Shortenings Market Global Forecast To 2022

Summary:

The global shortenings market is projected to reach USD 4.57 Billion by 2022 in terms of value, at a CAGR of 4.2% from 2017. The objective of this study is to define, segment, and project the size of the shortenings market on the basis of key ingredient, source, variant, application, and region, and to provide detailed information about the crucial factors influencing market dynamics (drivers, restraints, opportunities, and industry-specific challenges). The market opportunities and competitive landscape of market leaders are also studied for the stakeholders. Competitive developments such as expansions & investments, partnerships, agreements, joint ventures & collaborations, new product launches, and acquisitions in the shortenings market are covered in the study.

Research Methodology

This report includes estimations of market sizes in terms of value (USD million). Both top-down and bottom-up approaches have been used to estimate and validate the size of the shortenings market and of various other dependent submarkets in the overall market. Key players in the market have been identified through secondary research, and their market share in respective regions has been determined through primary and secondary research. All percentage shares, splits, and breakdowns have been determined using secondary sources, such as reports published by as reports published by the Institute of Shortening and Edible Oils (ISEO), the American Oil Chemists' Society (AOCS), and the Argentina Association of Fats and Oils (ASAGA) have been verified through primary sources.

Market Ecosystem

The various contributors involved in the value chain of shortenings include oilseed growers, fat & oil processors, manufacturers, suppliers, distributors, intermediaries, and end-use industries. Various types of oilseed grow in different regions Asia-Pacific countries are major suppliers of palm oil- and palm kernel oil-based specialty fats and oils, while European and North American countries are large-scale suppliers of rapeseed oil- and soybean oil-based specialty fats & oils, respectively. The leading players in the market prefer a vertically integrated business model, which includes procuring the oilseed, crushing, refining, processing, blending, and byproduct production such as oleochemicals and feed. Maximum value addition is observed in the stages such as oil fractionation process, oil blending, and packaging.

The market is dominated by key players such as Archer Daniels Midland Company (U.S.), Cargill (U.S.), AAK AB (Sweden), Wilmar International Limited (Singapore), and Bunge Limited (U.S.). Other players in this segment include Manildra Group (Australia), Associated British Foods (U.K.), Ventura Foods, LLC (U.S.), ConAgra Brands (U.S.), and International Foodstuff Company Holdings Limited (UAE).

The shortenings market is projected to grow at a CAGR of 4.2%, in terms of value, from 2017 to reach a projected value of USD 4.57 Billion by 2022. Shortenings find a wide range of applications in the confectionery, bakery, and snacks & savory sectors. The factors such as increase in demand for shortenings in various food applications, and rise in demand for bakery and confectionery products has fueled the growth in the market. Affordability, convenience, and health benefits are the main factors that drive the baked foods market. The market for products such as breads, cereal, cakes, biscuits, and pastries is well-established in Europe. Whereas, demand for bakery and confectionery products is increasing in the Asia-Pacific region with the growing per capita consumption of breads and baked goods.

On the basis of key ingredient, the global shortenings market is segmented into oil, butter, lard, tallow, and others. The oil segment dominated the market owing to its major use in the production of various shortening products and wider availability.

On the basis of source, the global shortenings market is segmented into vegetable and animal. The vegetable segment dominated the market. The high market demand for vegetable shortenings in the industry can be attributed to the increase in awareness for healthy, fortified, non-hydrogenated trans-free vegetable shortenings.

The shortenings market is segmented on the basis of application into bakery products, confectionery products, and snacks & savory products, and others including sauces, gravies, and soups. The bakery products segment accounted for the largest share in the market. The change in consumer preferences toward the trans-fat-free products has led to the increase in demand for shortening products made with modern processes such as interesterification.

The shortenings market is segmented on the basis of variant into solid, liquid, cake/icing, all-purpose, and others. The solid segment dominated the market in 2016, whereas the all-purpose segment is projected to grow at the highest CAGR followed by the cake/icing segment. All-purpose shortenings are in demand owing to their versatile nature and multi-functional characteristics. This versatility helps them to blend well with other ingredients and give a rich and uniform taste and texture to cakes, cookies, biscuits, pie crusts, and pastries.

The Asia-Pacific region dominated the market and accounted for the largest share, in terms of both value and volume, in the global shortenings market, in 2016. The Asia-Pacific region comprises developing economies such as India, China, Malaysia, and Indonesia. With the rise in population and improvements in the purchasing power of consumers in developing countries such as China and India, the market in this region is expected to witness a high growth in the future. The changes in eating habits of consumers in this region have resulted in a rise in the consumption of bakery products and snacks. These factors drive the shortenings market in the Asia-Pacific region.

The consumption of trans-fatty acids is strongly associated with an increased risk of cardiovascular diseases and cancer. As a result, additional regulations are laid down on the usage of liquid oils directly in sweet goods and icings. Thus, awareness regarding the negative health effects of trans-fatty acids is affecting the confectionery ingredients industry, and in turn, the shortenings market.

The market is dominated by key players such as Archer Daniels Midland Company (U.S.), Cargill (U.S.), AAK AB (Sweden), Wilmar International Limited (Singapore), and Bunge Limited (U.S.). Other players in this segment include Manildra Group (Australia), Associated British Foods (U.K.), Ventura Foods, LLC (U.S.), ConAgra Brands (U.S.), and International Foodstuff Company Holdings Limited (UAE). The key players adopted strategic developments such as new product launches, acquisitions, joint ventures, expansions, collaborations & partnerships, and agreement & investments, in order to explore the market in new geographies.

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