Vegetable Shortening Market Overview
Vegetable Shortening Market Size was estimated at 14.14 (USD Billion) in 2022.The Vegetable Shortening Market Industry is expected to grow from 14.7(USD Billion) in 2023 to 20.8 (USD Billion) by 2032. The Vegetable Shortening Market CAGR (growth rate) is expected to be around 3.93% during the forecast period (2024 - 2032).
Key Vegetable Shortening Market Trends Highlighted
The vegetable shortening market is experiencing a surge in demand driven by the rising popularity of plant-based diets and the increasing awareness of the health benefits of vegetable oils. Market trends indicate a growing shift towards healthier alternatives to traditional animal-based fats, expanding the vegetable shortening market.Key market drivers include the growing demand for vegan and vegetarian products, as well as the increasing prevalence of health-conscious consumers who are seeking alternatives to unhealthy trans fats. Technological advancements in the production of vegetable shortening have also played a significant role in enhancing its quality and functionality, further fueling market growth.Recent trends in the vegetable shortening market include the emergence of innovative packaging solutions that preserve freshness and extend shelf life, as well as the development of specialty vegetable shortenings tailored to specific culinary applications. Additionally, there is a growing focus on sustainability within the market, with manufacturers emphasizing eco-friendly ingredients and environmentally responsible production practices.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Vegetable Shortening Market Drivers
Rising Demand for Healthier Food Options
One of the main trends in today's world is consumers' presentation of food products. They are becoming inclined towards healthier foods. The majority of people are fed up with market products that overtake preservative potatoes, which are very unhealthy for humans. They now widely depend on the consumption of vegetable shortening rather than conventional labor shortening. Vegetable shortening is made from solidified and refined vegetable oil, which degraded over time, and all trans-fat had got from this product.Vegetable shortening is more acceptable than traditional shortening; hence, it is made from categories of plant-based oils that are lower in saturated fats and cholesterol than animal fats. It predominantly strengthens the important natural acids that will benefit the health of humans. The market industry is growing significantly in the $8 Billion market as people change their buying and producing structure. One of the main significant drivers of the market on the north side is the request for social impacts, hiking, and labor investing.Ultimately, we can say that this happens each year due to the provision of products to the consumer.
Growth in the Food Processing Industry
The food processing industry is a major user of vegetable shortening. Vegetable shortening is used in various products, including baked goods, snacks, and processed foods. The growth in the food processing industry is expected to drive demand for vegetable shortening in the coming years.
Increasing Population and Urbanization
The population is growing, and urbanization is increasing. This leads to a greater demand for food products, including vegetable shortening. Vegetable shortening is a staple ingredient in many cuisines, and it is expected to remain in high demand as the population grows.
Vegetable Shortening Market Segment Insights
Vegetable Shortening Market Grade Insights
Grades of the product and which one is expected to grow fast There are three grades of the product available in the Vegetable Shortening Market Master Grade, Premium Grade, and Standard Grade. Master Grade vegetable shortening is of the highest quality. It is made from the finest quality vegetable oils, such as olive or palm, and has a very high smoke point. Therefore, the master grade is intended for high-temperature frying and baking, but this grade is more expensive than the others. Premium-grade vegetable shortening is from a mid-range grade.It is made from a blend of vegetable oils and has a slightly lower smoke point than Master Grade vegetable shortening. However, it can also used for frying and baking – this grade is less expensive than the master one. Standard Grade vegetable shortening is of the lowest provided quality. A blend of vegetable oils is low in the smoke point for this grade and, therefore, is only used for low-temperature applications, such as spreading and making pie crust. This grade is the least expensive in comparison to the other two grades. By 2023 Shortening Market Master Grade will prevail in the market under consideration and will equal $ 6.5 billion.The reason for such growth is the increasing demand for high-quality products by customers. The Premium Grade $ 4.3 billion is expected to be the second most popular product in the market, and Standard Grade $ 3.9 billion is expected to be the least popular. The medium volume of the whole market is estimated at $ 14.7 billion. Products of a lower quality are usually in less demand, especially in the food industry. A severe ecological situation is also expected in the year under consideration.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Vegetable Shortening Market Type Insights
The Vegetable Shortening Market Revenue is Anticipated to exceed USD 20.8 Billion by June 2032, Says by Planet Market Reports. The Type segment of the market is sub-classified as Palm Oil-Based Vegetable Shortening, Soybean Oil-Based Vegetable Shortening, Canola Oil-Based Vegetable Shortening, and Other Vegetable Oils-Based Vegetable Shortening. By 2023, Palm Oil-Based Vegetable Shortening was the biggest market segment and accounted for a significant percentage of the total revenue. The type of vegetable shortening, palm oil, provides better texture, stability, and shelf life for many food products than other types of shortening.Soybean Oil-Based Vegetable Shortening is another significant segment, mostly due to the prevalence of soybean production and its charge of economy in food processing. Canola Oil-Based Vegetable Shortening is a fast-growing segment due to its adverse health mobility, such as being rich in omega-3 fatty acids. Other Vegetable Oils-Based Vegetable Shortening is a popular alternative among consumers due to the diverse varieties in the category, such as sunflower oil and coconut oil, which target certain dietary needs and appeal to consumers on a cultural basis.
Vegetable Shortening Market Application Insights
The market is segmented by application into frying, baking, confectionery, and other applications (including food processing). Frying is the most common application of vegetable shortening, accounting for around 60% of the Vegetable Shortening Market revenue in 2023. Vegetable shortening is used in frying because it has a high smoke point, so it can be heated to a high temperature without burning. This makes it ideal for frying foods that require a crispy exterior, such as French fries, chicken, and fish. Baking is another major application of vegetable shortening, accounting for around 25% of the Vegetable Shortening Market segmentation in 2023.Vegetable shortening is used in baking because it adds moisture and tenderness to baked goods. It also helps to create a flaky texture in pastries and biscuits. Confectionery is a growing application for vegetable shortening, accounting for around 10% of the Vegetable Shortening Market data in 2023. Vegetable shortening is used in confectionery because it adds a smooth and creamy texture to candies, chocolates, and icing. It also helps to prevent crystallization, which can occur when sugar is heated. Other applications for vegetable shortening include food processing, which is used as an ingredient in various food products, such as salad dressings, sauces, and processed meats.The Vegetable Shortening Market statistics show that the food processing industry is expected to be a major driver of growth in the coming years.
Vegetable Shortening Market Form Insights
The Vegetable Shortening Market is segmented by Form into Liquid and Semi-Solid. Among these two forms, the Liquid segment is expected to hold a larger market share in 2023 and is projected to continue its dominance throughout the forecast period. The ease of use and versatility of liquid shortening make it a preferred choice for various food applications, including baking, frying, and salad dressings. The rising demand for convenience foods and processed snacks is further driving the growth of the Liquid segment. On the other hand, the Semi-Solid segment is also expected to witness steady growth over the forecast period.Semi-solid shortening is often preferred for applications with a more solid texture, such as pie crusts and pastries. The increasing popularity of home baking and the growing demand for premium baked goods are contributing to the growth of the Semi-Solid segment. Overall, the Vegetable Shortening Market is expected to register a steady growth rate during the forecast period, driven by the increasing demand for processed foods and the growing popularity of home baking.
Vegetable Shortening Market Regional Insights
The Vegetable Shortening Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2024, owing to the growing demand for vegetable shortening in the food processing industry. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness the fastest growth rate during the forecast period due to the increasing demand for vegetable shortening in emerging economies such as China and India. South America and MEA are expected to contribute a smaller share of the Vegetable Shortening Market revenue.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Vegetable Shortening Market Key Players And Competitive Insights
R&D is the cornerstone of the achievement of companies in the vegetable shortening market, and the top players continue to prioritize investments to develop innovative products aligned with the consumer experience. Leading companies in the vegetable shortening market also achieve a competitive advantage by forming alliances and acquiring other firms. Such strategies have served to ensure that the industry is fortified and seeded for growth. Bunge Limited is among the notable competitors in this industry; the company maintains a presence and serves a wide range of demographic groups in the market. Detailedly, Bunge Limited has an extensive product portfolio that ranges beyond the vegetable shortening market, offering an advantage against other players in the market.Using sustainability as a basis in the production and supply chain management of this company's portfolio allows Bunge Limited to meet the expectations of its customer base. The firm utilizes an extensive distribution channel founded on stable supply chain management to cater to clients' unique needs across all its networks. Archer Daniels Midland Company also presents a forceful advantage in the industry based on its presence and integrated supply and production. ADM has consistently achieved growth through R&D, which is also characterized by up-to-date investments that have been crucial for the introduction of new products in the market. Strategic acquisitions and partnerships have also been instrumental for this company, whose approach to quality management is aligned with exceeding customer expectations.
Key Companies in the Vegetable Shortening Market Include
- Fuji Oil Holdings, Inc.
- Archer Daniels Midland Company
- Cargill, Incorporated
- Richardson International Limited
- Lesieur Cristal
- Bunge Limited
- M. Smucker Company
- Wilmar International Limited
- Olam International Limited
- Kerry Group plc
- Loders Croklaan Group B.V.
- Conagra Brands, Inc.
Vegetable Shortening Market Industry Developments
The vegetable shortening market is projected to reach USD 20.8 billion by 2032, exhibiting a CAGR of 3.93% during the forecast period. Increasing demand for processed and convenience foods and rising health consciousness among consumers are driving market growth. Vegetable shortening, a healthier alternative to traditional shortening, offers numerous functional benefits, including improved texture, shelf life, and flavor in food products. Key players in the market are investing in research and development to introduce innovative products that meet evolving consumer preferences. Strategic acquisitions and partnerships are also shaping the competitive landscape, with companies seeking to expand their geographic reach and product portfolios. Recent developments include the launch of new vegetable shortening products with reduced saturated fat and trans fat content and the growing adoption of plant-based shortening alternatives.
Vegetable Shortening Market Segmentation Insights
Vegetable Shortening Market-Grade Outlook
- Master Grade
- Premium Grade
- Standard Grade
Vegetable Shortening Market Type Outlook
- Palm Oil-Based Vegetable Shortening
- Soybean Oil-Based Vegetable Shortening
- Canola Oil-Based Vegetable Shortening
- Other Vegetable Oils-Based Vegetable Shortening
Vegetable Shortening Market Application Outlook
- Frying
- Baking
- Confectionery
- Other Applications (Including Food Processing)
Vegetable Shortening Market Form Outlook
Vegetable Shortening Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
14.14(USD Billion) |
| Market Size 2023 |
14.7(USD Billion) |
| Market Size 2032 |
20.8(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.93% (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 |
Fuji Oil Holdings, Inc., Archer Daniels Midland Company Cargill, Incorporated, Richardson International Limited, Lesieur Cristal, Bunge Limited, J.M. Smucker Company, Wilmar International Limited, Olam International Limited, Kerry Group plc, Loders Croklaan Group B.V., Conagra Brands, Inc. |
| Segments Covered |
Grade, Type, Application, Form, Regional |
| Key Market Opportunities |
Vegan and Vegetarian Food Trends Rising demand for plant-based foods driving growth for vegetable shorteningHealthConscious Consumers Increasing preference for healthier alternatives creating opportunities for low-fat and trans-fat-free vegetable shorteningsHome Baking and Pastry Applications The Growing popularity of home baking and pastrymaking is fueling demand for premium quality vegetable shortening.Food Processing and Industrial Applications Vegetable shortenings have versatile frying, baking, and processing properties, offering growth in the food industry.Functional Ingredients Development of vegetable shortenings with enhanced nutritional value, such as high oleic acid content or added vitamins |
| Key Market Dynamics |
Rising Health Consciousness Growing Demand for PlantBased Foods Technological Advancements Expanding Retail Landscape Increasing Disposable Income |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The vegetable shortening market was valued at 14.7 billion U.S. dollars in 2023 and is projected to reach 20.8 billion U.S. dollars by 2032, exhibiting a CAGR of 3.93% during the forecast period (2024-2032).
North America and Europe are the dominant markets for vegetable shortening, collectively accounting for a major share of the market. The Asia Pacific region is anticipated to exhibit the highest growth rate during the forecast period, owing to the rising demand for processed foods and baked goods in developing countries such as China and India.
Vegetable shortening is primarily used in the food industry, particularly in producing baked goods such as cakes, cookies, and pastries. It also manufactures confectionery products, fried foods, and margarine.
Archer Daniels Midland Company, Bunge Limited, Cargill, Incorporated, and The J.M. Smucker Company are prominent vegetable shortening market players.
The increasing demand for processed and convenience foods, coupled with the growing popularity of plant-based diets, is primarily driving the growth of the vegetable shortening market. Additionally, rising disposable incomes and changing consumer lifestyles contribute to market expansion.
The market faces challenges such as fluctuating raw material prices, stringent regulations regarding food additives, and competition from alternative fats and oils. Health concerns associated with the consumption of trans fats may also hinder market growth.
The rising demand for healthier and sustainable food products presents opportunities for the growth of the vegetable shortening market. Manufacturers focus on developing innovative products that meet consumer preferences for clean-label and plant-based ingredients.
The vegetable shortening market is projected to grow at a CAGR of 3.93% during the forecast period (2024-2032), reaching a 20.8 billion U.S. dollar valuation by 2032.
Key trends include the growing demand for non-hydrogenated and trans-fat-free vegetable shortening, the increasing adoption of clean-label and organic ingredients, and the rising popularity of plant-based alternatives.
Potential risks include regulatory changes, economic downturns, and technological advancements that may disrupt the market landscape.
