Shortening Fats By Source Type (Palm & Palm Kernel, Sunflower Seed, Soybeans, Animal Based (Butter, Tallow, Lard), Others), By Application (Confection1ry, Ice Cream, Snacks, Bakery, Others) - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Shortening Fats Market size is estimated to reach $5.7 billion by 2027, growing at a CAGR of 4.2% during the forecast period 2022-2027. The term “shortening” technically applies to any kind of fat that is solid at room temperature, inclusive of butter, margarine, and lard. Shortening can be prepared from either animal fat or vegetable oil, but most shortening accessible presently is prepared from vegetable oils like soybean, cottonseed, or palm oil. Typical sources of shortening utilized in baked products include soybeans and canola. Sunflower seed is recognized in trail mix, multi-grain bread, and nutrition bars, and for snacking straight from the bag. It is abundant in healthy fats, advantageous plant compounds, and numerous vitamins and minerals. Foods soaring in trans fatty acids like margarine, shortening, and commercially fried food are likely to increase cholesterol levels in the blood. Palm and palm kernel oils have evolved into the primary sources for zero-trans alternative shortenings. Margarine and butter can both be utilized as an alternative for shortening, although their moisture contents need to be taken into scrutiny prior to making the exchange. Confectionary fat is utilized in the confectionary industry for preparing chocolate, candies, and baked goods. Fats serve as shortening agents averting the growth of toughness of gluten, as per the technique and the quantity, and therefore, are shortening agents.

The surging processed food sector which may involve palm kernel is set to drive the Global Shortening Fats Market. The proliferating recognition of shortening fats as feed products owing to the health advantages offered to poultry and cattle is set to propel the growth of the Global Shortening Fats Market during the forecast period 2022-2027. This represents the Global Shortening Fats Industry Outlook.

Report Coverage

The report: “Shortening Fats Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Global Shortening Fats Market.

By Source Type: Palm And Palm Kernel, Sunflower Seed, Soybeans, Animal Based (Butter, Tallow, Lard), Others.
By Application: Confection1ry, Ice Cream, Snacks, Bakery, Others.
By Geography: North America (U.S, Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia, Rest of South America), and Rest Of The World (Middle East, Africa).

Key Takeaways

• Geographically, North America Global Shortening Fats Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the well-entrenched bakery and confectionary industry including confectionary fat in the North American region.
• Global Shortening Fats Market growth is being driven by their practical predominance, enhanced formulations of shortening fats, and extensive applications of specific shortened fats and confectionary fat. However, the switching inclination of consumers from bakery and confectionary to functional meals and drinks, influencing demand and sales of shortening goods is one of the major factors hampering the growth of the Global Shortening Fats Market. 
• Global Shortening Fats Market Detailed Analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Global Shortening Fats Market report.

Shortening Fats Market Segment Analysis – By Source Type:

The Global Shortening Fats Market based on source type can be further segmented into Palm And Palm Kernel, Sunflower Seed, Soybeans, Animal-Based, and Others. The Soybeans Segment held the largest market share in 2021. This growth is owing to the heightened application of soybean shortenings inclusive of high oleic soybean and traditional soybean shortenings for an assortment of applications needing solid and semi-solid shortenings. Typical sources of shortening utilized in baked products involve soybeans and canola. The surging production of soy-based shortenings by the process of interesterification is further propelling the growth of the Soybeans segment.

Furthermore, the Animal Based segment is estimated to grow with the fastest CAGR of 5.4% during the forecast period 2022-2027 owing to the surging necessity of animal fats for cell development and the safeguarding of organs in the body apart from soybeans being a typical source of shortening used in baked products.

Shortening Fats Market Segment Analysis – By Application:

The Global Shortening Fats Market based on the application can be further segmented into Confectionary, Ice Cream, Snacks, Bakery, and Others. The Bakery segment held the largest market share in 2021. This growth is owing to the surging demand for bakery products on a daily basis owing to the altering lifestyles, expanding population, and economic enhancements. Fully hydrogenated soybean oil derived from soybeans, which includes no trans fats may be utilized as a hard fat for the development of bakery shortenings. The proliferating urbanization and the soaring demand for ready-to-eat or fast food are further propelling the growth of this segment.

Furthermore, the Confectionary segment is estimated to grow with the fastest CAGR of 5.6% during the forecast period 2022-2027 owing to the extensive application of shortening fats in confectionary conferring their typical flavor and shortening features apart from roasted whole soybeans and their flour being utilized as constituents of conventional confectionary products and snacks in China, Japan, Korea, and Indonesia.

Shortening Fats Market Segment Analysis – By Geography:

The Global Shortening Fats Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and Rest of the World. North America (Global Shortening Fats Market) held the largest share with 33% of the overall market in 2021. The growth of this region is owing to the well-entrenched bakery industry in the North American region. Supply and demand in conjunction with technology resulted in the use of soybean oil derived from soybeans as the principal oil source for shortenings in the U.S. The surging inclination of customers towards “healthy-eating” specifically the freshly baked goods like bread, cake, pies, and more are further propelling the growth of the Global Shortening Fats Market in the North American region.

Furthermore, the Asia-Pacific region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like considerable intake of confectionary products and the compelling share of the confectionary industry in the region in comparison with other regions. The soaring production and intake capacity together with the existence of India and China as the fastest-growing consumer markets for shortening fats with China being a big consumer of soybeans are further fuelling the progress of the Global Shortening Fats Market in the Asia-Pacific region.

Shortening Fats Market Drivers

Surging Applications Of Shortening Fats Are Projected To Drive The Growth Of the Shortening Fats Market:

Shortening is any fat that raises the tenderness of a baked product by averting the cohesion of gluten strands at the time of blending. A tablespoon (12 grams) of Crisco all-vegetable Shortening includes 110 Calories, 12 grams of total fat, 3.5 grams of Unsaturated fat, 2.5 grams of Saturated fat, and 0 grams of protein and 0 grams of Carbs. Shortening is utilized in baking to confer tenderness and enhance flavor. The functional dominance, enhanced formulations of shortening fats, and amplifying applications of shortened fats are fuelling the growth of the Global Shortening Fats Market. Shortening fats offer a lubricating outcome in food matrices and also affects the sensory characteristics, specifically the texture and flavor attributes. Shortening is utilized to avert the formation of a gluten matrix in baked goods, permitting the establishment of non-elastic pastries like cakes. Lard, hydrogenated solidified oils, and butter may be utilized as shortening. For food applications that need high-stability alternatives, high oleic soybeans shortening surpasses most additional solutions, making it a perfect constituent. The surging applications of Shortening Fats are therefore fuelling the growth of the Global Shortening Fats Market during the forecast period 2022-2027.

Soaring Innovations In Shortening Fats Are Expected To Boost The Product Demand:

Specialty fats are utilized at distinct levels in different types of bread. When fats are utilized at higher levels in additional kinds of bread, it will avert surplus gluten development in the dough. This will provide a shorter bite, effortless melt-in-mouth, which is the reason fats utilized in bread making are also termed “shortening”. Furthermore, fats act as a “carrier” of flavors which benefits the leavening of added flavors. In November 2017, IOI Loders Croklaan Europe introduced Presdough 270 SB, the next-generation sea-based palm oil option, for superiority in bakery products. This non-hydrogenated shortening can reduce saturated fats in dough products by up to 40% and total fat by up to 20% while maintaining appropriate flavor and texture and accomplishing extra volume in puff pastry. Presdough 270 SB is greatly acceptable for laminated dough products and has the rare characteristic of making extra “puff” and a crispier crust, while the shea adds to a golden brown color. Soybean shortenings – inclusive of high oleic soybeans and traditional soybean shortenings – are approved solutions for an assortment of food applications that need solid and semi-solid shortenings. They help food firms with their extensive temperature series and superior melting characteristics. A serving size of 1 tbsp (12.8 g) of Multipurpose, soybean (hydrogenated), and palm (hydrogenated) include 113.2 calories with calories from fat being 115.2 (101.8%). Soy-based shortenings, which are frequently established through interesterification, are the U.S. developed, sustainable constituents. Functionality tests demonstrate that soy-based shortenings are the best performers in an assortment of bakery applications. The soaring innovations in Shortening Fats are therefore driving the growth of the Global Shortening Fats Market during the forecast period 2022-2027.

Shortening Fats Market – Challenges

Disadvantages Of Shortening Fats Are Hampering The Growth Of The Shortening Fats Market:

The most typically utilized shorteners presently are produced with vegetable oils like soybeans, cottonseed, or refined palm oil. Applying the procedure of hydrogenation, these oils are created to become solid at room temperature. Though it relies on a particular type, shortening is almost 100 percent pure fat. As per the United States Department of Agriculture, one tablespoon of vegetable/lard shortening includes around:

1. 115 calories
2. 13 grams fat (including a mix of unsaturated, saturated and sometimes trans fat)
3. 2.75 milligrams vitamin K (up to 8 percent DV)
4. 3 milligrams choline
5. 0.12 milligrams vitamin E

Apart from offering fat and some vitamin K, it fundamentally does not include any additional vital nutrients. An enormous amount of proof from the decades gone by has demonstrated that intake of products including trans fats and partially hydrogenated oils presents numerous health hazards. Investigations indicate that the adverse health outcomes linked with partially hydrogenated/trans fats are inclusive of raised hazard of heart ailment, heart attack, stroke, and elevated hardening/calcification of the arteries among other outcomes. These issues are thus hampering the growth of the Global Shortening Fats Market.

Shortening Fats Industry Outlook

Product innovation, strategic partnerships, collaborations, novel product launches, novel service launches, joint ventures, and contracts are key strategies adopted by players in the Global Shortening Fats Market. Key companies in this market are:

1. Bunge North America, Inc.
2. Yildiz Holding
3. Namchow Chemical Industrial Co., Ltd.
4. Cargill, Inc.
5. NMGK Group Of Companies
6. Fuji Oil Co., Ltd.
7. Conagra Foodservice
8. COFCO Group Co. Ltd.
9. Wilmar International Ltd
10. IFFCO INGREDIENTS

Recent Developments

• In October 2021, Reddi-wip® extended offerings with novel Keto-Friendly*, Zero Sugar Whipped Topping. Reddi-Wip Zero Sugar (not a low-calorie food) is a creamy, delectable, keto-friendly whipped topping prepared with real cream, with zero grams of sugar, zero carbs, and 15 calories per serving. It includes no artificial flavors and is gluten-free.
• In January 2020, it was reported that Cargill Brazil introduced a novel fat that can minimize the saturated fat content in ice cream, creams, and dairy drinks by up to 30%, as per DairyReporter. Introduced in December, Lévia+c was a mixture of vegetable oils (principally soyabean oil) and emulsifiers that had the identical physical structure as a conventional fat but a saturated fat content of 35% and an utmost trans fat content of 2%. It could be included in a recipe without altering the product formulation and also impeded melting, left no residual fat in the mouth and averted recrystallization and lumps from forming, pronounced Cargill.
• In February 2020, Cargill declared a $6.4 million investment in its North American Pilot Development Center in Savage, Minnesota. As per the firm, the extension to the facility will authorize its consumers to boost their speed to market with novel products. The extended facility will permit Cargill to plan multi-scale, continuous piloting from cleansing novel vegetable oils and mixtures to creative shortening solutions for cakes, bread, cookies, and more.

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