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The Global Shortening Market size is projected to increase by USD 1.24 billion, at a CAGR of 4.93% between 2022 and 2027. The high consumption of bakery products is driving market growth. Factors such as changing consumer preferences, lifestyle trends, cultural influences, and economic conditions are significantly driving the high demand for bakery products and freshly baked commodities.
One of the key applications of Independent bakers products is it is mainly used in baked products as it has a higher melting point compared to butter, which helps to create a tender and flaky texture in baked goods, such as pie crusts, biscuits, and pastries. The main feature is its low moisture content which helps to prevent spoilage and rancidity, contributing to the longer shelf life of baked goods. Due to consumers' growing preference for snacks and other on-the-go food products, it is expected to drive the market growth during the forecast period.
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The shortening market is a significant segment of the global food industry, encompassing a wide range of products that contribute to the enhancement of various food items' texture, taste, and shelf life. In this context, we will discuss the role of staple foods such as dried noodles and bread products in the shortening market, as well as the functional products, sales channels, and profitability estimations. In the dynamic and evolving world of retail sales, understanding the market trends and consumer preferences for staple foods is essential for maximizing profitability. One notable area of growth is the market for functional products, such as dried noodles and bread, which offer convenience and long shelf life. These items are increasingly popular in both retail stores and indirect sales channels, including convenience stores and malls. To gain a competitive edge, it's crucial to conduct regular estimations and benchmarking to ensure your pricing and product offerings remain competitive. For instance, dried noodles have become a staple in many households due to their versatility and affordability. Similarly, bread products, with their long shelf life and wide appeal, are another functional food category that continues to thrive in the retail landscape. By staying informed about market trends and consumer preferences, retailers can effectively cater to the demand for these functional products and boost their bottom line.
The market research and growth report extensively covers market segmentation by Distribution Channel (Online and Offline), Source (Vegetable and Animal), and Geography (North America, Europe, Asia, and Rest of World (ROW)). Furthermore, the market growth analysis report includes historic market data from 2017 to 2021. Furthermore, the market thrives on a diverse range of factors, from hydrogenation and room temperature stability to its applications in various foodservice sectors. Essential in bakeries and confectionery sectors, it enhances the elasticity and structural integrity of baked goods, ensuring a fine, delicate structure and appealing mouth-feel. Functional nutrients like prebiotics contribute to consumer health, addressing concerns such as obesity and cardiovascular diseases. In a fragmented market with indie bakers and private label bakers, there's room for future development with improvised formulations and premiumization of artisanal baked commodities. With healthy indulgence and convenience driving demand, the market sees a surge in functional meals and convenient products infused with micronutrients and healthy oils.
The indirect channel segment will account for a significant share of market growth during the forecast period. Indirect sales channels can be defined as the distribution through intermediaries such as wholesalers, distributors, retailers, or online marketplaces. One of the main advantages of indirect channels is that they help vendors reach a wider market, as intermediaries often have established networks and customer bases. Hence, the wider reach can potentially lead to high product demand, particularly if the intermediaries effectively promote and sell the products. Other factors, such as marketing initiatives and promotional efforts undertaken by both the manufacturer and intermediaries, as well as cooperative marketing initiatives, incentives, and training programs for intermediaries, can enhance product visibility, and demand is expected to drive the market growth during the forecast period.
The market share growth by the vegetables segment will be significant during the forecast period. There is an increase in demand for vegetable fats as Consumers are increasingly concerned about the health impacts of consuming saturated fats and Trans-fats. One of the main advantages of this segment is it is sourced from oils like soybean, sunflower, or canola oil, is generally lower in saturated fats, and does not contain trans fats.
The food services segment was valued at USD 2.93 billion in 2017.
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The vegetables segment is one of the most sought segments by consumers due to its health benefits when compared to traditional options. Factors such as the rise of plant-based diets and veganism have led to a growing demand for vegetable-based alternatives in various food products. This segment is the most preferred segment of by consumers as it is typically made from oils that undergo minimal processed shortenings without the use of artificial additives or preservatives, purely organic. The main cohorts of consumers who prefer this segment are individuals with dietary restrictions or allergies, such as those avoiding dairy or lactose. Hence such factors are expected to drive the market growth during the forecast period.
The market caters to various sectors like the confectionery, bakery sector, and Snacks & savory sector industries. Essential for maintaining structural integrity in baked goods like air bubbles, rolls, breads, sugar, cake, or icing shortening, it ensures optimal air incorporation and heat transfer during baking. However, concerns over trans-fatty acids have prompted a shift towards healthier alternatives due to their link with cardiovascular diseases and obesity. With lifestyle epidemics on the rise, the market is witnessing increased demand for substitutes that offer similar functionality while addressing health concerns associated with traditional shortening.
Plant-based and vegan shortenings are expected to have a positive impact on the market in the coming years. Factors such as the growing popularity of plant-based diets and the increasing demand for vegan products are expected to have a significant impact on the market. One of the main sources include vegetable oils or other plant-based sources such as coconut, which are free from animal-derived ingredients such as margarine. Due to the increasing demand for these plant-based and vegan, several manufacturers are introducing plant-based and vegan options to cater to this expanding consumer segment. There is a growing popularity for products that are perceived as healthier due to the rising health consciousness among customers. Hence, such factors are expected to drive market growth during the forecast period.
Growing awareness regarding the adverse health effects associated with the consumption of trans fats and saturated fats has prompted numerous consumers to pursue healthier options. As it is very high in trans fats and saturated fats, there is a growing concern regarding the potential adverse effects on cardiovascular health. Hence, due to this health concern, consumers are preferring other alternatives, including vegetable oils or plant-based fats. Additionally, other factors, such as changing dietary preferences and trends, also influence the demand. Hence, such factors are expected to hinder the market growth during the forecast period.
Europe is estimated to contribute 36% to the growth of the global market analysis and report during the forecast period.
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Technavio’s analysts have elaborately explained the market growth analysis, regional trends and drivers that shape the market during the forecast period. One of the key reasons for the dominating market share in Europe is that factors such as baked products are an integral part of the culinary culture, which drives the demand significantly. Some of the main baked goods, including cakes, pastries, and desserts, play a central role in cafe menus which positively impacts the demand. Even though there is a high demand, factors high in saturated fats have led some consumers to seek healthier alternatives such as vegan butter. Thus, consumers are increasingly preferring plant-based alternatives to traditional ones, such as vegetable oils, coconut oil, or plant-based margarine. Hence, such factors are expected to drive the global market growth in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market has versatile ingredients like pastry and vegetable oils, and essential oils, including soybean, cottonseed, or refined palm oil. Primarily utilized in Snacks & savory products along with the processed food sector for products such as pasta, noodles, and dry-ready meals, shortening offers a rich source of amino acids, vitamins, minerals, proteins, and fatty acids. Notable players like Cargill Incorporated, Premium Vegetable Oils Sdn Bhd, and Bunge North America, Inc drive innovation. Market dynamics include the influence of supermarkets, e-commerce platforms, and a diverse array of products such as confectionery, snacks, and savory items. The market extends its reach into the Confectionery products and frozen food industry, targeting urban households and fostering growth through business expansion and new product launches.
Additionally, the premium shortening encompasses a wide range of products used in the baking sector, including bread, cookies, and pies. Manufacturers focus on factors like shelf-life, smoke point, and plasticity to meet consumer demand. Amidst the pandemic, offline sales faced challenges due to lockdowns, prompting a shift towards convenience food products and online retail. However, research and development efforts continue to innovate, exploring alternatives to hydrogenated oils and trans-fats, specialty fats, and bakery fats, prioritizing health concerns like obesity and cardiovascular diseases. This evolving landscape reflects a growing preference for clean-label and functional ingredients, emphasizing vegetable oils, vegetable fats, and dietary fibers for healthier options.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Shortening Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.93% |
Market growth 2023-2027 |
USD 1.24 billion |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
4.53 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 36% |
Key countries |
US, China, France, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AAK AB, Archer Daniels Midland Co., B and G Foods Inc., Bunge Ltd., Cargill Inc., CAROTINO SDN BHD, Fuji Oil Co. Ltd., Gujarat Ambuja Exports Ltd., IFFCO Group, Manildra Flour Mills Pty. Ltd., Olivia Impex Pvt. Ltd., Palsgaard AS, Premium Oils and Fats Sdn Bhd, Riken Vitamin Co. Ltd., S.S.D. Oil Mills Co. Ltd., Stratas Foods, Vantage Specialty Chemicals, Ventura Foods LLC, Wilmar International Ltd., and Associated British Foods Plc |
Market dynamics |
Parent market analysis,Market forecasting Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Market Segmentation by Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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