Global Emulsified Shortenings Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In September 2022, BASF SE and US technology start-up RiKarbon Inc. announced an innovation partnership on emollients derived from bio-waste. By this, the partnership company widened its product portfolio and is moving towards sustainability.

• In August 2020, manufacturers focused on improving emulsified shortening blends, enhancing their functionality for baked goods and snack production, particularly in the growing vegan segment​.

The global emulsified shortenings market is segmented by form into dry, powder, pellets, and liquid, with each form offering specific advantages tailored to different production needs. Dry emulsified shortenings are particularly popular in applications that require easy mixing and blending, as they dissolve quickly and evenly, making them ideal for dry-mix applications in food processing and bakery products. Powdered emulsified shortenings share similar benefits, providing convenience and efficient handling, especially in the formulation of powdered mixes for bakery and confectionery items. Pellets are less common but are used in applications where precise measurement and easy handling are required, offering stability and consistent performance. Liquid emulsified shortenings are widely used in industries like food processing and dairy, where they facilitate smooth integration into liquid-based products like sauces, dressings, and ice cream, offering excellent emulsifying properties and enhancing texture and stability.

The source-based segmentation divides the emulsified shortenings market into plant-based and animal-based products, with the plant-based segment witnessing increasing demand due to the growing preference for vegetarian and vegan products. Plant-based emulsified shortenings are derived from oils like palm, sunflower, or soybean, and are favored for their clean-label appeal and suitability for various dietary preferences. These shortenings are commonly used in bakery, confectionery, and dairy products, meeting the rising demand for plant-based alternatives in processed foods. On the other hand, animal-based emulsified shortenings, often derived from sources like lard or beef tallow, offer unique properties such as richer flavor and texture, making them particularly valuable in certain traditional bakery and confectionery products. While the plant-based segment is growing rapidly, the animal-based segment still retains a significant share due to its functional advantages in specific product applications.

In terms of end-use, emulsified shortenings are extensively utilized across several industries, including food processing, bakery, confectionery, dairy, and desserts. In food processing, emulsified shortenings are used to enhance the texture, stability, and shelf life of processed foods like sauces, dressings, and ready-to-eat meals. The bakery segment remains one of the largest consumers, as emulsified shortenings are essential for creating tender and consistent products such as cakes, cookies, and bread. Similarly, in the confectionery industry, emulsified shortenings are crucial for providing smooth textures and improving the stability of products like chocolates, candies, and creams. The dairy sector, including products like ice cream and margarine, benefits from emulsified shortenings for creaminess and improved mouthfeel, while the desserts sector relies on them for smooth, stable formulations in products such as puddings and mousses. This diverse range of end-uses highlights the critical role of emulsified shortenings in improving the quality, consistency, and sensory attributes of various food products across multiple industries.

Global Emulsified Shortenings Segment Analysis

In this report, the Global Emulsified Shortenings Market has been segmented by Form, Source, End Use and Geography.

Global Emulsified Shortenings Market, Segmentation by Form

The Global Emulsified Shortenings Market has been segmented by Form into Dry, Powder, Pellets and Liquid.

The Global Emulsified Shortenings Market is diversified by form, catering to different industrial and culinary needs across various segments. Dry emulsified shortenings are typically solid or semi-solid at room temperature, offering stability and convenience in storage and handling. They are commonly used in bakery products where precise measurements and consistent texture are critical.

Powder emulsified shortenings are valued for their ease of dispersal and extended shelf life. They are favored in applications requiring uniform distribution of fats, such as powdered mixes for cakes, biscuits, and instant dessert preparations. This form allows manufacturers to achieve desired textures and flavors while enhancing product consistency.

Pellets in the emulsified shortenings market provide a convenient format for measured quantities in food production. These small, solid forms are easy to store, transport, and use in industrial settings, ensuring accurate dosing and reducing wastage during processing. They are suitable for applications where controlled melting and blending of fats are necessary, such as in confectionery and snack manufacturing.

Liquid emulsified shortenings offer flexibility in formulation and application. They are preferred for their pourability and ease of incorporation into recipes, providing homogeneous mixing and smoother textures in finished products. Liquid forms are commonly utilized in commercial baking, frying applications, and as bases for sauces and dressings, catering to diverse culinary and industrial needs worldwide.

Global Emulsified Shortenings Market, Segmentation by Source

The Global Emulsified Shortenings Market has been segmented by Source into Plant-based and Animal-based.

The Global Emulsified Shortenings Market is segmented by source into plant-based and animal-based categories, reflecting diverse sourcing preferences and nutritional considerations in the food industry. Plant-based emulsified shortenings are derived from vegetable oils such as palm, sunflower, soybean, or canola. These oils are often chosen for their versatility, neutral flavor profiles, and healthier fat compositions, making them suitable for consumers seeking vegetarian, vegan, or plant-forward dietary options.

On the other hand, animal-based emulsified shortenings are sourced from animal fats like lard or tallow. These fats are valued for their unique flavor contributions and functional properties in cooking and baking applications. Animal-based shortenings may appeal to traditional culinary practices and specific regional cuisines that prioritize the use of animal-derived ingredients for their sensory characteristics.

The choice between plant-based and animal-based emulsified shortenings often hinges on factors such as flavor requirements, dietary restrictions, and cultural preferences. Manufacturers and consumers alike consider these factors when selecting emulsified shortenings to achieve desired product attributes while aligning with evolving market trends towards sustainability, health-consciousness, and ethical sourcing practices.

Global Emulsified Shortenings Market, Segmentation by End Use

The Global Emulsified Shortenings Market has been segmented by End Use into Food Processing, Bakery, Confectionery, Dairy, and Desserts.

The global emulsified shortenings market is segmented by end-use into food processing, bakery, confectionery, dairy, and desserts, with each segment playing a significant role in driving market growth. The food processing segment is one of the largest consumers of emulsified shortenings, as these products are essential in enhancing texture, stability, and shelf life in a wide range of processed foods. Emulsified shortenings are used in products like sauces, dressings, and ready-to-eat meals, where they help maintain consistent quality and smoothness. Their ability to improve the mouthfeel and prevent separation of ingredients makes them indispensable in many food formulations, contributing to the expansion of this segment.

The bakery and confectionery industries are major contributors to the emulsified shortenings market, as these products are vital for achieving the desired texture and consistency in baked goods and sweets. In the bakery sector, emulsified shortenings are used in cakes, pastries, cookies, and bread to provide a tender crumb, improve dough handling, and extend freshness. In confectionery, they are key ingredients in chocolates, candies, and creams, where they help to achieve smooth, stable formulations that are resistant to melting. Both of these segments benefit from the growing demand for high-quality, convenient, and indulgent products, which fuels the need for emulsified shortenings to improve product characteristics and consumer appeal.

The dairy and desserts segments also contribute to the global emulsified shortenings market, albeit to a smaller extent. In dairy products, emulsified shortenings are used in items such as ice cream, margarine, and butter substitutes to enhance creaminess and prevent crystallization. In the desserts sector, they play a crucial role in the production of items like puddings, mousses, and custards, where they provide a smooth texture and prevent separation. As consumer preferences shift towards indulgent yet convenient products, the demand for emulsified shortenings in these segments is expected to grow, driven by their ability to improve product quality and consistency across various applications. This broad range of uses ensures that emulsified shortenings remain a crucial ingredient in multiple food sectors.

Global Emulsified Shortenings Market, Segmentation by Geography

In this report, the Global Emulsified Shortenings Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Emulsified Shortenings Market Share (%), by Geographical Region, 2024

The Global Emulsified Shortenings Market is segmented geographically into several key regions, each playing a significant role in shaping market trends and demand dynamics.

North America represents a mature market with robust demand driven by the thriving bakery and processed food industries. The region's preference for convenience foods and baked goods fuels the adoption of emulsified shortenings across various applications. Additionally, stringent regulations on trans fats and consumer demand for healthier ingredients continue to influence product formulations and market strategies.

Europe follows closely, characterized by a diverse culinary landscape and strong consumer preference for premium quality food products. Countries like Germany, France, and the UK lead in consumption, driven by the popularity of artisanal baking and confectionery. The emphasis on clean label products and sustainable sourcing practices further drives market innovation and differentiation among manufacturers.

Asia-Pacific emerges as a dynamic growth market propelled by rapid urbanization, changing dietary habits, and increasing disposable incomes. Countries such as China, India, and Japan are pivotal in the region's market expansion, driven by a burgeoning foodservice sector and rising demand for packaged foods. The adoption of emulsified shortenings in bakery, snacks, and ready-to-eat meals is driven by evolving consumer tastes and preferences for convenience and quality.

Latin America and the Middle East & Africa regions show promising growth potential, supported by urbanization trends, expanding food processing sectors, and rising consumer awareness about food quality and safety. These regions present opportunities for market penetration, driven by increasing consumption of bakery products and convenience foods. Overall, geographical segmentation underscores the diverse influences and opportunities shaping the Global Emulsified Shortenings Market across different regions worldwide.