The vegetable shortening market has established itself for steady growth from 2025 to 2035 because food processing industries require more shortening for bakery items and confectionery products and convenience food production. The production of vegetable shortening starts with plant oils that undergo hydrogenation or semi-hydrogenation processes to create a final product which enhances food processing characteristics including texture and shelf life as well as moisture retention.
Manufacturers remain active in developing shortening blends to fulfil the requirements of consumers seeking healthier plant-based and trans-fat-free options which satisfy both health standards and functional requirements. The shortening market will increase to USD 7,977.6 million by 2035 from its initial value of USD 5,710.4 million in 2025 with an estimated Compound Annual Growth Rate (CAGR) of 3.4%.
The market expands at present because of growing urban populations and increasing convenience eating patterns as well as the growing presence of quick-service restaurants (QSRs). The future of hydrogenated fat alternatives looks promising due to developing palm-free formulation techniques together with non-hydrogenated products.
Leading manufacturers have made a commitment to acquire environmentally-friendly raw materials and maintain regulatory standards and optimize shortening solutions across varied baking sectors. Vegetable shortening serves as an adaptable food ingredient for modern manufacturing facilities because of new plant-based and flexible product developments.
Key Market Metrics
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 5,710.4 million |
| Industry Value (2035F) | USD 7,977.6 million |
| CAGR (2025 to 2035) | 3.4% |
Both the product type and application segments of the vegetable shortening market decide how the shortening maintains its texture along with its stability and its appropriate usage cases. The majority of shortening market share belongs to non-emulsion type shortening because it is vital for baked goods that need solid fats to maintain structure and achieve flakiness.
The product shows high resistance to oxidation and the ability to mix well with flour which makes it optimal for industrial-scale operations. Applications within bakery maintain their position as the market's top segment since vegetable shortening gets used intensively for making pie crusts and cookies and pastries to achieve flakiness as well as improve resistance to spoilage and taste sensation. Processed foods depend heavily on shortening because it serves as a vital ingredient that manages texture as well as preservation quality.
North America remains a key region of growth, supported by high bakery consumption and the expansion of foodservice. In the USA and Canada, non-hydrogenated vegetable shortening is preferred for commercial baking in order to accommodate health-conscious consumers.
Companies are setting their sights on palm-free and sustainable sourcing. Retailers and QSR chains are leaning toward shortened variants that fit with clean-label trends, and there is a focus on changing regulatory labelling requirements, supporting growth in the long term regional market.
In Europe, demand is for clean-label and sustainable shortening formulations as strict food regulations take hold. Germany, France and the UK Sources emphasize emulsion-type shortening in premium confectionery and instant food applications.
Non-GMO and RSPO-certified ingredients are being chosen by European manufacturers. In response to the rise of plant-based bakery trends, the region is turning to shortening options that facilitate not only functionality but also eco-friendly processing, spurred on by bakery chains and packaged food manufacturers.
The Asia-Pacific region also demonstrates strong growth, supported by advancing bakery industries, urbanization, and growing needs for processed snacks. Vegetable shortening is used in the manufacturing of instant noodles and pastries in countries such as China, India, Indonesia, and Japan.
Regionally based producers are refocusing shortening formulations for local tastes and climate. We expect the use of healthier, vegetable-based shortening alternatives to be driven by government food safety initiatives and increasing awareness around trans-fat reduction.
Health Concerns and Regulatory Pressure on Trans Fats
The market for vegetable shortening is challenged by growing consumer awareness regarding Trans fats and increasing guidelines in various global markets. Old-fashioned hydrogenated shortenings have been associated with cardiovascular disease, which led officials in the United States, Europe and Asia to ban or limit industrial Tran’s fats.
Manufacturers continue to struggle to reformulate shortenings to this standard without sacrificing texture, shelf life or flavor. So escalating demand for clean-label, as well as non-GMO, products is complicating matters, particularly within baked foods and frying applications, where shortening is critical for functional attributes, mouthfeel, and oxidative stability.
Growth in Plant-Based Foods and Reformulated Clean-Label Products
The new alternatives to traditional lard and tallow, driven by current interest in health improvement and plant-based eating, which has led to a shift on the fat content in various meals. Manufacturers have achieved this with trans-fat free formulations that include palm, canola and soybean oils plus emulsifiers and antioxidants. There is a rising demand from the bakery, confectionery and foodservice industries for shortenings capable of supporting vegan labelling and enhanced nutritional profiles.
Brands chasing health-minded consumers are drawn to reformulated shortenings with less saturated fat and more stability. With plant-based diets around the world growing to new heights, the new developments of vegetable shortenings free from animal fats are a key driver in product development for snack foods, pastries and dairy-free spreadable products.
During 2020 to 2024, the trans-fat reduction of vegetable shortening was the major concern for manufacturers while upholding most of the texture and consistency needed for commercial baking and frying. New health regulations forced manufacturers to stop using partially hydrogenated oils, and they turned to fully hydrogenated oils and blends with interesterified fats instead.
Between 2025 and 2035, the market will migrate to cleaner, sustainable solutions with improved nutritional value. Innovations will centre on palm-free, non-hydrogenated shortenings with functional benefits and sustainable sourcing. In the bakery and confectionery spaces, plant-based and allergen-free versions will become essential as clean-label requirements and consumer health awareness drive the priorities of food formulation.
Market Shifts: Comparative Analysis (2020 to 2024 vs. 2025 to 2035)
| Market Factor | 2020 to 2024 |
|---|---|
| Regulatory Landscape | Global trans-fat bans and labelling requirements. |
| Technological Advancements | Reformulation with fully hydrogenated and interesterified oils. |
| Sustainability Trends | Limited focus on deforestation-free and carbon-neutral sourcing. |
| Market Competition | Dominated by major edible oil processors and bakery suppliers. |
| Industry Adoption | Common in bakery, snack foods, and fast-food frying. |
| Consumer Preferences | Focused on texture, shelf life, and price. |
| Market Growth Drivers | Regulatory compliance and commercial baking demand. |
| Market Factor | 2025 to 2035 |
|---|---|
| Regulatory Landscape | Expansion to palm oil sourcing rules and front-of-pack nutrition scoring. |
| Technological Advancements | Rise of structured lipids, enzymatic interesterification , and clean emulsifier systems. |
| Sustainability Trends | Strong demand for RSPO-certified, palm-free, and low-impact ingredients. |
| Market Competition | Entry of plant-based fat innovators and regional clean-label formulators. |
| Industry Adoption | Expands to vegan alternatives, functional foods, and home baking kits. |
| Consumer Preferences | Shift to non-GMO, clean-label, low-fat, and sustainable fat solutions. |
| Market Growth Drivers | Accelerated by plant-based trends, ethical sourcing, and health-forward reformulation. |
In the USA, the demand for vegetable shortening is notable in large scale bakeries, snack manufacturing companies and the foodservice industry on the whole which continues to propel the vegetable shortening market in the country. Vegetable shortening has been used for decades because it helps produce flaky baked goods and extends shelf life in processed foods.
Meeting those FDA guidelines and consumer health concerns, USA producers are moving toward trans-fat-free formulations consisting of palm, soybean and canola oils. Clean-label and non-hydrogenated shortenings are becoming increasingly popular in commercial and retail sectors.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 3.2% |
In the UK, the vegetable shortening industry is experiencing continuous growth, which is mainly driven by demand for bakery and confectionery products. In the UK, food manufacturers are adding shortening to pies, pastries, and cake icings, with increasing focus on plant-based and allergen-free recipes.
The push to cut back on saturated fat and remove partially hydrogenated oils are energizing product development. Vegetable-based shortenings are being more commonly preferred in vegan food formulations, particularly with the growing demand for dairy-free and clean-label baking fats.
| Country | CAGR (2025 to 2035) |
|---|---|
| UK | 3.1% |
Germany, France, and the Netherlands are potential contributors to the growth of vegetable shortening in the European Union, which is a developed and innovation-led market. Shortening is widely used by EU food producers in baked goods, processed snacks, and frozen desserts.
Regulations on industrial Tran’s fats have put more positive pressure in the direction of no hydrogenated and palm-free fats. Sustainable, traceable plant oil sources and ethical, organic product lines are driving procurement and product development across the region.
| Region | CAGR (2025 to 2035) |
|---|---|
| European Union | 3.4% |
Japan's vegetable shortening segment is expanding steadily, as demand is entangled in high-quality bakery and dessert manufacturing. For cakes and confectionery Japanese patisseries and food manufacturers tend to prefer a shortening that provides a lighter texture with a clean mouthfeel.
Trends in health consciousness are ushering a shift away from the old animal fats and towards low-trans fat vegetable substitutes. Manufacturers are also implementing small-batch processing and high-oleic oil inputs in order to meet taste and quality standards in specific locations.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 3.0% |
The oil and fats market in South Korea is also experiencing a positive growth trajectory, due to the economy's growing consumption of packaged baked goods, frozen snacks, and fried foods, contributing to strengthen the demand for vegetable shortening. Food manufacturers want shortenings that are stable, odourless and offer batch to batch consistency, both for industrial baking and in the home.
Western-style pastries and desserts are gaining ground and a growing array of vegan products is driving innovation in soy, sunflower and coconut-based shortenings. South Korean businesses are also touting no GMO and cholesterol free labelling for health-conscious consumers.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 3.7% |
Data for the vegetable shortening market are globally provided across different regions, owing to the sustainability in the vegetable shortening market, due to consumer preference towards plant-based alternatives in processed food formulations and bakery production. Vegetable shortening improves the textural quality of food; adds shelf life; and aids in keeping flavors intact.
By product type, emulsion-type shortening dominates the market as it retains moisture better, uniformly blend into all recipes, and exhibits high performance in both baking as well as confectionery. On the application front, the bakery industry holds the largest market share in terms of demand by using vegetable shortening in cakes, cookies, and pie crusts to provide flakiness and softness. Collectively, these segments demonstrate a market enabled by functional food innovation, texture optimization, and changing dietary preferences.
As the food industry moves to eliminate Tran’s fats and transition to sustainable, health-focused formulations, manufacturers use vegetable-based shortenings that satisfy labelling and performance criteria. Products in the emulsion form and the ever expanding bakery segment are still vital in meeting consumer demands of consistency in product, flavour and freshness.
| Product Type | Market Share (2025) |
|---|---|
| Emulsion Type | 58.2% |
Emulsion-type shortening holds the leading share owing to its unique functional benefits in moisture control, aeration & stability in various processed food constructs. Emulsion shortening is favored by food processors due to its ability to uniformly disperse water and oil phases, aiding in consistency and product longevity. In industrial baking and confectionery, this shortening type contributes desirable textures such as creaminess, flakiness, and lightness most particularly in cakes, muffins and fillings. This also allows for compatibility with other emulsifiers and ingredients, simplifying mixing and reducing processing times.
As manufacturers continue to respond to the clean-label trend and regulatory pressure to remove partially hydrogenated oils, emulsion-type shortening is becoming more popular in the new product arena. These days, new formulations based on palm, soybean or sunflower oils are introduced to satisfy a consumer demand for sustainable, non-GMO and cholesterol-free options.
Emulsion-based shortenings improve freeze-thaw stability, which helps finished products keep their structure and mouthfeel through distribution. Emulsion-type vegetable shortening remains a key product, as global brands work to develop new formulations for legacy recipes to enhance nutritional profiles for consumers with allergen concerns.
| Application | Market Share (2025) |
|---|---|
| Bakery | 64.7% |
Application-wise, the bakery industry holds the largest share by using shortening to produce light, flaky, and moist textures in a range of baked goods. From industrial-scale cookie making to artisanal croissants and laminated doughs, shortening is key for shaping dough consistency, controlling spread, optimizing mouthfeel, and more.
Vegetable shortening because it can limit gluten development, vegetable shortening is prized by bakers for adding tenderness to pastries and quick breads. Vegetable shortening prevents food spoilage and protects food from oxidation due to its fairly neutral flavour, helping to preserve the taste of other ingredients.
As the demand for vegan and allergen-free baked products rises, bakers seek alternatives to butter or lard that also perform. For shelf-stable baked goods with a long distribution cycle, such as snack cakes, crackers and biscuits, vegetable shortening ensures consistent performance, maintaining freshness throughout the shelf life of the product.
As the global bakery market grows in developing markets and in convenience-friendly formats, the importance of shortening as a means to provide product consistency and long shelf life only increases. The bakery sector's dependence on high-functioning vegetable-based fats will continue to be influenced by the innovation of Tran’s fat-free and organic shortening hybrids.
The global vegetable shortening marketplace is an important part of the baking, confectionery, frying and foodservice utility areas. Vegetable shortening most often some form of hydrogenated oil or palm-based oil has a neutral flavor, a high smoke point, and a solid form at room temperature. It is central to improving the texture, flakiness, and shelf life of baked goods and processed foods.
Industrial food production solicits the need for the demand of fat alternatives in combination with the affordability created for its substitute as per the trends in the market.8 Growing demand of trans-fat free and non-GMO products also boosts the market growth in the forecasted years. Manufacturers are competing on melting profile, clean-label compliance, and formulation versatility with respect to temperature ranges.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Cargill, Incorporated | 20 - 24% |
| Bunge Limited | 15 - 19% |
| Archer Daniels Midland Company (ADM) | 12 - 16% |
| Wilmar International Ltd. | 9 - 13% |
| Ventura Foods, LLC | 7 - 11% |
| IOI Loders Croklaan | 6 - 10% |
| Other Companies (combined) | 18 - 26% |
| Company Name | Key Offerings/Activities |
|---|---|
| Cargill, Incorporated | Launched trans-fat-free vegetable shortenings under the PalmAgility ™ line for bakery and snack manufacturers in 2025. |
| Bunge Limited | Expanded emulsified shortenings portfolio with high aeration performance for cakes and icings in 2024. |
| ADM | Released clean-label, non-hydrogenated shortenings tailored for laminated doughs and industrial frying in 2024. |
| Wilmar International | Introduced customizable palm-based shortenings with various melting profiles for tropical market conditions in 2025. |
| Ventura Foods, LLC | Rolled out Phase® Gold premium all-purpose shortenings for quick-service restaurants and institutional baking in 2024. |
| IOI Loders Croklaan | Developed Vream ® specialty shortenings with low saturates and improved plasticity for bakery applications in 2025. |
Key Company Insights
Cargill, Incorporated
Cargill leads the vegetable shortening market with its PalmAgility™ series, offering versatile, trans-fat-free products with consistent performance across a broad temperature range. Its innovations target bakers seeking smooth handling and enhanced shelf life in pastries and doughs.
Bunge Limited
Bunge supplies specialty emulsified and plastic shortenings designed for aerated batters, cake mixes, and frosting systems. Its ingredients are formulated for high-volume baking operations, delivering superior structure and moisture retention.
Archer Daniels Midland (ADM)
ADM provides a comprehensive range of non-hydrogenated and clean-label shortenings using high-oleic and mid-oleic oils. Its products meet diverse processing needs in industrial frying and pastry layering, with customizable fat profiles for label-friendly reformulation.
Wilmar International Ltd.
Wilmar offers palm-based vegetable shortenings optimized for tropical climates and long ambient shelf life. Its solutions include bulk shortenings for foodservice and structured fats tailored for pie crusts and laminated dough in Asian markets.
Ventura Foods, LLC
Ventura focuses on shortening solutions for foodservice and institutional baking through its Phase® product line. Its all-purpose and high-stability shortenings are engineered for batch consistency and easy storage in commercial kitchens.
IOI LodersCroklaan
IOI LodersCroklaan delivers premium specialty fats with improved melting behavior and plasticity. Its Vream® shortenings support cleaner formulations, lower saturated fat content, and smoother spreadability for artisan and industrial bakers alike.
Other Key Players (18-26% Combined)
Numerous regional manufacturers and niche fat processors contribute to the global vegetable shortening market through tailored fat systems, private-label production, and application-specific innovation:
The overall market size for the vegetable shortening market was USD 5,710.4 million in 2025.
The vegetable shortening market is expected to reach USD 7,977.6 million in 2035.
The increasing consumption of baked goods, rising demand for trans-fat alternatives, and growing use of emulsion-type shortening in bakery applications fuel the vegetable shortening market during the forecast period.
The top 5 countries driving the development of the vegetable shortening market are the USA, UK, European Union, Japan, and South Korea.
Emulsion-type shortening and bakery applications lead market growth to command a significant share over the assessment period.
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