As per the market research conducted by FMI analysts, the global industrial margarine market is expected to record a CAGR of 5.1% during the forecast period. In 2023, the market size is projected to be USD 2.69 billion. By 2033, the valuation is expected to cross USD 4.42 billion
Key factors which are expected to surge the market growth are
In recent times, people have started consuming more GMO-free products. There have been incidents where cases of allergies and severe illness have been reported after consuming GMO products. The application of genetically modified organisms also raises questions about the natural capabilities offered by food. Thus, a lot of food experts have opined that such products are unnatural, immoral, and unsafe. However, the good thing about industrial margarine is that it is a GMO-free product, and doesn’t lead to any side effects, thereby maintaining nutritional efficiency. This might increase the demand for industrial margarine during the forecast period.
There has been an increase in the vegan population. As of 2021, there were nearly 79 million vegans worldwide. The numbers are expected to increase, because as per recent studies, the consumption of meat products is directly linked to surging cancer cases. The good thing about industrial margarine is that it does not contain animal fats, and can be consumed by anybody.
With rules across the world, especially in the Middle East, becoming tougher because of obtaining halal certification, food manufacturers need to be extra cautious. Industrial margarine is generally halal certified, which makes it safe to consume in any part of the world.
To enhance the taste, the manufacturers add color and flavor to the margarine as per the requirement of the customer. Moreover, industrial margarine also adds richness and smooth texture to food products. These have captured the attention of young millennials in particular. Thus, the growing millennial population represents huge prospects for the market.
There has been an increase in the consumption of plant-based food products. Surging inclination towards leading a healthy lifestyle, which has led to increasing demand for low-calorie food products, is also expected to surge sales.
Margarine also acts as a safe alternative to butter, because the consumption of butter is linked to high cholesterol levels. Additionally, there are a lot of people who suffer from lactose intolerance. Such people prefer margarine, as it is a dairy-free product.
North America is expected to hold a considerable market share during the forecast period. The presence of multiple key players and a surging health-conscious customers are expected to surge the market growth. Asia Pacific is expected to be the dominant market in terms of CAGR. The rapidly surging food processing industry, coupled with the exponentially growing confectionary market, makes the Asia Pacific the market to watch out for.
| Attributes | Value |
|---|---|
| Industrial Margarine Market Value (2022) | USD 2.6 billion |
| Industrial Margarine Market Expected Value (2023) | USD 2.69 billion |
| Industrial Margarine Market Forecast Value (2033) | USD 4.42 billion |
| Industrial Margarine Market Expected CAGR (2023 to 2033) | 5.1% |
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The rapidly growing food processing industry, which is expected to hold a valuation of USD 322 billion by 2029, is expected to surge the market growth of industrial margarine. Moreover, the manufacturers are also making use of sustainable and healthier raw materials to deliver top-notch industrial margarine. The sales are expected to surge owing to the increase in the demand for polyunsaturated fat products, as these drastically reduce the risk of heart problems. Having so much to offer, analysts are of the view that the adoption of industrial margarine might surge. The historical CAGR for the market was 3.3%, while the anticipated CAGR is 5.1%.
The cost of margarine has shown a sudden surge over the past few years. The industrial margarine price has surged by a whopping 44%. This can be attributed to the ongoing crisis between Russia and Ukraine, which has severely affected the supply chain. Russia is currently one of the significant producers of industrial margarine, and the war has pointedly affected supply not only in Russia and Ukraine, but worldwide.
However, the silver lining in the cloud is that in a lot of other parts of the world, margarine is being consumed to make up for the dairy product shortage. This is even though the world has been facing margarine shortages. As far as the United States is concerned, the Wisconsin State Legislature has ordered the regulation of the usage of margarine. The order comes at a time when the region has been witnessing dairy product shortages.
The FMI researchers have stated that the United States is the dominant market for industrial margarine. The country has been producing more than 4 million tons of margarine every year. As mentioned above, this has helped the United States tackle the issue of dairy product scarcity.
As per the data released by the Centre for Disease Control and Prevention, every year close to 805,000 people have a heart attack in the United States. Health experts have pointed out that the consumption of margarine helps drastically reduce LDL levels, which is responsible for heart disease.
Europe is known for its mammoth confectionary market. Europe held close to 35% market share in the USD 312 billion confectionary market in 2022. Industrial margarine is highly preferred in the confectionary industry owing to its ability to act as an emulsifier. A lot of vendors in the confectionary market have started replacing butter with margarine, as these are healthier and cost-effective as well.
Lots of people across Europe have started adopting veganism to lead a healthy lifestyle. As of 2021, there were close to 2.6 million vegans across Europe, and the numbers are expected to surge. The increasing vegan numbers are great news for industrial margarine vendors, as these do not make use of animal fats.
Apart from being the technological hub, Japan is also meant for a lot of people who lead a sedentary lifestyle. This has led to the fact that not a lot of people are exposed to sunlight. Consequently, there have been surging cases of Vitamin D deficiency. Efficiency is prevalent across people from all age groups, especially among young women. Margarine is a rich source of Vitamin D, and regular consumption can improve the situation for a lot of people.
Japan is also meant for its huge cereal market. The valuation in 2021 stood at close to USD 25 billion. Cereal manufacturers are also increasingly making use of margarine because of its nutritional benefits. All the above factors are expected to surge the adoption of industrial margarine in Japan during the forecast period.
South Korea holds the dominant position when it comes to lactose intolerance. Owing to this, a lot of people are constantly on the lookout for dairy alternatives. In such a case, industrial margarine products can fulfill the nutritional requirements of such people. Apart from being a natural source of Vitamin D, manufacturers fortify them with Vitamin A and omega-3 fatty acids, which makes it a healthier alternative.
The bakery market has been displaying massive growth in South Korea. In 2021, the market was valued at USD 4.1 billion and is expected to record a 7% CAGR during the forecast period. The players in the bakery market have been making use of margarine because of its nutritional significance.
The bakery segment is expected to hold a significant market share. Industrial margarine acts as an emulsifier, which helps in enhancing the taste of the bakery product. Margarine is also being replaced by butter, especially, in the bakery segment, owing to its nutritional value. Moreover, these are affordable as well, which helps the bakery businesses in achieving cost-cutting. The bakery market is also serving health-conscious customers. The consumption of margarine assists in the healthy functioning of the heart.
The spreadable segment is expected to record a high market share during the forecast period. The leading players involved in the food industry are making the best use of their ability to spread seamlessly. Due to its growing popularity, margarine is gradually replacing butter. Margarine is also much more affordable as compared to butter, as a result of which it has attracted a lot of investments. Moreover, these are quite low in trans-fats as compared to butter, which makes it a quite popular spreadable segment.
The potential entrants, who want to make a mark, have a lot to absorb from the existing players. With massive technological advancements, start-ups can look for methods to scale up the production of industrial margarine.
The start-ups can initiate by establishing strategic partnerships with manufacturers who are into confectionary markets, plant-based food markets, etc. This might enable them to establish a strong connection, and as they proceed, they may start understanding the intricacies of the business.
In the current times, an out-of-the-world business idea is enough to make a start-up get going. Even if the founders are facing a money crunch, they can approach angel investors, and if the pitching is done properly, there is no scarcity of funding.
The key players operating in the market are laying lots of emphasis on product launches. The teams are constantly innovating so that the food products deliver fun and flavor. The products that are launched by the company are expected to evoke a delicious experience, to say the least. In January 2023, Conagra brands debuted its delicious collection of new products.
Key developments in the market
| Company | Description |
|---|---|
| Conagra Brands | Conagra Brands is headquartered in Chicago and has always combined a rich heritage of making great food with a sharpened focus and entrepreneurial spirit. The company has always transformed the way it has been delivering to its customers smartly and simply. The company has been revolutionizing its iconic food brands, leveraging fresh opportunities, and adopting a fresh landscape. Conagra has the most impactful, energized, and inclusive culture of food. |
| Bunge | Bunge has more than two centuries of experience, unmatched global scale, and deeply rooted relationships everywhere the company operates. The specialty oils and milled grains manufactured by the company are the key ingredients for consumer and restaurant brands. The company has always evolved to meet the ever-changing needs of the growing world, and it is more connected and better aligned with how it performs business. |
| Puratos | Puratos has always believed that food has extraordinary power in everybody’s lives. Thus, the company has been driving the planet by creating innovative food solutions for the health and well-being of people. Puratos has always believed in helping customers be successful in their business by turning technologies and experiences from food cultures around the world into new opportunities. Puratos Group has local subsidiaries in 71 countries and production plants in 63 of them. |
Other companies profiled: Associated British Foods, Fuji Oil, Richardson International, Royale Lacroix, Aigremont, Vandemoortele, NMGK Group, EFCO Group, and Wilmar International.
In 2023, the market has the potential to garner a valuation of USD 2.69 billion.
From 2017 to 2022, sales climbed significantly at a CAGR of 3.3%.
The market is anticipated to develop at a CAGR of 5.1% through 2033.
The size of the global market is predicted to be USD 4.42 billion by 2033.
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Industrial Margarine Market
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