The margarine and shortening market primarily includes margarine and vegetable shortening products used as a cooking ingredient and butter alternative. Margarine and shortening are made from vegetable oils and fats through hydrogenation process. Margarine and shortening have advantage over butter as they contain less saturated fat and calories. The increasing demand for processed and convenience food products where margarine and shortening are used as ingredients is driving the market.
The Global Margarine and Shortening Market is estimated to be valued at US$ 18.15 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the margarine and shortening market are Emoha Elder Care, AntaraSeniorCare, Nisarg Care, Tata Trust, Ashiana Housing Ltd., Heritage Eldercare Services Pvt. Ltd., ASLI (Association of Senior Living India), Nema Care, Age Ventures India, Piramal Swasthya, Jeevan Suraksha, and Kriti Elder Care. The increasing westernization and rising disposable incomes are driving the demand for processed food products in developing countries. This is fueling the growth of margarine and shortening market. Technological advancements improving the production process and consistency in quality of margarine and shortening products are positively impacting the market.
Market Trends
The rising demand for plant-based and clean-label products is prompting companies to develop non-hydrogenated and non-GMO margarine and shortening options. Manufacturers are investing in R&D to develop products tailored to nutritional and health needs of various customer segments like lower calories and saturated fat variants.
Market Opportunities
The growing foodservice industry globally is opening lucrative opportunities for Margarine And Shortening Market Growth players. Emerging economies like India, China, Indonesia, Brazil are witnessing rising incomes and expanding middle-class population which is expected to drive the demand for margarine and shortening products in the coming years.
Impact of COVID-19 on Margarine and Shortening Market
The COVID-19 pandemic has adversely impacted the global margarine and shortening market. During the initial lockdown phase in 2020, the demand and sales declined sharply due to closure of foodservice channels like hotels, cafes and restaurants. However, with rising cook-at-home trends and stockpiling behavior of consumers, the retail demand increased briefly. As the pandemic prolonged, supply chain disruptions and labour shortages affected the production and distribution across key manufacturing countries. The price volatility of raw materials like palm oil also posed challenges. In the post-pandemic period, the market is expected to witness steady recovery as foodservice sector resumes operations gradually. However, shifts in consumer preference towards healthier alternatives may restrain the market growth to some extent. Manufacturers will need to focus on innovation, product reformulation, efficient distribution and promotional activities to boost demand.
Geographical regions with highest value concentration in Margarine and Shortening Market
In terms of value, Europe accounts for the largest share in the global margarine and shortening market currently. Countries like Germany, France, UK and Italy have been the traditional markets. However, demand growth has slowed down in the recent years due to increasing awareness about unhealthy fats and trans-fats. North America represents the second major regional market led by the US. Changing work routines and busy lifestyles have supported the demand for margarine and shortening as convenient cooking ingredients. The Asia Pacific market is emerging as the fastest growing regional market with China and India as major contributors. Rising income levels, westernization of diet and growing demand from food processing sector are driving the market expansion in Asia Pacific.
Fastest growing region for Margarine and Shortening Market
The Asia Pacific region is poised to be the fastest growing market for margarine and shortening over the forecast period from 2024 to 2031. Rapid urbanization, growing working population and evolving food consumption patterns are driving the market growth in Asia Pacific. While countries like China and India form the bulk of demand, other Southeast Asian countries are also witnessing rising per capita margarine and shortening consumption. The economic development and expansion of food chains particularly in emerging economies are attracting various multinational brands to invest in product launches, marketing initiatives and capacity expansion plans. Moreover, Asia Pacific offers low production costs, easy availability of raw materials such as palm oil and a huge untapped market potential. Such favorable factors will continue to fuel strong growth opportunities for margarine and shortening market players in this region.
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