The global bakery fat sales to witness substantial growth, increasing from USD 1,420.2 million in 2024 to USD 2471.1 million by 2034. The market is expected to surge at a CAGR of 5.7% during the forecast period 2024 to 2034.
| Attributes | Key Insights |
|---|---|
| Estimated Global Bakery Fat Market Size (2024E) | USD 1,420.2 million |
| Projected Bakery Fat Market Value (2034F) | USD 2,471.1 million |
| Value-based CAGR (2024 to 2034) | 5.7% |
Changing consumer preferences toward more premium products and growing consumption of bakery items are contributing to expansion of the market. Rising trend of baking at home and the proliferation of bakery chains & cafes are further fueling market growth. To meet consumer demands for healthier options, organic bakery fats are being introduced into the market as a response to clean-label trend in the industry.
Bakery Fats prevents gluten aggregation in flour, increases lubrication, tenderness and fullness, increases air density during dough mixing, smoothing composition facilitates proper mixing, extends product shelf life and boosts flavor, enables shaking and crisping, heat transfer are the main functions of baker's fats. Hence, Manufacturers are also focusing on product innovations custom-made to meet needs of baking applications.
These innovations include reducing fat content, enhancing flavor profiles, and improving texture. With higher incomes and the introduction of healthier bakery fat options, the market is expected to continue its growth trajectory through 2034.
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The convenience factor linked with bakery fats, offering an effective and time-saving solution for home baking, contributed significantly to market expansion especially in Choco Chips Confectionery Products. Manufacturers' efforts to escalate distribution channels, including online platforms, further fueled market growth.
The market is expected to surge at a CAGR of 5.7% during the forecast period. Changing demographics, such as increasing urbanization and hectic lifestyles, are expected to drive demand for convenient baking solutions. Biscuits, butter cookies, cupcakes, Puff Pastry, Biscuit, Bread are key areas which are expected to grow over next decade.
The escalating bakery industry and an increasing number of outlets and cafes globally are creating opportunities for the bakery fat market. Rising popularity of handmade baked goods is also expected to boost demand for bakery fats.
Rising innovation and technological advancements in the bakery industry are set to show a promising future for the bakery fat market. The introduction of natural and organic bakery fats is estimated to further drive market growth.
Rising popularity of plant-based bakery fats among vegan and vegetarian consumers offers a significant opportunities for market players to expand their product range. The changing lifestyle preferences of consumers are further fueling demand for bakery fats.
Principal Consultant
The global bakery fat market is poised for robust growth from 2024 to 2034, with significant predicted CAGR in key countries. The United States is expected to grow with a steady 5.7% CAGR, reflecting sustained demand for convenient and diverse baking solutions.
China shows a remarkable 7.7% CAGR, driven by evolving consumer preferences and an expanding middle class. The United Kingdom is projected to show a 4.3% CAGR, reflecting a growing interest in premium and healthy bakery products. Japan anticipates a substantial 6.5% CAGR, propelled by technological innovations and a penchant for unique and high-quality bread varieties.
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| United States | 5.7% |
| China | 7.7% |
| United Kingdom | 4.3% |
| Japan | 6.5% |
The table below explains the bakery fat market size of the four key countries for 2034. Among them, the United States is anticipated to remain at the forefront by reaching a valuation of USD 411 million. China is expected to reach around USD 284 million by 2034, less than Japan's USD 285 million.
| Countries | Country Wise Value (2034) |
|---|---|
| United States | USD 411 million |
| China | USD 284 million |
| United Kingdom | USD 170 million |
| Japan | USD 285 million |
Leading multinational companies with headquarters in the United States, contribute to a competitive and well-established market. These companies keep investing in research & development activities to innovate products and offer them to consumers with varied dietary choices.
Various oils and fats are used in the bakery industry, such as coating fats, shortenings, filling and coating fats, cooking oils and baking trays. Cooking fats takes a minimal or significant part of the products.
For example, bread takes about 10%, cake 20% and pastries 40% of the total amount of ingredients. Consequently, it significantly affects the handling of the process, the food quality of the final product, i.e. the appearance of texture, volume, nutritional value and shelf life.
The presence of changing dietary habits, a growing middle class, and a rising preference for Western-style baked goods contribute to the market's growth in China. China's vast raw material supply chain, encompassing grains and specialty ingredients, helps efficient and cost-effective production.
The scale of production has been accelerating because of competitive pricing strategies employed by manufacturers, making bakery fats more accessible to a broader consumer base in China.
Increasing adoption of bakery fats in the United Kingdom reflects a shift in consumer preferences driven by economic, cultural, and lifestyle factors. With a growing interest in home baking, consumers are turning to bakery fats as a convenience that aligns with the United Kingdom's culinary culture.
The competitive landscape, marked by the presence of both established and emerging manufacturers, fuels innovation and product diversification in the United Kingdom. Rising health consciousness among consumers has prompted manufacturers to incorporate nutritional enhancements in their products. This aligns with the trend of seeking healthier yet convenient food options.
The regulatory framework, emphasizing food safety and quality standards, contributes to consumer confidence in the reliability of products in the United Kingdom. Clear and transparent labeling practices help consumers make informed choices, fostering trust in the market.
Japan is experiencing a surging demand for healthier bakery fat alternatives, driven by increasing preference for products low in trans, saturated, and hydrogenated fats.
Japan's bakery fat market is surging due to growing demand for vegan bakery products, which is driven by the popularity of plant-based diets. Japan's consumers prioritize clean-label products with natural ingredients, prompting bakery fat manufacturers to use non-GMO ingredients and avoid additives, artificial flavors, and preservatives.
Consumers in India are directed toward sustainability and ethical sourcing, putting pressure on bakery fat manufacturers to adopt transparent supply chains and obtain certifications.
Bakery fats are gaining traction in India due to their unique flavor profiles and improved functionality, which aim to meet the evolving needs of bakers and consumers. E-commerce platforms and digital marketing are transforming the market, enabling manufacturers to promote their products, engage with consumers, and facilitate direct-to-consumer sales.
The table below highlights how the shortening segment is projected to lead the market in terms of product type, and is expected to reach USD 350 million in 2034. Based on distribution channel, the online retailing segment is expected to reach USD 420 million in 2034.
| Segment | Market Value (2034) |
|---|---|
| Shortening (Product Type) | USD 350 million |
| Residential (End-use) | USD 310 million |
| Online Retailing (Distribution Channel) | USD 420 million |
The bakery fat market has significantly transformed, adapting to changing consumer preferences and industry demands. Soybean, cottonseed, palm oil, or a combination are often used to make shortening more affordable than other fats.
Shortening is 100% fat, which makes it more suitable for vegetarians and vegan consumers. Shortening is gaining traction in the market due to its unique characteristics, such as being shelf-stable and it doesn't require refrigeration.
In the residential segment, individuals widely use bakery fats for cooking various bakery products, such as cakes, cookies, pies, and other homemade baked goods. Consumers use pre-packaged bakery fats for convenience in their home baking.
Surging sales of bakery fats are further influenced by the convenience these fats offer, providing an accessible entry point for home baking. Rising consumer interest in homemade, fresh baked goods, combined with the ease of use of these fats, contributes to their increasing presence in the market.
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The bakery fat market is diverse and dynamic. Leading bakery fat manufacturers emphasize on research and development to stay competitive in the market.
Key companies emphasis on sustainable products through environmental practices, product certifications and meeting higher standards for natural & sustainable ingredients. Leading players in the market guarantee their place by emphasizing quality, innovation, as well as customers’ preferences, while expanding and growing the demand.
Product Launches and Key Developments
The market is set to reach USD 1420.2 million in 2024.
Demand for bakery fats is slated to expand at a 5.7% CAGR through 2034.
The market is set to reach USD 2471.1 million in 2034.
AAK (UK) Limited, Cargill, and ConAgra are the key players.
Online retailer segment is estimated to hold a significant market share in 2024.
1. Executive Summary
1.1. Global Market Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Technology Roadmap
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition
3. Global Market Outlook
3.1. Historical Market Size (in Value (US$ million) and Volume (MT) Analysis, 2019 to 2023
3.2. Current and Future Market Size (in Value (US$ million) and Volume (MT) Analysis, 2024 to 2034
3.2.1. Y-o-Y Growth Trend Analysis
3.2.2. Absolute $ Opportunity Analysis
4. Market Dynamics
4.1. Drivers
4.1.1. Supply Side Drivers
4.1.2. Demand Side drivers
4.1.3. Economic Side Drivers
4.1.4. Restraints
4.2. Opportunity
4.3. Market trends By Region
4.4. Forecast Factors - Relevance & Impact
4.5. Regulations and Policies
5. Global Market - Pricing Analysis
5.1. Price Point Assessment by Region
5.1.1. Manufacturer-Level Pricing
5.1.2. Distributor Level Pricing
5.2. Price Point Assessment By Type
5.3. Price Forecast till 2032
6. Value Chain Analysis
6.1. Operating margins at each node of the supply chain
6.2. List of Active Market Participants
7. Global Market Size (in Value (US$ million) and Volume (MT) Analysis 2019 to 2023 and Forecast, 2024 to 2034
7.1. Historical Market Size (in Value (US$ million) and Volume (MT) Analysis, 2019 to 2023
7.2. Current and Future Market Size (in Value (US$ million) and Volume (MT) Analysis, 2024 to 2034
7.2.1. Y-o-Y Growth Trend Analysis
7.2.2. Absolute $ Opportunity Analysis
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type
8.1. Introduction / Key Findings
8.2. Historical Market Size (in Value (US$ million) and Volume (MT) Analysis By Type, 2019 to 2023
8.3. Current and Future Market Size (in Value (US$ million) and Volume (MT) Analysis and Forecast By Type, 2024 to 2034
8.3.1. Shortening
8.3.2. Margarine
8.3.3. Bakery Oils
8.3.4. Others
8.4. Market Attractiveness Analysis By Type
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel
9.1. Introduction / Key Findings
9.2. Historical Market Size (in Value (US$ million) and Volume (MT) Analysis By Distribution Channel, 2019 to 2023
9.3. Current and Future Market Size (in Value (US$ million) and Volume (MT) Analysis and Forecast By Distribution Channel, 2024 to 2034
9.3.1. B2B
9.3.2. B2C
9.3.2.1. Hypermarket
9.3.2.2. Supermarket
9.3.2.3. Retail Stores
9.3.2.4. Online Retailing
9.4. Market Attractiveness Analysis By Distribution Channel
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 By End-use
10.1. Introduction / Key Findings
10.2. Historical Market Size (in Value (US$ million) and Volume (MT) Analysis By Source, 2019 to 2023
10.3. Current and Future Market Size (in Value (US$ million) and Volume (MT) Analysis and Forecast By Source, 2024 to 2034
10.3.1. Industrial
10.3.2. Residential
10.4. Market Attractiveness Analysis By Source
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
11.1. Introduction
11.2. Historical Market Size (in Value (US$ million) and Volume (MT) Analysis By Region, 2019 to 2023
11.3. Current Market Size (in Value (US$ million) and Volume (MT) Analysis and Forecast By Region, 2024 to 2034
11.3.1. North America
11.3.2. Latin America
11.3.3. Europe
11.3.4. East Asia
11.3.5. South Asia
11.3.6. Oceania
11.3.7. Middle East & Africa
11.4. Market Attractiveness Analysis By Region
12. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034
12.1. Introduction
12.2. Pricing Analysis
12.3. Historical Market Size (US$ million) and Volume Trend Analysis By Market Taxonomy, 2019 to 2023
12.4. Market Size (US$ million) and Volume Forecast By Market Taxonomy, 2024 to 2034
12.4.1. By Country
12.4.1.1. United States
12.4.1.2. Canada
12.4.2. By Type
12.4.3. By Distribution Channel
12.4.4. By End-use
12.5. Market Attractiveness Analysis
12.5.1. By Country
12.5.2. By Type
12.5.3. By Distribution Channel
12.5.4. By End-use
12.6. Key Takeaways
13. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034
13.1. Introduction
13.2. Pricing Analysis
13.3. Historical Market Size (US$ million) and Volume Trend Analysis By Market Taxonomy, 2019 to 2023
13.4. Market Size (US$ million) and Volume Forecast By Market Taxonomy, 2024 to 2034
13.4.1. By Country
13.4.1.1. Brazil
13.4.1.2. Mexico
13.4.1.3. Colombia
13.4.1.4. Argentina
13.4.1.5. Rest of Latin America
13.4.2. By Type
13.4.3. By Distribution Channel
13.4.4. By End-use
13.5. Market Attractiveness Analysis
13.5.1. By Country
13.5.2. By Type
13.5.3. By Distribution Channel
13.5.4. By End-use
13.6. Key Takeaways
14. Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034
14.1. Introduction
14.2. Pricing Analysis
14.3. Historical Market Size (US$ million) and Volume Trend Analysis By Market Taxonomy, 2019 to 2023
14.4. Market Size (US$ million) and Volume Forecast By Market Taxonomy, 2024 to 2034
14.4.1. By Country
14.4.1.1. Germany
14.4.1.2. United Kingdom
14.4.1.3. France
14.4.1.4. Italy
14.4.1.5. Spain
14.4.1.6. BENELUX
14.4.1.7. Nordic
14.4.1.8. Russia
14.4.1.9. Poland
14.4.1.10. Rest of Europe
14.4.2. By Type
14.4.3. By Distribution Channel
14.4.4. By End-use
14.5. Market Attractiveness Analysis
14.5.1. By Country
14.5.2. By Type
14.5.3. By Distribution Channel
14.5.4. By End-use
14.6. Key Takeaways
15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034
15.1. Introduction
15.2. Pricing Analysis
15.3. Historical Market Size (US$ million) and Volume Trend Analysis By Market Taxonomy, 2019 to 2023
15.4. Market Size (US$ million) and Volume Forecast By Market Taxonomy, 2024 to 2034
15.4.1. By Country
15.4.1.1. China
15.4.1.2. Japan
15.4.1.3. South Korea
15.4.2. By Type
15.4.3. By Distribution Channel
15.4.4. By End-use
15.5. Market Attractiveness Analysis
15.5.1. By Country
15.5.2. By Type
15.5.3. By Distribution Channel
15.5.4. By End-use
16. South Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034
16.1. Introduction
16.2. Pricing Analysis
16.3. Historical Market Size (US$ million) and Volume Trend Analysis By Market Taxonomy, 2019 to 2023
16.4. Market Size (US$ million) and Volume Forecast By Market Taxonomy, 2024 to 2034
16.4.1. By Country
16.4.1.1. India
16.4.1.2. Thailand
16.4.1.3. Malaysia
16.4.1.4. Indonesia
16.4.1.5. Singapore
16.4.1.6. Rest of South Asia
16.4.2. By Type
16.4.3. By Distribution Channel
16.4.4. By End-use
16.5. Market Attractiveness Analysis
16.5.1. By Country
16.5.2. By Type
16.5.3. By Distribution Channel
16.5.4. By End-use
16.6. Key Takeaways
17. Oceania Market Analysis 2019 to 2023 and Forecast 2024 to 2034
17.1. Introduction
17.2. Pricing Analysis
17.3. Historical Market Size (US$ million) and Volume Trend Analysis By Market Taxonomy, 2019 to 2023
17.4. Market Size (US$ million) and Volume Forecast By Market Taxonomy, 2024 to 2034
17.4.1. By Country
17.4.1.1. Australia
17.4.1.2. New Zealand
17.4.2. By Type
17.4.3. By Distribution Channel
17.4.4. By End-use
17.5. Market Attractiveness Analysis
17.5.1. By Country
17.5.2. By Type
17.5.3. By Distribution Channel
17.5.4. By End-use
17.6. Key Takeaways
18. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034
18.1. Introduction
18.2. Pricing Analysis
18.3. Historical Market Size (US$ million) and Volume Trend Analysis By Market Taxonomy, 2019 to 2023
18.4. Market Size (US$ million) and Volume Forecast By Market Taxonomy, 2024 to 2034
18.4.1. By Country
18.4.1.1. UAE
18.4.1.2. Saudi Arabia
18.4.1.3. Other GCC Countries
18.4.1.4. North Africa
18.4.1.5. South Africa
18.4.1.6. Central Africa
18.4.2. By Type
18.4.3. By Distribution Channel
18.4.4. By End-use
18.5. Market Attractiveness Analysis
18.5.1. By Country
18.5.2. By Type
18.5.3. By Distribution Channel
18.5.4. By End-use
18.6. Key Takeaways
19. Country-level Market Analysis
19.1. United States Market Analysis
19.1.1. By Type
19.1.2. By Distribution Channel
19.1.3. By End-use
19.2. Canada Market Analysis
19.2.1. By Type
19.2.2. By Distribution Channel
19.2.3. By End-use
19.3. Brazil Market Analysis
19.3.1. By Type
19.3.2. By Distribution Channel
19.3.3. By End-use
19.4. Mexico Market Analysis
19.4.1. By Type
19.4.2. By Distribution Channel
19.4.3. By End-use
19.5. Argentina Market Analysis
19.5.1. By Type
19.5.2. By Distribution Channel
19.5.3. By End-use
19.6. Germany Market Analysis
19.6.1. By Type
19.6.2. By Distribution Channel
19.6.3. By End-use
19.7. United Kingdom Market Analysis
19.7.1. By Type
19.7.2. By Distribution Channel
19.7.3. By End-use
19.8. France Market Analysis
19.8.1. By Type
19.8.2. By Distribution Channel
19.8.3. By End-use
19.9. Italy Market Analysis
19.9.1. By Type
19.9.2. By Distribution Channel
19.9.3. By End-use
19.10. Spain Market Analysis
19.10.1. By Type
19.10.2. By Distribution Channel
19.10.3. By End-use
19.11. BENELUX Market Analysis
19.11.1. By Type
19.11.2. By Distribution Channel
19.11.3. By End-use
19.12. Nordic Market Analysis
19.12.1. By Type
19.12.2. By Distribution Channel
19.12.3. By End-use
19.13. Russia Market Analysis
19.13.1. By Type
19.13.2. By Distribution Channel
19.13.3. By End-use
19.14. Poland Market Analysis
19.14.1. By Type
19.14.2. By Distribution Channel
19.14.3. By End-use
19.15. China Market Analysis
19.15.1. By Type
19.15.2. By Distribution Channel
19.15.3. By End-use
19.16. Japan Market Analysis
19.16.1. By Type
19.16.2. By Distribution Channel
19.16.3. By End-use
19.17. South Korea Market Analysis
19.17.1. By Type
19.17.2. By Distribution Channel
19.17.3. By End-use
19.18. India Market Analysis
19.18.1. By Type
19.18.2. By Distribution Channel
19.18.3. By End-use
19.19. Thailand Market Analysis
19.19.1. By Type
19.19.2. By Distribution Channel
19.19.3. By End-use
19.20. Malaysia Market Analysis
19.20.1. By Type
19.20.2. By Distribution Channel
19.20.3. By End-use
19.21. Indonesia Market Analysis
19.21.1. By Type
19.21.2. By Distribution Channel
19.21.3. By End-use
19.22. Vietnam Market Analysis
19.22.1. By Type
19.22.2. By Distribution Channel
19.22.3. By End-use
19.23. Philippines Market Analysis
19.23.1. By Type
19.23.2. By Distribution Channel
19.23.3. By End-use
19.24. Singapore Market Analysis
19.24.1. By Type
19.24.2. By Distribution Channel
19.24.3. By End-use
19.25. Australia Market Analysis
19.25.1. By Type
19.25.2. By Distribution Channel
19.25.3. By End-use
19.26. New Zealand Market Analysis
19.26.1. By Type
19.26.2. By Distribution Channel
19.26.3. By End-use
19.27. Turkiye Market Analysis
19.27.1. By Type
19.27.2. By Distribution Channel
19.27.3. By End-use
19.28. Egypt Market Analysis
19.28.1. By Type
19.28.2. By Distribution Channel
19.28.3. By End-use
19.29. South Africa Market Analysis
19.29.1. By Type
19.29.2. By Distribution Channel
19.29.3. By End-use
19.30. GCC Countries Market Analysis
19.30.1. By Type
19.30.2. By Distribution Channel
19.30.3. By End-use
20. Market Structure Analysis
20.1. Global Market Competition - a Dashboard View
20.2. Industry Structure Analysis
20.2.1. % tier 1 market players
20.2.2. % tier 2 market players
20.2.3. % tier 3 market players
20.3. Global Market Company Share Analysis
20.3.1. For Tier 1 Market Players, 2023
20.3.2. Company Market Share Analysis of Top 5 Players, By Region
20.4. Key Participants Market Presence (Intensity Mapping) by Region
21. Competition Analysis
21.1. Competition Dashboard
21.2. Competition Benchmarking
21.3. Competition Deep Dive
21.3.1. AAK (UK) Limited,
21.3.1.1. Product Portfolio
21.3.1.2. Product Claim
21.3.1.3. Revenue by Market Segments (Product/Channel/Region)
21.3.1.4. Sales Footprint
21.3.1.5. Strategy Overview
21.3.1.6. SWOT Analysis
21.3.2. Cargill
21.3.3. ConAgra
21.3.4. CSM Bakery Solutions
21.3.5. Fuji Oil Co. Ltd.
21.3.6. Goodman Fielder
21.3.7. Premium Vegetable Oils Sdn Bhd
21.3.8. Unilever
21.3.9. Wilmar International
22. Assumptions and Acronyms Used
23. Research Methodology
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Bakery Fat Market
