Shortening Market Size, Share, and Forecast Analysis

The global shortening market size reached at USD 5.42 billion in 2025 and is expected to rise from USD 5.65 billion in 2026 to nearly reaching USD 8.18 billion by 2035, growing at a CAGR of 4.2% during the forecast period from 2026 to 2035. The growing investments and innovative production methods in food processing industries enable the expansion of shortening products.

Key Highlights

• By region, Asia Pacific dominated the shortening market with an estimated market share of 42% in 2025, owing to the significant growth of the food processing sector. 
• By region, the Middle East and Africa are expected to grow at the fastest CAGR in the market during the forecast period, due to the major role of governments in driving the regional growth. 
• By source, the palm oil-based shortening segment dominated the market with a market share of 40% in 2025, due to the major production of palm oil and related products. 
• By source, the canola oil-based shortening segment is seen to grow rapidly as a sub-segment in the market during the forecast period, driven by the huge adoption of canola oil by global consumers. 
• By form, the solid shortening segment dominated the market in 2025 with a market share of 50%, driven by the benefits of solid forms of shortening. 
• By form, the emulsified shortening segment is expected to grow at the fastest CAGR during the forecast period due to the improved role of emulsifiers. 
• By usage/application, the bakery & confectionery segment dominated the market in 2025 with a market share of 45%, due to the extensive use of shortening in bakery and confectionery products. 
• By usage/application, the ready meals/processed foods segment held the largest share of 20% as a sub-segment during the forecast period, driven by the consumption of these food products by global consumers. 
• By distribution channel, the direct/B2B segment dominated the market in 2025 with a market share of 60%, due to the expansive reach of B2B channels. 
• By distribution channel, the online retail segment is expected to grow at the fastest CAGR during the forecast period, driven by the adoption of various online retail channels. 
• By packaging type, the bulk packs segment dominated the market in 2025 with a market share of 55%, due to the major role of bulk packs in shortening across various industries. 
• By packaging type, the tubs/cans segment is seen to grow rapidly as a sub-segment in the market during the forecast period, driven by the use of tubs and cans due to their benefits.  
• By end user, the industrial food manufacturers segment dominated the market in 2025 with a market share of 65%, due to the growth of industries across various sectors.  
• By end user, the foodservice (QSRs/Bakeries) segment is expected to grow at the fastest CAGR during the forecast period, driven by the major efforts by food services. 
• By fat type, the non-hydrogenated segment dominated the market in 2025 with a market share of 38%, due to the advantages of these products. 
• By fat type, the trans-fat-free segment is expected to grow at the fastest CAGR during the forecast period, driven by the adoption of trans fats in diets.

Shortening Industry Coverage

Market Overview

Shortening refers to any fat that is solid at room temperature and used in baking to give foods a crumbly and tender texture by preventing gluten formation. It includes vegetable-based, animal-based, and blended fats, commonly used in the baking, frying, and food processing industries. The market covers both bulk shortening (industrial use) and retail-packaged shortening.

Shortening Market Trends

Which Trends Shape the Future of the Shortening Market?

• Growing Demand for Healthy and Trans-Fat-Free Foods: With the rising consumer preferences for healthy diets, there is a growing shift of people towards vegan and plant-based shortening. This demand is also driven by the rising preference for plant-based diets. 
• Clean-Label Products: It presents transparency in ingredient sourcing and processing. There is a growing shift towards sustainable solutions and eco-friendly production methods. 

Market Opportunity

What are the Exciting Industrial Solutions for the Expansion of the Shortening Market? 

The various sectors and products, including vegan, plant-based shortening, bakery, confectionery, are experiencing technological advancements and free trade agreements. There is a major competitiveness among industries due to changing consumer preferences. The government regulations related to food safety and labeling impact the growth of the market significantly. 

Market Challenges

What Issues arise for Consumers with the Food Industrial Expansion? 

With the elevated prices for basic goods like staples, flour, sugar, and others in the U.S. and globally, consumers are facing problems related to grocery shopping. Consumers are making smart food choices and preferring plant-based alternatives due to rising health concerns. There are supply chain issues with emerging technological advancements. 

Trade Analysis of the Shortening Market

• Between July 2024 and June 2025, buyers globally imported a total of 191 shipments of shortening. These shipments were facilitated by 191 exporters and were purchased by 132 verified global buyers, indicating a 16% growth compared to the preceding twelve months.
• The United States, Algeria, and Kuwait emerged as the leading importing countries for shortening, while the top exporting nations included the United States, China, and Singapore. https://www.volza.com/p/shortening/import/
• Shortening is being exported to over 93 countries. Collectively, the United States, Algeria, and Kuwait account for nearly 88% of global shortening imports, positioning them as the primary destinations for exporters.
• The United States leads this market with 2,772 shipments, representing approximately 81% market share, followed by Algeria with 133 shipments (approximately 4%) and Kuwait with 110 shipments (around 3%).
• In addition to these top three markets, rapidly expanding regions such as Jamaica, Saudi Arabia, the United Arab Emirates, Qatar, Lebanon, and Canada present significant opportunities for both new and established exporters. 

Shortening Market Regional Insights

How Asia Pacific Dominated the Shortening Market in 2025? 

Asia Pacific dominated the shortening market in 2025 owing to the initiatives and achievements of the food processing industries. The food processing sector plays a major role in offering farming jobs, increasing farm income, and reducing harvest losses in agriculture and related sectors. The Ministry budget and the government of India allocated Rs. 3290.00 crores to the Indian Ministry to develop and expand the food processing sector in the year 2024-25.

Asia Pacific Shortening Market Size 2025 to 2035

The Asia Pacific shortening market size was valued at USD 2.28 billion in 2025 and is expected to rise from USD 2.37 billion in 2026 to nearly reaching USD 3.48 billion by 2035, growing at a CAGR of 4.32% during the forecast period from 2026 to 2035.

How is the Growth of the Indian Food Processing Sector?

• In September 2024, the Global Food Event was organized by the Ministry of Food Processing Industries in New Delhi. This event provided an exclusive platform for food processors, producers, equipment manufacturers, cold chain players, logistics players, startup innovators, technology providers, and food retailers.
• In May 2024, the Government of India announced the transformation of the logistics sector in India with the growing significance of the logistics sector. (Source: IBEF)

The Middle East and Africa are Expected to Grow at the Fastest CAGR in the Shortening Market During the Forecast Period

Due to economic diversification, sustainable practices, digitalization, and infrastructure development. The streamlining investments, public health initiatives, and child labor challenges also foster the growth of this region. The region is experiencing transformation in Africa’s exports and imports while introducing tools to resolve carbon emissions and climate change. The region is promoting sustainable economic development and increasing industrial transformation across the continent.

What is the Role of South African Governments in the Overall Growth and Achievements?

The government of South Africa is dedicated to health services, social welfare services, school education, housing, and agriculture. The national government provides leadership and formulates policies. The local government provides services related to health, education, housing, electricity, water, social development, roads, and municipal infrastructure services. The national government raises the revenue capacity, and this generated revenue is used to support initiatives and various services.

North America Shortening Market Trends

The demand for shortening in North America is being driven by the evolving consumer preferences toward healthier and plant-based products. Increasing awareness of dietary health benefits and a shift away from trans fats have prompted manufacturers to innovate with cleaner-label and non-hydrogenated options. The rise of vegan and vegetarian diets further contributes to this demand, as consumers seek versatile, plant-derived fats for culinary applications. Moreover, the expansion of the foodservice sector, inclusive of restaurants and bakeries, enhances market growth. Regulatory support for food safety and quality standards further accelerates this expansion.

The United States shortening market is experiencing consistent growth, primarily fueled by high demand from the commercial baking, processed food, and foodservice sectors. The increasing prevalence of plant-based and vegan shortenings is transforming the global food industry, driven by consumer preferences for healthier, more sustainable options. Prominent industry players such as Cargill, a global food corporation, and Bunge Limited, an agribusiness and food company, are leading this transformation by developing innovative shortening solutions derived from palm, sunflower, and soybeans.

Shortening Market Segmental Insights

Source Insights

How Palm Oil-Based Shortening Segment Dominated the Shortening Market in 2025?

The palm oil based shortening segment dominated the market in 2025 owing to the non-hydrogenated vegetable oil forms of palm oil, which make it a healthy alternative to traditional fats. The palm shortening is easily digestible and reduces the risk of digestive issues. The palm shortening has a high melting point due to which it helps to create stable structures in baked goods. 

The canola oil-based shortening segment is expected to grow at the fastest CAGR in the market during the forecast period. Due to the nutritional benefits and culinary advantages of canola oil. It is low in saturated fat, vitamin K, vitamin E, and offers healthy fats for the heart. It is a healthy alternative to traditional shortenings like butter and lard and delivers various culinary applications. 

Form Insights

What Made Solid Shortening the Dominant Segment in the Shortening Market in 2025?

The solid shortening segment dominated the market in 2025 owing to the improved texture, stability, and versatility of solid shortenings. It enables texture improvement, moisture retention, and stability. 

The emulsified shortening segment is expected to grow at the fastest CAGR in the market during the forecast period. Due to the benefits of emulsifiers in terms of improved texture, enhanced aeration, and moisture retention. The emulsifiers allow the uniform distribution of fat in batter and dough. 

Usage/Application Insights 

How did the Bakery & Confectionery Segment Dominate the Shortening Market in 2025? 

The bakery & confectionery segment dominated the market in 2025 owing to the improved texture, tenderness, crispiness, and longer shelf life of bakery and confectionery products. It also improves the functionality of doughs and batteries. 

The ready meals/processed foods segment is expected to grow at the fastest CAGR in the shortening market during the forecast period. Due to benefits such as cost-effectiveness, extended shelf life and storage, and texture improvement in ready meals or processed food. It is a convenient alternative to butter which offers a neutral taste. 

Distribution Channel Insights 

How Direct/B2B Segment Dominated the Shortening Market in 2025? 

The direct/B2B segment dominated the market in 2025 owing to the smooth journey of buyers, improved control of salespeople, and efficient qualification of goods. The direct/B2B channels allow us to identify the pinpoints in businesses, address consumer needs, and use technologies. 

The online retail segment is expected to grow at the fastest CAGR in the market during the forecast period. Due to fast order fulfilment, reduced customer frustration, increased sales, and improved customer satisfaction. The online retail channels allow us to streamline the website, offer various shipping options, and manage returns efficiently. 

Packaging Type Insights

Shortening Market Share, By Packaging Type, 2025 (%)

• Bulk Packs: Dominated with 55%, as bulk packs are primarily used by industrial food manufacturers for large-scale production needs.
• Retail Packs (500g, 1kg, 2kg): Holds 10%, catering to smaller-scale consumers who purchase for household use.
• Sachets: Holds 5%, providing small, convenient portions for single-use or small-scale consumption.
• Tubs/Cans: Fast-growing with 17%, driven by increasing consumer demand for larger containers for at-home usage, especially in foodservice and household contexts.
• Industrial Drums: Holds 13%, with industrial drums being used for bulk storage and transport in large food manufacturing operations.

What Made Bulk Packs the Dominant Segment in the Shortening Market in 2025? 

The bulk packs segment dominated the market in 2025 owing to the cost savings, convenience, efficiency, and environmental benefits of these products. The bulk packs offer the potential for price stability, lower per-unit price, and reduced shipping costs. 

The tubs/cans segment is expected to grow at the fastest CAGR in the shortening market during the forecast period. Due to the benefits of shortening in baking, cooking, high fat content, and neutral flavor. The tubs/cans offer enhanced moisture retention, stability at room temperature, and versatile applications. 

End User Insights

Shortening Market Share, By End User, 2025 (%)

• Industrial Food Manufacturers: Dominated with 65%, as they represent the largest segment of the market, using fats and oils in large-scale food production.
• Foodservice (QSRs, Bakeries): Fast-growing with 20%, as quick-service restaurants (QSRs) and bakeries increase their demand for fats and oils in their production processes.
• Household: Holds 15%, with consumer households purchasing smaller quantities for home cooking and baking.

How did the Industrial Food Manufacturers Segment Dominate the Shortening Market in 2025? 

The industrial food manufacturers segment dominated the shortening market in 2025 owing to the advantages of shortening in industrial baked goods, which can avoid changes in product stability, and offer improved texture and structure. The use of vegetal fat, which is the most widely used shortening ingredient in the preparation of baked goods, raises the growth of industrial food manufacturers. 

The foodservice (QSRs/Bakeries) segment is expected to grow at the fastest CAGR in the market during the forecast period. Due to the improved shelf life, texture, and flavor of food products due to the inclusion of shortening. The wide use of shortening in baked goods, pastries, and many other products raises its demand in food services. 

Fat Type/Content Insights

Shortening Market Share, By Fat Type/Content, 2025 (%)

• Hydrogenated: Holds 25%, with hydrogenated fats being used for specific applications requiring longer shelf life and stable consistency.
• Non-Hydrogenated: Dominated with 38%, as non-hydrogenated fats are favored for their perceived health benefits and lower trans fat content.
• Interesterified Fats: Holds 12%, used in certain food applications where specific textures and stability are required.
• Trans Fat-Free: Fast-growing with 15%, driven by increasing demand for healthier, trans fat-free options due to consumer health concerns.
• Low-Fat Shortening: Holds 10%, catering to applications requiring lower fat content for healthier or calorie-conscious products.

How Non-Hydrogenated Segment Dominated the Shortening Market in 2025?

The non-hydrogenated segment dominated the market in 2025 owing to the presence of lower saturated fat than butter and the non-hydrogenated products are free of cholesterol. The use of partially hydrogenated oil in most butter substitutes or shortenings raises the importance of these products. 

The trans-fat-free segment is expected to grow at the fastest CAGR in the market during the forecast period. Due to the bakery potential of trans-fat-free products. It is possible to produce and introduce cookies from trans-fat-free stearic acid-rich and oleic acid-rich oils. Trans fats are advantageous for healthy hearts due to their flavor stability and extended shelf life. 

Recent Developments in the Shortening Market

Cargill, Bunge, and Wilmar

• Announcement: In July 2024, Cargill, Bunge, and Wilmar International announced the innovation of shortening methods due to the industrial responses to changing tastes around baked products. (Source: food & drink digital)

Fuji Oil Group

• Announcement: In August 2024, Fuji Oil Group announced the enhancement and expansion of its technology to develop businesses related to fats, vegetable oils, industrial chocolate, and many other products. (Source: Fuji Oil)

Shortening Market Leading Companies

• Cargill, Inc.
• Bunge Limited
• Wilmar International
• AAK AB
• Archer Daniels Midland Company (ADM)
• Ventura Foods
• IFFCO Group
• Fuji Oil Holdings Inc.
• PT SMART Tbk (Sinar Mas Group)
• Mewah Group
• Oleo-Fats Inc. (D&L Industries)
• Peerless Foods
• IOI Loders Croklaan
• BRF S.A.
• J.M. Smucker Company
• Olenex
• Aveno N.V.
• Associated British Foods plc (ABF Ingredients)
• Premium Vegetable Oils Sdn Bhd
• Sime Darby Oils

Segments Covered in the Report

By Source

• Vegetable-Based
  
  • Palm Oil-Based Shortening 
  • Soybean Oil
  • Cottonseed Oil
  • Canola Oil-Based Shortening 
  • Sunflower Oil
  • Others (Corn, Olive)
• Animal-Based
  
  • Lard (Pork Fat)
  • Tallow (Beef Fat)
• Blended (Mixed Animal + Vegetable)

By Form

• Solid Shortening
• Liquid Shortening
• All-Purpose Shortening
• Cake/Icing Shortening
• Emulsified Shortening 
• Powdered Shortening

By Usage/Application

• Food Processing Industry
  
  • Bakery & Confectionery
    
    • Cakes
    • Biscuits
    • Cookies
    • Pastries
    • Pies & Tarts
  • Snacks
    
    • Extruded Snacks
    • Fried Snacks (Chips, Wafers)
  • Dairy & Frozen Desserts
    
    • Ice Creams
    • Frozen Dough
  • Ready Meals / Processed Foods
• HoReCa (Hotels, Restaurants, Cafés)
  
  • Deep Frying
  • Bakery
• Retail/Household

By Distribution Channel

• Direct/B2B 
• Retail Sales
  
  • Supermarkets/Hypermarkets
  • Specialty Stores
  • Online Retail
  • Convenience Stores

By Packaging Type

• Bulk Packs 
• Retail Packs (500g, 1kg, 2kg)
• Sachets
• Tubs/Cans
• Industrial Drums

By End-User

• Industrial Food Manufacturers
• Foodservice (QSRs, Bakeries)
• Household

By Fat Type/Content

• Hydrogenated
• Non-Hydrogenated
• Interesterified Fats
• Trans Fat-Free
• Low-Fat Shortening

By Region

• North America
• Asia Pacific 
• Europe
• Middle East and Africa
• Latin America