Shortening Fats Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Shortening Fats Market Trends and Insights

Rising bakery and confectionery consumption in emerging economies

Increasing bakery and confectionery consumption in emerging economies is a significant driver for the global shortening fats market. These products rely heavily on shortening to achieve the desired texture, aeration, and shelf-life stability. With accelerating urbanization and the expansion of modern retail and foodservice channels, the demand for packaged bread, cakes, biscuits, and sweet snacks is rising, directly increasing the industrial use of shortening fats in large-scale baking and confectionery operations. Additionally, manufacturers are introducing Western-style and premium baked goods, which often contain higher fat levels and require more specialized shortenings, further contributing to volume growth. According to data from the United Kingdom Office for National Statistics, consumer expenditure on bread and cereals in the United Kingdom reached approximately GBP 25.49 billion in 2024 ^{[1]Source: Office for National Statistics, "Consumer spending on bread and cereals in the United Kingdom", ons.gov.uk}. This highlights the substantial bakery-related spending even in relatively saturated markets. Such trends create significant growth potential for shortening fats demand, as any increase in household spending on bread, cereals, and sweet baked goods typically necessitates higher volumes of functional fats in industrial recipes.

Rise of plant-based alternatives

The growing demand for plant-based alternatives is significantly transforming the global shortening fats market as consumers increasingly prioritize health, sustainability, and animal welfare. Plant-based shortenings, derived from oils such as palm, sunflower, canola, and specialty plant butters, not only offer zero cholesterol but also present the potential for reduced saturated fat content, making them highly attractive substitutes for traditional animal-fat-based shortenings. Leading ingredient suppliers and oil processors are actively investing in reformulation efforts and advanced technologies to develop plant-based shortenings that closely replicate the functionality of butter, lard, and tallow in bakery and confectionery applications. These include critical properties such as aeration, plasticity, and melting behavior. This innovation is further bolstered by the rapid expansion of the plant-based food market, highlighting a robust and growing consumer base for plant-based fats and shortenings.

Growth in the food service sector

Growth in the food service sector serves as a significant driver for the global shortening fats market. Quick service restaurants (QSRs), bakeries, cafés, and casual dining outlets depend heavily on frying oils and baking fats to ensure consistent product quality and operational efficiency. The high volumes of fried chicken, fries, baked snacks, and desserts produced in these establishments directly increase the demand for shortenings that can endure high-temperature frying, provide a desirable mouthfeel, and maintain stability over multiple use cycles. The expansion of organized foodservice chains in both developed and emerging markets, coupled with the rise in off-premise consumption through delivery platforms, further boosts the utilization of shortening fats in professional kitchens and commissaries. This trend is particularly evident in the quick-service restaurants segment in the United States. According to filings with the U.S. Securities and Exchange Commission, consumer spending in the United States QSR sector reached approximately USD 358.4 billion in 2024 ^{[2]Source: U.S. Securities and Exchange Commission, "Consumer spending in the quick service restaurant (QSR) sector in the United States", sec.gov}. This highlights the substantial scale of fried and baked food sales in these outlets. Such high spending levels indicate significant and recurring purchases of frying shortenings and baking fats to support core menu items.

Sustainability and eco-friendly production

Sustainability and eco-friendly production have become significant factors influencing sourcing decisions in the global shortening fats market, particularly for palm-oil-based ingredients. The Roundtable on Sustainable Palm Oil (RSPO) Principles & Criteria for 2024 introduce stricter requirements regarding environmental and social performance for certified growers, with a focus on mitigating deforestation risks and enhancing workers' livelihoods ^{[3]Source: Roundtable on Sustainable Palm Oil (RSPO), "2024 RSPO Principles and Criteria", rspo.org}. Under the revised 2024 RSPO standards, certified producers must implement stringent controls on land use, uphold social safeguards, and adopt responsible labor practices. Additionally, companies across the value chain face growing pressure from buyers and investors to demonstrate compliance with these standards. In this scenario, commitments to net-zero deforestation and fair wages are driving palm plantations and downstream fat and shortening suppliers to invest in traceable, climate-aligned supply chains. While these measures may increase costs, they also present opportunities for differentiation in the market.

Regulatory restrictions on trans fats

Regulatory restrictions on trans fats significantly constrain the global shortening fats market. Many countries have implemented strict limits or outright bans on industrially produced trans fats, which were traditionally derived from partially hydrogenated oils commonly used in shortenings. These regulations compel manufacturers to reformulate products, leading to increased Research and Development (R&D) and ingredient costs to meet legal requirements while maintaining functionality in baking and frying applications. Compliance also entails additional expenses related to testing, labeling, and certification for producers and brand owners. In regions with stringent enforcement, non-compliant products risk recalls, fines, or loss of shelf space, discouraging the use of older shortening formulations with high trans-fat content. Collectively, these regulatory measures reduce demand for conventional shortenings and limit market growth until reformulated, compliant alternatives achieve widespread adoption.

High production costs of healthier alternatives

High production costs for healthier alternatives constrain the growth of the global shortening fats market. The development and manufacturing of low-trans, low-saturated-fat, non-hydrogenated, or plant-based shortenings often require premium raw materials, such as high-oleic vegetable oils, specialty emulsifiers, and structured fat systems, which are more expensive than conventional partially hydrogenated oils. Additionally, producers incur extra costs related to process adaptation and quality control to ensure these new formulations achieve comparable performance to traditional shortenings in terms of aeration, plasticity, and shelf life. These higher input and development costs result in elevated product prices, which many industrial users and price-sensitive bakery customers are hesitant to accept. This reluctance slows the transition from conventional shortenings, limiting the market penetration of healthier alternatives and hindering overall market growth. 

Segment Analysis

By Source Type: Vegetable Oils Dominate, Animal Fats Stage Culinary Revival

Vegetable-based shortening accounted for 71.23% of the global shortening fats market in 2024, establishing itself as the leading segment by value. This significant market share is attributed to its extensive use in bakery, confectionery, and processed food applications, where manufacturers favor vegetable oils for their functional properties and cost-effectiveness. Additionally, the segment benefits from a more favorable health and regulatory profile compared to traditional animal fats, particularly in regions with stricter limits on trans fats and saturated fats. Increasing consumer demand for plant-based and better-for-you formulations further strengthens the position of vegetable-based shortening as the preferred choice for brand owners. Its availability from diverse sources, including palm, soybean, sunflower, and canola, ensures a reliable supply for large-scale industrial applications. 

Animal-based shortening, while holding a smaller share of the market, is projected to grow at a compound annual growth rate (CAGR) of 3.87% through 2030. This growth is supported by consistent demand in applications where animal fats provide unique flavor, texture, and functionality that are challenging to replicate with vegetable-based alternatives. Premium bakery products, specialty confectionery, and certain regional cuisines continue to rely on butter, tallow, and lard-based shortenings, maintaining a stable demand base. Additionally, the rising popularity of indulgent and artisanal products is encouraging niche producers to incorporate animal-origin fats into their recipes. Improvements in quality control and supply chain transparency are also addressing historical concerns related to consistency and safety, further supporting the segment's growth.

Note: Segment shares of all individual segments available upon report purchase

By Application: Bakery Leads, Ready Meals Accelerate

Bakery applications accounted for 38.87% of the global shortening fats market in 2024, making them the largest end-use segment by value. This dominance is driven by the large-scale production of industrial bread, cakes, and pastries, where shortening plays a vital role in processability and product quality. In these applications, shortening helps retain moisture, resulting in softer crumbs and improved palatability throughout the product’s shelf life. Additionally, it enhances aeration and volume in doughs and batters, which is essential for achieving consistent texture in mass-produced bakery lines. The ability of shortening to stabilize fat distribution ensures uniform structure and appearance, a critical factor for branded packaged bakery products. These functional benefits collectively position bakery manufacturers as the primary consumers of shortening fats during the forecast period.

Ready meals and processed foods, while currently a smaller application segment, are projected to grow at a CAGR of 3.66% through 2030, making them one of the fastest-expanding uses of shortening fats. This growth is fueled by increasing demand for convenient heat-and-eat and frozen meal formats, which rely on shortening for flavor delivery and texture stability. In these products, shortening helps maintain palatability after freezing, reheating, and extended storage, which is critical for consumer satisfaction. Manufacturers also utilize shortening to enhance mouthfeel and binding in sauces, fillings, and coated components within multi-component meals. As urban lifestyles continue to evolve and out-of-home work patterns persist, the consumption of packaged ready meals and processed foods is expected to grow steadily. 

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

In 2024, North America accounted for 41.25% of the global shortening fats market, making it the largest regional market by value. This position reflects the maturity and scale of the packaged bakery, snacks, and ready-meal industries in the United States, Canada, and Mexico, which are significant users of shortening fats. The region's steady baseline demand is supported by the strong presence of industrial baking, quick-service restaurant chains, and frozen bakery products. Additionally, well-developed cold-chain infrastructure and retail networks enable high volumes of frozen and ambient bakery items that rely on shortening for texture and shelf-life enhancement. Product innovation in indulgent and premium baked goods, along with private-label expansion, further strengthens North America’s market dominance. 

Asia-Pacific is projected to be the fastest-growing region in the global shortening fats market, with an anticipated CAGR of approximately 4.91% through 2030. This growth is driven by the rapid industrialization of bakery and processed-food manufacturing in countries such as China, India, and Southeast Asia. Factors such as rising urbanization, expanding middle-income populations, and increasing consumption of out-of-home and convenience foods are contributing to higher usage of shortening in packaged bread, cakes, snack foods, and instant or ready meals. 

Europe lags in growth momentum due to market saturation and slower population expansion. Additionally, strong consumer skepticism toward palm-oil-based shortenings, driven by sustainability concerns and NGO campaigns, further constrains growth. The implementation of the EU Deforestation Regulation in December 2024 is expected to place additional pressure on palm-oil supply chains, encouraging a shift toward certified or alternative fat sources. South America, led by Brazil and Argentina, and the Gulf Cooperation Council (GCC) countries in the Middle East are emerging as growth areas. In these regions, rising bread consumption and the modernization of bakery and foodservice channels are gradually increasing the use of shortening fats, albeit from a smaller base.