The global shortenings market is projected to reach US$4.57 billion by 2022 in terms of value, at a CAGR of 4.2 percent from 2017. The market is expanding with considerable growth potential over the next five years. Growth market can be attributed to the booming convenience food sector, favorable functional properties of shortenings, and increase in usage and applications of in bakery & confectionery products and snacks & savory products.
The bakery products segment is estimated to be the largest market share in 2017, due to growing application of shortenings to obtain varied functional properties in bakery products such as biscuits, sweet biscuits, or cookies. Shortenings are used to produce a palatable and appealing product with desired textural characteristics. Bakery products such as cookies, cakes, breads, pastries, and pie crusts benefit from the functional properties imparted by the use of shortenings.
The oil segment is estimated to be the largest share, in terms of value, in 2017. The vegetable oils such as palm oil, soybean oil, canola oil, and olive oil are used in the production of shortenings. Palm oil is the most widely preferred key ingredient in shortenings, as it is economical, compared to butter. Consumption patterns in urban demographics, influenced by busy lifestyles represent an enhanced need for convenience and yet healthy products. Consumer awareness has created a new market for healthy products and natural ingredients derived from palm oil such as interesterified shortening and shortening produced from healthy rice bran oil.
The vegetable segment is estimated to be the largest market share in 2017, due to its wide range of applications in the food industry. The growth can be attributed to the rise in awareness regarding healthy, fortified, non-hydrogenated trans-free vegetable shortenings. Increase in concerns related to health due to the consumption of animal fat shortenings fuel the growth in consumption of vegetable shortenings.
India is a major consumer of palm oil and butter-based products such as shortenings and margarine. Malaysia and Indonesia are the leading producers of palm oil and major exporters of processed palm oil products. The rapid expansion of the applications of fats & oils such as palm oil and butter has resulted in the growth of the market in the region, which has further increased the demand for fat & oil derived products.
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