Dairy Free Shortening Market Analysis & Forecast: 2025-2032

Dairy Free Shortening Market is estimated to be valued at USD 25.78 Bn in 2025 and is expected to reach USD 40.86 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 6.8% from 2025 to 2032.

Dairy free shortening is a kind of dairy-free substitute. It is non-hydrogenated and contains no cholesterol or trans-fat. It is also flavorful and delicious. Shortening made without dairy reduces saturated fat while maintaining the product's flavor. It is a better alternative to canola oil. Dairy-free shortening is used for cake decoration because it does not melt as quickly as butter, making it a good butter substitute; it is also used for cuisine frosting and icing. Shortening that is free of dairy is essential in baking. Furthermore, shortening forms a barrier between gluten molecules, preventing them from cross-linking when liquid is added.

Global Dairy Free Shortening Market- Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 pandemic has had a positive impact on the global dairy free shortening market. Vegetarian, vegan, and flexitarian diets were on the rise even before the COVID-19 pandemic. Concerns about personal health, environmental sustainability, and animal welfare have fueled people shift toward plant-based diets, and it appears that the coronavirus pandemic has accelerated this trend. For instance, in 2021, According to foodbeverageinsider.com, nearly 1 in 5 (18%) people in the UK have eaten more vegan and/or vegetarian food since the pandemic began in March 2020. According to the study, a similar percentage stated that they would remain fully vegetarian or vegan after the pandemic had passed.

Global Dairy Free Shortening Market:  Drivers

• An increase in veganism among people all over the world: Veganism is on the rise all over the world. As more and more people become vegan, they are looking for alternatives to animal by-products, and dairy shortening is one of them. This is a great opportunity for manufacturers to meet the growing demand for vegan products and offer more dairy-free options. The global market for vegan shortening is expected to experience significant growth in the years to come. This is due to the growing trend of veganism and the growing demand for plant-based and cruelty-free alternatives. For instance, according to the World Animal Foundation, there are approximately 88 million vegans in the world and more than 629,000 people signed up for the Veganuary Campaign in 2022.
• Growing use of dairy-free shortening products or diets due to lactose sensitivity: Many people are allergic to lactose, which makes up a large portion of all dairy products. Lactose can be difficult to digest, causing stomach pain for those who consume a lot of dairy products. People all over the world have started using dairy free shortening products or diets as a result of lactose sensitivity. People are suffering from more and more digestive disorders as a result of changes in their dietary habits, which has led to a growth in the consumption of dairy free shortening, which is high in fiber and helps improve people's gut health. For instance, according to the National Institute of Diabetes and Digestive and Kidney Diseases, experts estimate that about 68 percent of the world’s population has lactose malabsorption. Lactose malabsorption is more common in some parts of the world than in others. In Africa and Asia, most people have lactose malabsorption.

Global Dairy Free Shortening Market: Market Restraints

Consumers are becoming more concerned about food ingredients

Consumers are becoming more concerned about food ingredients, especially if it contain fat. Furthermore, the main ingredients used in shortening are high in various fats, which can be harmful to one's health. Consumers who are looking for vegan alternatives, such as coconut oil, must be aware of the various negative consequences of such alternatives.

Market Trends

Growing popularity for plant-based diets

In recent years, there has been a significant increase in the number of people adopting plant-based diets such as coconut milk, almond milk, etc., resulting in an increase in the demand for dairy free shortening products

Global Dairy Free Shortening Market: Market Segmentation

Among product type, the beverages segment accounted for the highest market share of 32.5% in the global dairy free shortening market in 2025. Changing consumer preferences for healthy and organic drinks, as well as rising demand for functional and flavored waters, are driving the dairy free shortening market’s growth.

Figure 1: Global Dairy Free Shortening Market Revenue Share (%), By Product Type, 2025

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Global Dairy Free Shortening Market: Regional Analysis

Among regions, North America held a dominant position in the global dairy free shortening market in 2025, accounting for 36.8% market share in terms of revenue, followed by Asia Pacific and Europe. North America held a dominant position as a result of a number of factors, including rising health consciousness, high lactose intolerance, and rising per capita disposable income

Figure 2: Global Dairy Free Shortening Market Revenue Share (%), By Product Type, 2025

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Global Dairy Free Shortening Market: Key Developments

• On July 5, 2022, Danone, a food-product corporation, announced the launch of the first ever Dairy and Plants Blend baby formula in response to parents’ desire for vegetarian and flexitarian options for their baby.
• On June 6, 2022, The Hain Celestial Group, Inc., an organic and natural products company, announced Hain Celestial’s North America business has joined the How2Recycle label program. How2Recycle is a U.S. And Canada-based labelling system that enables companies to clearly communicate how to recycle a package, improving the reliability, completeness, and transparency of recyclability claims.
• On December 28, 2021, The Hain Celestial Group, (NASDAQ: HAIN) (“Hain Celestial,” “Hain,” or the “Company”) announced the completion of its acquisition of that’s How We Roll from Clearlake Capital Group. The Hain Celestial Group, Inc. is an American food company whose main focus is natural foods and botanically-based personal care products

Global Dairy Free Shortening Market: Key Companies

Key players operating in the global dairy free shortening market include Groupe Danone, The Hein Celestial Group, The Whitewave Foods Company, Good Karma Foods, GraceKennedy Group, Blue Diamond Growers, Inc., SunOpta, Inc., Oatly A.B., and Vitasoy International Holdings Limited.

*Definition: Dairy-free shortening is a kind of dairy-free substitute. It is non-hydrogenated and contains no cholesterol or trans-fat. It is also flavourful and delicious. Shortening made without dairy reduces saturated fat while maintaining the product's flavour