The global bakery fats market is expected to exhibit a growth rate (CAGR) of 4.28% during 2024-2032. The growing demand for convenient bakery products among people with busy working schedules and hectic lifestyles, changing consumer tastes and preferences, and increasing number of health-conscious consumers are some of the major factors propelling the market.
|Market Growth Rate (2024-2032)
Bakery fats, commonly known as shortening, are specialized fats and oils that are used to achieve desirable textures, flavors, and characteristics in baked goods. They are carefully formulated to have a specific melting point, which enhances the shelf life of baked goods. They play an essential role in producing a wide range of bakery products, such as bread, cakes, pastries, and cookies. As they assist in enhancing the tenderness and flakiness of pie crusts and contribute to the moistness and softness of cakes while providing a crispy texture to cookies, the demand for bakery fats is increasing worldwide.
At present, the rising adoption of bakery fats, as they improve the creaming ability of cake batters and ensure even distribution of fat throughout the dough or batter, is supporting the growth of the market. Besides this, the increasing consumer need for bakery products with enhanced taste, texture, and longer shelf life is strengthening the growth of the market. Additionally, the growing demand for food products with clean and natural ingredients is positively influencing the market. Apart from this, the introduction of new and improved bakery fats that offer high functionality and has enhanced nutritional profile to attract a large consumer base is providing lucrative growth opportunities to industry investors. Furthermore, the rising demand for bakery products through online distribution channels among the masses worldwide is bolstering the growth of the market.
Bakery Fats Market Trends/Drivers:
Changing consumer tastes and preferences
The rising demand for bakery products due to the changing consumer tastes and preferences is bolstering the growth of the market. In line with this, consumers are increasingly looking for bakery products that offer enhanced flavor and unique experiences. Besides this, there is an increase in the preference for premium and artisanal baked goods among individuals around the world. These fats enhance the flavor and texture of products and ensure they meet consumer demand for mouthwatering treats. Moreover, consumers are seeking transparency in ingredient lists, with a focus on clean labels and healthier options. As a result, manufacturers are producing safe and healthy products to attract wide consumers.
Increasing number of health-conscious consumers
There is a rise in the demand for safer and healthier bakery items among health-conscious consumers across the globe. In addition, consumers are becoming more aware of the impact of dietary choices on their health and are rapidly preferring food products with improved nutritional profiles, such as lower trans fats and reduced saturated fats. Apart from this, various manufacturers are reformulating their products to make them healthier without compromising on functionality. They are exploring alternatives to hydrogenated fats and trans fats and focusing on clean label options to gain the trust of consumers. Furthermore, they are offering products that align with the dietary choices of individuals.
Growing demand for convenient bakery products
The rising demand for convenient bakery products, such as bread, pastries, and cakes, among people with busy lifestyles and hectic working schedules is contributing to the growth of the market. Apart from this, the wide availability of numerous types of bakery goods through online and offline distribution channels across the globe is bolstering the growth of the market. Moreover, bakery goods require reliable and versatile fats to maintain product consistency and quality over a longer period of time. In line with this, consumers are rapidly seeking products that are cost-effective and ready-to-eat (RTE) and assist in saving their time and can be easily consumed without any additional effort.
Bakery Fats Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global bakery fats market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product type, distribution, and end-use.
Breakup by Product Type:
- Bakery Oils
Margarine represents the largest market segment
The report has provided a detailed breakup and analysis of the market based on the product type. This includes margarine, shortening, bakery oils, and others. According to the report, margarine represented the largest segment. Margarine is a versatile butter substitute due to its lower cost and reduced saturated fat content. It is a semi-solid, plant-based spread made from vegetable oils, such as soybean, palm, or sunflower oil, that undergo hydrogenation to solidify the product. Margarine is widely used in baking, cooking, and as a bread spread. In baking, margarine provides moisture and tenderness to baked goods while enhancing their texture and flavor. It is a crucial ingredient in producing flaky pastries, moist cakes, and crispy cookies. It can be solid at room temperature, which makes it a preferred choice for creating laminated dough in pastries like croissants.
Breakup by Distribution:
- Direct Sales
- Supermarkets and Hypermarkets
- Online Stores
- Retail Stores
The report has provided a detailed breakup and analysis of the market based on the distribution. This includes direct sales, supermarkets and hypermarkets, online stores, retail stores, and others.
Direct sales involve manufacturers or suppliers selling their products directly to commercial bakeries, foodservice establishments, and industrial-scale production facilities. This distribution channel often includes personalized customer interactions, such as sales representatives providing product information, samples, and tailored solutions to meet specific bakery needs. Direct sales channels are crucial for building long-term relationships with bakery businesses to ensure timely delivery.
Supermarkets and hypermarkets are brick-and-mortar stores that offer a wide range of bakery goods and are easily accessible to the public. This store allows consumers to choose from various brands and types based on their preferences and needs. It also provides opportunities for promotional activities and point-of-sale marketing to influence consumer purchasing decisions.
Online stores allow consumers and businesses to browse, compare, and purchase products conveniently from the comfort of their homes or offices. They provide a detailed product description and customer reviews and often feature competitive pricing. Additionally, they offer enhanced convenience of doorstep delivery, which is offering a positive market outlook.
Breakup by End-Use:
The report has provided a detailed breakup and analysis of the market based on the end-use. This includes commercial and residential.
The commercial segment primarily caters to businesses and enterprises involved in large-scale baking operations, including bakeries, pastry shops, confectioneries, and foodservice establishments. Commercial bakeries use these fats in a wide range of products, such as bread, pastries, cakes, and cookies, to achieve the desired texture, taste, and consistency in commercial baked goods. Besides this, foodservice establishments, such as restaurants, cafes, hotels, and catering services, rely on these fats to create baked items for their menus. These fats play a crucial role in ensuring consistency and quality across their offerings.
In the residential segment, these fats are widely utilized by individuals for cooking various bakery products, such as cakes, cookies, pies, and various other homemade baked goods. In addition, many consumers use pre-packaged bakery fats for convenience in their home baking. These fats are available in smaller, consumer-friendly packaging for household use.
Breakup by Region:
- North America
- Asia Pacific
- South Korea
- United Kingdom
- Latin America
- Middle East and Africa
Asia Pacific exhibits a clear dominance, accounting for the largest bakery fats market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.
Asia Pacific held the biggest market share due to the increasing consumer preferences for bakery products. In addition, the rising consumption of bakery fats in commercial bakeries is strengthening the growth of the market in the Asia Pacific region. Besides this, the wide availability of a variety of vegetable oils and fats is offering a positive market outlook. In line with this, the rising number of cafes, restaurants, resorts, and hotels is supporting the growth of the market in the region.
Several key players in the market are investing in research and development (R&D) activities to create innovative products that cater to changing consumer demands. This includes developing bakery fats with improved nutritional profiles, cleaner labels, and specialty formulations for specific applications. Moreover, they are focusing on creating clean label fats, using natural and minimally processed ingredients with fewer additives. Apart from this, manufacturers are reformulating these fats to reduce trans fats, saturated fats, and allergens to attract health-conscious consumers across the globe. In line with this, they are providing customized solutions for commercial bakeries and foodservice establishments by working closely with clients to develop products that cater to specific product requirements and applications.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- AAK (UK) Limited
- CSM Bakery Solutions
- Fuji Oil Co. Ltd.
- Goodman Fielder
- Premium Vegetable Oils Sdn Bhd
- Wilmar International
- In 2023 , Cargill partnered with alternative fat producers Cubiq Foods to bring Cubiq’s plant-based fat technologies to market. Cargill will add various plant-based oils to its ingredient portfolio and co-develop and release innovations based on Cubiq’s technology as part of the agreement.
- In 2023 , CSM Ingredients inaugurated new innovation center in Germany, dedicated to fats, oils and emulsifiers with the objective to create and deliver solutions in plant-based and sustainable food technologies.
- In 2020 , Cargill opened a high-pressure hydrogenation plant in Kurkumbh, Maharashtra to manufacture superior bypass fat, a health and nutrition supplement for dairy cattle. This plant will also manufacture specialty vegetable oil-based waxes for industrial application.
Bakery Fats Market Report Scope:
|Base Year of the Analysis
|Scope of the Report
|Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
- Product Type
|Product Types Covered
|Margarine, Shortening, Bakery Oils, Others
|Direct Sales, Supermarkets and Hypermarkets, Online Stores, Retail Stores, Others
| Asia Pacific, Europe, North America, Latin America, Middle East and Africa
|United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
|AAK (UK) Limited, Cargill, ConAgra, CSM Bakery Solutions, Fuji Oil Co. Ltd., Goodman Fielder, Premium Vegetable Oils Sdn Bhd, Unilever, Wilmar International, etc.
|10% Free Customization
|Report Price and Purchase Option
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|Post-Sale Analyst Support
|PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)
Key Benefits for Stakeholders:
- IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the bakery fats market from 2018-2032.
- The research report study provides the latest information on the market drivers, challenges, and opportunities in the global bakery fats market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the bakery fats industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.