Market Size of Shortening Fat Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.20 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Shortening Fats Market Analysis
The global fat shortening market is projected to grow at a CAGR of 4.2% during the forecast period (2022 - 2027).
The Shortening Fat market is quickly reaching its pre-COVID levels. A healthy growth rate is expected over the forecast period, driven by the economic revival in most developing nations. However, unprecedented situations due to different waves are creating a gloomy outlook. Furthermore, the production and distribution of these products were impacted due to the lockdown imposed by governments in various countries and the temporary shutdown of different manufacturing units.
The market is primarily driven by its extensive applications in the food industry for making bakery, confectionery, dairy, and other products, along with its industrial use. Companies operating in the shortening fats market should capitalize on "premiumization" and artisanal & indulgent" baked commodities, as these products require many fats to produce desirable sensory properties.
The health concerns amidst rising obesity and other lifestyle epidemics for unhealthy fats coupled with partial replacement efficiencies are some of the major hindrances to the global shortening fats market.
Shortening Fats Industry Segmentation
Shortening generally refers to hydrogenated oils having semi-solid consistency and shelf stability. Shortening fats provide a lubricating effect in food matrices and influence the sensory properties, especially the texture and flavor attributes. The global shortening fat market is segmented by source type, application, and geography. Based on source type, the market is segmented into palm and palm kernel, sunflower seed, soybeans, animal-based, and others. The animal-based segment is further sub-segmented into butter, fat, and Lard. Based on the application, the market is segmented into confectionery, ice cream, snacks, bakery, and others. Based on geography, the study analyzes the shortening fat market in the emerging and established markets across the globe, including North America, Europe, Asia-Pacific, South America, and Middle East & Africa. The report offers market size and forecasts for shortening the fat market in value (USD million) for all the above segments.
| By Source Type | |||||
| Palm and Palmkernel | |||||
| Sunflower Seed | |||||
| Soybeans | |||||
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| Others |
| By Application | |
| Confectionery | |
| Ice Cream | |
| Snacks | |
| Bakery | |
| Others |
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Shortening Fat Market Size Summary
The global shortening fats market is experiencing a resurgence, approaching pre-COVID levels, with a steady growth trajectory anticipated over the forecast period. This growth is largely attributed to the economic recovery in developing nations and the increasing demand from the food industry, where shortening fats are integral to the production of bakery, confectionery, and dairy products. The market's expansion is further supported by the rising processed food industry, driven by consumer preferences for convenience and ready-to-eat meals. However, challenges such as health concerns related to obesity and lifestyle diseases, along with the need for partial replacement efficiencies, pose significant obstacles to market growth. The market is also influenced by the trend towards premium and artisanal baked goods, which require high-quality fats to achieve desired sensory attributes.
North America holds a substantial share of the market, bolstered by a robust bakery industry and a consumer shift towards healthier eating options, including organic and clean-label products. The fragmented nature of the bakery market in developed regions presents opportunities for shortening fat manufacturers to cater to diverse consumer demands. Key players in the market, such as Bunge North America, Inc., Yildiz Holding, and Cargill, are focusing on product innovation and strategic partnerships to enhance their market presence. These companies are actively reformulating products to reduce trans fatty acid content and are expanding their portfolios through new product launches and joint ventures. The market's competitive landscape is characterized by significant investments in technology and infrastructure, as seen in Cargill's investment in a high-pressure hydrogenation plant, aimed at producing superior health and nutrition supplements.
Shortening Fat Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Source Type
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2.1.1 Palm and Palmkernel
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2.1.2 Sunflower Seed
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2.1.3 Soybeans
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2.1.4 Animal Based
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2.1.4.1 Butter
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2.1.4.2 Tallow
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2.1.4.3 Lard
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2.1.5 Others
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2.2 By Application
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2.2.1 Confectionery
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2.2.2 Ice Cream
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2.2.3 Snacks
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2.2.4 Bakery
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2.2.5 Others
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 France
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2.3.2.4 Russia
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2.3.2.5 Italy
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2.3.2.6 Spain
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 South Africa
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2.3.5.2 Saudi Arabia
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2.3.5.3 Rest of Middle-East and Africa
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Shortening Fat Market Size FAQs
What is the current Shortening Fat Market size?
The Shortening Fat Market is projected to register a CAGR of 4.20% during the forecast period (2024-2029)
Who are the key players in Shortening Fat Market?
Namchow Chemical Industrial Co., Ltd., Cargill, Inc., NMGK Group, FUJI OIL CO., LTD. and Yidiz Holding (Eksper Food) are the major companies operating in the Shortening Fat Market.
