Shortenings Market, By Source (Plant Based and Animal Based), By Form (Solid and Liquid), By Application (Bakery, Snacks & Savory, Confectionery, and Others), Distribution Channel (Hypermarkets, Supermarkets, Online Stores, and Others) – Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

  • To Be Published : Jul 2019 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Shortening is prepared from vegetable oil or animal fat and is solid at room temperature. Shortening made by hydrogenation of vegetable oils such as Soy, Palm or Cottonseed are commonly used in applications such as bakery, snacks & savory products, and confectionery products. Shortening is added to the flour before baking, in order to prevent lengthening of gluten strands and to avoid formation of tough matrix. As shortening contains saturated fats, unsaturated fats and trans-fat, it is enriched in calories. Therefore, most of the companies are changing their shortening product portfolio towards trans-fat free, to tap potential market of low calorie food.

Market Dynamics

  • Increasing demand for baked goods, globally is creating a conducive environment for growth of global shortenings market. According to Coherent Market Insights’ analysis, per capita consumption of bakery products in Germany, France, and the U.K. was 85.5 kilograms, 71.5 kilograms, and 47.3 kilograms, respectively, in 2017.
  • However, availability of alternatives to shortenings such as butter and stringent government regulations on use of unsaturated fatty acids in food products are some of the factors restraining growth of the shortenings market. In 2015, U.S. Food and Drug Administration decided that unsaturated fatty acids are not considered as a safe food additive, due to health risk associated with consumption of these. Therefore, companies are focusing on development of products that are alternative to shortening. Moreover, use of shortenings in food products is highly dependent on requirement of the final properties of end products. For instance, some people prefer butter over shortening as butter offer richer flavor and crispier texture.
  • Excessive consumption of high calorie shortening leads to risk of cardiovascular diseases. Therefore, consumers are shifting their preference towards low calorie products, which represents immense opportunity for growth of the low calorie shortening in the global shortenings market throughout the forecast period.

Market Outlook

  • On the basis of form, solid segment accounted for major market share in global shortenings market in 2017. Multiple advantages of solid shortenings over liquid shortenings such as ease of handling & storage and longer shelf life are factors aiding in growth of this segment.
  • On the basis of source, plant-based segment was dominant in terms of share, in the market in 2017. The segment is projected to maintain its dominance throughout the forecast period. Plant-based shortening is cheaper as compared to animal based shortening and possesses high shelf stability. It contains more fat, as a result, it adds more flaky texture to food products.
  • On the basis of application, bakery segment accounted for the highest market share in the market in 2017. Shortenings are preferred in the manufacturing of bakery products, in order to get crumbly, flaky, and crusty texture. Therefore, increasing demand for shortenings in the manufacturing of biscuits, cookies, and various other products is fueling growth of the bakery segment.
  • Owing to bulk availability of raw materials required for shortening such as palm oil, Asia Pacific is expected to gain major traction in the global market over the forecast period. ASEAN countries such as Indonesia, Malaysia, and Thailand are the leading producers of palm oil in Asia Pacific. According to combined study conducted by Indonesia Palm Oil Producers Association (Gapki) and Indonesia Ministry of Agriculture, the overall production of palm oil was 32 million tons in 2016, out of which, 27 million tons of palm oil was exported. Moreover, according to Gapki, the overall production of palm oil in Indonesia is projected to reach 40 million tons by 2020. This is one of the major factors driving growth of the market in the region.

Key players in Global Shortenings Market

  • Key players operating in the global shortenings market include Archer Daniels Midland Company, Cargill Incorporated, Bunge Limited, Wilmar International Limited., Ventura Foods, LLC, Conagra Brands, Associated British Foods PLC, and AAK AB.
  • Several companies that manufacture shortening are adopting various organic and inorganic growth strategies, in order to sustain their market position. Mergers, acquisitions and expansions in various geographies, and new product launches are some of key strategies followed by major players in the shortenings market. For instance, in October 2016, Cargill Incorporated launched five new bakery shortening products under its Regal product line. The new Regal bakery shortenings include Regal Icing Shortening NH, Regal Donut Fry Shortening, Regal Puff Pastry Shortening, Regal Cake & Icing Shortening, and Regal All Purpose Shortening. These products were strategically launched to meet rising demand for shortening from bakery industries. Such activities are creating a conducive environment for growth of the market.

Market Taxonomy

On the basis of source, global shortenings market is segmented into:

  • Plant Based
  • Animal Based

On the basis of form, global shortenings market is segmented into:

  • Solid
  • Liquid

On the basis of application, global shortenings market is segmented into:

  • Bakery
  • Snacks & Savory
  • Confectionery
  • Others

On the basis of distribution channel, global shortenings market is segmented into:

  • Hypermarkets
  • Supermarkets
  • Online Stores
  • Others

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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