The global margarine and shortening market is anticipated to exhibit a healthy CAGR during the forecast period (2018 to 2023), according to a report available on Million Insights. Margarine and shortening refers to saturated fats which are solid at room temperature. Both of them are prepared from vegetable oils and offer better shelf life. Vegetable oils used in preparation of margarine and shortening are either partially or fully hydrogenated oils. The product contains both unhydrogenated polyunsaturated and monounsaturated fats that prevent coronary heart disease.
Air, light, and moisture are likely to support development of rancidity in oils and fats. In addition, fats and oils do have a tendency to absorb flavors and odors during storage. However, high grade hydrogenated vegetable shortenings are likely to offer good keeping qualities. Margarine and shortening are capable of retaining its sweetness and freshness as it is quite resistant to rancidity. Thereby, they are used to manufacture baked products free from disagreeable odor and taste.
Rising demand for bakery products such as cakes, pastries, and biscuits is anticipated to propel market growth. Margarine and shortening are the main ingredients which are used in preparation of bakery products. Such ingredients help in increasing shelf life and flaky texture of baked products. It also helps in making icing and filling creamier. In addition, increasing use of margarine and shortening in pie crusts is expected to impel market growth. It creates barrier between gluten molecules and reduce chances of cross their cross-linking when liquid is added. Moreover, growing need for advanced baking techniques to improve texture, eating quality, and nutritive value of baked products will drive the market over the forecast period.
To cater to rising demand for healthy food, companies are investing in R&D activities to develop better products. For instance, in September 2018, Bunge Loders Croklaan launched liquid margarine called Delica Pro Gold. It’s a plant based product aimed for industrial and artisanal bakeries. The product contains no artificial flavors and colors. In addition, it is low in saturated fatty acids as it contains plant-based oils and virgin oils of corn, wheat, and linseed. Moreover, it contains omega 3 and omega 6 fatty acids and it is a natural source of vitamin E.
Based on product, the margarine & shortening market can be categorized into hard, soft, liquid, and powder. Hard segment is anticipated to hold highest market share over the forecast period. This is attributed to increasing use of hard and uncolored margarine in cooking and baking. For white cakes, absence of added color in shortening and margarine allows bakers to preserve the natural color of other ingredients. This factor is likely to stimulate segment’s growth in coming years.
On the basis of application, the margarine and shortening market can be classified into instant noodles, confectionary, and bakery. Bakery segment is expected to witness highest market share over the forecast period. This is attributed to rising demand for margarine as an ingredient in food products such as cakes, doughnuts, pastries, and cookies.
Regional segmentation includes North America, Europe, Asia Pacific, South America, and Middle East and Africa. Asia Pacific is anticipated to hold highest market share over the forecast period. This is attributed to growing adoption of western culture and changing eating habits of people living in developing countries such as India. Rising demand for healthier fortified baked products is also expected to boost sales. Moreover, increasing number of bakeries and cake shops in India will drive regional market growth. North America, on the other hand is anticipated to witness significant market growth owing to rising demand for tub and liquid margarines that is often free from Trans fats. No trans-fat is expected to be better for health than butter.
Some of the key players operating in the margarine and shortening market are Tuong An Vegetable Oil, Cai Lan Oils & Fats Industries Company Ltd., Golden Hope Nha Be, Gagar Foods Pvt. Ltd., and Tan Binh Vegetable Oil Joint Stock Company. Most of the companies are adopting business strategies such as mergers and acquisition to achieve competitive edge.
Geographically, this report is segmented into several key Regions, with production, consumption, revenue (million USD), market share and growth rate of Margarine & Shortening in these regions, from 2012 to 2023 (forecast), covering
• North America (United States, Canada and Mexico)
• Europe (Germany, France, UK, Russia and Italy)
• Asia-Pacific (China, Japan, Korea, India and Southeast Asia)
• South America (Brazil, Argentina, Columbia)
• Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)
Global Margarine & Shortening market competition by top manufacturers, with production, price, revenue (value) and market share for each manufacturer; the top players including
• NMGK Group
• Zydus Cadila
• Fuji Oil
• Yidiz Holding
• Grupo Lala
On the basis of product, this report displays the production, revenue, price, market share and growth rate of each type, primarily split into
• Type I
• Type II
On the basis on the end users/applications, this report focuses on the status and outlook for major applications/end users, consumption (sales), market share and growth rate of Margarine & Shortening for each application, including
• Food Industry
Research Support Specialist, USA