Vegetable Shortening Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

Vegetable shortening is a type of fat that is hydrogenated to achieve a solid state at room temperature. This stability is especially useful for recipes that require a crumbly or flaky texture, such as pastries and pie crusts. In contrast to butter, which contains water and often results in steam formation while baking, shortening has a more reliable fat content that contributes to the desired outcomes in baked goods.

MARKET OVERVIEW

The vegetable shortening market is valued at approximately USD 5.3 billion in 2023 and is projected to reach USD 7.99 billion by 2034 exhibiting a compound annual growth rate (CAGR) of 3.8% during the forecast period of 2024-2034. Vegetable shortening is essential in baking and is used extensively in both home and industrial kitchens because it improves texture, offers stability and versatility, serves as a vegan alternative, and ensures long shelf life.

GROWTH DRIVERS

Consumers are becoming increasingly aware of the negative effects of trans and animal fats in their diets. The shift to healthier eating habits is increasing demand for vegetable shortening as it is often perceived as a healthier alternative. As consumers actively seek trans-fat-free and non-hydrogenated products, manufacturers are compelled to innovate and reformulate their offerings.

The market for vegetable shortening is significantly influenced by the rise in popularity of plant-based diets. The demand for vegetable-based products that align with their dietary preferences is increasing as more consumers adopt vegan and vegetarian lifestyles. In response to this trend, manufacturers are developing novel formulas that accommodate plant-based diets, thus broadening their product offerings in the vegetable shortening segment. In addition to satisfying consumer demand, this change promotes sustainability through the adoption of organic and non-GMO sources.

MARKET SEGMENTATION:

By Type -

·         Non-emulsion Type

·         Emulsion Type

By Source -

·         Soybean Oil 

·         Palm Oil 

·         Cottonseed Oil 

·         Sunflower Oil 

·         Other Sources

By Distribution Channel -

·         Supermarkets/hypermarkets    

·         Convenience stores    

·         Online retail    

·         Specialty stores    

·         Other Distribution Channels

By Application -

·         Bakery

·         Frying

·         Confectionery

·         Snacks and Savory

·         Food Processing

·         Other Applications

By Region -

·         North America (NA)

·         Europe

·         Asia Pacific (APAC)

·         Latin America (LATAM)

·         Middle East & Africa (MEA)

Vegetable Shortening Market By Type Segment Review:

Compared to their emulsion counterparts, non-emulsion shortenings are often less expensive to manufacture. Their cost advantage attracts manufacturers who aim to minimize production costs while maintaining product quality.

Vegetable Shortening Market By Source Segment Review:

Soybean oil is one of the most commonly utilized oils in the manufacturing of vegetable shortening due to its favorable properties, including its high smoke point and neutral flavor. Vegetable shortenings that contain soybean oil are in high demand due to its widespread use in commercial baking and frying applications.

Vegetable Shortening Market By Distribution Channel Segment Review:

Supermarkets and hypermarkets are significant distribution channels for vegetable shortening due to their broad reach and capacity to provide a large range of goods in one location. As consumers become more health-conscious, there is an increasing demand for plant-based and trans-fat-free baking and cooking substitutes. These health trends often lead supermarkets to expand their vegetable shortening offerings.

Vegetable Shortening Market By Application Segment Review:

The bakery segment is one of the largest consumers of vegetable shortening. The demand for baked goods such as bread, pastries, cakes, and cookies necessitate the use of shortening due to its ability to enhance texture and moisture retention.

Vegetable Shortening Market By Region Segment Review:

North America is anticipated to hold the largest share of the market in 2024 due to the increasing demand for vegetable shortening in the food processing sector. APAC is anticipated to overtake Europe as the second-largest market. The APAC region is anticipated to grow at the maximum rate throughout the forecast period due to the rising demand for vegetable shortening in emerging nations.

Vegetable Shortening Market Regional Synopsis:

North America is anticipated to be the largest market for vegetable shortening due to its established food processing industry and consumer preference for plant-based products. Furthermore, increasing health consciousness among consumers is shift them towards healthier alternatives such as vegetable shortening over traditional animal fats.

Europe is another crucial player in this market, characterized by stringent regulations regarding food safety and health standards, which drive manufacturers to innovate healthier products. The growing popularity of veganism and vegetarianism in Europe is boosting the demand for vegetable shortening as a substitute for animal fats.

The market in the Asia Pacific is expected to grow at the maximum rate during the forecast period due to region’s rapid urbanization and population growth, which is increasing demand for convenience foods like instant noodles and baked goods that utilize vegetable shortening.

The market in Latin America is growing due to their increasing adoption of Western dietary habits and a growing food processing sector, which is driving demand for vegetable shortening.

The market for vegetable shortening is diverse in the Middle East and Africa. Although there is potential for growth due to urbanization and changing dietary preferences, factors such as political instability and economic challenges is expected to hinder market expansion in certain nations.

Vegetable Shortening Key Challenges:

The cost of raw materials used in the production of vegetable shortening is highly fluctuating. Factors such as weather conditions, crop yields, and global supply chain disruptions is likely to impact price fluctuations significantly. This uncertainty makes it difficult for manufacturers to maintain stable pricing for their products, which often affect profit margins and overall market stability.

There are stringent laws governing labeling and quality standards in the food sector. For instance, in regions like the European Union (EU) and North America, there are strict guidelines governing how food products must be labeled concerning allergens, trans fats, and nutritional information. In order to comply with these standards, manufacturers are required to monitor and adapt continuously. Failure to meet these standards often result in legal penalties, product recalls, or damage to brand reputation. Additionally, the evolving nature of food safety regulations requires ongoing investment in quality assurance processes, which is expected to hinder its market growth.

Competitive Landscape:

The global market for vegetable shortening is characterized by a mix of key players, each striving to enhance their market presence through various strategies such as innovation, strategic partnerships, and a focus on meeting consumer demands for healthier alternatives.

Manufacturers are increasingly focusing on product innovation to meet changing consumer preferences, particularly the need for healthier options. This involves the development of unique vegetable shortenings that are tailored to specific culinary uses, such as baking or frying. It also involves developing formulations that reduce trans fats or incorporate functional ingredients that offer health benefits, thereby appealing to health-conscious consumers.

Key Players:

·         Fuji Oil Holdings, Inc.

·         Archer Daniels Midland Company

·         Cargill, Incorporated

·         Richardson International Limited

·         Lesieur Cristal

·         Bunge Limited

·         M. Smucker Company

·         Wilmar International Limited

·         Olam International Limited

·         Kerry Group plc

·         Loders Croklaan Group B.V.

·         Conagra Brands, Inc.

·         Other Key & Niche Players