Vegetable Shortening Market Size - By Source (Soybean Oil, Palm Oil, Cottonseed Oil, Sunflower Oil), By Application (Baking, Frying, Confectionery, Snacks & Savory, Food Processing), By Distribution channel & Forecast, 2024-2032

Vegetable Shortening Market Size

Vegetable Shortening Market size was valued at USD 5.1 billion in 2023 and is estimated to witness over 3.7% CAGR from 2024 to 2032. Vegetable shortening finds its primary applications in baking, frying, confectionery, and snacks. It's prized for imparting a tender, flaky texture and extending shelf life. The baking sector, encompassing pastries, cakes, and cookies, stands as the dominant application, propelling demand. Current trends highlight a growing consumer preference for healthier options, steering the market towards trans-fat-free and non-hydrogenated shortenings.
 

Furthermore, the surging popularity of plant-based and vegan diets is nudging the market towards sustainable and non-GMO sources. Continuous innovations in product formulations, coupled with broadening applications in food processing, are bolstering the market's consistent growth.
 

Key drivers for the vegetable shortening market include a heightened demand for convenient, ready-to-eat baked goods and a notable surge in home baking. As consumers pivot towards healthier eating, there's a pronounced demand for trans-fat-free and non-hydrogenated options. The burgeoning vegan and plant-based food movement is prompting manufacturers to prioritize sustainable, non-GMO, and clean-label ingredients. Moreover, the food processing industry's expansion, especially in emerging markets, is amplifying the use of vegetable shortening across diverse applications, further propelling market demand.
 

For instance, the sales of plant-based food grew 27% to more than $7 billion, according to the data from the Plant Based Foods Association (PBFA) and the Good Food Institute. This rising consumer preference is driving the vegetable shortening market towards plant-based options. As more consumers seek healthier, plant-based alternatives, manufacturers are increasingly developing vegetable shortenings that align with these dietary trends, contributing to market expansion and innovation.
 

Innovation and technological strides in the vegetable shortening industry are zeroing in on crafting healthier, sustainable alternatives. In response to consumer demand for enhanced nutritional profiles, manufacturers are ramping up production of trans-fat-free and non-hydrogenated shortenings. Advanced processing techniques, like interesterification, are being harnessed to produce shortenings that boast improved functionality and stability, all while steering clear of harmful trans fats.
 

Innovations also spotlight the use of plant-based oils sourced from non-GMO origins, resonating with the clean-label product trend. On the packaging front, advancements are not only extending the shelf life of vegetable shortening but also enhancing convenience and curtailing waste throughout the supply chain.
 

Volatility in raw material prices poses a significant challenge for the vegetable shortening industry, as fluctuations in the cost of key ingredients like soybean, palm, and sunflower oils can impact production costs and pricing stability. These price swings can affect profit margins and lead to unpredictable market conditions. Additionally, competition from healthier oil alternatives, such as avocado oil and coconut oil, presents a hurdle as consumers increasingly seek oils with perceived health benefits.
 

These alternatives often command higher market interest due to their favorable nutritional profiles and natural sourcing. As a result, vegetable shortening must compete with these options, necessitating continuous innovation and adaptation to maintain market share and meet evolving consumer preferences.
 

Vegetable Shortening Market Trends

The current trend in the vegetable shortening industry is driven by the growing demand for healthier, trans-fat-free, and non-hydrogenated options as consumers become more health-conscious. There is also an increasing preference for plant-based and vegan shortenings, fueled by the rise of plant-based diets.
 

Additionally, clean-label products, which emphasize transparency in ingredient sourcing and processing, are gaining traction. Looking ahead, the market is expected to see a continued shift toward sustainable and eco-friendly production methods, with a focus on non-GMO and organic sources. Innovations in product formulation, such as functional blends for specific baking needs, will also shape the future of the market.
 

 Vegetable Shortening Market Analysis

By source, soybean oil segment will capture USD 2.89 billion and demonstrate a 3.9% CAGR by 2032. Soybean oil dominates the vegetable shortening industry primarily due to its widespread availability, cost-effectiveness, and functional properties. As a major crop in regions like the United States and Brazil, soybean oil is produced in large quantities, making it a reliable and affordable ingredient for manufacturers. Its neutral flavor and high smoke point make it ideal for a variety of applications, from bakfrying.
 

Additionally, soybean oil has favorable nutritional profiles and is a versatile ingredient that blends well with other oils, reinforcing its leading position in the vegetable shortening industry. The industry's focus on producing trans-fat-free options further solidifies soybean oil's dominance, as it is often used to replace partially hydrogenated oils in reformulated products.
 

By application, baking segment will expand to USD 3.18 billion and garner 3.7% CAGR by 2032. Baking dominates the vegetable shortening market, driven by its essential role in achieving desired textures and qualities in various baked goods. Vegetable shortening is prized for its ability to create a flaky, tender texture in pastries, pie crusts, and cookies, making it a preferred ingredient among bakers.
 

Its high fat content and stable properties contribute to better moisture retention and extended shelf life, enhancing product quality. The extensive use of vegetable shortening in commercial bakeries, home baking, and packaged baked goods underscores its dominance. As the demand for convenience and ready-to-eat baked products grows, vegetable shortening's role in baking continues to be a significant factor driving market growth.
 

By distribution channel, supermarket/hypermarket segment will expand to USD 3.66 billion and garner 3.5% CAGR by 2032. Supermarkets and hypermarkets dominate the distribution channel for the vegetable shortening market due to their extensive reach and high consumer traffic. These retail formats offer a wide range of products, including various types of vegetable shortening, catering to both household and commercial needs.
 

Their large-scale operations and well-established supply chains ensure consistent availability and competitive pricing, making them a preferred shopping destination for consumers. Additionally, supermarkets and hypermarkets often feature promotional activities and bulk purchasing options, further driving their dominance in the market. The convenience of one-stop shopping and the ability to provide a diverse assortment of brands and product formats reinforce their leading position in the distribution of vegetable shortening.

North America vegetable shortening market will record 3.5% CAGR and USD 2.42 billion by 2032. North America dominates the market due to its well-established food processing industry, high demand for convenience foods, and significant consumer base favoring baked goods and fried foods. The region benefits from advanced production technologies, extensive distribution networks, and a diverse range of applications for vegetable shortening in commercial and household settings.
 

Additionally, regulatory frameworks in the U.S. and Canada drive the market towards healthier formulations, such as trans-fat-free and non-hydrogenated options, further reinforcing North America's leading position. The presence of major players and ongoing innovation in product development also contribute to North America's dominance in the global vegetable shortening industry.
 

Vegetable Shortening Market Share

In the vegetable shortening industry, Nirmala Avijaya Group and CALOFIC are key players known for their strong regional presence and extensive product portfolios. Spectrum Naturals emphasizes organic and non-GMO options, aligning with the growing consumer demand for clean-label products. Ventura Foods and Stratas Foods offer a wide range of industrial and foodservice solutions, leveraging advanced manufacturing technologies to meet diverse customer needs. B&G Foods, Inc. combines innovation with a broad distribution network, enhancing market reach and product availability.
 

Bunge stands out for its global footprint and robust supply chain, supporting its position as a major supplier of vegetable oils and shortenings. These companies compete through product innovation, quality assurance, and responsiveness to market trends, such as health-conscious and sustainable ingredient preferences, shaping the competitive landscape and driving growth in the vegetable shortening sector.
 

Vegetable Shortening Market Companies

Top companies operating in the vegetable shortening industry include:

• NIRMALA AVIJAYA GROUP
• Spectrum Naturals
• CALOFIC
• Ventura Foods
• B&G Foods, Inc.
• Stratas Foods
• Bunge
• GOLDEN HOPE - NHA BE EDIBLE OILS CO., LTD
• Cargill
• Wilmar International Ltd
• Manildra Group
   

Vegetable Shortening Industry News

• In October 2023, Wesson, a company known for its vegetable oils, announced that it is leveraging the consumer desire for alternative dairy products by launching its plant-based butter. The product will have two variants: olive oil based and canola oil based and will cater to health conscious customer.
   
• In October 2022, Bunge and Olleco, the ABP Food Group's renewables subsidiary, decided to establish a joint venture that would manage the entire life cycle of edible oils.
   

The vegetable shortening market research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Billion) (Kilo Tons) from 2021 to 2032, for the following segments:

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Market, By Source

• Soybean Oil
• Palm Oil
• Cottonseed Oil
• Sunflower Oil
• Others

Market, By Application

• Baking
• Frying
• Confectionery
• Snacks & Savory
• Food Processing
• Others

Market, By Distribution channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail
• Specialty Stores
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA