biodegradable materials, are emerging as sustainable alternatives that target eco-conscious consumers. However, the overall conclusion is that the packaging segment indicates a firm growth associated with changing consumer trends and the need for innovative and practical packaging.
Shortening Fats Market End-Use Application Insights
The Shortening Fats Market segmentation by end-use application comprises bakery, confectionery, frying, and processed food. Among these, the bakery segment held the largest market share in 2023, accounting for over 40% of the Shortening Fats Market revenue. The bakery segment is expected to continue its dominance throughout the forecast period, driven by the increasing demand for baked goods such as bread, cakes, and pastries. The confectionery segment is also expected to witness significant growth, owing to the rising popularity of chocolates, candies, and other confectionery products.The frying segment is anticipated to grow steadily, as shortening fats are widely used in the preparation of fried foods such as french fries, onion rings, and doughnuts. The processed food segment is projected to exhibit moderate growth, as shortening fats are used in the production of various processed food products, including pizza dough, pie crusts, and frozen meals.
Shortening Fats Market Regional Insights
The regional segmentation of the Shortening Fats Market provides insights into the market's geographic distribution and performance. North America holds a significant share of the market due to the presence of established food processing industries and a high demand for processed foods. The market in Europe is driven by the growing popularity of plant-based diets and the increasing use of shortening fats in bakery and confectionery products. APAC is projected to witness the fastest growth over the forecast period, driven by the rising consumption of packaged foods and the expansion of the food processing industry.South America and MEA are expected to contribute a smaller share to the overall market, but they offer growth potential due to the increasing disposable income and changing dietary patterns.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Shortening Fats Market Key Players And Competitive Insights
All the leading players in the Shortening Fats Market industry seek to enhance their position in the market through the development of new products and technologies. Strategic partnerships and acquisitions are the most common strategies for the major key players of the market as they seek to strengthen their position and expand their market share. Competitive rivalry is quite high in this market, as key players invest significant efforts into research and development.
Bunge Limited is a major agribusiness and food company, and its shortening fats business operates under the Loders Croklaan brand. The company offers a wide range of shortening fats, including palm oil shortening fat, soybean oil, and canola oil shortening fats. The company has a strong position in North America, Europe, and Asia. Bunge Limited is actively engaged in the promotion of sustainable production and has set ambitious goals to achieve a reduction in its environmental impact.
AAK is another major player in the analyzed market. AAK is a company based in Sweden that operates in more than 50 countries. The company offers a broad range of shortening fats, including a wide range of vegetable oils, fats, and specialty fats. Its main focus is on the development of shortening fats for the bakery, confectionery and dairy and non-dairy cream sectors. AAK claims to have a strong focus on innovation and on developing patented technologies. The company is also strongly committed to sustainable production and consumption and has set ambitious goals to reduce environmental impact.
Key Companies in the Shortening Fats Market Include
Shortening Fats Market Industry Developments
The shortening fats market is projected to reach USD 27.6 billion by 2032, exhibiting a CAGR of 2.83% during the forecast period (2024-2032). Increasing demand for processed foods, particularly baked goods, is a key driver of market growth. Moreover, rising disposable incomes and changing lifestyles are contributing to the consumption of convenience foods, which often contain shortening fats.Recent developments include the launch of healthier shortening fats with reduced trans fat content by major manufacturers such as Archer Daniels Midland Company and Cargill. The growing health consciousness among consumers is driving the demand for healthier alternatives. Technological advancements in production processes are also leading to improved quality and functionality of shortening fats.
Shortening Fats Market Segmentation Insights
| Report Attribute/Metric | Details |
| Market Size 2022 | 20.88(USD Billion) |
| Market Size 2023 | 21.47(USD Billion) |
| Market Size 2032 | 27.6(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 2.83% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Nestlé, Kao Corporation, AarhusKarlshamn, Cargill, Olam, Bunge, Croda, Kerry Group, Fuji Oil Europe, Ingredion, IOI Group, Unilever, Lamb Weston, Wilmar International, Richardson International |
| Segments Covered | Type, Packaging, End-Use Application, Regional |
| Key Market Opportunities | Increasing health consciousness plantbased alternatives clean label movement functional shortening and expanding bakery industry |
| Key Market Dynamics | Rising Health Concerns Growing Demand for PlantBased Alternatives Technological Advancements |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Shortening Fats Market was expected to reach a valuation of 21.47 billion USD in 2023.
The Shortening Fats Market is projected to grow at a CAGR of 2.83% from 2024 to 2032.
The Shortening Fats Market is expected to reach a valuation of 27.6 billion USD by 2032.
The North America region is expected to hold the largest market share in the Shortening Fats Market.
The bakery and confectionery segment is expected to account for the largest revenue share in the Shortening Fats Market.
Some of the key competitors in the Shortening Fats Market include Archer Daniels Midland Company, Bunge Limited, Cargill, Incorporated, and Wilmar International Limited.
The major factors driving the growth of the Shortening Fats Market include the increasing demand for processed foods, the rising population, and the growing popularity of convenience foods.
The major challenges facing the Shortening Fats Market include the health concerns associated with trans fats and the volatility of raw material prices.
The key opportunities for growth in the Shortening Fats Market include the development of new products, the expansion into new markets, and the adoption of sustainable practices.
The key trends shaping the Shortening Fats Market include the increasing demand for clean label products, the growing popularity of plant-based fats, and the adoption of advanced technologies.
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