Shortenings Global Market Report 2024

The global shortenings market has grown steadily in recent years. It will grow from $4.24 billion in 2023 to $4.43 billion in 2024 at a compound annual growth rate (CAGR) of 4.4%. During the historic period, the expansion in shortening use was driven by various factors including the preservation of traditional culinary methods, growth within the bakery and confectionery industry, increased demand for processed food items, higher consumption rates in fast-food outlets, emphasis on extending product shelf-life, and consumer preferences for specific texture and mouthfeel in food products.

The global shortenings market is expected to see steady growth in the next few years. It will grow to $5.28 billion in 2028 at a compound annual growth rate (CAGR) of 4.5%. The expected growth in the upcoming period is driven by factors such as consumers' growing interest in health-conscious options, a preference for clean label products, the rise in demand for plant-based and specialty fats, an increasing market for gluten-free and allergen-free items, and the widespread adoption of global culinary preferences. Major trends anticipated during this period involve innovations in texture-enhancing ingredients, cleaner frying solutions, packaging advancements focusing on convenience, technological progressions in production methods, and the development of collaborations and partnerships within the industry.

The shortenings market is experiencing growth driven by the increasing demand for bakery products. The bakery industry, encompassing the sale of baked goods like bread and cakes, has witnessed a surge in demand for gourmet products, influenced by changing food habits. Shortenings play a crucial role in enhancing bakery products, contributing to a desirable texture by providing a rumbly and crisp quality while preventing dishes from becoming stretchy and elastic. Notably, Agriculture and Agri-Food Canada reported that global retail sales of baked goods reached $425.7 billion in 2022, marking an increase from $407.2 billion in 2021. This upward trend reflects the escalating demand for bakery products and, consequently, propels the shortenings market.

The growth of online food delivery is anticipated to be a significant driver for the shortenings market. The surge in demand for baked goods and fried foods, both of which commonly utilize shortenings, is attributed to the rise of online platforms facilitating food delivery. Collaborations between delivery services and local establishments, the appeal of ready-to-eat foods, and the globalization of culinary options contribute to an increased need for shortenings. Factors such as culinary innovation, the expansion of quick-service restaurants (QSRs) online, and alignment with consumer trends for indulgent foods further stimulate the demand for shortenings in the evolving landscape of online food delivery. For instance, Zomato Ltd., an India-based food delivery company, reported fulfilling 535 million orders in the fiscal year 2022, marking a substantial 124% increase compared to the previous fiscal year 2021. As such, the surge in online food delivery is a key driver propelling the growth of the shortenings market.

Product innovation stands out as a prominent trend in the shortenings market, with major players introducing new and innovative products to stay competitive. In response to changing consumer preferences, companies are launching shortenings that align with trends such as veganism and low-calorie diets. An example of this trend is seen in the launch of Reddi-Wip Zero Sugar by Conagra Brands, a US-based packaged goods company, in October 2021. Reddi-Wip Zero Sugar is a keto-friendly whipped cream topping made with real cream, boasting zero grams of sugar, zero carbohydrates, and 15 calories per serving. The product, which is gluten-free and free from artificial flavors, showcases the industry's focus on meeting evolving consumer demands for healthier and innovative shortenings options.

Major players in the shortenings market are actively developing innovative solutions to cater to the instant noodles segment. One notable example is Kemin Industries, a biotechnology company based in the United States, which introduced VALTEQ AO in March 2023. This novel product is part of the VALTEQ line, designed as quality improvers for instant noodles with the goal of enhancing both palatability and production efficiency for ready-to-eat foods. VALTEQ AO, a liquid product, combines natural antioxidants and emulsifiers, effectively extending shelf life and improving overall quality. The VALTEQ line addresses various challenges faced by manufacturers in the production of instant noodles, providing solutions for optimization, waste reduction, and increased profitability. The specific offerings in the product line include VALTEQ T, which contributes to a smooth texture, bounce, and chewy mouthfeel, and VALTEQ AS, designed to prevent sticking during processing and cooking, thereby improving production efficiency.

In a strategic move, The J.M. Smucker Company, a prominent food company based in the United States, acquired Hostess Brands Inc. in November 2023. This acquisition, conducted for an undisclosed amount, positions The J.M. Smucker Co. strategically in the market by expanding its family of brands to include popular sweet baked snacks. The acquisition enhances distribution capabilities and leverages synergies to foster sustainable growth, particularly in the swiftly expanding sweet baked goods category. Hostess Brands, the acquired company, specializes in the production and distribution of sweet baked goods and snacks, aligning with The J.M. Smucker Co.'s broader strategic objectives in the food industry.

Major companies operating in the shortenings market report are Cargill Incorporated, Bunge Limited, Wilmar International Limited, Archer Daniels Midland Company, Ventura Foods LLC, AAK AB, Manildra Group, International Foodstuff Company Holdings Limited, Conagra Brands Inc., Stratas Foods LLC, Premium Vegetable Oils Sdn Bhd, Namchow Chemical Industrial Co. Ltd., Fuji Oil Co. Ltd., Kerry Group PLC, AarhusKarlshamn AB, Upfield Holdings BV, NMGK Group, BRF SA, Yildiz Holding AS, Mallet & Company Inc., Lonza Group AG, Palsgaard A/S, Walter Rau Neusser Öl und Fett AG, Puratos Group NV, Princes Limited, Zeelandia International BV, Olenex Sàrl, HAS Group, VFI GmbH, COFCO Group Co. Ltd., DuPont Nutrition and Health, Stepan Specialty Products LLC, Fine Organics Limited

North America was the largest region in the shortenings market in 2023. The regions covered in the shortenings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the shortenings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of shortenings include solid, liquid, cake/icing, and all-purpose variants. Solid shortenings encompass hydrogenated solid oils, such as lard, margarine, and butter, which remain in solid form at room temperature. These products, derived from both vegetable and animal sources, are distributed through direct and indirect sales channels. They are widely utilized in the hospitality and catering industry (HoReCa), bakeries, confectioneries, processed food manufacturing, and household retail.

This report provides shortenings market statistics, including shortenings industry global market size, regional shares, competitors with a shortenings market share, detailed shortenings market segments, market trends and opportunities, and any further data you may need to thrive in the shortenings industry. This shortenings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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.


This product will be delivered within 3-5 business days.