The global Shortenings Market is poised to reach a value of USD 5488.0 Million by 2025 and is projected to reach a value of USD 7683.2 Million by 2035, reflecting a compound annual growth rate of 4.1% over the assessment period 2025 to 2035.
Shortenings market is an active sector which is stimulated by the necessity of the product for the food sector and in particular for baking and confectionery. Shortening’s include fats which are solid at room temperature and are valued for their favourable attributes where baked items like pastry, cakes and bread are concerned.
The drivers are on the eve growing need of the people for the convenience foods as well as the growth in the number of bakeries, ranging from the small artisanal sites and shops to very large commercial bakeries. The newer generations of formulation technology for shortening have made it possible for manufactures to provide a host of products such as those that are made with soybean, palm, canola and other vegetables oil with different characteristics that are required in cooking.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2025E) | USD 5488.0 Million |
| Projected Global Industry Value (2035F) | USD 7683.2 Million |
| Value-based CAGR (2025 to 2035) | 4.1% |
Health has emerged as the next big consideration in shortenings due to the consumer’s awareness about the kind of products they consume all without compromising on taste and feel. This has precipitated the production of shortened products with reduced levels of trans-fat and non-hydrogenated products. This has resulted in a global drive towards healthier lifestyles that has helped to drive this market, vegetarianism and veganism and plant-based diets have also caused development in this market.
They are adopting this trend by developing new products to suit the different diets reducing the market’s niche appeal. Increased home consumption, especially in recent years through to the COVD-19 pandemic has similarly boosted demand for high-quality shortenings that add the home-cooking experience.
Global shortenings market is expected to exhibit significant growth in future with key countries in North America, Europe and Asia-Pacific. The companies which fiercely compete for the market share include Cargill Inc., Archer Daniels Midland Company, and Wilmar International Ltd which are key drivers of the market through their strategic investment and collaborations. With consumers always increasingly looking for convenience and quality, the market is expected to grow even more boosted by constant innovation and sustainability.
Explore FMI!
Book a free demo
Development of shortenings with lower trans-fat and non-hydrogenated options
Market for shortenings has also shifted remarkably due to the new general trend towards taking healthier foods. Classically, shortenings were hydrogenated to enable the product to remain in the solid state at room temperature with higher trans- fats. However, due to increasing concern over health consequences of trans-fats, there have been attempts towards creating shortening with less or zero trans-fat.
BI has also reported that to achieve similar functional properties like traditional shortenings such as flakiness and tender crumbly texture, companies are using the money to carry out research and development on the new healthier substitutes.
Some of these innovations are; In order to avoid spoilt oils, innovation has led to the use of natural antioxidants besides having different types of oils ground together to the desirable butter consistency. This trend has special implications to markets that have over the recent past, adopted strict rules in regulating trans-fat content, leading to healthier formulations from manufacturers.
Rising demand for natural and clean-label ingredients in food products
The consumer today is very selective when choosing what to eat and this is largely because people are conscious of synthesized additives and preservatives added to their food. This has led to an increase in the market of clean label products which are products with list of ingredients that are easy to understand. The clean label concept that best defines the new trend among shoppers has therefore led to the modification of food shortenings for cleaner labels.
Clean label shortenings can actually employ natural antioxidants like vitamin E and rosemary extract that would prolong product shelf life and literally eliminate synthetic ingredients. In addition, processing techniques have been improved in order to retain the primary characteristics of the components.
This mechanism corresponds to the general trend of increasing the transparency of labels on food products, as people try to make conscious decisions. Therefore, clean label products are perceived not only to be healthy, but also to be more trustworthy, which also led to demand increase.
Expansion of vegan and plant-based shortening products to cater to dietary preferences
The advancement in the vegan, plant-based diets market remains persistent and immensely affecting the shortenings market mainly. The shortenings that were previously in use are products of tenderisations of animal fats such as lard and butter; these are gradually being replaced by plant-based shortenings. These veggie-based margarines utilise coconut, palm, sunflower and soy oils to come up with products that will be marketable to vegan consumers.
The trend is therefore of ethical nature alongside health concerns since plant based diets are perceived as healthier and sustainable. Manufacturers are also paying much attention towards its functionality where plant-based shortenings must perform as well as animal-based ones in terms of texture and flavors amongst others. Besides the qualification of the new end markets, this entry into plant-based shortenings fits well with consumers’ rising concerns with sustainable and ethical consumption.
Growing trend of local production to reduce carbon footprints and support local economies
Environmental issues and sustainability have turned out to be central in the determination of the food production systems in the contemporary society. Production of shortenings locally is on the rise given that it contributes to abatement of the carbon footprints as well as stimulation of local economies. The control of product carbon impact could also be improved by purchasing raw materials locally so that there is little transportation required for materials.
Bringing economic benefits to the local farmers by stable income, it also reduces the negative impact to the environment. The localization trend also turns into the advantage as applied to the supply chain: the best quality and freshness are guaranteed.
In addition, consumers are also have trend and preferences in buying locally products because the consumers feel that these product have better quality and they also support the local industries. With this model being adopted by more firms, there is likely to be change towards sustaining and community as a focal point on the side of the shortening industry.
During the period 2020 to 2024, the sales grew at a CAGR of 3.4% and it is predicted to continue to grow at a CAGR of 4.1% during the forecast period of 2025 to 2035.
Today’s shortening market is far different from what it was in the early twentieth century. In the beginning the resources where shortening was in high demand were lard and butter commonly obtained from the fats of cattle and sheep. Latin shortening and the new hydrogenated vegetable shortenings like Crisco have longer shelf life and heat stability.
Nevertheless, some health issues related to trans fats in hydrogenated shortenings occurred at the end of the twentieth century and regulations imposed considerable changes in the production as well as consumption of trans-fat-free and healthier margarines.
Currently, the market expands gradually, introducing new formulations such as palm oil and other vegetable derived shortenings, organic and natural, and environment-friendly products that respond to the needs of customers who pay attention to what they eat over the next ten years. The constantly rising demand for better quality food and a healthier diet is forcing manufacturers to develop fresh solutions; including trans-fat-free, non-hydrogenated, plant-based shortening.
It suggests that food service and bakery industries will remain the primary end user of the shortenings. Some causes include the new emergence of quick service restaurant (RS) and the rapid expansion of the baking sectors in developing areas characterized by increased urbanization. Also, the rising disposable income, and particularly in the developing regions
are also key trends fuelling demand for premium as well as convenience food products which will also help the market to grow. Demanding consumers and the need to improve on quality will be other areas to watch out for in as much as technological enhancement in production processes alongside the formulation of new production techniques.
Tier 1: In the shortening market, Cargill Incorporated, Bunge Limited and Archer Daniels Midland Company can be considered leading Tier 1 players. It means that they could have broad production facilities, elaborate delivery systems, and extremely wide cross-national coverage, which enabled them to dominate a good part of the market demand. They are able to set industry standards and prices using their capabilities and in turn push for higher innovation ad technology.
Tier 2: In Tier 2, involved manufacturers include Lonza Group AG, Palsgaard, RIKEN VITAMIN Co., Ltd., and AAK Kamani Pvt Ltd. Although they are largely comparatively smaller to the Tier 1 firms, such companies wield considerable power in the market place, especially the regional markets. The fact is that their market penetration is usually much higher, thanks to specific knowledge about specific industries, as well as product specialization, when developing goods that meet definite requirements of a client.
Tier 3: Mallet & Company, Inc., Natu’oil Services Inc., Western Pacific Oils Inc., Agarwal Industries Ltd., Roberts Manufacturing Co. Ltd, Stratas Holdings Ltd, Carotino SDN BHD, PT.Tiido Pratama Indah. ICC Indonesia, THE J.M. Smucker Company, and Edible Oils Ltd are in the Tier 3 companies. These firms mainly act within a certain geographical area or country and are tailored to deliver goods and services to small specified segments of markets. Both their market strategies focus on specialization and, therefore, the delivery of products to suit the requirements of clients.
The following table shows the estimated growth rates of the significant three geographies sales. USA and Germany are set to exhibit high consumption, recording CAGRs of 8.3% and 7.9%, respectively, through 2035.
| Countries | CAGR 2025 to 2035 |
|---|---|
| United States | 4.7% |
| Germany | 3.8% |
| India | 7.3% |
Increased population and ready access to convenient foods has increased the demand for ready to use shortenings. These shortenings are used as raw materials in the manufacture of many different food items, including pre-cooked meals, snacks, cakes and cookies, and pastries. They are very useful because of the convenience they afford to the food manufacture businesses.
Pre-made shortenings are time-saving tools, which allow to reach targeted mouthfeel, taste, and formulation in food items. They are intended to improve the quality and storability of products; properties that are vital for the standardized production and packaging of convenience foods. Today, people have a very tight schedule to fulfill hence they are in constant search of products that require less effort while preparing and consuming. These expectations are well met by ready-to-use shortenings so as to ensure that food products retain its qualities as well as taste in the long-run.
In Germany for instance, bakeries use very advanced systems or mixing and kneading of doughs that feature accuracy in engineering creativity as well as digital systems. These systems guarantee that the dough will be mixed according to the right degree of coarseness needed for the product where accurate consistencies of specific shortenings are vital. Through this process, bakeries are able to get a constant procedure with little involvement from man.
The future has come with smart ovens that are fitted with sensors as well as the artificial intelligence feature. And these ovens always can control the conditions of baking and change temperature, humidity, and baking time. This particular control is important for products that require shortenings since it facilitates equal distribution to prevent and cure stickiness issues which would lead to failure in getting crispy pastries as well as soft cakes.
India has witnessed an increasing urban middle income population base with increased disposable income and attitude towards premium and convenience food products including bakery products. This demographic shift in the consumption pattern sustains a continuously stable market demand for high quality shortenings for various applications, special diet requirements, and luxury products.
The large and growing population of urban consumers exercises immense pressure on markets to grow as well as pushes producers to develop more shortening products for the markets. From this pool of consumers, a need for high quality shortenings for baked goods and convenience foods has been driven.
Producers are introducing endless sorts of shortening that can address different clients’ consuming patterns, for example, withhold trans-fat, low saturated fat, or fortified shortenings. Such innovations help make sure that consumers cannot be forced to abstain from tasty foods while making healthier choice.
| Segment | Value Share (2025) |
|---|---|
| Conventional (Nature) | 67% |
Conventional shortening is a product that has begun to find its niche with consumers around the world because of its specific characteristics and usage opportunities. Some of the reasons that have led to widespread use of this technology include; It increases the texture and consistency of many food products. In baking for instance; the routine use of shortening offer pie crusts that are flaky, pastries that are tender and cakes that are soft and highly accepted by consumers.
Also, conventional shortening lasts longer and has a stable condition when stored at room temperatures, thus making it usable for consumers as well as producers. It also has a tasteless property hence it can easily fit in all recipes and does not even cause a change of taste to the foods. Because of the product’s versatility, it is widely used in homes and restaurants across the globe.
| Segment | Value Share (2025) |
|---|---|
| Palm oil (Source) | 32% |
According to market forecasts, palm oil will remain the most popular oil in the world due to its high efficiency and multifunctionality. The oil palm tree for example, produces far more oil per hectare than soybeans, sunflowers or canola which are the other main commercial oil crops. This high yield turns benefits into cost and makes palm oil advantageous for both the producer and consumer.
Other than its efficiency, flexibility in processing serves as another reason as to why the product is processed widely with priority given to palm oil. Many people may know it as a common ingredient in margarine, instant noodles and other processed foods; its pale, flavourless appearance makes it very versatile. Furthermore, the chemical is used in production of personal care products, cleaning materials such as detergents, as well as in bio-fuels.
Companies in the shortening market space are presenting good competition amidst the leaders and contenders of which some have made strong points to consolidate their position. Cargill Incorporated boasts a vast and global supply chain and a powerful base of research and development, and the company can adapt and manufacture a variety of high-quality shortening products. They are central to meet the needs of the segment of the food market ranging from bakeries to confectionery.
Mallet & Company deals in bakery shortenings, to meet several requirements of commercial bakers and give the baked products a specific textural and shelf stability thereby being first choice of the commercial baker. Formerly Lonza Group AG is a specialty chemicals concern now exploring its health related shortening solutions, capitalizing on the trend towards healthier and fortified food ingredients.
Being in agribusiness, Bunge Limited is able to drive home the benefits of environmentally friendly shortenings that health conscious people would embrace. Since each company develops different concepts, based on which they produce shortening which they deem more important, including the concepts of innovation, sustainability, and health, the competition remains high and active in the market of these products, and, thus, the leaders of those industries will further define the development of the shortening market aligned with the shifts in consumers’ demands.
The market is expected to grow at a CAGR of 4.1% throughout the forecast period.
By 2035, the sales value is expected to be worth USD 7683.2 million.
North America is expected to dominate the global consumption
Cargill Incorporated, Mallet & Company, Inc., Lonza Group AG, Bunge Limited, Archer Daniels Midland Company
By Nature industry has been categorized into Organic and Conventional
By source oil, soyabean oil, sunflower seed oil, maize, Groundnut Oil, Coconunt Oil, Lard, Butter
By Form industry has been categorized into Powder and Block
By end user industry has been categorized HoReCa, Bakery, Confectionary, Processed Food, Household Retailers
Industry analysis has been carried out in key countries of North America, Latin America, Europe, Middle East and Africa, East Asia, South Asia, and Oceania
Hemp Milk Market Analysis by Variant, Type, End Use, and Sales Channel Through 2035
Insect Feed Market Analysis by Insect Type, Application and Region through 2035
Comprehensive industry analysis and forecast by Product Type, Fat Content, Application and region through 2035
Understanding Crucial Drivers Augmenting Gluten Free Pizza Crust Sales Growth.
Feed Mycotoxin Detoxifiers Market Analysis by Type, End-use, Animal type, Distribution channel and Region through 2035
Chelated Selenium Market Analysis by Type, End-use, Distribution channel and Region through 2035
Shortenings Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
