Shortenings Market Report 2026

The shortenings market size has grown steadily in recent years. It will grow from $4.55 billion in 2025 to $4.74 billion in 2026 at a compound annual growth rate (CAGR) of 4%. The growth in the historic period can be attributed to expansion of commercial baking industry, growth of processed food consumption, widespread use of shortenings in bakery products, availability of vegetable oil-based formulations, increasing urbanization trends.

The shortenings market size is expected to see steady growth in the next few years. It will grow to $5.63 billion in 2030 at a compound annual growth rate (CAGR) of 4.4%. The growth in the forecast period can be attributed to rising demand for clean-label ingredients, increasing focus on health-conscious baking, expansion of premium bakery segments, growing innovation in fat replacement technologies, increasing adoption in foodservice applications. Major trends in the forecast period include increasing demand for trans-fat alternatives, rising preference for plant-based shortenings, expansion of specialty bakery applications, increasing focus on texture and performance optimization, enhanced product customization.

The rising demand for bakery products is expected to drive the growth of the shortenings market going forward. The bakery industry comprises the sale of baked goods such as bread, cakes, and other related products. Increasing consumer interest in gourmet offerings and evolving dietary preferences are contributing to higher consumption of bakery items. Shortenings enhance baked products by improving texture, providing a crumbly and crisp consistency, and preventing elasticity or stretchiness in finished goods. For instance, in April 2025, according to the Bureau of Labor Statistics, a US-based federal agency, strong consumer demand for bakery products continued into 2024, although year-over-year growth moderated from a high of 14.5% in November 2022 to 3.8% by December 2023. Therefore, the growing demand for bakery products is propelling the shortenings market.

Major companies operating in the shortenings market are increasingly focusing on the development of advanced technological solutions, such as artificial intelligence platforms, to improve operational efficiency, enhance product formulation processes, and gain deeper customer insights through data analytics. Breeze AI is HubSpot’s integrated artificial intelligence platform designed to optimize customer engagement and boost productivity across marketing, sales, and service functions. For instance, in September 2024, HubSpot, a US-based software company, launched Breeze, its embedded AI platform aimed at improving customer interactions and streamlining workflows for marketing, sales, and service teams through intelligent automation and data-driven insights.

In November 2023, The J.M. Smucker Company, a US-based food manufacturer, acquired Hostess Brands Inc. for an undisclosed amount. This acquisition strengthens The J.M. Smucker Company’s portfolio by adding well-known sweet baked snack brands, expanding distribution reach, and leveraging operational synergies to support long-term growth in the rapidly growing sweet baked goods segment. Hostess Brands is a US-based bakery company specializing in the production and distribution of sweet baked goods and snack products.

Major companies operating in the shortenings market are Cargill Incorporated, Bunge Limited, Wilmar International Limited, Archer Daniels Midland Company, Ventura Foods LLC, AAK AB, Fuji Oil Co. Ltd., Stratas Foods LLC, Premium Vegetable Oils Sdn Bhd, Walter Rau Neusser Öl und Fett AG, Puratos Group NV, Zeelandia International BV, Olenex Sàrl, HAS Group, VFI GmbH, COFCO Group Co. Ltd., Fine Organics Limited, International Foodstuff Company Holdings Limited, Upfield Holdings BV, Manildra Group.

North America was the largest region in the shortenings market in 2025. The regions covered in the shortenings market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the shortenings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The shortenings market consists of sales of shortenings sourced from tallows, soybeans, cottonseed, kernel oil, and corn oil. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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