Global Margarine and Shortening Market Size, Share, And Business Benefits By Product Type (Margarine, Shortening), By Source (Plant-based, Animal-based), By Form (Solid, Liquid), By Application (Baking and Pastry, Cooking and Frying, Spreads and Toppings, Others), By End Use (Retail, Food Service, Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

Global Margarine and Shortening Market is expected to be worth around USD 24.6 billion by 2034, up from USD 19.8 billion in 2024, and grow at a CAGR of 2.2% from 2025 to 2034. The market value in North America reached USD 7.7 billion in recent analysis.

Margarine is a non-dairy spread made primarily from vegetable oils and water, used as a substitute for butter in baking and cooking. It often contains emulsifiers, salt, and added vitamins. Shortening, on the other hand, is a solid fat derived from hydrogenated vegetable oil or animal fat, commonly used to add flakiness to baked goods like pies, pastries, and cookies.

The margarine and shortening market refers to the global trade, production, and consumption of these fat-based food ingredients. This market caters to bakeries, food manufacturers, restaurants, and household consumers. It is influenced by changes in dietary preferences, food processing technologies, and regulatory policies on trans fats and saturated fats. The market includes multiple product variants such as low-fat spreads, dairy-free options, and high-performance shortenings suited for industrial baking.

One major factor fueling growth is the rising preference for plant-based alternatives. With more consumers switching to vegan or dairy-free diets, margarine has become a popular choice over butter. Additionally, innovations in oil processing and emulsification have made margarine and shortening more stable and healthier, attracting health-conscious buyers. Bunge’s Margarines & Spreads business in Europe generates over €450 million in turnover and employs more than 800 people.

The demand for ready-to-eat and processed foods continues to increase, especially in urban areas. Margarine and shortening are critical ingredients in many of these products, including cookies, cakes, and frozen meals. As more households look for convenient cooking options, retail sales of margarine spreads and baking fats remain steady.

Key Takeaways

• Global Margarine and Shortening Market is expected to be worth around USD 24.6 billion by 2034, up from USD 19.8 billion in 2024, and grow at a CAGR of 2.2% from 2025 to 2034.
• Margarine holds 59.9% market share by product type, showing a strong preference over traditional shortening options.
• Plant-based variants dominate the source category with 76.3%, reflecting rising demand for vegan-friendly fat alternatives.
• Solid form products account for 69.4% of the market and are preferred for stability in baking applications.
• Baking and pastry lead the application segment with 56.1%, driven by the bakery industry’s growing global presence.
• Retail dominates end-use at 67.2%, showing margarine and shortening’s strong penetration in household cooking routines.
• Supermarkets and hypermarkets capture 38.7% share, serving as primary access points for mass consumer distribution.
• North America dominates the Margarine and Shortening Market with 38.9% regional share.

By Product Type Analysis

Margarine holds a dominant 59.9% share in global shortening product types.

In 2024, Margarine held a dominant market position in the By Product Type segment of the Margarine and Shortening Market, accounting for 59.9% of the total share. This dominance is largely attributed to its wide adoption in everyday cooking and baking needs across households and foodservice outlets.

Margarine has established itself as a cost-effective and shelf-stable alternative to butter, especially in regions with rising health awareness and demand for plant-based options. Its versatility in applications like spreads, pastries, and sauces has ensured continued relevance in kitchens, both domestic and industrial.

The steady preference for margarine over other shortening types stems from consumer perception linking it to lower cholesterol and trans-fat content. Additionally, the evolving food industry has seen manufacturers innovating margarine formulations with added vitamins and better taste profiles, enhancing their market appeal.

The 59.9% share reflects this shift in consumer preference toward accessible, economical, and plant-derived fat sources that perform well in baking and culinary preparations. As food habits continue transitioning toward convenience and affordability, margarine’s dominance in this product category remains strong, further supported by retail promotions, private-label growth, and favorable margins for food manufacturers.

By Source Analysis

Plant-based sources contribute 76.3% of the Margarine and Shortening Market supply.

In 2024, Plant-based held a dominant market position in the By Source segment of the Margarine and Shortening Market, commanding a substantial 76.3% share. This overwhelming preference highlights a global shift toward plant-derived ingredients in food products, driven by growing consumer awareness around health, sustainability, and ethical consumption. Plant-based margarine and shortening are perceived as healthier alternatives to animal-fat-based products, particularly due to their lower levels of saturated fat and cholesterol.

The 76.3% share reflects rising demand from health-conscious consumers, vegetarians, and individuals with dietary restrictions rooted in religion or lifestyle. Furthermore, plant-based options benefit from a stable supply chain as they rely on oils from soybean, sunflower, canola, and palm, which are readily available and cost-effective. Food processors and manufacturers also favor plant-based inputs for their ease of formulation and broader consumer acceptance across global markets.

Retail and foodservice sectors are aligning with this trend by expanding offerings that meet clean-label and vegan-friendly criteria. As a result, plant-based sources have become the backbone of margarine and shortening production. With supportive government initiatives encouraging sustainable agriculture and plant-based food innovations, the dominance of this segment is likely to remain firm in the coming years, reaffirming its leadership in the market.

By Form Analysis

Solid form products represent a strong 69.4% preference among global consumers.

In 2024, Solid held a dominant market position in the By Form segment of the Margarine and Shortening Market, capturing a significant 69.4% share. This dominance is largely linked to its strong utility in commercial and household baking, where solid margarine and shortening offer better structural properties for dough, batters, and pastry applications. Solid forms provide greater consistency and stability in texture, making them a preferred choice for baked goods, laminated doughs, and frying applications.

The 69.4% share indicates a continued preference for products that offer better control during food preparation and are easier to measure and store. Solid margarine and shortening are commonly used in bakeries, foodservice outlets, and packaged food manufacturing, where precise fat content and texture are critical to product quality. These attributes make solid formats more adaptable to industrial needs compared to softer or liquid alternatives.

Additionally, solid formats enjoy longer shelf life and reduced risk of spoilage, contributing to cost-efficiency and reduced waste in commercial operations. The widespread availability of solid margarine and shortening in both retail and bulk packaging formats further supports their stronghold in the market.

By Application Analysis

Baking and pastry applications account for 56.1% of total product consumption.

In 2024, Baking and Pastry held a dominant market position in the By Application segment of the Margarine and Shortening Market, accounting for a 56.1% share. This strong position reflects the essential role of margarine and shortening in producing desirable textures, flavors, and shelf stability in baked goods.

The 56.1% market share highlights the continued dependence of the baking industry, both artisanal and industrial, on margarine and shortening for functional performance. These fats are critical in lamination processes, creaming methods, and frying, making them indispensable in commercial bakeries and home baking alike. Their cost-effectiveness compared to butter further supports their widespread adoption in the baking segment.

The demand from cafés, quick-service restaurants, and packaged food brands has also contributed to sustained growth within this application category. Additionally, solid margarine and shortening are particularly suited for pastry applications due to their stability under varying temperatures.

By End Use Analysis

The retail segment drives 67.2% of the end-use demand for margarine products.

In 2024, Retail held a dominant market position in the By End Use segment of the Margarine and Shortening Market, with a commanding 67.2% share. This dominance reflects the widespread household consumption of margarine and shortening, driven by their affordability, ease of use, and extended shelf life. Consumers continue to rely on these products for daily cooking and baking needs, particularly in regions where butter is either expensive or less accessible.

The 67.2% share indicates that packaged margarine and shortening products are a staple in grocery baskets, especially among budget-conscious and health-aware consumers seeking plant-based alternatives. The retail sector benefits from strong distribution networks, including supermarkets, hypermarkets, and neighborhood grocery stores, which ensure consistent product availability.

Private label brands and product innovations, such as cholesterol-free or vitamin-fortified margarines, have also helped expand consumer interest in this segment. The appeal of retail products is further enhanced by cooking shows, online recipes, and food blogs that recommend margarine for home baking.

By Distribution Channel Analysis

Supermarket and hypermarket sales channels contribute 38.7% to global product distribution.

In 2024, Supermarket/Hypermarket held a dominant market position in the By Distribution Channel segment of the Margarine and Shortening Market, accounting for a 38.7% share. This dominance highlights the role of large-format retail stores as the primary access point for consumers purchasing margarine and shortening.

The 38.7% share reflects consumer preference for in-person shopping, where they can compare prices, check expiry dates, and choose from an array of product options. Supermarkets and hypermarkets are often strategically located in urban and semi-urban areas, ensuring convenience and consistent foot traffic. These stores also allocate significant shelf space to cooking fats and baking ingredients, ensuring visibility and impulse purchases.

Moreover, supermarkets often run product sampling campaigns, combo offers, and loyalty programs that boost sales of margarine and shortening. Their efficient cold storage and supply chain infrastructure also support the steady availability of perishable margarine products. With rising urbanization and the growth of organized retail in emerging markets, supermarkets and hypermarkets continue to lead as the preferred distribution channels in this segment of the market.

Key Market Segments

By Product Type

• Margarine
• Shortening

By Source

• Plant-based
• Animal-based

By Form

• Solid
• Liquid

By Application

• Baking and Pastry
• Cooking and Frying
• Spreads and Toppings
• Others

By End Use

• Retail
• Food Service
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail
• Others

Driving Factors

Health-Conscious Shoppers Prefer Plant-Based Fat Options

One of the biggest driving factors in the Margarine and Shortening Market is the growing shift toward plant-based diets. Many consumers today are more careful about what they eat and prefer options that are lower in cholesterol and saturated fats.

Plant-based margarine and shortening offer a healthier alternative to animal fats like butter or lard. They are often made using oils such as sunflower, canola, or soybean, which are widely accepted as heart-friendly.

This trend is especially popular among younger people, vegetarians, and those with dietary restrictions. As more people learn about the health benefits of these fats through social media, packaging labels, and awareness campaigns, the demand for plant-based margarine and shortening continues to rise steadily.

Restraining Factors

Health Concerns Linked to Trans Fat Content

A major restraining factor for the Margarine and Shortening Market is the concern about trans fats. Although many products today are reformulated, some margarine and shortening still contain partially hydrogenated oils, which are a source of harmful trans fats. These fats have been linked to heart problems, high cholesterol, and other health issues.

As a result, many consumers avoid margarine or shortening altogether, choosing butter or other natural fats instead. Governments in several countries have also introduced rules to limit or ban trans fats in food products.

This creates extra challenges for manufacturers, who must constantly update their formulas. Overall, the negative health image around trans fats continues to slow down market growth despite product innovation.

Growth Opportunity

Rising Home Baking Trend Boosts Product Demand

One strong growth opportunity in the Margarine and Shortening Market comes from the rising trend of home baking. Since the pandemic, more people have started cooking and baking at home, and many have continued this habit. Baking cakes, cookies, and pastries at home requires ingredients like margarine and shortening, which help improve texture and taste.

This shift has led to increased sales through retail stores and online platforms. People are also sharing baking recipes on social media, which further encourages others to try baking. As a result, the demand for easy-to-use, affordable, and shelf-stable fats like margarine and shortening is growing.

Latest Trends

Clean Labels and Natural Ingredients Gain Popularity

A notable trend in the margarine and shortening market is the increasing consumer demand for products with clean labels and natural ingredients. Shoppers are now more attentive to product labels, seeking items that are free from artificial additives, preservatives, and trans fats.

This shift is driven by a growing awareness of health and wellness, prompting consumers to opt for products perceived as healthier and more transparent in their ingredient sourcing.

Manufacturers are responding by reformulating products to include natural oils, such as sunflower or canola, and by highlighting these changes on packaging. This trend is particularly evident in regions where health-conscious eating is on the rise, influencing purchasing decisions and shaping product development in the industry.

Regional Analysis

Growing bakery demand in North America boosts its USD 7.7 billion market size.

North America leads the global margarine and shortening market with a commanding 38.9% share, accounting for a market value of USD 7.7 billion. The region benefits from its established food processing industry, high demand for bakery products, and consumer preference for plant-based fats in cooking and baking.

Europe follows closely, with strong demand rooted in the traditional consumption of margarine in household and commercial baking. The market here is supported by rising demand for dairy-free spreads and health-conscious product reformulations. In Asia Pacific, growing urban populations and increasing disposable incomes are driving the uptake of margarine and shortening in packaged and processed foods.

Although the region is expanding rapidly, its market share still trails behind that of North America and Europe. The Middle East & Africa region is seeing a gradual increase in adoption, largely driven by expanding foodservice sectors and the affordability of margarine as a butter alternative.

Latin America represents a smaller portion of the global market but shows steady growth due to rising interest in cost-effective bakery fats across residential and industrial applications. Overall, North America remains the dominant regional force, driven by volume consumption, value contribution, and integration of margarine and shortening across multiple food sectors.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

In 2024, Associated British Foods PLC (ABF) maintained a significant presence in the global margarine and shortening market. Through its 50% ownership in Stratas Foods, a leading U.S. supplier of packaged oils and margarines, ABF effectively catered to the food service, ingredients, and retail sectors. This strategic partnership enabled ABF to leverage its extensive brand portfolio, including Mazola and Fleischmann’s, to meet the growing demand for plant-based and health-conscious products.

Bunge Limited, a key player in the agribusiness sector, reported full-year 2024 GAAP diluted earnings per share (EPS) of $7.99, compared to $14.87 in the prior year. Adjusted EPS stood at $9.19, down from $13.66, reflecting market volatility and operational challenges. Despite these fluctuations, Bunge’s extensive global network and focus on innovation have allowed it to remain resilient. The company’s commitment to sustainability and efficiency continues to drive its growth in the margarine and shortening market.

Cargill Incorporated emphasized its dedication to sustainable supply chains and innovation in its 2024 annual report. The company highlighted progress in corporate social responsibility and the development of new technologies aimed at enhancing product quality and environmental stewardship. Cargill’s initiatives in creating equitable workplaces and fostering innovation have reinforced its position as a leader in the margarine and shortening industry.

Top Key Players in the Market

• AAK AB
• Associated British Foods PLC
• Bunge Limited
• Cargill Incorporated
• Conagra Brands Inc.
• Dairy Farmers of America
• Fediol
• Fuji Oil Co., Ltd.
• J.M. Smucker Company
• NMGK Group
• Premium Vegetable Oils Sdn Bhd
• Puratos Group
• Richardson International Limited
• Unilever
• Vandemoortele
• Wilmar International Ltd.

Recent Developments

• In May 2025, AAK announced the development of a new foodservice operations and logistics facility in Dalby, Sweden. This 16,000 m² facility, developed in collaboration with Logicenters, will produce mayonnaise, sauces, and dressings. It will employ approximately 70 people and will be certified according to BREEAM standards, featuring solar cells to reduce climate impact.
• In February 2025, DFA introduced Milk50™, a new dairy milk product under the DairyPure brand. This milk contains only 50 calories per serving and has 75% less sugar than fat-free skim milk. It is lactose-free and offers 9 grams of protein per serving, aiming to provide a nutritious option for health-conscious consumers.

Report Scope