Shortenings Market Analysis & Forecast: 2026-2033

Shortenings Market Analysis & Forecast: 2026-2033

Shortenings market is estimated to be valued at USD 4,894.3 Mn in 2026 and is expected to reach USD 6,092.3 Mn in 2033, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2026 to 2033.

Key Takeaways

• Based on Category, the Plant-Based segment is expected to hold 67% share of the market in 2026.
• Based on Form, the Solid Form segment is expected to lead the market with 60% share in 2026.
• Based on Application, the Bakery & Confectionery segment is projected to capture 50% of the share in 2026.
• Based on Distribution Channel, the offline stores segment is projected to account for 75% share of the market in 2026.
• Based on Region, Europe is set to lead the shortenings market with 35% share in 2026. While, Asia Pacific is anticipated to be the fastest growing region.

Market Overview

Shortening is a product made from animal or vegetable fat. The plant-based shortening segment is expected to gain significant traction during the forecast period, owing to benefits offered by vegetable oil such as high presence of antioxidants. Plant-based shortening is derived from vegetable oils such as soybean oil, palm oil, and rapeseed oil among others.

Shortening is primarily used in the bakery and confectionery industry. Increasing population in Asia Pacific region has resulted in increasing per capita consumption of food, and thereby increased consumption of overall bakery and confectionery products in the region.

Current Events and Its Impacts on the Shortenings Market

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Can sustainable oils, oleogel technology, and circular economy practices redefine the future of shortenings?

Palm Oil Alternatives

• Environmental concerns: Palm oil production is linked to deforestation and biodiversity loss, prompting demand for alternatives.
• Alternative oils: Sunflower, canola, and algae oils are being used to create shortenings with similar texture and functionality.
• Consumer appeal: Products marketed as “sustainable” or “palm-free” resonate with eco-conscious buyers.
• Regional adoption: Europe and North America lead in palm-free shortenings due to stricter sustainability regulations.

Oleogel Technology

• Definition: Oleogels are structured oils created by gelling liquid oils, mimicking the solid fat properties of shortening.
• Health benefits: They eliminate trans fats and reduce saturated fat content while maintaining baking performance.
• Startups leading innovation: Companies like Perfat Technologies (Finland) are pioneering oleogel-based shortenings.
• Applications: Used in bakery, confectionery, and processed foods to deliver healthier textures without compromising taste.

Circular Economy Approaches

• Waste valorization: Shortening producers are exploring ways to repurpose byproducts (e.g., oil residues) into biofuels or animal feed.
• Energy efficiency: Factories are adopting closed-loop systems to reduce waste and carbon emissions.
• Sustainable packaging: Alongside shortening innovation, companies are shifting to recyclable or biodegradable packaging.
• Market advantage: Brands that integrate circular economy practices gain credibility with regulators and consumers.

Segmental Insights

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Shortenings Market Insights, By Category - Plant-based shortenings lead is driven by health, sustainability, and vegan demand

In terms of category, the plant-based segment is expected to hold 67% share of the market in 2026, due to rising health awareness, vegan lifestyles, and regulatory pressure against trans fats. Oils from soybean, sunflower, and palm are widely used, offering cholesterol-free alternatives. Sustainability and clean-label demand further boost adoption, making plant-based shortenings the preferred choice across global food industries.

For instance, in March 2025, Savor’s launch of carbon-based butter introduces a groundbreaking fat alternative, free from plants and animals. While not traditional shortenings, it could serve similar functions in bakery and confectionery. This innovation highlights sustainability and climate-friendly production, potentially disrupting the shortenings market by offering a novel substitute for plant-based oils.

Shortenings Market Insights, By Form - Solid shortenings dominate as the preferred choice for bakery texture, aeration, and stability

In terms of form, the solid form segment is expected to lead the market with 60% share in 2026, because they provide structure, aeration, and stability essential in bakery and confectionery products. Their ability to enhance texture, mouthfeel, and shelf life makes them indispensable for industrial baking. Despite health concerns, reformulated solid shortenings remain the backbone of large-scale bakery operations worldwide.

Shortenings Market Insights, By Application - Bakery & confectionery is fueled by global bread and pastry demand

In terms of application, the bakery & confectionery segment is projected to capture 50% of the share in 2026. Bread, cakes, pastries, biscuits, and cookies rely heavily on shortenings for texture, flavor, and volume. Rising global bakery consumption, especially in Europe and Asia-Pacific, ensures this segment remains the largest consumer of shortenings in 2026.

Shortenings Market Insights, By Distribution Channel - Offline retail channels with supermarkets and hypermarkets remaining the primary purchase points

In terms of distribution channel, the offline stores segment is projected to account for 75% share of the market in 2026, capturing most sales through supermarkets, hypermarkets, and specialty shops. Consumers prefer offline channels for trust, immediate availability, and bulk purchasing. While online platforms grow rapidly, traditional retail networks remain the primary source, especially in emerging markets where physical presence drives accessibility and consumer confidence.

Regional Insights

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Europe Shortenings Market Analysis & Trends

Europe is expected to dominate the shortening market with 35% share in 2026, due to its deep-rooted bakery culture, with bread, pastries, and confectionery being daily staples. Strong retail networks, innovation in plant-based and trans-fat-free shortenings, and consumer preference for premium quality baked goods drive consistent demand, keeping Europe the leading regional market.

For instance, AAK AB, headquartered in Sweden, is a global leader in plant-based oils and fats, quietly powering food and beauty industries. Its innovations in shortenings, specialty fats, and sustainable sourcing reshape bakery, confectionery, dairy, and cosmetics. AAK drives healthier, eco-friendly solutions while remaining an essential yet often unseen ingredient powerhouse.

Asia Pacific Shortenings Market Analysis & Trends

Asia Pacific is anticipated to be the fastest growing region, due to rapid urbanization, rising disposable incomes, and growing bakery consumption in China, India, and Southeast Asia. Expanding foodservice chains, preference for convenience foods, and widespread use of plant-based oils like palm and soybean drive strong growth, making APAC the fastest-growing region.

For instance, in October 2025, iWare Supply Chain Services has signed a CF agreement with Bunge India Private Limited to strengthen logistics and distribution. Bunge, a global leader in edible oils and fats including shortenings, will benefit from enhanced supply chain efficiency in India, supporting food manufacturers and bakeries with reliable ingredient availability nationwide.

Shortenings Market Outlook Country-Wise

Finland Shortenings Market Trends

In 2026, Finland’s shortenings market is demanding due to economic recovery, rising private consumption, and growth in bakery and processed food sectors. Health-conscious consumers drive demand for trans fat-free and plant-based shortenings, while foodservice expansion and innovation in specialty fats support increased usage across industrial and artisanal applications.

For instance, in September 2025, Perfat Technologies, a Helsinki-based food deep‑tech startup, raised $2.5 million to tackle unhealthy fats globally. Using proprietary oleogel technology, it develops healthier alternatives to saturated and trans fats for bakery and processed foods. The funding supports scaling solutions that replace traditional shortenings, promoting better nutrition and sustainability in food systems.

India Shortenings Market Trends

In 2026, India’s shortenings market is driven by rising bakery and confectionery consumption, urbanization, and foodservice expansion. Health-conscious trends boost demand for trans fat-free and specialty shortenings, while festive seasons and processed food growth sustain volume. Innovation in plant-based fats strengthens market appeal across industrial and artisanal applications.

For instance, in March 2025, Cargill showcased innovative food solutions at AAHAR 2025 in New Delhi, highlighting trans fat-free vanaspati, premium cookie and pastry fats, and dairy, snack, and ice cream ingredients. The company emphasized healthier, high-performance shortenings and specialty fats tailored for India’s bakery and foodservice industries, supporting indulgence with improved nutrition and functionality.

Market Report Scope

Shortenings Market Driver

Bakery & Confectionery Expansion

Shortenings play a vital role in enhancing the texture, flavor, and shelf life of baked goods, making them indispensable in the bakery and confectionery industry. With the rising global consumption of bread, cakes, pastries, and cookies, manufacturers are increasingly relying on shortenings to deliver consistent quality and appeal. This surge in bakery culture, especially in emerging markets, has significantly boosted shortenings market demand, positioning the bakery segment as the largest contributor to overall industry growth.

Shift Toward Vegetable Oil–Based Shortenings

Health-conscious consumers are steadily shifting preferences toward plant-based fats, driving the adoption of vegetable oil–based shortenings. These products offer superior frying stability, lower trans-fat content, and align with clean-label and sustainable food trends. As a result, vegetable oil–based shortenings have captured a dominant position in the industry, accounting for more than half of the shortenings market share. Their versatility across bakery, snacks, and processed foods ensures continued expansion, especially in regions emphasizing healthier dietary choices.

Shortenings Market Opportunity

Trans-Fat-Free Shortenings

Rising health awareness is driving a significant shift toward trans-fat-free shortenings, as consumers increasingly avoid products linked to cardiovascular risks and obesity. Food manufacturers are reformulating recipes to comply with global health regulations, creating opportunities for innovation in healthier fat alternatives. This trend is expected to accelerate, with trans-fat-free options becoming mainstream in bakery and snack industries. According to industry insights, the shortenings market forecast highlights strong growth potential for companies investing in healthier, compliant formulations.

Analyst Opinion (Expert Opinion)

• The shortenings market value is anchored in its foundational role as a functional fat ingredient across bakery, confectionery, snack, and frying applications worldwide. Usage data from recent industry reports show that bakery products consistently account for the largest proportion of shortening consumption, with nearly half of total volumes devoted to bread, pastries, and cakes, underlining its critical role in achieving desired texture, mouthfeel, and dough handling characteristics. Snack and savory production also represent a meaningful share, especially where shortenings are used to improve frying stability and reduce oil uptake in crisp products.
• Material innovation is a central theme shaping market evolution. There is a marked shift toward non‑hydrogenated and plant‑based shortenings, with manufacturers increasingly offering formulations that support clean‑label positioning and sustainability commitments. Specialty blends designed for high‑temperature performance and tailored melting profiles are gaining traction, particularly among industrial bakers and large food processors.
• Regional dynamics reveal pronounced activity in Asia‑Pacific and North America. Asia‑Pacific has experienced notable volume growth driven by rapid expansion in packaged bakery and snack manufacturing, while North America remains a leading market due to high consumption of processed foods and advanced foodservice applications.
• Supply chain strategies emphasize traceable sourcing and sustainable fat feedstocks, reflecting broader industry commitments to environmental and nutritional standards. Competitive intensity remains moderate, with innovation around functional performance and health‑oriented formulations key differentiators among producers.

Recent Developments

• In November 2025, Food for Life Baking Co., based in California, launches Ezekiel 4:9 Organic Sprouted Flourless Pita Bread. Made from sprouted grains and legumes, it is certified organic, non-GMO, and kosher. The bread excludes preservatives, oils, and shortenings, offering a healthier, nutrient-dense alternative to conventional pocket breads with improved digestibility.
• In July 2025, Coast Packing Company, based in California, launches its 8th Annual #BeefTallowFrenchFries Contest. Celebrating fries cooked in traditional beef tallow, the event highlights flavor, crispiness, and authentic cooking fats. With bigger prizes and nationwide participation, the contest promotes animal fat shortenings as a culinary heritage in American food culture.

Market Segmentation

• By Category
  • Plant-based
  • Animal-based
• By Form
  • Solid
  • Liquid
• By Application
  • Bakery & Confectionery
  • Snacks & Savory
  • Others (frying, etc.)
• By Distribution Channel
  • Online Stores 
  • Offline Stores
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players
  • Cargill, Incorporated
  • Archer Daniels Midland Company
  • Bunge Limited
  • Wilmar International Ltd.
  • Ventura Foods
  • Associated British Foods
  • AAK
  • J.M. Smucker Company

Sources

Primary Research Interviews

• Shortening Manufacturers & Refiners
• Edible Oils & Fats Producers
• Bakery & Confectionery Ingredient Suppliers
• Food Processing & Industrial Bakery Companies
• QSR & Foodservice Procurement Managers
• Flavor & Functional Ingredient Formulators
• Others

Databases

• Bloomberg Terminal
• Thomson Reuters Eikon
• IHS Markit
• Euromonitor International
• S&P Global Market Intelligence
• Statista
• Others

Magazines

• Food Business News
• Baking & Snack Magazine
• Food Processing Magazine
• Confectionery News
• Edible Oil & Fats International
• Others

Journals

• Journal of the American Oil Chemists’ Society (JAOCS)
• Food Chemistry
• Journal of Food Science
• Trends in Food Science & Technology
• International Journal of Food Science & Nutrition
• Others

Newspapers

• Financial Times
• The Wall Street Journal
• Reuters
• Bloomberg News
• The Economic Times
• Others

Associations

• American Oil Chemists’ Society (AOCS)
• International Association of Industrial Bakers (IAIB)
• Global Organization for EPA and DHA Omega-3s (GOED)
• Institute of Shortening and Edible Oils (ISEO)
• Federation of Oils, Seeds and Fats Associations (FOSFA)
• Others

Public Domain Sources

• U.S. Department of Agriculture (USDA) – Economic Research Service
• Food and Agriculture Organization (FAO) of the United Nations
• European Commission – Agriculture & Food Directorate
• World Bank Open Data
• National Institute of Food Technology Entrepreneurship & Management (NIFTEM)
• Others

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of Information for the Last 8 Years