The vegetable shortening market is estimated to secure a valuation of US$ 5.3 Billion in 2023 and is estimated to rise to US$ 7.7 Billion by 2033. The market is anticipated to grow at a CAGR of 3.8% during the forecast period. The factors accelerating the demand for vegetable shortening are as follows-
The increasing health consciousness among consumers about the disadvantages of consumption of animal fat is the main driving force for increasing demand for vegetable shortening markets globally. The rapidly changing consumption habits of consumers, increasing demand for healthy bakery ingredients, and rapid growth of end-use industries will further enhance the market growth throughout the forecast period.
Increased popularity and consumption of baked goods such as cakes, and pastries, in developed as well as developing nations is expected to drive the vegetable shortening market. Also, the increased preference for plant-based alternatives and food products with natural ingredients will boost market growth.
North America dominates the market for vegetable shortening and is likely to continue its dominance throughout the forecast period owing to the consumption of baking products and fast food. The increasing consumption of confectionary and bakery products in the USA and Canada is likely to drive market sales.
Whereas increased disposable income rapidly growing bakery industry is contributing to the market growth in Europe. The United Kingdom is emerging as the largest market for vegetable shortening due to increased veganism. Asia Pacific is expected to grow during the forecast period owing to the increased application in bakery, snack, confectionery, and dairy products.
Several key players engaged in the business of the vegetable shortening market are Tuong An Vegetable Oil, Hain Celestial, Admiration Foods, Cai Lan Oils and Fats Industries, Ventura Foods, Matrixx Initiatives, Crisco, Tan Bhin Vegetable Oil, Bunge North America, Golden Hope Nha Be among others.
The key players involved in the vegetable shortening market are investing a high amount in research and development to launch new products that are best suitable for many dietary preferences and health concerns. The manufacturers are launching innovative products to attract a more consumer base and expand their geographical presence. Also, manufacturers are coming up with products that are specifically designed for baking items.
For instance, in December 2021- Hein celestia announced the acquisition of That’s how we roll from Clearlake capital group. That’s how we roll is the marketer of parmscrisp and Thinsters, the brands offering simple and delicious snacks.
The vegetable shortening market is expected to grow during the forecast period. The increased awareness among the manufacturer and food service regarding vegetable shortening will enhance the consumer purchase of vegetable shortening, which will result in the growth of the market. Also, the increasing application of vegetable shorting in convenience food items.
The new start-ups are entering the vegetable shortening market with new products made from sustainable ingredients and developing vegetable shortening that is free from trans-fat and vegan friendly.
For instance - Butter works is a start-up producing vegetable shortening from high-quality vegetable oil and these shortenings are free from trans-fat and used for baking, frying, and cooking.
| Data Point | Key statistics |
|---|---|
| Expected Market value in 2023 | US$ 5.3 Billion |
| Projected Market Value in 2033 | US$ 7.7 Billion |
| Growth Rate (2023 to 2033) | CAGR of 3.8% |
Vegetable shortenings are solid fats that are made by hydrogenating vegetable oils such as soybean oil or cotton seed oil. These shortenings are healthy alternatives to butter and lard for baking and greasing purposes. Vegetable shortenings display similar properties of butter and lard in terms of maintaining the solid texture at room temperature but are void of any kind of flavour or odour.
Rising demand for low calorie food products is expected to create business opportunities for vegetable shortening market players. The exceptional growth rate of the global bakery industry will further enhance the market’s growth.
The key factors that are driving the market are changing food habits of consumers, growing demand for healthy bakery ingredients, and awareness regarding health benefits from vegetable shortenings. Alternatives such as butter and lard will pose as a minor restraint but the fact that vegetable shortenings are high in trans-fat will pose as an even bigger hurdle for the market’s growth over the forecast period.
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Vegetable shortenings are made from plant based oil sources such as soybean oil, cotton seed oil, refined pam oil, and other oils. The trend of veganism and plant based diets has grown as an in-vogue dietary trend finding its way in day-to-day reading diet.
The demand for lactose-free or dairy-free bakery products is quite high in western countries such as the USA and United Kingdom. The market in the East is also catching up quite fast owing to the rising demand for vegan bakery and beverages.
Social media and millennials have played a major part in spreading humanitarianism, fitness culture, animal welfare, and environmental issues, eventually bringing to notice the advantages of going vegan. In the present year, the sale of vegan and plant based food products have increased by an estimated 200 per cent, thereby indicating a strong positive growth trajectory for the global vegetable shortening market over the forecast period.
Some of the key players manufacturing vegetable shortening are as follows -
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Market players have tremendous business opportunities in the South Asian and East Asian markets as the trend of vegan food products is gaining widespread popularity at a rapid rate. Many small scale bakery businesses that offer customizable, homemade, and delivery services for vegan bakery products are emerging in the metropolitan cities of the Asian countries.
However, the regional markets of North America, Europe, and Oceania are going to post the fastest growth rate of vegetable shortenings as the trend of veganism in these regions are still on the introductory growth phase on the PLC curve. Adding to it, the increasing product portfolio of bakery products in the Western countries will lay potential business opportunities for vegetable shortening market players.
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The vegetable shortening market report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases).
The report also features a complete qualitative and quantitative assessment by analysing data gathered from industry analysts and market participants across key points in the industry’s value chain.
A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the vegetable shortening market report projects the attractiveness of each major segment over the forecast period.
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