Margarine and Shortening Market Estimated to Witness High Growth Owing to Increasing Demand for Healthier Cooking Options
The global margarine and shortening market comprises various products such as margarine, butter, shortening, and spreads that are used in various cooking applications. Margarine and shortenings are primarily used as alternatives for butter and cooking oils owing to their longer shelf life and affordability. They are mainly used for baking, cooking, and spreading on bread. The market has witnessed strong growth in demand from the foodservice industry as well as households looking for healthier cooking options.
The global margarine and shortening Market is estimated to be valued at US$ 15.75 Bn in 2023 and is expected to exhibit a CAGR of 1.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
One of the key drivers for the growth of the margarine and shortening market is the increasing demand for healthier cooking options. There is a rising consumer awareness about the health benefits of using plant-based margarine and shortenings over butter and oils high in saturated fat. Margarine and shortenings contain no cholesterol and less saturated fat than butter, which makes them healthier alternatives. Additionally, demand is driven by the versatility that margarine and shortening products provide across a wide range of cooking applications such as baking, cooking, and spreads. The affordability of margarine and shortening relative to butter has also fueled their adoption rate globally. Moreover, the increasing demand for convenience foods amid rapidly changing lifestyles has propelled the demand for margarine and shortening from the foodservice industry. However, factors such as availability of alternatives like olive oil may hamper the industry growth in the forecast period.
SWOT Analysis
Strength: Margarine and shortening provide alternatives to butter for health conscious consumers. They have a long shelf life and are more affordable than butter. Margarine and shortening have versatility in cooking and baking applications and can be used in place of butter or oil in most recipes.
Weakness: Margarine and shortening have perceived negative consumer perceptions around being less natural or healthy than butter. Their popularity has declined as consumers increasingly prefer butter or alternatives perceived as more natural. Processed vegetable oils used in production raise concerns around hydrogenated fats and trans fats.
Opportunity: Growing health awareness is driving consumer demand for plant-based and sustainable alternatives to dairy and animal products. Margarine and shortening manufacturers can leverage plant-based formulations appealing to vegan and health conscious consumers. Emerging markets in Asia Pacific and Latin America present opportunities for market expansion.
Threats: Stricter regulations around trans fats and labeling requirements raise production costs. Alternative foods like nut butters gain popularity representing competition. Economic uncertainties and commodity price volatility impact raw material costs.
Key Takeaways
The Global Margarine And Shortening Market Size is expected to witness steady growth over the forecast period supported by shifting dietary trends and populations in emerging economies. The Asia Pacific region dominates market share and is projected to be the fastest growing region through 2030 as Western diets gain popularity and incomes rise in developing nations.
Regional analysis: The Asia Pacific region accounts for more than 40% of global margarine and shortening consumption. China, India, Indonesia and other Southeast Asian countries represent large consumer bases and production hubs for major manufacturers. Increasing disposable incomes are driving demand for affordable substitutes to butter in the region. Westernized lifestyles support margarine and shortening use in baking, cooking and table spreads.
Key players: Key players operating in the margarine and shortening market are Unilever, Conagra Brands, Bunge Limited, Wilmar International Ltd., Upfield Holdings BV, Cargill, Incorporated, Archer Daniels Midland Company (ADM), Fuji Oil Co., Ltd. ,Richardson International Limited, Dairy Farmers of America, AAK AB, NMGK Group, Puratos Group, Kerry Group, Vandemoortele. Major players focus on plant-based innovations and expanding into high-growth emerging markets to strengthen market shares.
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