The global margarine market is expected to reach a market valuation of USD 34,617.0 billion by the year 2023, accelerating with a CAGR of 5.1% by 2023 to 2033, to reach a value of USD 55,711.7 billion by 2033.
The margarine market accounted for 15% of the total fats and oil industry globally in 2023 and is expected to rise due to changes in consumer lifestyle and an increase in disposable income.
| Attribute | Key Insights |
|---|---|
| Margarine Market Size (2023E) | USD 34,617.0 billion |
| Margarine Market Projected Size (2033F) | USD 55,711.7 billion |
| Value CAGR (2023 to 2033) | 5.1% |
| Top 3 Countries' Market Share | 37% |
Margarine is a healthy substitute for butter produced by churning cream or milk. Low-fat margarine is made from plant-based oils like canola oil, palm fruit oil, and soybean oil. While butter contains saturated fats that are causing damaging effects on health which is driving the sales of margarine in the present years. Consumers are shifting towards plant-based butter alternatives to preserve their health in the long run which is expected to develop new margarine market opportunities.
Unsalted margarine has a neutral or mild flavor that does not inter-mix with the main product flavor along with having all the properties to add the necessary texture, volume, and flavor to food products. As consumer awareness regarding the consumption of healthy food increases brands are using it as a low-fat spread sourced from healthy oils and driving the margarine market growth consequently.
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As per the new market research report on margarine products, the year-on-year growth rate of the overall market has increased substantially in comparison. The global margarine market grew at a CAGR of 4.3% between 2018 and 2022. The period marked new product development by key players.
The covid-19 pandemic years affected the availability of margarine products in the market due to trade restrictions. Many margarine manufacturing units were closed due to the unavailability of raw materials and skilled laborers. As many stores were forced to close down the sale of in-store margarine products was reduced considerably.
Trade restrictions worsened the market size even further due to limitations on import and export goods and high freight charges. As the situation comes to normal the demand for margarine is expected to rise further owing to the health benefits associated with its consumption.
Smart Balance margarine is used on a large scale in making bakery products due to its affordability and nutritional content. As the consumption of snacks like biscuits, muffins, plum cakes, and bread rises the demand for margarine is expected to grow to that effect.
An increase in the number of small regional outlets to higher-end artisanal bakeries selling different flavors of products is expected to generate revenue through sales of margarine products.
The population is rising significantly and so is the demand for food and beverages, resulting in a considerable increase in the number of people adopting vegan and plant-based diets, including vegan margarine, to maintain good health.
As the population is rapidly aging they are shifting their consumption habits to organic products that do not contain any chemical additives. This is expected to boost the margarine market share which is heart-friendly.
Due to easy availability and affordability and even margarine manufacturers are focusing on producing more such products. Confectionery producers are including low-fat margarine in eatables as it is a healthy ingredient and consumers are ready to splurge on healthy products that are anticipated to further boost the margarine key trends and opportunities.
Along with human health, consumers are more concerned about the environmental balance as well and are consuming plant-based foods that have less carbon footprint as compared to animal-based products. As a result, margarine brands that are following sustainable practices throughout their supply chain are expected to stand out among the competition and generate more revenue.
Today’s consumers are occupied with both work and personal commitments and prefer products that are easy to make and are not time-consuming. Margarine or low-fat spreads can be applied to bread or added to other foods to be consumed directly. Due to the ease of cooking and flavoring demand for margarine is expected to rise considerably in the coming days. These factors prevalent in today's health-conscious market are expected to boost the demand for the margarine market during the assessment period.
Consumer preference for clean labels is expected to further push the demand for plant-based margarine. Sale through online sales channels is expected to benefit the margarine market adoption trends as consumers prefer to purchase almost everything online.
North America is one of the key players in the global margarine market. The easy availability of parkay margarine in different flavors has attracted many consumers to choose products specific to their taste pallet.
USA and Canada have stringent rules and regulations for products that contain trans-fat so it is not traded in a few regions as vegan margarine contains trans-fat in minuscule amounts. But food processing industries prefer margarine due to its peculiar flavor and affordability sustaining a huge USA margarine market for a very long time.
Rising awareness regarding health concerns and an increase in spending capacity is expected to further boost the margarine market growth in North America in near future. According to FMI, the United States dominated the global margarine market in 2022, reaching a value of about USD 6 billion, representing around 23% of the total global margarine market.
Asia Pacific is expected to be a promising market due to an increase in consumer spending capacity. Millennials and generation-z consumers are more aware of the ingredients sourced to produce any type of low-fat spread products and prefer that are naturally sourced.
Margarine market key players in emerging economies of Asia Pacific are investing in technology to develop plant-based, low-fat, gluten-free variants of butter. Demand for margarine in India is expected to rise due to an increase in the adoption of healthy life and the consumption of nutritious food to boost body immunity. As per FMI, the margarine market accounted for USD 4.5 Billion in 2022 which is approximately 18% of the global margarine market.
There has been a shift in consumer behavior as people are stressing about maintaining a healthy lifestyle and are consuming plant-based products. Vegan margarine is sourced from vegetable oils and contains low–fat and calorie content that is sighted by the margarine market analysis report to be driving the European market.
A rise in disposable income and replacement of daily eatables by natural dairy-free products is expected to further propel the sales of margarine in regional markets like the United Kingdom and Germany.
The plant source segment dominates the industrial margarine market globally. Colorants, salt, and natural or artificial flavorings are occasionally added. Most of the margarine does not include any animal ingredients, making it a viable vegan substitute that is anticipated to get popular in the coming days and create some new margarine market opportunities.
End-use applications of margarine products across the food and beverage industry are expected to increase the demand for margarine. Online platforms have made it easy for consumers to choose from a wide product–a portfolio of brands, and items that best suit their needs consequently swelling the market size in the last couple of years.
Between 2022 and 2023, the online distribution channel experienced significant growth at a rate of 5.2%, and it now accounts for a substantial 60% share of margarine sales worldwide. Prominent margarine market players have collaborated with different online marketplaces such as Amazon, and Flipkart to offer doorstep delivery to customers.
Key margarine companies are investing in launching new flavors of margarine products to fulfill the consumer demand for healthy products. They are investing in developing technology and product packaging to enhance its shelf life.
Margarine manufacturers are producing margarine that is dairy-free, gluten-free, vegan, and non-GMO. Magarnies specific to lactose-intolerant people are also available in the market. Margarine's key players are investing in product innovation to come up with innovative products that offer peculiar creamy textures and flavors to products.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value and million. Sq. M. for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; and the Middle East & Africa |
| Key Countries Covered | USA, Brazil, Mexico, Germany, United Kingdom, China, India, Japan, Australia, and GCC Countries |
| Key Segments Covered | Source, Form, Sales Channel, and Region |
| Key Companies Profiled | Land O’ Lakes; Earth Balance; Imperial; Bluebonnet; Country Crock; I Can't Believe It's Not Butter!; Smart Balance; Parkay |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The margarine market is slated to achieve USD 34,617.0 billion in 2023.
The growth potential of the margarine market is 5.1% CAGR through 2033.
The top three countries are expected to account for 37% of the overall market.
Shifting preferences toward clean label is projected to have a significant impact.
Plant-based margarine is witnessing high demand globally.
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Margarine Market
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