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    Shortening Fats Market

    ID: MRFR/F-B & N/26039-HCR
    128 Pages
    Varsha More
    October 2025

    Shortening Fats Market Research Report By Type (Vegetable Based, Animal Based, Others), By Packaging (Bulk, Tub, Pail, Others), By End-Use Application (Bakery, Confectionery, Frying, Processed Food) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Shortening Fats Market Infographic
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    Shortening Fats Market Summary

    The global shortening fats market is projected to grow from 22.70 USD billion in 2024 to 30.87 USD billion by 2035, reflecting a steady increase in demand.

    Key Market Trends & Highlights

    Shortening Fats Key Trends and Highlights

    • The market is expected to expand at a compound annual growth rate of 2.83 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 30.9 USD billion, indicating a robust growth trajectory.
    • in 2024, the market is valued at 22.70 USD billion, laying a solid foundation for future expansion.
    • Growing adoption of shortening fats in food processing due to increasing consumer preference for healthier options is a major market driver.

    Market Size & Forecast

    2024 Market Size 22.70 (USD Billion)
    2035 Market Size 30.87 (USD Billion)
    CAGR (2025-2035) 2.83%

    Major Players

    Nestlé, Kao Corporation, AarhusKarlshamn, Cargill, Olam, Bunge, Croda, Kerry Group, Fuji Oil Europe, Ingredion, IOI Group, Unilever, Lamb Weston, Wilmar International, Richardson International

    Shortening Fats Market Trends

    The shortening fats market is growing because of its various applications in bakery, confectionery, and cooking. There has been a tremendous shift in consumers towards baked and fried snacks and food products, which in turn is raising the market demand. Moreover, many people are disappointed due to the increasing demands and they recruit other non-dairy shortening, which is boosting the use of vegan shortening in bakery and confectionery items.

    In order to take advantage of the growth, manufacturers work on innovations meant to introduce brand-new products that meet today’s consumer's veganism, health, etc. Besides, they are also penetrating new and emerging markets where there is an increasing shortening of the demand for fat consumption in the near future.

    In addition to the above, the increasing acceptance of a vegan lifestyle and the increasing trend of bakes-it-myself also shape the market. The healthcare culture is also creating a shift in the population, with a craving for healthy food, and the traditional shortening of fats is being substituted with alternative fats. These plant-based oils will lead to increasing usage of plant-based oils, which will lead to increased demand for plant-based ingredients, especially palm oil, palm kernel oil and soybean oils.

    The global shortening fats market is experiencing a notable shift towards healthier alternatives, driven by consumer demand for products that align with nutritional guidelines and dietary preferences.

    U.S. Department of Agriculture

    Shortening Fats Market Drivers

    Health-Conscious Alternatives

    The Global Shortening Fats Market Industry is witnessing a shift towards healthier alternatives as consumers become more health-conscious. This trend is prompting manufacturers to innovate and reformulate their products, incorporating shortening fats that are lower in trans fats and saturated fats. As a result, there is an increased focus on plant-based and non-hydrogenated shortening options, which appeal to a broader audience. This shift not only aligns with consumer preferences but also complies with regulatory guidelines aimed at reducing unhealthy fats in food products. The industry's adaptation to these health trends is likely to sustain its growth in the coming years.

    Rising Demand for Bakery Products

    The Global Shortening Fats Market Industry experiences a notable surge in demand for bakery products, driven by changing consumer preferences for convenience foods. As consumers increasingly seek ready-to-eat options, the bakery sector is projected to expand significantly. In 2024, the market value is estimated at 22.7 USD Billion, reflecting the growing inclination towards baked goods that utilize shortening fats for improved texture and shelf life. This trend is likely to continue, with the market expected to reach 30.9 USD Billion by 2035, indicating a robust growth trajectory fueled by the bakery industry's expansion.

    Emerging Markets and Globalization

    Emerging markets are becoming increasingly important to the Global Shortening Fats Market Industry as globalization facilitates the expansion of food products across borders. Countries with growing populations and rising disposable incomes are witnessing a surge in demand for processed foods, including those that utilize shortening fats. This trend is particularly evident in regions such as Asia-Pacific and Latin America, where urbanization and changing lifestyles are driving consumption patterns. As these markets continue to develop, the Global Shortening Fats Market is poised for growth, with a projected CAGR of 2.83% from 2025 to 2035.

    Regulatory Support for Food Safety

    Regulatory support for food safety plays a crucial role in shaping the Global Shortening Fats Market Industry. Governments worldwide are implementing stringent regulations to ensure the safety and quality of food products, which includes monitoring the use of shortening fats. Compliance with these regulations not only enhances consumer trust but also encourages manufacturers to invest in high-quality shortening fats that meet safety standards. This regulatory environment fosters a competitive market where innovation and quality are prioritized, ultimately benefiting consumers and contributing to the industry's growth.

    Market Trends and Growth Projections

    Technological Advancements in Food Processing

    Technological advancements in food processing are significantly influencing the Global Shortening Fats Market Industry. Innovations in production techniques and equipment have enhanced the efficiency and quality of shortening fats, allowing for better emulsification and stability in various food applications. These advancements enable manufacturers to produce shortening fats that meet diverse consumer needs, from flavor enhancement to improved texture. As the food industry continues to evolve, the integration of new technologies is expected to drive market growth, ensuring that shortening fats remain a vital ingredient in food formulations.

    Market Segment Insights

    Shortening Fats Market Segment Insights

    Shortening Fats Market Segment Insights

    Shortening Fats Market Type Insights

    Shortening Fats Market Type Insights

    The Shortening Fats Market segmentation by Type is a crucial aspect of the industry, providing insights into the market dynamics and growth potential of different product categories. The market is segmented into three primary types 1) Vegetable Based Vegetable-based shortening fats are derived from plant oils, such as soybean oil, palm oil, and canola oil. These fats are increasingly popular due to their perceived health benefits and growing consumer preference for plant-based products.

    The Vegetable Based Shortening Fats Market is projected to reach USD 14.27 billion by 2024, exhibiting a CAGR of 3.2%.Key factors driving the growth of this segment include rising health consciousness, increasing demand for vegan and vegetarian products, and the availability of a wide range of vegetable-based shortening fats with varying functional properties. 2) Animal Based Animal-based shortening fats are obtained from animal sources, such as lard and tallow. These fats have been traditionally used in baking and cooking applications but have faced declining demand in recent years due to health concerns associated with saturated fats.

    The Animal Based Shortening Fats Market is expected to experience modest growth in the coming years, primarily driven by niche applications in certain regions and cultures.3) Others The 'Others' segment encompasses a diverse range of shortening fats, including hydrogenated vegetable oils and interesterified fats. Hydrogenated vegetable oils are produced by adding hydrogen to unsaturated vegetable oils, resulting in a solid or semi-solid consistency. Interesterified fats, on the other hand, are created by modifying the fatty acid composition of vegetable oils to achieve desired functional properties.

    The Others Shortening Fats Market is anticipated to grow at a moderate pace, driven by the development of innovative products and applications in the food industry.

    Source Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Shortening Fats Market Packaging Insights

    Shortening Fats Market Packaging Insights

    The packaging segment features heavily in the Shortening Fats Market, affecting product preservation, convenience, as well as, marketing strategies. Bulk packaging performs the best, accounting for over 55% of the market share by 2023. This can be attributed to its popularity, cost-effectiveness, and ideal industrial applications. Tubs and pails are growing in popularity owing to their ease of handling and storage, especially with the growth of retail outlets.

    In addition, increasing the demand for on-the-go as well as single-serve packages will continue to be popular.The other types of packaging, such as flexible pouches and biodegradable materials, are emerging as sustainable alternatives that target eco-conscious consumers. However, the overall conclusion is that the packaging segment indicates a firm growth associated with changing consumer trends and the need for innovative and practical packaging.

    Shortening Fats Market End-Use Application Insights

    Shortening Fats Market End-Use Application Insights

    The Shortening Fats Market segmentation by end-use application comprises bakery, confectionery, frying, and processed food. Among these, the bakery segment held the largest market share in 2023, accounting for over 40% of the Shortening Fats Market revenue. The bakery segment is expected to continue its dominance throughout the forecast period, driven by the increasing demand for baked goods such as bread, cakes, and pastries.

    The confectionery segment is also expected to witness significant growth, owing to the rising popularity of chocolates, candies, and other confectionery products.The frying segment is anticipated to grow steadily, as shortening fats are widely used in the preparation of fried foods such as french fries, onion rings, and doughnuts. The processed food segment is projected to exhibit moderate growth, as shortening fats are used in the production of various processed food products, including pizza dough, pie crusts, and frozen meals.

    Get more detailed insights about Shortening Fats Market Research Report — Global Forecast till 2034

    Regional Insights

    The regional segmentation of the Shortening Fats Market provides insights into the market's geographic distribution and performance. North America holds a significant share of the market due to the presence of established food processing industries and a high demand for processed foods. The market in Europe is driven by the growing popularity of plant-based diets and the increasing use of shortening fats in bakery and confectionery products.

    APAC is projected to witness the fastest growth over the forecast period, driven by the rising consumption of packaged foods and the expansion of the food processing industry.South America and MEA are expected to contribute a smaller share to the overall market, but they offer growth potential due to the increasing disposable income and changing dietary patterns.

    Shortening Fats Market Regional

    Source Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    All the leading players in the Shortening Fats Market industry seek to enhance their position in the market through the development of new products and technologies. Strategic partnerships and acquisitions are the most common strategies for the major key players of the market as they seek to strengthen their position and expand their market share. Competitive rivalry is quite high in this market, as key players invest significant efforts into research and development.

    Bunge Limited is a major agribusiness and food company, and its shortening fats business operates under the Loders Croklaan brand. The company offers a wide range of shortening fats, including palm oil shortening fat, soybean oil, and canola oil shortening fats. The company has a strong position in North America, Europe, and Asia. Bunge Limited is actively engaged in the promotion of sustainable production and has set ambitious goals to achieve a reduction in its environmental impact.

    AAK is another major player in the analyzed market. AAK is a company based in Sweden that operates in more than 50 countries. The company offers a broad range of shortening fats, including a wide range of vegetable oils, fats, and specialty fats. Its main focus is on the development of shortening fats for the bakery, confectionery and dairy and non-dairy cream sectors. AAK claims to have a strong focus on innovation and on developing patented technologies. The company is also strongly committed to sustainable production and consumption and has set ambitious goals to reduce environmental impact.

    Key Companies in the Shortening Fats Market market include

    Industry Developments

    The shortening fats market is projected to reach USD 27.6 billion by 2032, exhibiting a CAGR of 2.83% during the forecast period (2024-2032). Increasing demand for processed foods, particularly baked goods, is a key driver of market growth. Moreover, rising disposable incomes and changing lifestyles are contributing to the consumption of convenience foods, which often contain shortening fats.Recent developments include the launch of healthier shortening fats with reduced trans fat content by major manufacturers such as Archer Daniels Midland Company and Cargill. The growing health consciousness among consumers is driving the demand for healthier alternatives.

    Technological advancements in production processes are also leading to improved quality and functionality of shortening fats.

    Future Outlook

    Shortening Fats Market Future Outlook

    The Global Shortening Fats Market is projected to grow at 2.83% CAGR from 2025 to 2035, driven by rising demand for plant-based products and health-conscious consumer trends.

    New opportunities lie in:

    • Develop innovative, healthier shortening alternatives using sustainable ingredients.
    • Expand distribution channels to include online platforms for broader market reach.
    • Invest in R&D for functional shortening fats tailored for specific culinary applications.

    By 2035, the market is expected to demonstrate robust growth, reflecting evolving consumer preferences and innovation.

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 22.70(USD Billion)
    Market Size 2025 23.34(USD Billion)
    Market Size 2035 30.87 (USD Billion)
    Compound Annual Growth Rate (CAGR) 2.83% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Nestlé, Kao Corporation, AarhusKarlshamn, Cargill, Olam, Bunge, Croda, Kerry Group, Fuji Oil Europe, Ingredion, IOI Group, Unilever, Lamb Weston, Wilmar International, Richardson International
    Segments Covered Type, Packaging, End-Use Application, Regional
    Key Market Opportunities Increasing health consciousness plantbased alternatives clean label movement functional shortening and expanding bakery industry
    Key Market Dynamics Rising Health Concerns Growing Demand for PlantBased Alternatives Technological Advancements
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What was the projected market size of the Shortening Fats Market in 2025?

    The Shortening Fats Market was expected to reach a valuation of 23.35 billion USD in 2025.

    What is the projected CAGR of the Shortening Fats Market from 2025 to 2034?

    The Shortening Fats Market is projected to grow at a CAGR of 2.8% from 2025 to 2034.

    What is the expected market size of the Shortening Fats Market in 2034?

    The Shortening Fats Market is expected to reach a valuation of 30.02 billion USD by 2034.

    Which region is expected to hold the largest market share in the Shortening Fats Market?

    The North America region is expected to hold the largest market share in the Shortening Fats Market.

    Which application segment is expected to account for the largest revenue share in the Shortening Fats Market?

    The bakery and confectionery segment is expected to account for the largest revenue share in the Shortening Fats Market.

    Who are some of the key competitors in the Shortening Fats Market?

    Some of the key competitors in the Shortening Fats Market include Archer Daniels Midland Company, Bunge Limited, Cargill, Incorporated, and Wilmar International Limited.

    What are the major factors driving the growth of the Shortening Fats Market?

    The major factors driving the growth of the Shortening Fats Market include the increasing demand for processed foods, the rising population, and the growing popularity of convenience foods.

    What are the major challenges facing the Shortening Fats Market?

    The major challenges facing the Shortening Fats Market include the health concerns associated with trans fats and the volatility of raw material prices.

    What are the key opportunities for growth in the Shortening Fats Market?

    The key opportunities for growth in the Shortening Fats Market include the development of new products, the expansion into new markets, and the adoption of sustainable practices.

    What are the key trends shaping the Shortening Fats Market?

    The key trends shaping the Shortening Fats Market include the increasing demand for clean label products, the growing popularity of plant-based fats, and the adoption of advanced technologies.

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