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 2. Market Overview 3. Global Market Outlook 4. Market Dynamics 5. Global Market - Pricing Analysis 6. Value Chain Analysis 7. Global Market Size (in Value (USD million) and Volume (MT) Analysis 2019 to 2023 and Forecast, 2024 to 2034 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type 8.1. Shortening 8.2. Margarine 8.3. Bakery Oils 8.4. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel 9.1. B2B 9.2. B2C 9.2.1. Hypermarket 9.2.2. Supermarket 9.2.3. Retail Stores 9.2.4. Online Retailing 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 By End-use 10.1. Industrial 10.2. Residential 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 11.1. North America 11.2. Latin America 11.3. Europe 11.4. East Asia 11.5. South Asia 11.6. Oceania 11.7. Middle East & Africa 12. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034 13. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034 14. Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034 15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034 16. South Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034 17. Oceania Market Analysis 2019 to 2023 and Forecast 2024 to 2034 18. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034 19. Country-level Market Analysis 20. Market Structure Analysis 21. Competition Analysis 21.1. AAK (UK) Limited 21.2. Cargill 21.3. ConAgra 21.4. CSM Bakery Solutions 21.5. Fuji Oil Co. Ltd. 21.6. Goodman Fielder 21.7. Premium Vegetable Oils Sdn Bhd 21.8. Unilever 21.9. Wilmar International 22. Assumptions and Acronyms Used 23. Research Methodology
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Bakery Fat Market
