PUBLISHER: DataM Intelligence | PRODUCT CODE: 1247412
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1247412
Margarine is a spread used for baking, flavoring and cooking. It is used as a butter alternative. It is primarily a blend of natural vegetable oils, with palm, palm kernel, and soybean oils most commonly used. It contains salt and water. Margarine is the primary source of calories. Margarine is high in fat. It has benefits for heart health. Margarine is enriched with phytosterols or stanols. The growing consumer awareness about the benefits of vegan and vegetarian diets helps to boost industrial margarine market growth in the forecast period. Changing consumers' preference for plant-based food in recent years has contributed to the market's growth.
The global industrial margarine market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 4.12% during the forecast period (2023-2030).
Margarine used in the industry is a non-dairy substance. The increasing number of consumers adopting veganism is a key factor fueling global market growth. As per the Vegan Society, the sign-ups for the Veganuary campaign were in January 2022, with over 629,000 people signing up from 228 countries and territories. In addition, consumers are becoming aware of the benefits of consuming plant-based products. According to Vegconomist, 21 vegan and vegetarian-friendly Michelin-star restaurants are present in Hong Kong. These vegan restaurants adopt industrial margarine for cooking, which helps to boost sales of industrial margarine. Growing research and development in vegan products provide performed technologies for producing margarine, increasing the demand and giving preference to the margarine market. On the other hand, numerous newborn calves are forcefully separated from their mothers within a day to start lactating. This kind of practice is troubling both the mother and her calf. They end up calling for each other for days at a stretch. Issues animal activists all over the globe are trying hard to inflict knowledge among consumers so that they are convinced enough to switch to a vegan diet.
By type, the segment is divided into spreadable, all-purpose and butter blend. All-Purpose industrial margarine held the largest market share due to the increase in consumption by major key players. All-purpose industrial margarine is used for frying, baking, and spreading. It is mostly used in bakeries. Increasing consumer demand for bakery products helps boost segment growth in the forecast period. Increasing consumer demand for packaged food also helps boost segment growth in the forecast period. All Purpose Margarine is a general-purpose vegetable oil-based margarine. It can be used in various applications, including baked goods and spreads.
On the other hand, the market for bakery application is projected at USD YY million in 2022 and is estimated to grow at a CAGR YY% during the forecast period (2023-2030) to reach USD YY million by 2030. Increased demand for margarine in the bakery industry and its cost-effectiveness compared to butter helps to boost segment growth. An increase in product launches by major key players also helps to boost segment growth. For instance, in December 2020, Bunge Loders Croklaan launched a 100% shea-based cocoa butter equivalent (CBE). The new product helps food manufacturers meet consumers' demand for health-conscious and sustainable options that don't compromise taste or quality. It contains more stearic acid and has lower saturated fat levels than cocoa butter and other CBEs. The company also developed a clean-label, shea-based margarine for bakery use.
In 2022, North America had the highest revenue share of almost YY percent. The United States and Canada are major shareholding countries in the region due to the increase in consumers' disposable income. The major growth factor of the market is the rise in the consumption of margarine and changing buying behavior of the consumers. Also, the high growth of the region's food industry helps boost demand for the industrial margarine market. An increase in the health conscious people due to increasing cases of the diseases such as high blood sugar, diabetes, and constipation has been fueling the market for industrial margarine. The major food manufacturers in the region focus on producing margarine products free from trans-fat. An increase in the research and development activities by the major key players also helps to boost the regional growth of industrial margarine. The rising demand for margarine in bakeries is likely to boost regional growth in the forecast period. Rising awareness among consumers for health and nutrition, healthy eating, weight management, and environmental protection are driving the growth of the North America Industrial Margarine market in recent years.
Global industrial margarine market is competitive in nature, with the leading players capturing a whopping share in revenues. Wilmar International Ltd., Bunge Limited, PURATOS, FUJI OIL CO., LTD., Vandemoortele, NMGK Group, EFKO Group, Royale Lacroix sa, Richardson International Limited, and MUEZ-HEST INDIA PVT.LTD. are focused on technology advances for new launches at affordable prices. The major players are utilizing strategies including acquisitions & mergers, regional expansion, and partnerships to stand out as strong competitors in the market. Increased focus on R&D and new product launches are additional ways the key players improve their market presence. Innovation by various leading players in the market is expected to offer lucrative growth opportunities for players in the global industrial margarine market. For instance, in December 2019, Bunge signed an agreement to sell its margarine and mayonnaise in Brazil to Seara Alimentos S.A. The transaction includes three production plants and the brands used for these two products. The completion of the sale is subject to regulatory approval. JBS acquired the margarine assets of Bunge Alimentos. In June 2022, Vandemoortele collaborated with MCC verstraete to have mono-material packaging for their margarine tubs (250G). Mono material packaging is recyclable.
Due to the shortage of laborers and unavailability of raw materials negatively impacted industrial margarine. Many margarine production facilities closed during the pandemic. Due to the constraints on the exports and import of commodities and high freight costs, trade restrictions hamper the market's growth. Restaurants and Hotels were closed to stop the pandemic spread, which is one of the reasons for the decrease in demand for industrial margarine. Food and beverage production plants were amongst the major businesses that experienced severe disruptions, such as supply chain restrictions and facility closures.
However, after things have returned to normal with the health advantage of margarine, the demand for industrial margarine increased worldwide. Also, the demand for industrial margarine is expected to rise due to the demand for convenience food products.
The global industrial margarine market report would provide an access to approximately 69 market data tables, 64 figures and 200 pages.
Scope and Methodology