Vegetable Shortening Market
Report ID: SQMIG30I2613
Report ID: SQMIG30I2613
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Report ID:
SQMIG30I2613 |
Region:
Global |
Published Date: December, 2025
Pages:
198
|Tables:
89
|Figures:
71
Global Vegetable Shortening Market size was valued at USD 16.5 Billion in 2024 and is poised to grow from USD 17.22 Billion in 2025 to USD 24.3 Billion by 2033, growing at a CAGR of 4.4% during the forecast period (2026–2033).
The vegetable shortening market share is witnessing remarkable progress, driven by increased demand in the bakery, confectionery, and packaged food sectors. With the transition to plant-based and trans-fat-free substitutes from partially hydrogenated, the challenges faced by manufacturers who have had great success formulate shortening products with oils from healthier oils derived from palm, soy or sunflower potentially could be significant. The consumer preference for convenience foods and ready-to-eat bakery products has also stimulated consumption in urban and semi-urban areas. In addition, an expanding food service sector combined with the increasing demand for fried and baked snacks in many emerging economies has enhanced product penetration. In summary, the vegetable shortening market is changing, which creates both challenges and opportunities. The growth of clean-label, sustainable, and plant-based product trends have great potential to grow the market, but manufacturers will have to deal with the challenges related to increasing health awareness and raw material volatility to foster long-term growth.
While there are limitations in the vegetable shortening market trends that could threaten growth momentum. Increased health concerns about obesity, cardiovascular disease and cholesterol are causing consumers to shift towards low-fat and natural alternatives with an overall trend of decreasing usage of traditional shortening. Moreover, manufacturers face a greater challenge to their profit and reliance on the raw supply chain in the face of fluctuating raw materials price, especially palm oil and soybean oil. Manufacturers also face increased governmental regulations and mandatory labeling of hydrogenated fats which puts more pressure on the producers to innovate and identify sustainable solutions even quicker.
How are Emerging Technologies like AI and IOT Transforming the Vegetable Shortening Market?
Artificial intelligence (AI) and internet of things (IoT) technologies are providing baked shortening manufacturers opportunities to enhance production and quality, while also reducing costs. In industrial bakeries and processing facilities, IoT sensors gather real-time data on dough performance, oven temperature, humidity or mixing conditions, and provide the information to artificial intelligence algorithms that use the data to adjust the production to the optimal starting condition. As a result, manufacturers can minimize costs by reducing downtime through predictive maintenance, improving consistency of texture and performance, and properly identifying opportunities to improve energy efficiency. Additionally, AI-enabled quality inspections ensure shortening products are more uniform and freer from details that are hard to identify with the naked eye this improves product quality while reducing waste.
In June 2025, Digital Twin applications are increasingly altering commercial bakery production lines, with direct applicability to vegetable shortening production. Sensors were tracking parameters like dough weight, oven temperature distribution, and packaging status. AI analyzed those metrics to predict maintenance cycles when the ovens needed heating elements, optimize energy consumption in the oven, and protect the quality of their batches.
Market snapshot - 2026-2033
Global Market Size
USD 15.8 billion
Largest Segment
Standard Grade
Fastest Growth
Premium Grade
Growth Rate
4.4% CAGR
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Global Vegetable Shortening Market is segmented by Grade, Type, Form and region. Based on Grade, the market is segmented into Standard Grade, Premium Grade and Master Grade. Based on Type, the market is segmented into Palm Oil-Based Vegetable Shortening, Soybean Oil-Based Vegetable Shortening, Canola Oil-Based Vegetable Shortening and Other Vegetable Oils-Based Vegetable Shortening. Based on Form, the market is segmented into Liquid and Semi-Solid. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Based on the global vegetable shortening market forecast, Standard grade vegetable shortening dominates the market by volume because it hits the sweet spot of price, performance, and accessibility for high-throughput bakery, confectionery, snacks, and foodservice users. Major contract manufacturers and private labels use standard grades to sell price-sensitive products, while maintaining margins. Each standard grade presents acceptable texture and shelf-life. Substantial flexibility in raw materials,and large toll-processors guarantee reliable supply; therefore, standard grade is the applicable grade in emerging markets and also, developed markets.
Premium grade is growing exponentially in the vegetable shortening market outlook as brands are competing on clean label, performance, and sustainable credentials. More particularly, there are non-hydrogenated and low-trans formulations with required optimized SFI curves generate better mouthfeel and aeration in premium and artisanal baking. For health and quality focused consumers, the premium value proposition resonates, and ultimately it connects.
Palm oil-based vegetable shortening is the treatment of choice because it has a semi-solid fraction naturally, excellent oxidative stability, worldwide supply chain and possibilities for cost reduction. Shelf-life benefits, bland flavor profile after the deodorization, and compatibility with emulsifiers would be some of the available benefits that made palm shortening useful for the workhorse for industrial bakers and snack food processors targeting lower price points and where throughput & yields are important.
Canola oil-based shortening is spiking the most quickly as it has a favorable fatty acid profile and fits into the “heart-healthy” image. Western brands and premium Asian-based bakeries are reformulating themselves to cut saturated fat and improve nutritional labeling without sacrificing shape, form, or texture, and the canola-based systems are taking share from soybean and blended or “other oils”.
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As per the global vegetable shortening market analysis, North America leads based on large industrial bakery systems, deep retail penetration of packaged snacks, and a broad acceptance of non-hydrogenated high oleic formulations. Strong private-label programs and foodservice standardization drive high throughput, while clean-label and allergen-control protocols provide a platform for premium mixes. Regulatory transparency around trans fats and nutrition labeling has created a coherent demand for structured lipids and unesterified systems specifically for frying, laminating, and aeration.
The U.S. has the edge through scale, national bakery/snack manufacturers, franchise cafés, and noise in the convenience channels, are heavy users of shortening for multiple functional role texture, volume, and shelf-life. There is the addition of new high-oleic crushing/processing uses and renewed retailer commitments to “better-for-you” bakery lines, that allows for increased use of canola/soy-dominated systems and palm fractions designed for consistency with plasticity, reduced disposal, and improved first-pass yield.
Canada vegetable shortening market share is ramping up faster to scale frozen dough and par-baked products in premium private label and artisanal bakeries. Demand is supporting non-hydrogenated shortenings, RSPO-aligned palm fractions and high-oleic canola blends to deliver cleaner nutrition panels and fry life. There is the rollout and enforcement of front-of-pack nutrition symbol requirements and voluntary sodium targets, that have accelerated bakery reformulation. This is driving the adoption of structured lipids that deliver similar lamination and aeration while reducing saturated fat and optimizing oxidative stability.
Europe is a mature but changing market for vegetable shortening, impacted by heightened regulations on trans fats, sustainability obligations, and consumer demand for clean-label products. Both industrial and artisan bakeries are increasingly using non-hydrogenated and traceable oils for their textural and shelf-life benefits. Sustainability certifications, including some nutritionally focused regulations driven by government agencies, are also speeding up the adoption of high-oleic rapeseed and palm products that limit saturated fat while maintaining consistent performance.
Germany leads on volume with in-store bakeries across the country, industrial frozen dough and private label pastries. Buyers want non-hydrogenated shortenings with consistent plasticity, temperature tolerance and long ambient and bake-off shelf lives. There are retailers' sustainability scorecard programs and increased fat sourcing disclosures pushing buyers to have certified palm fractions and high-oleic rapeseed systems. These also fit with bakeries' waste reduction initiatives and heat-recovery programs reinforcing the need for shortenings to keep food use performance with tighter process controls and energy-saving baking profiles.
France leads the world in demand because of its large bakery and patisserie culture where premium-grade shortenings work to support laminated doughs, croissants, and confectionery applications. Shortenings that provide volume, flake, and stability according to various conditions are valued by industrial processors as well as artisanal bakers alike. An emerging trend is the more widespread use of RSPO-certified palm fractions and rapeseed-based alternatives in line with French sustainability policy and consumer eagerness to see clear labeling practices in packaged baked goods and fresh baked items bought in stores.
The U.K. is the fastest-growing market, benefiting from the growth of, café chains, food-to-go options, and premium grocery bakery counters. Reformulation trends have increasingly included non-hydrogenated shortenings with lower saturated fat and better plasticity. A recent regulatory change is stricter front of pack nutrition labeling which has forced manufacturers to use shortenings derived from high-oleic rapeseed. Also, increased demand for vegan and plant-based bakery line products has further contributed to an increase in premium-grade vegetable shortening consumption.
Asia Pacific is an emerging region due to café culture, convenience-store bakery expansion, and premium desserts. Manufacturers emphasize specific crumb, lamination, and frosting performance while continuing to favor interesterified palm/canola systems and high-oleic blends. Large plants have increased acceptance of automation, as well as utilization of predictive maintenance, producing improved yields and matching batches. This has resulted in a rapid mix-upgrade from standard levels to premium levels for most of the top metropolitan markets.
Japan is the leading value in the region with stringent texture specifications, especially in their confectionery and bakery, where managed crystallizations and narrow melting points are fundamental. Premium grade shortenings with engineered SFI curves deliver to the laminated doughs, fillings, and delicate icings utilized by convenience retail and patisserie operations. There is retailer-influenced clean label and allergen management steeped in non-hydrogenated, interesterified systems and high oleic inputs that can maintain mouthfeel and gloss, while reducing saturated fat and increasing storage stability in ambient and chilled supply chains.
South Korea is accelerating to greater speed as dessert cafés, artisan pastries, and K-snacks producers upgrade their production capabilities. There is increased established conformance to nutrition-labeling requirements and retail scorecards calling for reduction in saturated fat, which have motivated product reformulations toward canola-dominant and structured palm systems. Together with highly automated plants and intense bakery sales from online-to-offline, the stable investment environment supports rapid adoption of premium shortenings that provide consistent volume, sheen, and bite across high mix centers of product portfolios.
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Increasing Demand for Convenience Foods
Consumers Making Choices to Avoid Trans Fat Products
The Uncertainty of Prices for Commodities
Competition from Butter and Margarine
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The global vegetable shortening market outlook is highly competitive, with Cargill, Archer Daniels Midland (ADM), Bunge Limited, Wilmar International, and AAK AB dominating the industry through product innovations, strategic acquisitions, and enlarged production capabilities. Cargill introduced a trans-fat-free shortening line to address health trends while ADM expanded its product offerings to serve the growing demand for non-GMO and clean labels. Local, smaller players like Manildra Group and Ventura Foods are focused on being the low-cost provider and local distributor. Plus, new players or start-ups are entering the market with niche solutions.
As per the global vegetable shortening industry analysis, the startup scene is rapidly evolving, new entrants are changing the discussion with plant-based, non-GMO, and trans-fat-free formulations for health and eco-focused consumers and bakeries. Many are deploying blockchain to offer closed supply chains and transparency attractive to consumers, especially now that retailers are often favoring eco-friendly brands. Also, there are startups looking at direct-to-consumer, e-commerce or leveraging a B2B model, increasing competition with the most traditional offerings, and capitalizing on changing dietary patterns and legislative shifts.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global vegetable shortening industry is currently experiencing rapid growth, fuelled by increasing consumer demand for convenience foods, bakery products, and plant-based alternatives. Technological advancements, including AI and IoT, are revolutionizing the food industry through optimization of production processes and increasing productivity and efficiency in the supply chain, in addition to embedded real-time quality monitoring. These developments will enable industrial bakers to lower waste for product consistency and adapt to changing demands by consumers for sustainable and healthier food options. However, the market has obstacles with competitive pricing of raw materials and increased public scrutiny over health-related issues like trans fats, which is constraining manufacturers in reevaluating their formulation.
While there are limitations, smart technology and a move toward clean label ingredients presents great opportunities. Movement toward consumer transparency and modernization of food industries can help the vegetable shortening market expand, notably in emerging economies, also for the sake of expansion. The industry can remain competitive by leveraging AI-IoT solutions, a focus on sustainability, and swift implementation of solutions to speed responsiveness and flexibility in the industry.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 16.5 Billion |
| Market size value in 2033 | USD 24.3 Billion |
| Growth Rate | 4.4% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Vegetable Shortening Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Vegetable Shortening Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Vegetable Shortening Market:
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