The global shortenings market is on a growth trajectory, expected to reach USD 5,488.0 million by 2025 and further expand to USD 7,683.2 million by 2035. This marks a CAGR of 4.1% during the forecast period from 2025 to 2035. The increasing application of shortenings in the food and bakery industry, coupled with rising consumer awareness of healthier alternatives, is driving market expansion.
Manufacturers are focusing on developing trans-fat-free, plant-based, and sustainable shortening solutions to meet evolving consumer preferences. The growing demand for clean-label products with minimal ingredients is further fueling innovation in the industry.
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Key Trends in the Shortenings Market
The shortening market is undergoing a transformation, influenced by health-conscious consumers and the demand for clean-label products. One of the most notable trends is the shift towards healthier and natural shortening options, driven by concerns over trans fats and their impact on cardiovascular health. As a result, trans-fat-free shortenings have gained traction among both manufacturers and consumers.
Another significant trend is the growing popularity of plant-based shortenings due to the increasing adoption of vegan and vegetarian diets. This shift has led to innovations in shortening formulations using sustainable plant oils, such as coconut, sunflower, and palm alternatives. Moreover, the clean-label movement is gaining momentum, with consumers preferring products containing recognizable and simple ingredients.
The market also presents opportunities for sustainable and organic shortenings, as brands look for eco-friendly solutions that align with consumer preferences. This has led to a rise in organic shortening products made from responsibly sourced ingredients, further supporting the growth of the market.
Industry Developments
- Leading food manufacturers are reformulating their products to incorporate trans-fat-free and clean-label shortenings.
- Companies are investing in sustainable palm oil production to address environmental concerns and meet regulatory standards.
- The rise in specialty shortenings for specific applications, such as gluten-free and keto-friendly baking, is expanding product portfolios.
- Increased mergers and acquisitions in the shortening industry are helping key players strengthen their market presence.
Key Takeaways of the Report
- The shortenings market is expected to grow at a CAGR of 4.1% between 2025 and 2035.
- Rising consumer preference for healthier, plant-based, and trans-fat-free shortenings is driving innovation.
- Sustainable and organic shortening options are gaining popularity due to environmental and health concerns.
- The bakery industry remains the largest end-user segment, fueling demand for specialty shortenings.
- North America and Europe dominate the market, but Asia-Pacific, particularly India, is witnessing the fastest growth.
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Regional Insights
United States
The U.S. market is expected to grow at a CAGR of 4.7% between 2025 and 2035. The demand for trans-fat-free and clean-label shortenings is rising as health-conscious consumers seek better alternatives. The expanding bakery industry is also contributing to market growth.
Germany
In Germany, the market is projected to grow at a CAGR of 3.8%. The shift toward sustainable and organic shortening solutions is prominent, with consumers preferring eco-friendly and minimally processed products.
India
India is experiencing the fastest growth, with a projected CAGR of 7.3%. The increasing popularity of Western-style baked goods, coupled with a shift towards plant-based diets, is driving demand. Additionally, the presence of a large vegetarian population is boosting sales of plant-based shortenings.
Competitive Outlook
The global shortenings market is highly competitive, with key players focusing on product innovation, sustainability, and mergers & acquisitions to strengthen their market position. Leading companies are investing in R&D for healthier alternatives, expanding their production capabilities, and adopting sustainable sourcing strategies to align with evolving consumer demands.
Leading Manufacturers
- Cargill Incorporated
- Mallet & Company, Inc.
- Lonza Group AG
- Bunge Limited
- Archer Daniels Midland Company
- Palsgaard,
- RIKEN VITAMIN Co.Ltd.
- Natu’oil Services Inc.
- Western Pacific Oils Inc.
- Agarwal Industries Pvt. Ltd.
- AAK Kamani Pvt Ltd.
- Roberts Manufacturing Co. Limited
- Stratas Foods
- Carotino SDN BHD
- PT. ICC Indonesia
- THE J.M. Smucker Company
- Edible Oils Ltd.
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Key Segments of the Report
By Nature:
By Nature industry has been categorized into Organic and Conventional
By Source:
By source oil, soyabean oil, sunflower seed oil, maize, Groundnut Oil, Coconunt Oil, Lard, Butter
By Form:
By Form industry has been categorized into Powder and Block
By End User:
By end user industry has been categorized HoReCa, Bakery, Confectionary, Processed Food, Household Retailers
By Region:
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
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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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