Shortening Market size is set to grow by USD 1.24 billion from 2023-2027, High consumption of bakery products boost the market, Technavio

NEW YORK, July 17, 2024 /PRNewswire/ -- The global shortening market size is estimated to grow by USD 1.24 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of 4.93% during the forecast period. High consumption of bakery products is driving market growth, with a trend towards plant-based and vegan shortenings. However, health issues associated with shortening poses a challenge. Key market players include AAK AB, Archer Daniels Midland Co., B and G Foods Inc., Bunge Ltd., Cargill Inc., CAROTINO SDN BHD, Fuji Oil Co. Ltd., Gujarat Ambuja Exports Ltd., IFFCO Group, Manildra Flour Mills Pty. Ltd., Olivia Impex Pvt. Ltd., Palsgaard AS, Premium Oils and Fats Sdn Bhd, Riken Vitamin Co. Ltd., S.S.D. Oil Mills Co. Ltd., Stratas Foods, Vantage Specialty Chemicals, Ventura Foods LLC, Wilmar International Ltd., and Associated British Foods Plc.

Get a detailed analysis on regions, market segments, customer landscape, and companies- View the snapshot of this report

Market Driver

The plant-based and vegan shortening market is experiencing significant growth due to the increasing preference for plant-based diets and the demand for vegan products. These shortenings are derived from vegetable oils or other plant-based sources like coconut, excluding animal-derived ingredients such as margarine. Manufacturers are responding to this expanding consumer base by introducing plant-based and vegan alternatives. Consumers are becoming more health-conscious and seek healthier options, which plant-based shortenings provide with lower saturated fat and zero cholesterol compared to traditional animal-based shortenings. This healthier profile is appealing to individuals looking for alternatives that align with their well-being. The growing popularity of plant-based products is expected to positively impact the expansion of the global shortening market during the forecast period. 

The shortening market is currently experiencing significant growth due to increasing trends in health concerns, obesity, and lifestyle epidemics. Consumers are seeking healthier alternatives, leading to the development of improvised formulations with dietary fibers and fortified shortenings. Premiumization and organic, clean-label options are also on the rise. Raw materials, such as vegetable oils and emulsifiers, are essential for economical production. End-use sectors, including rolls, breads, hard baked goods, cakes, and foodservice sectors, are major markets. Processed shortenings offer plasticity and consistency for various applications, from deep-frying to creaming and baking. Bakery products, like cookies, pies, and pastries, are popular applications. Shortenings' hygroscopic nature and ability to create fine, delicate structures make them indispensable. The market is fragmented, with independent bakers and private label bakers competing alongside established brands. Future development includes essential oils, micronutrients, and fortified shortenings for healthy indulgence. The growth trajectory is promising, with potential applications in the foodservice sector and deep-frying applications. Temperature considerations, such as room temperatures and refrigeration, are crucial factors in production and storage. 

Discover 360° analysis of this market. For complete information, schedule your consultation - Book Here!

Market Challenges

• Consumers' increasing health consciousness has led to decreased demand for shortening due to its high trans fat and saturated fat content. Negative impacts on cardiovascular health have raised concerns, causing consumers to seek healthier alternatives like vegetable oils and plant-based fats. Dietary trends, such as low-fat or fat-free diets, have also influenced this shift. This may negatively affect the growth of the global shortening market during the forecast period.
• In the food industry, shortening faces challenges in various sectors. Shelf-life is a major concern due to the presence of trans-fats and hydrogenated oils. Functional meals and nutrients like amino acids, vitamins, minerals, protein, and fatty acids require functional shortenings for optimal performance. Amino acids and vitamins are sensitive to heat and oxidation, affecting consumer health. Functional products in bakeries and confectionery face hurdles due to the use of hydrogenated oils and trans-fatty acids, linked to cardiovascular diseases. Retail stores and e-commerce platforms face challenges in sourcing high-quality shortenings with long shelf-life. Indirect stores and convenience stores require shortenings with good heat transfer and air incorporation for optimal performance. Profitability estimations in the bakery, confectionery, and snacks & savory sectors require benchmarking against competitors using vegetable fats and hydrogenation techniques. The lubricating effect, sensory properties, texture, mouth-feel, and structural integrity of shortenings are crucial for consumer acceptance. Vegetables, malls, and lockdowns impact the availability and cost of raw materials for shortening production. Shortenings must meet consumer health concerns while maintaining the desired functional properties for various baked commodities and formulations.

For more insights on driver and challenges - Request a sample report!

Segment Overview 

This shortening market report extensively covers market segmentation by

1. Source 
• 1.1 Vegetables
• 1.2 Animal
2. Channel 
• 2.1 Indirect channel
• 2.2 Direct channel
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Vegetables- The vegetable segment held a significant share in the global shortening market in 2022. With growing health concerns regarding saturated fats and trans fats, vegetable-based shortening, derived from oils like soybean, sunflower, or canola, has gained popularity. This alternative is generally lower in saturated fats and free of trans fats. The rise of plant-based diets and veganism has fueled demand for vegetable-based alternatives in various food products. These options align with dietary choices and cater to individuals avoiding animal products. The clean label movement favors natural, minimally processed ingredients. Vegetable-based shortening fits this trend as it undergoes minimal processing and lacks artificial additives or preservatives. It is also suitable for individuals with dietary restrictions or allergies, particularly those avoiding dairy or lactose. Additionally, vegetable shortening is perceived as a more sustainable choice compared to animal-based fats, contributing to the market's growth during the forecast period.

For more information on market segmentation with geographical analysis including forecast (2023-2027) and historic data (2017-2021) - Download a Sample Report

Learn and explore more about Technavio's in-depth research reports

The global software testing market is expanding with increasing digital transformations across industries. Key drivers include demand for quality assurance, agile development practices, and automation. Major players focus on enhancing testing capabilities to ensure robust software performance and security. The global DevOps platform market is growing rapidly as organizations adopt continuous integration and delivery practices. Key factors driving growth include agility in software development, collaboration between development and operations teams, and automation of deployment pipelines. Leading providers offer integrated solutions to streamline workflows and accelerate time-to-market for applications.

Research Analysis

Shortening is a type of edible fat used in baking and cooking to improve the texture, shelf life, and appearance of various food products. It is typically made from vegetable oils, such as soybean or cottonseed, hydrogenated to increase their saturated fat content. At room temperature, shortening maintains its solid state, making it ideal for use in pastries, cakes, and pies. In the confectionery sector, shortening is crucial for creating structural integrity and air incorporation in products like marzipan and fondant. In the bakery sector, it enhances the texture of bread and rolls. In the snacks & savory sector, it is used in frying and coating snacks. However, the use of shortening has raised health concerns due to its high saturated and trans-fat content. Trans-fats have been linked to cardiovascular diseases, obesity, and lifestyle epidemics. Heat transfer and shelf life are other important factors considered when choosing shortening for commercial applications in malls and foodservice industries.

Market Research Overview

Shortening is a type of edible fat used in baking and cooking to improve the texture, elasticity, and shelf life of various food products. It is typically made from vegetable oils, such as soybean or cottonseed, that undergo hydrogenation to increase their saturated fat content and improve their solidity at room temperature. Shortening is widely used in the production of pastries, cakes, bread products, and other baked commodities, as well as in the manufacture of dry-ready meals, dried noodles, and snacks. The shortening market has seen significant growth in recent years due to the increasing demand for convenience foods and the need for economical production in various end-use sectors. The market is segmented into the bakery sector, confectionery sector, and snacks & savory sector, among others. The key factors driving the growth of the shortening market include the need for improved texture, mouth-feel, and structural integrity in baked goods, as well as the demand for functional meals and functional nutrients, such as amino acids, vitamins, minerals, protein, and fatty acids. However, health concerns, such as the negative health effects of trans-fats and saturated fats, have led to increased scrutiny of the shortening industry. As a result, there is a growing trend towards the development of improvised formulations, such as those made with prebiotics, vegetable fats, and other healthy alternatives. The shortening market is expected to continue its growth trajectory in the coming years, with profitability estimated to reach new heights in various end-use sectors, including rolls, breads, hard baked goods, cakes, and liquid consistency applications in foodservice sectors. The market is also expected to see significant growth in deep-frying applications and in the production of functional shortenings for use in functional meals and premium bakery products. Despite the challenges posed by health concerns and the ongoing COVID-19 pandemic, which has led to disruptions in the supply chain and increased competition from indirect stores and e-commerce platforms, the shortening market is expected to remain a key player in the global food industry. Sources: 1. Grand View Research. Shortening Market Size, Share & Trends Analysis Report By Type (Hydrogenated Vegetable Oils, Non-hydrogenated Vegetable Oils), By Application (Bakery, Confectionery, Snacks & Savory, Foodservice), By End Use (Bakery Products, Confectionery Products, Snacks & Savory Products, Functional Foods), By Region, And Segment Forecasts, 2021 - 2028. 2. Statista. Shortening Market Size Worldwide in 2021. 3. Food Ingredients First. Shortening Market to Reach USD16.8 Billion by 2026. 4. IBISWorld. Shortening Manufacturing in the United States. 5. Food Business News. Shortening: A Fat Fact.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Source
• Vegetables
• Animal
• Channel
• Indirect Channel
• Direct Channel
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio