Shortenings Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source (Vegetable Shortenings, Animal Shortenings), By Key Ingredient (Oil, Lard, Tallow, Butter, Others), By Application (Bakery Products, Confectionery Products, Snacks & Savory Products, Others), By Variant (Liquid Shortening, Solid Shortening, All-Purpose Shortening, Cake/Icing Shortening, Others) By Region, By Competition, 2020-2030F

Market Overview

The Global Shortenings Market, valued at USD 4.87 Billion in 2024, is projected to experience a CAGR of 4.19% to reach USD 6.23 Billion by 2030. Shortening refers to a type of fat, solid at room temperature, predominantly used in baking to impart a crumbly and crisp texture to food products by inhibiting gluten formation, with varieties ranging from hydrogenated vegetable oils to animal fats like lard. The global shortenings market's growth is primarily driven by the expanding food processing and bakery industries, alongside the increasing consumer demand for convenience foods and processed snacks. Furthermore, ongoing technological advancements in shortening formulations, focusing on healthier alternatives with improved functionalities such as trans-fat-free options, also support market expansion.

According to the USDA National Agricultural Statistics Service, crude oil produced from soybeans, a critical ingredient for vegetable shortenings, reached 2.49 billion pounds in November 2024, demonstrating a 7 percent increase from November 2023. This market, however, faces a significant challenge from fluctuating raw material prices, particularly for vegetable oils, which can impact production costs and overall market stability.

Key Market Drivers

The increasing demand for processed and convenience foods significantly propels the global shortenings market. Modern consumer lifestyles, often characterized by busy schedules and a preference for on-the-go consumption, drive the need for food products that offer ease of preparation and extended shelf life. Shortenings are essential ingredients in these applications, providing crucial textural characteristics, mouthfeel, and stability in a wide range of convenience items such as packaged snacks, ready meals, and pre-made doughs. Their functional properties ensure consistent product quality and appeal, which is vital in a competitive market segment. According to the NACS 2023 State of the Industry Report, prepared foods in convenience stores enjoyed a 12.2 percent increase year-over-year, illustrating the substantial growth in a sector heavily reliant on shortening applications for product formulation.

The expansion of the bakery and confectionery sectors also serves as a critical growth driver for the shortenings market. These industries are major consumers of shortenings, which are indispensable for achieving desired attributes like the flaky texture of pastries, the soft crumb of cakes, and the smooth consistency of confectionery coatings. Continuous innovation in product development within these sectors, influenced by evolving consumer preferences for diverse flavors and formats, necessitates specialized shortening formulations. This consistent demand underpins sustained market growth. According to the National Confectioners Association's 2025 State of Treating report, confectionery sales surpassed $54 billion in 2024 in the U. S. , highlighting the considerable market size and ongoing activity. Furthermore, the foundational supply of raw materials for shortening production continues to demonstrate robust activity. According to the USDA Foreign Agricultural Service, in 2023, global palm oil production, a key raw material for shortenings, reached 77.05 billion metric tons.

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Key Market Challenges

The fluctuating prices of raw materials, particularly for vegetable oils, pose a significant impediment to the growth of the global shortenings market. This volatility leads to unpredictable production costs, making financial forecasting and stable pricing strategies challenging for manufacturers. When the cost of essential inputs increases, companies must choose between absorbing these higher expenses, which directly reduces profitability, or implementing price adjustments that can diminish consumer demand for shortenings-based products. Such market instability discourages investment in capacity expansion or innovation. For example, according to the Malaysian Palm Oil Council, the average crude palm oil price increased by 9.7%, reaching RM4,179.50 per tonne in 2024, compared to RM3,809.50 in 2023. These substantial price surges for a primary ingredient directly elevate operational expenditures and restrict the ability of shortenings producers to maintain competitive pricing and robust financial health in the market.

Key Market Trends

The growing adoption of trans-fat-free formulations significantly impacts the global shortenings market, driven by escalating consumer health awareness and stringent regulatory mandates. Manufacturers are actively reformulating shortenings to eliminate industrially produced trans fats. The World Health Organization's June 2024 report indicated that by the end of 2023, 53 countries implemented best practice policies for tackling industrial trans fat, covering 46% of the global population. This regulatory pressure fosters industry advancements; according to Cargill in May 2025, it achieved the top ranking on the Edible Oil Supplier Index 2025 for leadership in removing industrially produced trans-fatty acids, with its entire edible oils portfolio meeting WHO standards as of January 1, 2024.

Innovations in fat structuring and emulsification technologies represent another critical trend, offering advanced solutions to enhance shortenings' functional properties and nutritional profiles. This involves developing sophisticated methods to modify fat crystallization and emulsion stability, improving characteristics like plasticity, aeration, and mouthfeel. The American Oil Chemists' Society (AOCS) actively promotes these advancements; its 2025 Annual Meeting & Expo will highlight how precise control over fat crystallization via emulsifiers and dispersed particles influences food texture and rheology. Industry partnerships further demonstrate this technological progress. Cargill, in March 2023, collaborated with Cubiq Foods, signing agreements for co-development and commercialization of Cubiq's novel fat technologies, aiming for healthier, more sustainable, and superior-tasting solutions across diverse food applications.

Segmental Insights

The Global Shortenings Market identifies All-Purpose Shortening as a key segment experiencing rapid growth, driven by its exceptional versatility across diverse culinary applications. This type of shortening is highly valued for its adaptability in various food preparation methods, including baking, frying, and general cooking, allowing for the consistent achievement of desired textures and product characteristics. Its broad utility in both industrial food manufacturing and household environments significantly underpins this increasing demand. Furthermore, All-Purpose Shortening's role in enhancing product stability and contributing to an extended shelf life for numerous finished goods reinforces its prominence within the overall shortenings market.

Regional Insights

North America leads the global shortenings market, primarily driven by the region's substantial consumption of processed foods, including bakery and confectionery products. This dominance is further underpinned by a highly developed food processing infrastructure and the strong presence of major shortening manufacturers, ensuring a robust supply chain. Moreover, North American consumers exhibit a preference for convenience foods and increasingly demand healthier alternatives such as trans-fat-free and plant-based shortenings. Regulatory guidance, such as that from the FDA, also influences product innovation towards these healthier options.

Recent Developments

• In September 2025, AAK showcased a range of its functional oil solutions at the International Baking Industry Exposition (IBIE) in Las Vegas, highlighting several specialty plant-based fat and oil applications for bakery products. The company featured innovations such as Cisao® 8312, a multi-purpose shortening providing crisp texture in cookies, and Cebes® 29-54 NH, a non-hydrogenated palm blend for chocolatey coatings. Additionally, Confao® 12, a specific filling fat solution, was presented to offer a smooth melt and high-flavor experience in creamy applications.

• In November 2024, Bunge Loders Croklaan completed the construction of a new state-of-the-art, sustainable plant-based oils and fats production facility in the Port of Amsterdam, following an investment of over €300 million. This strategic development was aimed at replacing existing production sites and enhancing the company's capacity to deliver a wider and more innovative selection of sustainable plant-based oils and fats to meet evolving market demands. The facility incorporated advanced technological standards, targeting substantial improvements in energy efficiency and significant CO2 reductions by 2030, with production operations phasing in during 2025.

• In June 2024, AAK introduced extensions to its EsSence line of bakery shortenings at the IFT event in Chicago. These new palm-oil-based products were formulated to be trans-free, non-hydrogenated, and low in saturated fat, addressing the demand for healthier alternatives without compromising functionality, taste, or texture in baked goods. One notable introduction was EsSence EX36 margarine, specifically designed for laminated dough applications such as puff pastry, aiming to provide excellent lift and crumb structure for large-scale bakery manufacturers.

• In March 2024, Bunge and Chevron announced a final investment decision for their joint venture, Bunge Chevron Ag Renewables LLC, to construct a new oilseed processing plant in Destrehan, Louisiana. This facility, anticipated to become operational in 2026, was specifically designed for processing various oilseeds, including soybeans and emerging winter oilseed crops. The collaboration aimed to enhance the scale and efficiency of renewable fuel feedstocks while also supporting the expanding feed and protein markets through the production of meal products, thereby strengthening the upstream supply chain for the global shortenings market.

Key Market Players

• Cargill Incorporated
• Conagra Brands Inc.
• Bunge Global SA
• Wilmar International Limited
• The Archer Daniels Midland Company
• International Foodstuff Company Holdings Limited
• Ventura Foods LLC
• AAK AB
• Manildra Group
• Associated British Foods PLC

Report Scope:

In this report, the Global Shortenings Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Shortenings Market, By Source:

o   Vegetable Shortenings

o   Animal Shortenings

• Shortenings Market, By Key Ingredient:

o   Oil

o   Lard

o   Tallow

o   Butter

o   Others

• Shortenings Market, By Application:

o   Bakery Products

o   Confectionery Products

o   Snacks & Savory Products

o   Others

• Shortenings Market, By Variant:

o   Liquid Shortening

o   Solid Shortening

o   All-Purpose Shortening

o   Cake/Icing Shortening

o   Others

• Shortenings Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Shortenings Market.

Available Customizations:

Global Shortenings Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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