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2021

Shortening Market

Shortening Market Size, Share, Competitive Landscape and Trend Analysis Report by Source (Vegetables, and Animal), Application (Bakery Products, Confectionery Products, Snacks and Savory Products, and Others), and Sales Channel (Direct sales, and Indirect Sales): Global Opportunity Analysis and Industry Forecast, 2021-2030

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Author's: Raju Kale | Roshan Deshmukh
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The global shortening market size was valued at $4,250.0 million in 2020, and is estimated to reach $6,373.6 Million by 2030, registering a CAGR of 4.2% from 2021 to 2030. Europe is one of the prominent regions, which accounted for a sizeable share of the total market in 2020. 

A shortening is characterized as a fat, solid at room temperature, which can be used to provide foods a brittle and fresh texture such as pastry. Examples of fat used as shortening include butter, soybean, margarine, vegetable oils, and fat. Shortening is most commonly made from vegetable oils like soybean, cottonseed, or refined palm oil, which are normally fluid at room temperature.

Shortening Market

The increasing processed food sector is driving the shortening market demand. In some nations processed food items, such as pasta and noodles, are consumed as staple foods. The period of preparation is comparably short for dry-ready meals, dried noodles, pasta, and many other processed food products. The shortening fats in bread product are often utilized for its many functional advantages such as better elasticity, higher smoke point, and higher shelf-life.

Functional meals and beverages with functional nutrients complement many health advantages as well as the essential nutritional content of the product. Amino acids, vitamins, minerals, protein, fatty acids, and prebiotics are included in these nutrients. Due to the growing awareness of the area of consumer health, functional products have become more and more important in recent years. Increasing product development and innovation activities are attracting consumers to opt for functional foods and beverages. In recent years consumers have shifted from bakeries and confectionery to functional meals and drinks, affecting demand and sales of shortening goods. Thus, this factors led to limit the growth of the shortening market. 

The outbreak of the COVID-19 pandemic in 2020 has hampered the global shortening market growth. Retail stores, malls, supermarkets, and other sales channels have been forced to close or remain closed as a result of stringent lockdown imposed by governments all over the world. During the lockdown, however, several brands have shifted their focus to e-commerce platforms to generate revenue and increase sales. Offline sales are increasing at the moment, as government lockdown restrictions in several countries are being gradually lifted.      

According to the shortening market analysis, the market is segmented into source, application, sales channel, and region. Depending on source, the market is divided into vegetables and animal. Based on applications, bakery products, confectionery products, snacks & savory products, and others. By sales channel, it is fragmented into direct and indirect sales. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Spain, Italy, Belgium, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Thailand, Singapore, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, the UAE, Nigeria, Saudi Arabia, South Africa, and rest of LAMEA). 

On the basis of type, the vegetables segment accounted for the maximum share in the global shortening market in 2020, and is expected to remain dominant during the shortening market forecast period. Vegetable shortening is majorly favored over animal shortening during usage in bakery and cooking. The growing processed food industry drives the market for vegetable shortening. Processed food products made with vegetable shortenings, like pasta and noodles, are consumed in several countries as a staple food. The increasing food processing sector is driving the need for vegetable shortening.

Shortening Market
By Source
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Animal segment would witness the fastest growth, registering a CAGR of 5.4% during the forecast period.

On the basis of application, the bakery products segment accounts to higher value share. The increase in consumer preference for convenience food products indirectly encourages the demand for bakery products as they require less time and effort. The shortening market is driven by the increase in the need for convenience due to the busy customer lifestyles. This, in turn, has led to an increase in demand for bakery products. In addition, the high growth of the frozen food industry due to the fast-growing urban households of developing countries is projected to drive the demand for bakery products.

Shortening Market
By Application
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Others Segment witnssed a major growth rate of 5.0%

On the basis of sales channel, the indirect stores segment held the significant shortening market share in 2020. Urban and semi urban population prefer outlets, convenience store, and hypermarket/supermarket due to easy accessibility of products. It has been seen that increase in the number of stores with major players such as Walmart, are becoming one of the trends in the shortening market. This store offers varieties of products based on consumer preference and convenience is one of the growth factors in indirect segment.

Shortening Market
By Sales Channel
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Indirect Segment held the major share of 65.4% in 2020

On the basis of region, Europe dominated the shortening market in 2020, and accounted for maximum market share. Growing the trend of fresh baked and confectionery products in the market such as bread, cake, dried noodles, and other functional food items is key growth of market development in this region. Asia-Pacific is the fastest-growing region in the shortening fats market, growing young population showing interest in confectionery and baked items and changing food lifestyle of people in this region is the key development of shortening fats in the market during the forecast period. 

Shortening Market
By Region
2030
Europe 
North America
Asia-Pacific
LAMEA

Europe held the major share of 38.4% in 2020

Players in the shortening market have adopted business expansion and product launch as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in the report include Cargill Incorporated, Premium Vegetable Oils Sdn Bhd, Bunge North America, Inc, Fediol, Namchow Chemical Industrial Co., Ltd, Wilmar International Ltd, Fuji Oil Co., Ltd, Associated British Foods plc, Ventura Foods, and J.M. Smucker Company.    

Key benefits for stakeholders  

  • The report provides quantitative analysis of the current shortening market trends, estimations, and dynamics of the market size from 2020 to 2030 to identify the prevailing Shortening market opportunities. 
  • Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
  • In-depth analysis and the market size & segmentation assist to determine the market potential.
  • The major countries in each region are mapped according to their revenue contribution to the market.     
  • The market player positioning segment facilitates benchmarking and provides a clear understanding of the present position of the market players in the shortening industry. 

Shortening Market Report Highlights

Aspects Details
Shortening Market By Source
By Source
  • Vegetables
  • Animal
Shortening Market By Application
By Application
  • Bakery Products
  • Confectionery Products
  • Snacks & Savory Products
  • Others
Shortening Market By Sales Channel
By Sales Channel
  • Direct sales
  • Indirect sales
Shortening Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, UK, Italy, Spain, Belgium, Rest of Europe)
  • Asia-Pacific  (China, Japan, Australia, South Korea, Thailand, Singapore, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Argentina, UAE, Nigeria, Saudi Arabia, South Africa, Rest of LAMEA)
Key Market Players
Key Market Players

Bunge North America, Ventura Foods, J.M. Smucker Company, Namchow Chemical Industrial Co., Ltd, Fuji Oil Co., Ltd, Wilmar International Ltd, Cargill Incorporated, Premium Vegetable Oils Sdn Bhd, Fediol, Associated British Foods plc

Analyst Review

According to the insights of CXOs of leading companies, shortening market has witnessed consistent growth in past few years. Moreover, increase in demand for animal fats in F&B industry is one of the key driving factors.  

The lard obtained by melting animals and tallow obtained from raw fat of other animal species are examples of processed animal fats. Animal fats are primarily used in the production of margarine, shortening, and compound fat. In addition, they are found in many processed foods. Animal fats are used in the manufacturing of soaps, fatty acids, lubricants, and feedstuffs.

The demand from countries, particularly India, China, Malaysia, and Indonesia, drives the market. The demand for animal and vegetables fats is being driven by the respective bakery sectors of these countries, which are being supported by improvement in living standards and population growth.

The key players in the market for shortening have been expanding into new markets through acquisitions, new product development, agreements, and certifications. New requirements to label trans-fatty acid levels in foods are putting pressure on manufacturers to use alternative methods for producing hydrogenated oils, thus increasing demand for fats with high trans-fat levels.

 

Author Name(s) : Raju Kale | Roshan Deshmukh

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Shortening Market

Global Opportunity Analysis and Industry Forecast, 2021-2030