Industrial Margarine Global Market Opportunities and Strategies to 2033

This report describes and explains the industrial margarine market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global industrial margarine market reached a value of nearly $2.9 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.44% since 2018. The market is expected to grow from $2.9 billion in 2023 to $3.5 billion in 2028 at a rate of 4.29%. The market is then expected to grow at a CAGR of 4.79% from 2028 and reach $4.5 billion in 2033.

Growth in the historic period resulted from the rising food industry, surging vegan populations, changing dietary patterns and emerging markets growth. Factors that negatively affected growth in the historic period were volatility in raw material prices.

Going forward, the growing health consciousness among consumers, increasing demand for bakery products, increasing demand for vegetable oil and rising urbanization will drive the market. Factors that could hinder the growth of the industrial margarine market in the future include government regulations.

The industrial margarine market is segmented by product into spreadable, all-purpose, butter blend and other products. The all-purpose market was the largest segment of the industrial margarine market segmented by product, accounting for 40.71% or $1.2 billion of the total in 2023. Going forward, the all-purpose segment is expected to be the fastest growing segment in the industrial margarine market segmented by product, at a CAGR of 4.57% during 2023-2028.

The industrial margarine market is segmented by source into animal source and plant source. The plant source market was the largest segment of the industrial margarine market segmented by source, accounting for 75.64% or $2.2 billion of the total in 2023. Going forward, the plant source segment is expected to be the fastest growing segment in the industrial margarine market segmented by source, at a CAGR of 4.69% during 2023-2028.

The industrial margarine market is segmented by form into hard, soft and liquid. The hard market was the largest segment of the industrial margarine market segmented by form, accounting for 50.75% or $1.5 billion of the total in 2023. Going forward, the liquid segment is expected to be the fastest growing segment in the industrial margarine market segmented by form, at a CAGR of 5.19% during 2023-2028.

The industrial margarine market is segmented by application into bakery, confectionery, toppings, sauces and spreads, convenience food and other applications. The bakery market was the largest segment of the industrial margarine market segmented by application, accounting for 40.96% or $1.2 billion of the total in 2023. Going forward, the toppings, sauces and spreads segment is expected to be the fastest growing segment in the industrial margarine market segmented by application, at a CAGR of 4.80% during 2023-2028.

North America was the largest region in the industrial margarine market, accounting for 33.28% or $956.01 million of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the industrial margarine market will be Asia-Pacific and North America, where growth will be at CAGRs of 5.42% and 4.29% respectively. These will be followed by Western Europe and South America, where the markets are expected to grow at CAGRs of 3.84% and 3.22% respectively.

The global industrial margarine market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 28.99% of the total market in 2022. Puratos Group was the largest competitor with a 3.14% share of the market, followed by Vandemoortele with 3.13%, Bunge Limited with 3.10%, Cargill Incorporated with 3.04%, Associated British Foods with 2.99%, ConAgra Brands Inc with 2.97%, Fuji Oil Co. Ltd with 2.95%, The Archer-Daniels-Midland Company with 2.93%, Wilmar International Limited with 2.70% and Richardson International with 1.84%.

The top opportunities in the industrial margarine market segmented by product will arise in the all-purpose segment, which will gain $292.71 million of global annual sales by 2028. The top opportunities in the industrial margarine market segmented by source will arise in the plant source segment, which will gain $559.19 million of global annual sales by 2028. The top opportunities in the industrial margarine market segmented by form will arise in the hard segment, which will gain $340.41 million of global annual sales by 2028. The top opportunities in the industrial margarine market segmented by application will arise in the bakery segment, which will gain $264.67 million of global annual sales by 2028. The industrial margarine market size will gain the most in the USA at $211.37 million.

Market-trend-based strategies for the industrial margarine market include innovative product developments with focus on low-fat content and premium ingredients, strategic acquisitions to expand reach and capabilities, investments in expanding manufacturing facilities, launch of innovative plant-based and vegan margarine products and use of sustainable butter and margarine packaging.

Player-adopted strategies in the industrial margarine market include focus on strengthening business capabilities through new product launches and focus on strengthening business capabilities through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the industrial margarine companies to focus on low-fat industrial margarine products, focus on scaling margarine production, focus on plant-based innovations, focus on all-purpose and spreadable segments, expand in emerging markets, continue to focus on developed markets, focus on strategic acquisitions for product expansion, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on tailored solutions for end-users and focus on toppings, sauces and spreads, and bakery segments.