Dairy Free Shortening Market, By Product Type (Beverages, Milk, Dairy-free Kefir, and Bakery Products), By Application (Household and Commercial), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa)

Dairy Free Shortening Market is estimated to be valued at USD 25.78 Bn in 2025 and is expected to reach USD 40.86 Bn by 2032, growing at a compound annual growth rate (CAGR) of 6.8% from 2025 to 2032.

Dairy-free shortening is made from animal fat or vegetable oil that has been partially or completely hydrogenated. Owing to its low melting point, dairy-free shortening improves the freshness, volume, and quality of its products. Numerous advantages of shortening in the preparation of baked confectionery products, such as its health benefit and replacement of dairy products, high melting point, and low cholesterol, have attracted confectionery product manufacturers, Increasing demand for Dairy-free bakery & confectionery products are helps to drive the global Dairy-free Shortening market.

Market Dynamics

Consumers are increasingly opting for cruelty-free items such as meat and dairy substitutes, including dairy-free shortening, as a result of rising health awareness and sustainability concerns.

Coconut oil is a great plant-based shortening substitute. At room temperature, it is solid, and can be melt or beat it just like butter or shortening. It also has a similar texture and is vegan. It can be used in place of dairy products, but baked goods will likely taste like coconut. As a result increasing in demand for coconut oil is expected to drive the growth of global dairy free shortening market.

Cross-contamination of raw materials could hinder the market growth trajectory over the forecast period, affecting dairy-free product sales. Furthermore, the relatively high prices of dairy-free products limit the sales potential and may stifle the growth of the dairy-free shortening market.

Key market players are focusing on product launches, product expansions, mergers, acquisitions, and partnerships in order to expand their business in the market. For instance, in February 2019, Nature Fresh Professional (a supplier of bakery shortenings and margarines) launched its wide range of shortening products across Kerala Market in India. The company offers Elite-Supreme-Select-Delight-Classic- and also a range of Margarine such as Champion, Master, and Genius. The company has a clear vision to provide good quality ingredients to the bakers. Making this launch more engaging, educative, and interactive, the brand organized a technical session with Thiruvananthapuram- and Kozhikode-based bakers.

Key features of the study:

• This report provides an in-depth analysis of the global dairy free shortening market, market size (US$ Bn) and compound annual growth rate (CAGR %) for the forecast period 2025-2032, considering 2024 as the base year
• It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
• This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
• It profiles key players in the global dairy free shortening market based on the following parameters - company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
• Key companies covered as a part of this study include Groupe Danone, The Hein Celestial Group, The Whitewave Foods Company, Good Karma Foods, GraceKennedy Group, Blue Diamond Growers, Inc., SunOpta, Inc., Oatly A.B., and Vitasoy International Holdings Limited
• Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future products launches, technology up gradation, market expansion, and marketing tactics
• The global dairy free shortening market report caters to various stakeholders in this industry including investors, suppliers, caffeine manufacturers, distributors, new entrants, and financial analysts
• Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global dairy free shortening market

Detailed Segmentation:

• Global Dairy Free Shortening Market, By Product Type:
  • Beverages
  • Milk
  • Dairy-Free Kefir
  • Bakery Products
• Global Dairy Free Shortening Market, By Application:
  • Household
  • Commercial
• Global Dairy Free Shortening Market, By Region:
  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East
  • Africa
• Company Profiles
  • Groupe Danone
  • The Hein Celestial Group
  • The Whitewave Foods Company
  • Good Karma Foods
  • GraceKennedy Group
  • Blue Diamond Growers, Inc.
  • SunOpta, Inc.
  • Oatly A.B.
  • Vitasoy International Holdings Limited