PUBLISHER: The Business Research Company | PRODUCT CODE: 1998148
PUBLISHER: The Business Research Company | PRODUCT CODE: 1998148
Shortening, a solid fat used in culinary applications, particularly in pastries, provides a crumbly and crisp texture to dishes. It prevents the flour from absorbing water, thereby hindering gluten production, resulting in a non-elastic texture.
The primary types of shortenings include solid, liquid, cake/icing, and all-purpose variants. Solid shortenings encompass hydrogenated solid oils, such as lard, margarine, and butter, which remain in solid form at room temperature. These products, derived from both vegetable and animal sources, are distributed through direct and indirect sales channels. They are widely utilized in the hospitality and catering industry (HoReCa), bakeries, confectioneries, processed food manufacturing, and household retail.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the shortenings market by increasing costs of imported vegetable oils, animal fats, emulsifiers, and processing equipment used in shortening production. Food manufacturers in North America and Europe are particularly affected due to dependence on imported oil feedstocks, while Asia-Pacific faces pricing pressure in export-driven processed food segments. These tariffs are contributing to higher input costs and price adjustments. However, they are also encouraging regional sourcing of raw materials, investment in local oil processing, and innovation in alternative fat formulations.
The shortenings market research report is one of a series of new reports from The Business Research Company that provides shortenings market statistics, including shortenings industry global market size, regional shares, competitors with a shortenings market share, detailed shortenings market segments, market trends and opportunities, and any further data you may need to thrive in the shortenings industry. This shortenings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The shortenings market size has grown steadily in recent years. It will grow from $4.55 billion in 2025 to $4.74 billion in 2026 at a compound annual growth rate (CAGR) of 4.0%. The growth in the historic period can be attributed to expansion of commercial baking industry, growth of processed food consumption, widespread use of shortenings in bakery products, availability of vegetable oil-based formulations, increasing urbanization trends.
The shortenings market size is expected to see steady growth in the next few years. It will grow to $5.63 billion in 2030 at a compound annual growth rate (CAGR) of 4.4%. The growth in the forecast period can be attributed to rising demand for clean-label ingredients, increasing focus on health-conscious baking, expansion of premium bakery segments, growing innovation in fat replacement technologies, increasing adoption in foodservice applications. Major trends in the forecast period include increasing demand for trans-fat alternatives, rising preference for plant-based shortenings, expansion of specialty bakery applications, increasing focus on texture and performance optimization, enhanced product customization.
The rising demand for bakery products is expected to drive the growth of the shortenings market going forward. The bakery industry comprises the sale of baked goods such as bread, cakes, and other related products. Increasing consumer interest in gourmet offerings and evolving dietary preferences are contributing to higher consumption of bakery items. Shortenings enhance baked products by improving texture, providing a crumbly and crisp consistency, and preventing elasticity or stretchiness in finished goods. For instance, in April 2025, according to the Bureau of Labor Statistics, a US-based federal agency, strong consumer demand for bakery products continued into 2024, although year-over-year growth moderated from a high of 14.5% in November 2022 to 3.8% by December 2023. Therefore, the growing demand for bakery products is propelling the shortenings market.
Major companies operating in the shortenings market are increasingly focusing on the development of advanced technological solutions, such as artificial intelligence platforms, to improve operational efficiency, enhance product formulation processes, and gain deeper customer insights through data analytics. Breeze AI is HubSpot's integrated artificial intelligence platform designed to optimize customer engagement and boost productivity across marketing, sales, and service functions. For instance, in September 2024, HubSpot, a US-based software company, launched Breeze, its embedded AI platform aimed at improving customer interactions and streamlining workflows for marketing, sales, and service teams through intelligent automation and data-driven insights.
In November 2023, The J.M. Smucker Company, a US-based food manufacturer, acquired Hostess Brands Inc. for an undisclosed amount. This acquisition strengthens The J.M. Smucker Company's portfolio by adding well-known sweet baked snack brands, expanding distribution reach, and leveraging operational synergies to support long-term growth in the rapidly growing sweet baked goods segment. Hostess Brands is a US-based bakery company specializing in the production and distribution of sweet baked goods and snack products.
Major companies operating in the shortenings market are Cargill Incorporated, Bunge Limited, Wilmar International Limited, Archer Daniels Midland Company, Ventura Foods LLC, AAK AB, Fuji Oil Co. Ltd., Stratas Foods LLC, Premium Vegetable Oils Sdn Bhd, Walter Rau Neusser Ol und Fett AG, Puratos Group NV, Zeelandia International BV, Olenex Sarl, HAS Group, VFI GmbH, COFCO Group Co. Ltd., Fine Organics Limited, International Foodstuff Company Holdings Limited, Upfield Holdings BV, Manildra Group
North America was the largest region in the shortenings market in 2025. The regions covered in the shortenings market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the shortenings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada
The shortenings market consists of sales of shortenings sourced from tallows, soybeans, cottonseed, kernel oil, and corn oil. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Shortenings Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses shortenings market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for shortenings ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The shortenings market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Added Benefits available all on all list-price licence purchases, to be claimed at time of purchase. Customisations within report scope and limited to 20% of content and consultant support time limited to 8 hours.