Margarine and shortening are useful dairy or vegetable fat spreads that are used as substitutes for butter in cooking and baking applications due to their relatively lower price points. Margarine and shortening deliver essential fat content while being cholesterol-free and providing texture and flavors in various preparations. The growing health-conscious consumer base has led to advancements in product offerings with reduced trans-fatty acid levels.
The Global Margarine and Shortening Market is estimated to be valued at US$ 18.15 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Margarine and Shortening are Emoha Elder Care, AntaraSeniorCare, Nisarg Care, Tata Trust, Ashiana Housing Ltd., Heritage Eldercare Services Pvt. Ltd., ASLI (Association of Senior Living India), Nema Care, Age Ventures India, Piramal Swasthya, Jeevan Suraksha, and Kriti Elder Care. The growing health awareness among consumers globally has increased the demand for margarine and shortening products with plant-based, non-GMO and reduced trans-fat formulations. The market has also witnessed increased penetration in developing regions of Asia Pacific and Latin America owing to rising living standards and awareness of benefits of such food spreads.
Market key trends
The rising adoption of plant-based and dairy-free alternatives in Margarine And Shortening Market Demand products is one of the key trends being witnessed in the market. Brands are innovating with formulations based on ingredients such as avocado, coconut and other tropical oils to appeal to the growing vegan and flexitarian consumer bases. The clean label movement has also driven the demand for non-GMO, organic and natural specialty margarines and shortenings with simple and familiar ingredient declarations.
Porter’s Analysis
Threat of new entrants: Margarine and shortening industry requires large capitals for high volumes of production. Established brands have advantages of scale and experience over new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power as there are several established brands to choose from. However, brand loyalty plays a role.
Bargaining power of suppliers: Major suppliers include oil extraction companies. Their importance is moderate as raw materials can be sourced from alternate suppliers as well.
Threat of new substitutes: Substitutes include butter, olive oil and other cooking oils. However, margarine and shortening have price advantage over butter.
Competitive rivalry: Industry has few major players controlling majority share. Competition is based on pricing, new product launches and marketing strategies.
Geographical Regions
North America accounts for the largest share currently due to high consumption levels and developed markets. Production is concentrated in the US.
Asia Pacific region is witnessing the fastest growth supported by rising incomes, urbanization and changing dietary preferences in major countries like India and China. Production is increasing locally to cater growing domestic demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it