Shortening Market

According to a new report published by Introspective Market Research, titled, “Shortening Market by Source, Product, Application and Sales Channel, and Region Global Market Analysis and Forecast, 2024-2032.

The Global Shortening Market was valued at $ 4.8 Billion in 2023 and is expected to reach $ 6.9 Billion by the year 2032, at a CAGR of 4.11 %.

Shortening is a fat or oil of animal or vegetable origin used in baking to improve the texture and workability of doughs. It enhances the taste of baked goods by giving them a crunchy and crumbly texture, preventing the interconnection of gluten fibers during mixing and making the product soft. Common commercial dairy products include butter, bacon, vegetable oils, processed milk products, and margarine. Shortenings are essential for food processing, such as baking, frying, and more, as they impart a desirable texture to the final product. Vegetable oils like soybean, cottonseed, peanut oil, coconut oil, or palm oil are often used for shortening. These oils undergo a unique manufacturing process called hydrogenation to become solid at room temperature, giving them a butter-like texture with virtually no flavor or odor. This method improves the stability and preservation of the fat, making it suitable for use in various foods.

Shortenings are used for most baking purposes, offering desirable characteristics such as bland or pleasant flavor, freedom from objectionable aroma, light or clear color, high degree of plasticity, long storage life, good shortening power, and the ability to weaken and lubricate the structure of baked products to produce tenderness. Vegetable shortenings are popular for recipes involving high fat-to-flour ratios, like pie crusts, as they "shorten" gluten strands by preventing them from forming in the dough. All-purpose shortenings are designed for household use and small companies that cannot afford to stock shortenings separately for each application. Fluid or pourable shortenings can be pumped and metered, making them convenient for large-scale food production. Specialty shortening and roll-in shortenings are specifically formulated for bakery applications, such as puff pastry. Tastewise's Shortening Trends - Consumption Analysis and Statistics 2024 report highlights the fastest-growing ingredients and flavors associated with shortening, including tea, vanilla, and tea.

According to the Shortening, The Market is segmented into Source, Product, Application, and Sale channels. By Source, the market is categorized into Vegetables and animals. By product, the market is categorized into Olive oil, Canola oil, Coconut oil, Corn oil, Lard, Peanut oil, and Others. By Application, the market is categorized into Bakery Products, Confectionery Products, Ice Cream, Snacks & Savory Products, Household Retail, and HoReCa. By sale channel, the market is categorized into Business to Business, Business to Consumer. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

Shortening plays a crucial role in the bakery industry due to its unique properties that enhance the quality and shelf life of baked goods. It can replace butter and be dairy-free, making it popular among consumers and those with dietary restrictions. Shortening's versatility extends beyond traditional baking, making it an essential ingredient in various culinary applications. Its stability at room temperature is crucial for long baking processes and is used in sweets, pasta, batters, dessert fillings, creams, and sauces. Its high-fat content ensures soft, fluffy products, a golden color, and stability in pasta and creams. As consumers demand quality and long-lasting baked goods, the demand for effective shortening products is expected to grow.

Bakeries are seeking innovative shortening solutions to meet consumer demands, with a market opportunity in the customary shortening landscape. The shift away from partially hydrogenated oils has created a need for customized solutions, driven by improved functionality, ease of use, cleaner labels, and differentiation in a competitive environment. Suppliers can offer tailored solutions, addressing unique challenges faced by bakeries. The market is complex, with factors like price, sticker-friendliness, and durability emphasizing the need for individual approaches. Understanding fat blending and transesterification techniques allows for application-specific shortening solutions.

Global Shortening Market, Segmentation

Shortening Market Segmented Based on Source, Product, Application and Sales Channel, and Region.

Source:

Vegetable Segment Is Expected to Dominate the Market During the Forecast Period. The vegetable segment dominates the shortening market due to growing health consciousness and the shift towards plant-based alternatives. Plant-based dairy products, primarily from soybean, cottonseed, palm, coconut, and peanut oils, offer a healthier alternative to traditional animal fats. Advances in refining and hydrogenation technologies have improved flavor profiles, melting points, consistency, and availability. Vegetable sauces are versatile and can be used in various baking and cooking applications. The vegetable segment will benefit from continued formulation innovation, including fat-free options, to address health concerns and maintain product quality and yield. Manufacturers are continuously improving processes to meet consumers' healthier choices without compromising taste or texture.

End User:

The Bakery Industry Segment Held the Largest Share. The bakery industry dominates the shortening market due to its widespread use of dairy products in baked goods and sweets. Shortening enhances the texture, flavor, and shelf life of baked goods like bread, cookies, pastries, and cakes. Its versatility, including providing fat content, flavor enhancement, and mouth improvement, makes it indispensable in the baking industry. Shortening is a key ingredient in dough formulas, contributing to the texture, tenderness, and unfolding of baked goods. It disrupts gluten formation, creating a soft crumb texture and preventing hardness. Shortening plays a crucial role in achieving desired organoleptic properties and structural integrity.

Region:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period. The Asia The Asia Pacific (APAC) shortening market is dominated by the availability of palm oil, which is abundant in Malaysia and Indonesia. This oil is used in the production of baked goods like cookies, pastries, cakes, and bread, which are popular in the region. The growing demand for baked goods is also driving the market, driven by changing consumer preferences and lifestyles. Rapid urbanization and an increased preference for ready meals and snacks further fuel this demand. Shortenings play a crucial role in meeting this demand, as they are widely used in processed foods and baked goods, which are consumed in urban environments.

Some of The Leading/Active Market Players Are-

• Cargill (U.S)
• Archer Daniels Midland Company (U.S)
• Bunge Limited (U.S)
• Conagra Brands, Inc. (U.S)
• Ventura Foods, LLC (U.S)
• The J.M. Smucker Company (U.S)
• Stratas Foods LLC (U.S)
• The Hain Celestial Group, Inc. (U.S)
• AAK AB (Sweden)
• Puratos Group (Belgium) and Other Active Players

Key Industry Developments

• In February 2024, Amazon founder Jeff Bezos, Nvidia, and other tech giants invest in Figure AI.  Pioneering humanoid robot startup Figure AI received a major investment from Amazon founder Jeff Bezos, Nvidia, and OpenAI. Microsoft, and other technology leaders. The company is raising about $675 million in the funding round and has an initial valuation of about $2 billion. This strategic investment highlights the growing interest in advanced robotics and artificial intelligence technologies. Figure AI is poised to revolutionize the industry with its cutting-edge innovations.
• In April 2024, Amazon is investing 700 million euros in robotics and artificial intelligence in Europe Amazon is investing more than 700 million euros in robotics and artificial intelligence technologies across Europe. Out front is the Amazon Operations Innovation Lab in Vercelli, Italy, where a diverse group of global scientists and engineers develop and test cutting-edge innovations. This center of excellence focuses on advanced robotics and AI-based solutions that improve employee support and delivery to customers. Located among the historic rice fields of Vercelli, the facility embodies the future of work and the technological development of the Amazon network.

Key Findings of the Study 

• The vegetable segment is expected to dominate the market with increasing health awareness and a shift towards plant-based alternatives.
• The bakery industry has the largest market share, as roasting is widely used in baked goods to improve texture, flavor, and shelf life.
• Asia Pacific is expected to lead the market, supported by the abundant availability of palm oil and growing demand for baked goods.