Shortening Market Size 2026-2030
The shortening market size is valued to increase by USD 1.57 billion, at a CAGR of 5.4% from 2025 to 2030. High consumption of bakery products will drive the shortening market.
Major Market Trends & Insights
- Europe dominated the market and accounted for a 35.1% growth during the forecast period.
- By Source - Vegetables segment was valued at USD 3.65 billion in 2024
- By Channel - Indirect channel segment accounted for the largest market revenue share in 2024
Market Size & Forecast
- Market Opportunities: USD 2.62 billion
- Market Future Opportunities: USD 1.57 billion
- CAGR from 2025 to 2030 : 5.4%
Market Summary
- The shortening market is characterized by the foundational demand from the global food processing and foodservice sectors, where its functional properties are essential. The industry's growth trajectory is increasingly dictated by innovation in response to consumer and regulatory shifts toward health, wellness, and sustainability.
- A key driver remains the bakery segment's need for fats that deliver specific textural attributes, such as flakiness and tenderness, while the fast-food industry sustains demand for high-performance frying oils. However, heightened consumer scrutiny of nutritional profiles has become a critical dynamic, compelling manufacturers to reformulate products.
- For instance, a large-scale bakery operation must balance the cost-effectiveness of commodity oils with the brand value of using non-hydrogenated, sustainable alternatives. This involves complex supply chain decisions to ensure both consistent product quality and alignment with clean-label trends.
- Future expansion will likely be led by entities that effectively integrate value-added attributes like reduced saturated fat content, trans-fat-free formulations, and transparent sourcing into their core offerings, navigating the complex interplay between cost, functionality, and consumer trust.
What will be the Size of the Shortening Market during the forecast period?
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How is the Shortening Market Segmented?
The shortening industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2026-2030, as well as historical data from 2020-2024 for the following segments.
- Source
- Vegetables
- Animal
- Channel
- Indirect channel
- Direct channel
- Application
- Bakery products
- Snacks and processed foods
- Confectionery
- End-user
- Industrial
- Foodservice
- Household
- Geography
- Europe
- Germany
- UK
- France
- North America
- US
- Canada
- Mexico
- APAC
- China
- Japan
- India
- South America
- Brazil
- Argentina
- Middle East and Africa
- Saudi Arabia
- UAE
- South Africa
- Rest of World (ROW)
- Europe
By Source Insights
The vegetables segment is estimated to witness significant growth during the forecast period.
The vegetable-based segment is defined by a dynamic interplay between cost-efficiency, functional versatility, and evolving consumer-driven dietary preferences. Formulations are increasingly centered on high-oleic oils and plant-based fat solutions to meet demand for healthier fat profiles without compromising textural modification.
The industry's pivot from partially hydrogenated oils necessitates advanced lipid technology and the use of hard stocks from fractionated oils and enzymatic interesterification to create trans-fat-free formulations.
This shift, addressing both regulatory mandates and the push for clean label ingredients, has led to reformulation strategies that enhance bake-stable fats. For instance, new processes have enabled a reduction in undesirable compounds, improving product safety metrics by over 25%.
Sustainable sourcing practices, particularly for palm oil, remain a critical factor influencing procurement and brand reputation among industrial baking applications.
The Vegetables segment was valued at USD 3.65 billion in 2024 and showed a gradual increase during the forecast period.
Regional Analysis
Europe is estimated to contribute 35.1% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The geographic landscape of the market is diverse, with Europe and North America collectively accounting for over 63% of the market share, driven by their large-scale food processing industries.
APAC is projected to be the fastest-growing region, contributing nearly 31% of the incremental growth, fueled by rising disposable incomes and the expansion of the foodservice sector in countries like China and India.
The adoption of high-oleic oils and puff pastry fats is becoming more widespread in these mature markets. Regional dynamics are heavily influenced by local dietary habits and regulatory environments.
For instance, European markets place a strong emphasis on clean label ingredients and sustainable palm oil, while North American demand is shaped by the convenience food sector's need for cost-effective, functional fat systems with improved textural property enhancement.
Market Dynamics
Our researchers analyzed the data with 2025 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
- Strategic positioning in the market increasingly hinges on the ability to deliver specialized, high-performance fat solutions. Companies are focused on developing palm oil free shortening alternatives and low saturated fat shortening formulation to meet rising consumer demand for healthier options. The application of interesterified fats for baking applications is a key technical area for achieving desired product characteristics.
- Firms are also focused on improving shelf life with shortening and adopting non-hydrogenated fats for clean labels. Another critical area is trans-fat replacement in fried foods, which necessitates innovation in high-stability shortening for industrial frying. For bakery applications, creating functional shortening for laminated dough and shortening for moisture barrier applications is vital for quality.
- In parallel, shortening solutions for vegan baking are expanding rapidly. Technical challenges such as managing fat crystallization in confectionery and reducing fat bloom in chocolate require deep expertise in fat science. Decisions around sourcing certified sustainable shortening ingredients are now integral to corporate strategy, impacting supply chains more than ever before.
- In fact, companies that have integrated transparent, sustainable sourcing have seen a greater than 10% improvement in supplier reliability metrics compared to those who have not. The ability to blend oils for custom shortening allows manufacturers to offer tailored solutions, from optimizing shortening functionality in cookie production to achieving aeration in cake batters.
What are the key market drivers leading to the rise in the adoption of Shortening Industry?
- The high consumption of bakery products worldwide serves as a key driver for the shortening market.
- The market's primary driver is the robust demand from the global food processing industry, particularly for industrial baking applications and confectionery fat systems.
- The need for consistent quality and functional performance in mass-produced goods sustains the demand for products that offer superior dough conditioning and shelf-life extension. Cost-effectiveness remains a key consideration, pushing innovation in vegetable oil blends and fat reduction technology.
- The expansion of the snack food production sector, which saw a 5% rise in output, further fuels this demand.
- Adherence to stringent food safety standards is non-negotiable, influencing processing techniques and raw material selection, while processing efficiency gains of up to 10% have been realized through automation.
What are the market trends shaping the Shortening Industry?
- A prominent market trend is the increasing development and consumer adoption of plant-based and vegan shortenings, driven by evolving dietary preferences.
- The market is witnessing a significant trend toward healthier and more sustainable products, driven by heightened consumer health awareness and a demand for supply chain transparency. This has accelerated the development of plant-based shortenings and cocoa butter alternatives, with some manufacturers achieving a 20% faster product development cycle for vegan product development.
- Innovations in fat crystallization control and aeration properties are enabling the creation of high-quality, allergen-free ingredients. There's a notable shift towards non-hydrogenated shortenings and products with improved nutritional profiles, which aligns with global wellness trends. Foodservice industry requirements for high-performance frying shortening are also being met with more stable, healthier oil blends.
What challenges does the Shortening Industry face during its growth?
- A key challenge impacting market growth is the rising consumer awareness regarding health issues associated with certain types of shortening.
- A primary market challenge is navigating commodity price volatility, which can directly impact profitability and product pricing, with some input costs fluctuating by over 40% in a single year. This environment necessitates sophisticated reformulation strategies and raw material traceability to manage costs without sacrificing quality.
- Another significant hurdle is stringent regulatory compliance, particularly concerning trans-fat content and labeling, which demands continuous investment in R&D and quality control. Addressing consumer skepticism about processed foods requires a commitment to clean label ingredients and ethical sourcing standards.
- The market's competitive nature, characterized by low product differentiation in the commodity segment, pressures companies to innovate and develop specialized functional ingredients to maintain market position and operational cost reduction.
Exclusive Technavio Analysis on Customer Landscape
The shortening market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the shortening market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Shortening Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, shortening market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
AAK AB - Offerings include specialized liquid and solid shortening solutions designed to enhance stability, simplify food preparation, and improve flavor profiles in high-intensity applications without increasing operational costs.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- AAK AB
- Archer Daniels Midland Co.
- Associated British Foods Plc
- B and G Foods Inc.
- Bunge Global SA
- 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.
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 industry 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.
Recent Development and News in Shortening market
- In May 2025, Bunge Global SA announced the launch of a new line of high-performance, non-hydrogenated shortenings developed with enzymatic interesterification, targeting industrial bakeries seeking clean-label solutions to improve texture in pastries and cakes.
- In April 2025, US Foods Holding Corp. finalized its acquisition of IWC Food Service, a move that significantly expands its distribution footprint in the US Midwest and enhances its ability to supply specialized shortening products to a broader foodservice clientele.
- In January 2025, the European Food Safety Authority (EFSA) published updated risk assessment guidelines concerning mineral oil aromatic hydrocarbons (MOAH) in food, prompting shortening manufacturers to intensify quality control and raw material sourcing protocols.
- In October 2024, Cargill Inc. completed a major expansion of its North American processing facility for high-oleic canola oil, aiming to increase the supply of healthier, more stable oils for shortening producers and food manufacturers.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Shortening Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 299 |
| Base year | 2025 |
| Historic period | 2020-2024 |
| Forecast period | 2026-2030 |
| Growth momentum & CAGR | Accelerate at a CAGR of 5.4% |
| Market growth 2026-2030 | USD 1574.3 million |
| Market structure | Fragmented |
| YoY growth 2025-2026(%) | 5.0% |
| Key countries | Germany, UK, France, Italy, Spain, The Netherlands, US, Canada, Mexico, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Argentina, Chile, Saudi Arabia, UAE, South Africa, Israel and Turkey |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The shortening market is undergoing a significant transformation, moving beyond commodity products to specialized, functional ingredients. This evolution is driven by the dual pressures of consumer demand for healthier products and the technical requirements of the food manufacturing industry.
- Innovations in fat reduction technology and the use of enzyme-modified fats are becoming standard, allowing for the creation of low-saturate fats and trans-fat-free formulations. Key to this shift is the mastery of melt-point control and plastic range optimization to replicate the performance of traditional fats.
- The use of high-oleic soybean oil and coconut oil based fats is expanding as manufacturers seek viable palm oil alternatives. In the bakery sector, specialized lamination fats and puff pastry fats are critical for achieving desired textures, while control over fat crystallization and fat migration prevention is essential in confectionery.
- We are seeing a distinct focus on crystalline structure, particularly beta-prime crystals, to enhance aeration properties and dough conditioning. Food emulsifiers are integrated into functional fat systems to ensure stability.
- For instance, producers leveraging advanced enzymatic interesterification have been able to reduce saturated fat content by up to 35% while maintaining critical textural properties, showcasing the market's pivot toward science-led solutions.
What are the Key Data Covered in this Shortening Market Research and Growth Report?
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What is the expected growth of the Shortening Market between 2026 and 2030?
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USD 1.57 billion, at a CAGR of 5.4%
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What segmentation does the market report cover?
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The report is segmented by Source (Vegetables, and Animal), Channel (Indirect channel, and Direct channel), Application (Bakery products, Snacks and processed foods, and Confectionery), End-user (Industrial, Foodservice, and Household) and Geography (Europe, North America, APAC, South America, Middle East and Africa)
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Which regions are analyzed in the report?
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Europe, North America, APAC, South America and Middle East and Africa
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What are the key growth drivers and market challenges?
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High consumption of bakery products, Rising awareness on health issues associated with shortening
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Who are the major players in the Shortening Market?
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AAK AB, Archer Daniels Midland Co., Associated British Foods Plc, B and G Foods Inc., Bunge Global SA, 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 and Wilmar International Ltd.
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Market Research Insights
- Market dynamics are shaped by a strategic shift toward healthier fat profiles and clean label formulations, driven by significant consumer health awareness. This transition has spurred innovation in advanced lipid technology, with adoption rates for reformulation strategies increasing by over 30% among leading manufacturers.
- These efforts focus on non-hydrogenated oil solutions and reduced saturated fat products to meet both regulatory compliance and market demand. As a result, companies leveraging these plant-based fat solutions report an average 15% improvement in brand perception scores.
- The emphasis on sustainable sourcing practices and raw material traceability further influences purchasing decisions, with supply chain transparency now being a key differentiator. The development of cost-effective fat alternatives remains crucial for maintaining margins amid commodity price volatility, impacting both industrial baking applications and the broader foodservice industry.
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