MARGARINE MARKET ANALYSIS

The global margarine market size was valued at US$ 21,936.8 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 2.68% from 2023 to 2030. The global margarine market is forecast to exhibit a considerable growth over the next few years. This growth is attributed to the growing consumer demand for healthy products, especially when it comes to reducing the saturated fat content of food. In addition, the growing geriatric population and increasing awareness about the benefits of a healthy diet are expected to fuel demand for margarine. However, a recent pandemic, COVID-19, imposed trade restrictions on margarine, resulting in a significant decline in demand from 2020 to 2021. These restrictions, along with a lack of raw materials, resulted in many manufacturing units closing down. With the passage of time, the industry has improved its distribution networks, which will drive growth of the market.

Global Margarine Market: Regional Insights

Regionally, Asia Pacific is anticipated to be the fastest growing region for the industrial margarine market. As more and more end user companies are opening up their operations in this region, the consumption rate is increasing. Furthermore, rising disposable income and an increase in demand for processed foods are likely to drive the demand for margarine in this region.

Europe is the second largest region in the global margarine market. Besides, the bakery industry accounted for the majority of the margarine consumption in this region. It is mainly used in bread and baked rolls. Moreover, the confectionery industry also carries out a considerable share of the margarine market.

Figure 1. Global Margarine Market Share (%), By Region, 2022

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Global Margarine Market Drivers:

Growing application in the bakery industry is propelling growth of the market

Margarine is widely used in preparation of cakes and biscuits as it gives flaky texture to the bakery products. Moreover, it also helps in prolonging shelf-life of the bakery products. Hence growing demand for bakery products is expected to contribute to the market growth. Margarine is rich in unsaturated fat but sometimes trans-fat.

Increasing demand for sustainable margarine is augmenting market growth

Consumers are becoming more health conscious which is turn creating demand for sustainable and plant-based foods. Government is taking initiatives to eliminate unhealthy food ingredients. For instance, Argentina’s high heart risk problem was tackled by the initiatives of the government organizations, which finally led to the adoption of schemes that could help to encourage sustainable food by getting rid of industrially-produced Tans-fats.

Global Margarine Market Opportunities:

Growing demand for specialized products due to increasing demand for perfection across food sector is expected to hold potential market opportunities. For this key manufacturers are adopting solutions in order to develop product-specific margarine variants to cater versatile applications of food sector. For instance, East Asia Palm Products Sdn Bhd produces a range of vegetable laminating margarine designed specifically to meet the needs of laminated products such as croissants, Danishes, and puff pastries.

Increasing demand for clean-label margarine is expected to provide significant growth opportunities. For instance, in November 2019, Netherlands-based ingredients supplier Bunge Loders Crocklaan (BLC) introduced a clean-label shea margarine that is produced using a 'unique' crystallization process particularly appropriate for the bakery sector, enhancing the ‘puff, crispiness’ in products like croissants and Danish pastries.

Global Margarine Market Trends:

Allergen-free margarine is A recent trend

A significant portion of population are looking for products that are allergens free. Rising awareness regarding the prevention and availability of health alternative is creating demand for allergen-free margarine. For instance, Palsgaard manufactures low-fat margarine spread with only 10% fat which has no allergens, is non-GMO, and less than 1% trans fatty acids, thus appealing to a large consumer base.

Vegan margarine is another growing trend due to increasing number of vegetarians

People across the globe are adopting healthy lifestyle with vegan and plant-based diet. For this key manufacturers are introducing vegan margarine. For instance, in August 2021, Violife, one of the United Kingdom’s leading vegan alternatives to cheese brands, introduced its vegan margarine Vioblock at Asda stores in the country. Vegan margarine contains vitamins B1, B2, B6, B12, and folic acid. The vioblock is also free from soy, dairy, gluten, lactose, etc.

Global Margarine Market Restraints:

Health concerns associated with trans-fats

Trans-fats are a type of fat that has been associated with an increased risk of chronic diseases. Because of this, the Food and Drug Administration is now banning Trans-fats in processed foods. According to World Health Organization, 58 countries have laws that protect 3.2 billion people from harmful trans-fat by the end of 2021. Consumption of industrially produced trans-fats is estimated to cause around 500,000 deaths per year due to coronary heart disease. Fifteen countries account for around two-thirds of the deaths linked to trans- fat intake.

Butter as alternative to restrict use of margarine

As per the data provided by the USDA Foreign Agricultural Service, the average Canadian consumed 3.68 kilograms of butter per capita in 2020. Butter is healthy alternative to margarine, thus hindering market growth. However, emergence of sustainable and plant-based margarine is expected to open new avenue for the market.       

Figure 2. Global Margarine Market Share (%), By Product Type, 2022

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Global Margarine Market Segmentation:

The global margarine market report is segmented into product type, end user, and geography

Based on product type, the market is segmented into Hard, Soft, and Liquid. Out of which, Soft is expected to dominate the global market over the forecast period and this is attributed to the less content of trans-fat. Moreover, they are made from vegetable oils, such as sunflower, soybean, rapeseed, olive oil, and canola oil. The soft segment of the global margarine market was valued at US$ 12,405.80 million and 3,586.6 tons in 2021. It is projected to reach US$ 14,236.00 million and 3,946.0 tons in 2027, registering a CAGR of 2.15% (in value terms) and 1.35% (in volume terms) during the forecast period of 2022-2027.

Hard segment is also expected to witness significant growth in the near future and this is owing to the growing demand from cooking and baking applications. The hard segment of the global margarine market was valued at US$ 8,297.10 million and 2,750.4 tons in 2021. It is projected to reach US$ 9,887.80 million and 3,119.4 tons in 2027, registering a CAGR of 2.79% (in value terms) and 1.86% (in volume terms) during the forecast period of 2022-2027.

Based on end user, the market is segmented into Retail, HORECA, and Industrial. Out of which, Retail is expected to dominate the global market over the forecast period and this is attributed to the expansion of supermarkets and hypermarkets. The supermarkets/hypermarkets segment of the global margarine market was valued at US$ 8,689.1 million in 2021. It is projected to reach a value of US$ 9,709.9 million by 2027, registering a CAGR of 1.79% during the forecast period of 2022-2027.

HORECA segment is also expected to witness significant growth in the near future and this is owing to the growing travel and tourism.

Global Margarine Market: Key Developments

In November 2021, The Wilmar International Ltd announced the opening of a new workshop for the processing and packaging of margarine and fat products. Investments in this project exceeded US$ 29 million.

In June 2020, The Upfield Group announced an investment of EUR 50 million in a brand-new, state-of-the-art Upfield Food Science Centre in Wageningen, Netherlands. The investment would provide access to cutting-edge machinery and technology and enable advancements in the production of natural, plant-based foods.

In September 2019, Upfield partnered with Starling to ensure its continued support for Upfield’s vision for a “Better Plant-Based Future,” which fosters innovation in the sourcing of ingredients that safeguard the planet's ecosystems and preserve them for future generations.

Global Margarine Market: Key Companies Insights

The global margarine market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global margarine market are Royale Lacroix, Bunge Limited, Conagra Brands Inc., Wilmar International, Puratos NV, Associated British Foods, Land O'Lakes Inc., Upfield Holdings BV, NMGK Group, Vandemoortele, Remia CV, Richardson International Limited, BRF SA, and Fuji Oil Holdings Inc.

*Definition: Margarine is a good source of vitamin A, vitamin D, and omega-3 essential fatty acids. It can also provide complementary effects to other foods, such as satiety and antioxidants. For instance, it can help improve the texture of other foods, and it has been shown to increase satiety. In addition, it is an easily spreadable alternative to butter