The global margarine and shortening market size was valued at US$ 15.75 billion in 2023 and is projected to reach US$ 17.48 billion by 2030, exhibiting a CAGR of 1.5% during the forecast period. The rising demand for bakery products, convenience foods, and spreads is driving the growth of the market. The increasing awareness of the health benefits of margarine and shortening over butter is also expected to boost the market growth.
The following are the key factors driving the growth of the global margarine and shortening market:
Increasing demand for bakery products: Margarine and shortening are widely used in the preparation of bakery products such as cakes, cookies, and pastries. The rising demand for these products is expected to drive the growth of the margarine and shortening market.
Growing demand for convenience foods: Margarine and shortening are also used in the preparation of convenience foods such as frozen meals, snacks, and sauces. The increasing demand for these foods is expected to boost the growth of the margarine and shortening market.
Margarine and Shortening Market Regional Insights
- North America: The North American market is expected to dominate the global margarine and shortening market during the forecast period, accounting for a market share of 35% in 2023. The region is home to a large number of margarine and shortening manufacturers, such as Upfield, Bunge, and NMGK Group. These companies have invested heavily in research and development to develop new and innovative products, which has helped them to maintain their market share. Additionally, the growing health consciousness among consumers in the region is expected to drive the demand for healthier alternatives to butter, such as margarine and shortening.
- Europe: The European market is expected to be the second-largest market for margarine and shortening during the forecast period. The region is home to a large number of margarine and shortening manufacturers, such as Unilever, Puratos, and Vandemoortele. These companies have invested heavily in research and development to develop new and innovative products, which has helped them to maintain their market share. Additionally, the growing health consciousness among consumers in the region is expected to drive the demand for healthier alternatives to butter, such as margarine and shortening.
- Asia Pacific: The Asia Pacific market is expected to be the fastest-growing market for margarine and shortening during the forecast period. The region is home to a large and growing population, which is expected to drive the demand for food products, including margarine and shortening. Additionally, the rising disposable incomes of consumers in the region is expected to drive the demand for premium and high-quality margarine and shortening products.
Figure 1. Global Margarine and Shortening Market Share (%), by Region, 2023

Margarine and Shortening Market Drivers:
- Changing Consumer Preferences: Consumer preferences for healthier and more sustainable food products have a significant impact on the margarine and shortening market. Increasing awareness about the health risks associated with trans fats and saturated fats has led to a shift in consumer demand towards healthier alternatives. Margarine and shortening manufacturers have responded by introducing products with reduced levels of trans fats and saturated fats, as well as incorporating healthier ingredients.
- Rising Demand for Plant-Based Products: The growing popularity of plant-based diets and the increasing number of consumers adopting vegetarian or vegan lifestyles have driven the demand for plant-based margarine and shortening products. Plant-based alternatives, such as those made from vegetable oils or plant-derived fats, cater to this growing consumer segment and provide an alternative to animal-derived products.
- Food Industry Applications: Margarine and shortening find extensive applications in the food industry as ingredients for bakery, confectionery, and processed food products. The growth of the bakery industry, in particular, has a direct impact on the demand for margarine and shortening. Increasing consumption of baked goods and confectionery products globally drives the demand for these ingredients, as they enhance the texture, flavor, and shelf life of such products.
Margarine and Shortening Market Opportunities
- Health and Wellness Trends: With increasing awareness about health and wellness, there is a growing demand for healthier alternatives to traditional margarine and shortening products. This presents an opportunity for manufacturers to develop and market healthier versions of these products, such as those with reduced levels of trans fats, saturated fats, and artificial additives. Creating products with clean labels, natural ingredients, and functional benefits can appeal to health-conscious consumers.
- Plant-Based and Vegan Market: The rising popularity of plant-based diets and vegan lifestyles opens up opportunities for plant-based margarine and shortening products. By using vegetable oils, plant-derived fats, and innovative formulations, manufacturers can cater to the growing demand for plant-based alternatives. Developing products with authentic buttery flavors and textures can help capture the attention of both vegan and non-vegan consumers looking for healthier, sustainable, and ethical options.
- Specialty and Gourmet Products: There is a growing market for specialty and gourmet food products, including premium baked goods and confectionery items. Margarine and shortening manufacturers can tap into this market by offering high-quality, premium-grade products specifically designed for artisanal and upscale applications. Collaborating with renowned chefs, pastry experts, and culinary professionals can help develop unique and innovative products that cater to the demands of this niche market segment.
- Emerging Markets: Margarine and shortening consumption is expanding in emerging markets with changing dietary habits and increasing disposable incomes. Countries in Asia, Latin America, and Africa are witnessing a rise in bakery and confectionery consumption, presenting significant growth opportunities for margarine and shortening manufacturers. Developing localized products, considering regional tastes and preferences, and establishing distribution networks in these markets can help capture market share and drive growth.
Margarine and Shortening Market Report Coverage
Report Coverage |
Details |
Base Year: |
2022 |
Market Size in 2023: |
US$ 15.75 Bn |
Historical Data for: |
2017 to 2021 |
Forecast Period: |
2023 - 2030 |
Forecast Period 2023 to 2030 CAGR: |
1.5% |
2030 Value Projection: |
US$ 17.48 Bn |
Geographies covered: |
- North America: U.S. and Canada
- Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Middle East & Africa: GCC Countries, Israel, South Africa, North Africa, and Central Africa and Rest of Middle East
|
Segments covered: |
- By Product Type: Margarine, Shortening
- By Source: Plant-based, Animal-based
- By Form: Solid, Liquid
- By Application: Baking and Pastry, Cooking and Frying, Spreads and Toppings, Industrial
- By End-user: Retail, Food Service, Industrial
- By Packaging: Tubs, Sticks, Bulk/Industrial Packaging
- By Distribution Channel: Supermarkets/Hypermarkets, Convenience Stores, Online Retail, Foodservice Distributors
|
Companies covered: |
Unilever, Conagra Brands, Bunge Limited, Wilmar International Ltd., Upfield Holdings BV, Cargill, Incorporated, Archer Daniels Midland Company (ADM), Fuji Oil Co., Ltd. ,Richardson International Limited, Dairy Farmers of America, AAK AB, NMGK Group, Puratos Group, Kerry Group, Vandemoortele
|
Growth Drivers: |
- Changing Consumer Preferences
- Rising Demand for Plant-Based Products
- Food Industry Applications
- Health Concerns and Perception
|
Restraints & Challenges: |
- Competition from Butter and Other Fats
- Regulatory Environment
- Pricing Pressures
|
Margarine and Shortening Market Trends
- Shift Towards Healthier Alternatives: There is a growing consumer demand for healthier alternatives to traditional margarine and shortening products. Consumers are seeking products with reduced levels of trans fats, saturated fats, and artificial additives. Manufacturers are responding to this trend by introducing healthier options, such as margarines made from healthier oils and trans fat-free shortening. Additionally, there is an increasing focus on clean label products with natural and recognizable ingredients.
- Plant-Based and Vegan Options: The popularity of plant-based diets and vegan lifestyles has resulted in a rise in plant-based margarine and shortening products. Consumers are seeking alternatives to animal-based fats, and manufacturers are responding by developing plant-based options made from vegetable oils, plant-derived fats, and non-dairy ingredients. This trend is driven by concerns for animal welfare, sustainability, and health considerations.
- Clean Label and Natural Ingredients: Consumers are becoming more conscious about the ingredients used in their food products. There is a growing preference for margarine and shortening products that have a clean label, meaning they are free from artificial preservatives, flavors, and colors. Natural and recognizable ingredients, such as non-GMO oils and fats, are gaining popularity as consumers seek transparency and more natural food choices.
- Premium and Specialty Products: The market is witnessing an increase in demand for premium and specialty margarine and shortening products. These products are often positioned as high-quality options, offering unique flavors, textures, and functionalities. Gourmet and artisanal applications in the bakery and confectionery sector are driving this trend, as consumers seek indulgent and differentiated products.
Margarine and Shortening Market Restraints
- Health Concerns and Perception: Despite efforts to develop healthier alternatives, margarine and shortening products still face criticism and skepticism from health-conscious consumers. The association of margarine with trans fats and concerns about its impact on cardiovascular health has led some consumers to avoid these products altogether. Similarly, the perception that shortening is high in saturated fats and unhealthy can deter health-conscious consumers from using it.
- Competition from Butter and Other Fats: Margarine and shortening face competition from butter, oils, and other fat sources. Butter, in particular, is often perceived as a more natural and traditional option, and some consumers prefer its taste and texture over margarine or shortening. Additionally, the increasing availability of specialty oils, such as avocado oil or coconut oil, as healthier alternatives, can pose a challenge to the margarine and shortening market.
- Regulatory Environment: The margarine and shortening market is subject to regulations and labeling requirements that impact product formulation and marketing claims. Regulations regarding trans fats, saturated fats, labeling accuracy, and health claims can vary across countries, making it challenging for manufacturers to navigate different regulatory frameworks and comply with multiple standards.
- Pricing Pressures: Price sensitivity among consumers and intense competition in the market can put pressure on the pricing of margarine and shortening products. Consumers may perceive margarine and shortening as less premium or less desirable compared to alternatives like butter, impacting their willingness to pay a higher price. This can restrict profit margins for manufacturers, especially in price-sensitive markets.
Recent Developments
New product launches
- Upfield launched its new plant-based butter alternative, Buttery Spread. The product is made with a blend of sunflower oil, rapeseed oil, and coconut oil, and it is available in salted and unsalted varieties.
- Bunge launched its new line of plant-based shortenings, Bunge Pure Blends. The products are made with a blend of non-hydrogenated vegetable oils, and they are available in a variety of flavors, including unflavored, butter, and bacon.
- ConAgra launched its new line of plant-based margarines, Melt. The products are made with a blend of non-hydrogenated vegetable oils, and they are available in a variety of flavors, including unflavored, butter, and garlic.
Acquisition and partnerships
- In 2018, Upfield acquired the margarine and shortening business of Unilever for $6.1 billion.
- In 2019, Bunge acquired the margarine and shortening business of ConAgra for $1.5 billion.
- In 2020, Cargill acquired the margarine and shortening business of JM Smucker for $300 million.
Figure 2. Global Margarine and Shortening Market Share (%), by Type of Application, 2023

Top companies in Margarine and Shortening Market
- Unilever
- Conagra Brands
- Bunge Limited
- Wilmar International Ltd.
- Upfield Holdings BV
- Cargill, Incorporated
- Archer Daniels Midland Company (ADM)
- Fuji Oil Co., Ltd.
- Richardson International Limited
- Dairy Farmers of America
- AAK AB
- NMGK Group
- Puratos Group
- Kerry Group
- Vandemoortele
*Definition: The Margarine and Shortening market refers to the industry that involves the production, distribution, and sale of margarine and shortening products. Margarine is a spread made from vegetable oils and water, while shortening is a solid fat used in baking and cooking. These products are commonly used as substitutes for butter and other fats in various culinary applications. The market encompasses both retail and commercial sectors, serving consumers, foodservice establishments, and industrial manufacturers.