Global Shortening Powder Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Source;
Palm, Soybean, and Others.By End-Use;
Food Industry, Foodservice/HoReCa (Hotels/Restaurants/Café), and Household.By Sales Channel;
Direct Sales, Indirect Sales, Hypermarkets/Supermarkets, Wholesalers, Convenience Stores, Specialty Stores, and Online Retailers.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global Shortening Powder Market (USD Million), 2021 - 2031
In the year 2024, the Global Shortening Powder Market was valued at USD 5,033.86 million. The size of this market is expected to increase to USD 6,768.22 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 4.3%.
The global shortening powder market is an essential segment within the food and beverage industry, characterized by the production and use of powdered shortening products designed to provide the functional benefits of traditional shortening fats in a more convenient and versatile form. Shortening powder, derived from solid or liquid shortening through a specialized process, is utilized primarily in baking and food processing to enhance texture, flavor, and shelf life. It offers a range of advantages, including easier handling, precise formulation, and improved blending with dry ingredients.
As the food industry evolves, the demand for shortening powder has grown due to its ability to streamline production processes and support the creation of high-quality baked goods and processed foods. The market is driven by the increasing preference for convenience foods, the rise of automated baking processes, and the need for consistent product performance across various food applications. Shortening powder provides a valuable solution for manufacturers looking to achieve desired textural properties and extend the shelf life of their products without the complications associated with handling liquid or solid fats.
In addition to its functional benefits, shortening powder aligns with industry trends towards cleaner labels and improved nutritional profiles. Innovations in formulation and production are addressing consumer demands for healthier alternatives by reducing trans fats and incorporating beneficial ingredients. The global shortening powder market is also influenced by evolving dietary preferences, technological advancements, and regional market dynamics, which shape the development and adoption of these products.
Global Shortening Powder Market Recent Developments
- In November 2021, a company unveiled an advanced shelling machine that uses artificial intelligence to optimize the shelling process for different nut varieties.
- In January 2024, a machinery manufacturer introduced a new high-efficiency shelling machine designed to reduce waste and improve productivity for nut processing facilities.
Segment Analysis
In terms of source, the market includes palm, soybean, and other types of shortening powders. Palm-based shortening powders are valued for their stability and high melting point, making them suitable for various baking applications and processed foods. Palm oil's unique properties contribute to the desirable texture and shelf life of food products. Soybean-based shortening powders are popular for their neutral flavor and balanced fatty acid profile, offering versatility in both baking and cooking. They are often chosen for applications requiring a lighter taste and improved nutritional profile. Additionally, other sources of shortening powders, which may include sunflower, canola, or blends of different oils, cater to specific needs and preferences, providing options that align with health trends and regional dietary requirements.
Regarding end-use, the market is segmented into the food industry, foodservice/HoReCa (Hotels/Restaurants/Café), and household applications. In the food industry, shortening powders are crucial for large-scale production of baked goods, snacks, and confectioneries. Their ability to ensure consistency and quality in mass-produced items makes them indispensable. The foodservice sector, encompassing hotels, restaurants, and cafés, utilizes shortening powders to achieve uniformity and efficiency in food preparation. Shortening powders help streamline operations and maintain high standards in commercial kitchens. For household use, shortening powders offer convenience and versatility for home bakers and cooks, simplifying the preparation of various recipes while delivering consistent results.
The market is also segmented by sales channel, which includes direct sales, indirect sales, hypermarkets/supermarkets, wholesalers, convenience stores, specialty stores, and online retailers. Direct sales involve manufacturers or distributors selling directly to large-scale buyers or food producers, ensuring tailored solutions and bulk purchasing. Indirect sales encompass various intermediaries who distribute products to different market segments. Hypermarkets and supermarkets are key retail channels where consumers can purchase shortening powders for both household and professional use. Wholesalers play a crucial role in distributing products to smaller retailers and foodservice establishments. Convenience stores and specialty stores cater to niche markets and specific consumer needs, offering a curated selection of shortening powders. Online retailers provide a growing channel for both individual consumers and businesses, offering convenience and a wide range of product options with the ease of online shopping.
Global Shortening Powder Segment Analysis
In this report, the Global Shortening Powder Market has been segmented by Source, End-Use, Sales Channel and Geography.
Global Shortening Powder Market, Segmentation by Source
The Global Shortening Powder Market has been segmented by Source into Palm, Soybean and Others.
Palm-based shortening powders are derived from palm oil, known for its high stability and resistance to oxidation. This makes palm-based powders ideal for applications requiring durability and a longer shelf life, such as in baked goods and processed foods. The unique properties of palm oil, including its solid consistency at room temperature, enhance the texture and structure of various food products. Despite its benefits, palm oil’s environmental impact and health concerns related to saturated fats have prompted the market to explore more sustainable and health-conscious alternatives.
Soybean-based shortening powders are produced from soybean oil, which offers a neutral flavor and a balanced profile of fatty acids. These characteristics make soybean-based powders versatile for use in a wide range of food products, including baked goods, snacks, and confectioneries. Soybean oil’s relatively low cost and functional benefits, such as improved texture and ease of blending, contribute to its popularity in the food industry. Additionally, the growing demand for plant-based and healthier options has further driven the use of soybean-based shortening powders.
Other sources of shortening powders encompass a variety of oils and fats, such as sunflower, canola, and blends of different vegetable oils. These alternatives provide flexibility to meet specific dietary preferences and health considerations. For instance, sunflower-based powders are valued for their light flavor and high oleic content, which supports heart-healthy formulations. Canola oil, known for its low saturated fat and high monounsaturated fat content, is another alternative that aligns with health trends. The use of blended oils allows manufacturers to tailor shortening powders to specific functional requirements and consumer preferences.
Global Shortening Powder Market, Segmentation by End-Use
The Global Shortening Powder Market has been segmented by End-Use into Food Industry, Foodservice/HoReCa (Hotels/Restaurants/Caf) and Household.
In the food industry, shortening powders are essential for large-scale production processes that require consistency and efficiency. This segment includes manufacturers of baked goods, snacks, and confectioneries, where shortening powders play a crucial role in achieving the desired texture, flavor, and shelf life of products. The ability of shortening powders to ensure uniformity and quality in mass-produced items makes them a valuable ingredient for maintaining high standards in industrial food production. Their stability and ease of incorporation into recipes contribute to streamlined operations and reliable product performance.
The foodservice sector, encompassing hotels, restaurants, and cafés (HoReCa), relies on shortening powders to support commercial food preparation and service. In this segment, the convenience of using shortening powders helps chefs and foodservice professionals achieve consistent results in a high-volume setting. Shortening powders are used in various applications, from baking pastries and cakes to frying and creating sauces. The ability to maintain product quality and performance while managing large-scale food production makes shortening powders a preferred choice for foodservice establishments looking to deliver high-quality dishes efficiently.
For household applications, shortening powders offer versatility and convenience for home bakers and cooks. Consumers use these powders in a range of home-cooked meals and baked goods, benefiting from the ease of storage and precise formulation that shortening powders provide. Household use of shortening powders simplifies the preparation of recipes, contributing to consistent baking results and enhancing the texture and flavor of homemade treats. The availability of shortening powders in consumer-friendly packaging supports the growing trend of home baking and cooking, aligning with the preferences of today’s health-conscious and convenience-oriented consumers.
Global Shortening Powder Market, Segmentation by Sales Channel
The Global Shortening Powder Market has been segmented by Sales Channel into Direct Sales, Indirect Sales, Hypermarkets/Supermarkets, Wholesalers, Convenience Stores, Specialty Stores and Online Retailers.
Direct sales involve transactions where manufacturers or distributors sell shortening powders directly to large-scale buyers, such as food producers or industrial users. This sales channel allows for tailored solutions and bulk purchases, facilitating a close relationship between suppliers and major clients. Direct sales enable manufacturers to provide customized products and support to meet specific needs, ensuring efficient supply and adherence to large-scale production requirements.
Indirect sales encompass various intermediaries who facilitate the distribution of shortening powders from manufacturers to end-users. This channel includes distributors, brokers, and agents who play a critical role in expanding market reach and managing the logistics of product distribution. Indirect sales help bridge the gap between manufacturers and a broader network of buyers, including smaller food producers and retail outlets.
Hypermarkets and supermarkets are key retail channels where consumers and businesses can purchase shortening powders. These large retail formats offer a wide range of food products, including shortening powders, catering to both household and professional needs. Hypermarkets and supermarkets provide convenient access to shortening powders for consumers who prefer shopping in physical stores, as well as for businesses seeking bulk purchases.
Wholesalers are integral to the distribution network, supplying shortening powders to various retail and foodservice establishments. Wholesalers purchase products in large quantities and distribute them to smaller retailers, foodservice providers, and other businesses. This channel ensures that shortening powders are available across different market segments and locations, supporting the supply chain efficiency.
Convenience stores and specialty stores offer niche market access and cater to specific consumer needs. Convenience stores provide quick access to essential products, including shortening powders, for consumers seeking convenience and immediate availability. Specialty stores, which focus on particular product categories or dietary preferences, may offer specialized shortening powders that align with specific health trends or culinary requirements.
Online retailers represent a growing sales channel, driven by the increasing trend of e-commerce. Online platforms provide a convenient shopping experience for both individual consumers and businesses, offering a wide selection of shortening powders with the ease of online ordering and home delivery. The expansion of online retail channels reflects changing consumer habits and the demand for flexible shopping options.
Global Shortening Powder Market, Segmentation by Geography
In this report, the Global Shortening Powder Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Shortening Powder Market Share (%), by Geographical Region, 2024
In North America, particularly the United States and Canada, the market for shortening powders benefits from a well-established food processing industry and a high demand for convenience foods. The region's robust bakery and confectionery sectors drive significant consumption of shortening powders, which are essential for maintaining the quality and consistency of mass-produced baked goods and snacks. The increasing trend towards healthier formulations and cleaner labels also influences the market, with a growing emphasis on reducing trans fats and incorporating alternative ingredients.
Europe presents a diverse market with varying trends across Western and Eastern Europe. In Western Europe, countries like Germany, France, and the United Kingdom have mature food industries that demand high-quality shortening powders for a wide range of applications, from baked goods to processed foods. The region’s strict regulations on food safety and nutritional content drive innovation and reformulation efforts. In Eastern Europe, the market is expanding as the food industry develops and consumer preferences shift towards more processed and convenience-oriented products.
The Asia-Pacific region is the largest and fastest-growing market for shortening powders, driven by rapid economic growth, urbanization, and rising disposable incomes in countries such as China, India, and Japan. The increasing demand for processed foods and snacks, coupled with the expansion of modern retail and foodservice sectors, fuels the growth of the shortening powder market. Additionally, the region’s diverse culinary traditions and evolving dietary habits contribute to the demand for various types of shortening powders tailored to local preferences.
In Latin America, countries such as Brazil and Mexico are experiencing gradual growth in the shortening powder market. The expanding food and beverage industry, combined with rising consumer demand for convenience foods, supports the market’s development. As urbanization progresses and lifestyles become busier, the need for shortening powders in baked goods and snacks is expected to increase. The market is still developing, but there is significant potential for growth as the region's food industry continues to evolve.
The Middle East and Africa represent emerging markets with growing opportunities for shortening powders. In regions such as South Africa and the United Arab Emirates, economic development and increasing consumer demand for processed and convenience foods drive market expansion. However, challenges such as supply chain limitations and varying consumer preferences can impact market growth. As infrastructure improves and economic conditions stabilize, the market for shortening powders in these regions is likely to see further development.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Shortening Powder Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers :
- Convenience foods
- Automated baking processes
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Consistent product performance - Consistent product performance is a crucial factor in the global shortening powder market, influencing both manufacturing efficiency and consumer satisfaction. Shortening powders must deliver reliable results across various food applications, from baking to cooking, to meet the stringent demands of industrial food production and consumer expectations. This consistency ensures that products maintain their desired texture, flavor, and shelf life, regardless of production scale or location.
In the food industry, consistent performance of shortening powders is essential for large-scale manufacturing processes. Food producers rely on these powders to achieve uniform quality in baked goods, snacks, and confectioneries. The ability of shortening powders to provide stable and predictable results helps manufacturers streamline their production processes, reduce waste, and ensure product quality. Consistency in performance also facilitates adherence to standardized recipes and formulations, allowing for efficient scaling of production and reliable product output.
For the foodservice sector, including hotels, restaurants, and cafés (HoReCa), consistent performance is key to delivering high-quality dishes and maintaining customer satisfaction. In commercial kitchens, where large volumes of food are prepared daily, shortening powders must perform reliably to ensure that each batch of baked goods, pastries, or fried items meets the establishment's quality standards. The ability to achieve consistent texture, flavor, and appearance contributes to a positive dining experience and helps foodservice operators maintain a strong reputation.
In household applications, consumers value shortening powders that deliver reliable results in home baking and cooking. Consistent product performance ensures that recipes turn out as expected, providing a satisfying and predictable culinary experience. Home bakers and cooks rely on shortening powders to achieve desired textures in cakes, cookies, and other baked goods, as well as to enhance the quality of homemade meals. The reliability of shortening powders in household use supports their popularity and encourages consumer trust in their effectiveness.
Restraints :
- High production costs
- Limited awareness or adoption
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Supply chain disruptions - Supply chain disruptions pose significant challenges in the global shortening powder market, impacting production, distribution, and overall market stability. These disruptions can arise from various factors, including logistical issues, geopolitical events, natural disasters, and fluctuations in raw material availability, each of which affects the flow of shortening powders from manufacturers to end-users.
Logistical issues, such as transportation delays and inefficiencies, can disrupt the timely delivery of raw materials and finished products. This can lead to production delays and inventory shortages, impacting the ability of manufacturers to meet market demand. For example, shipping delays due to port congestion or disruptions in transportation networks can result in stockouts and increased lead times, affecting both food producers and retailers.
Geopolitical events, such as trade wars, sanctions, or political instability, can also affect the supply chain for shortening powders. These events can lead to changes in trade policies, increased tariffs, and restrictions on the import and export of raw materials. Such disruptions can increase costs and create uncertainty in the supply chain, making it challenging for companies to manage procurement and production effectively.
Natural disasters, including hurricanes, floods, and droughts, can impact the production of raw materials used in shortening powders, such as palm oil or soybean oil. Disruptions in agricultural production can lead to shortages and price volatility for these essential ingredients, affecting the overall supply chain. For instance, a drought in a major soybean-producing region can reduce crop yields, leading to higher raw material costs and potential supply constraints.
Fluctuations in raw material availability can further complicate supply chain management. Variability in crop yields, changes in agricultural practices, and market dynamics can affect the availability and cost of raw materials needed for shortening powders. This can result in supply shortages, price increases, and the need for manufacturers to seek alternative sources or adjust their product formulations.
Opportunities :
- Growth in convenience foods
- Innovations in healthier formulations
-
Expansion into emerging markets - Expansion into emerging markets presents a significant opportunity for the global shortening powder market, driven by the rapid economic growth, urbanization, and evolving consumer preferences in these regions. Emerging markets, particularly in Asia-Pacific, Latin America, and parts of Africa, offer considerable potential due to their expanding food and beverage industries and increasing disposable incomes.
In the Asia-Pacific region, countries like China and India are experiencing substantial economic development and urbanization, leading to a rise in consumer demand for processed and convenience foods. As middle-class populations grow and lifestyles become busier, there is a heightened demand for products that offer convenience and efficiency in food preparation. Shortening powders cater to this demand by providing consistent quality and ease of use in a variety of food applications, including baking, snacks, and confectioneries. The expansion into these markets allows shortening powder manufacturers to tap into a large and growing consumer base, capitalizing on the increasing trend towards convenience foods and modern retail formats.
Latin America, with key markets such as Brazil and Mexico, is also witnessing growth in the shortening powder sector. The region's expanding food and beverage industry, coupled with rising consumer incomes, supports the demand for shortening powders used in baked goods, snacks, and other processed foods. As urbanization progresses and consumer preferences shift towards more convenient and ready-to-eat food options, shortening powders can address these needs by enhancing the texture and quality of various food products. The opportunity for growth in Latin America lies in adapting to local tastes and preferences while leveraging the region's growing food industry.
In Africa, although the market is still developing, there are emerging opportunities for shortening powders as economic conditions improve and urban centers expand. Countries such as South Africa and Nigeria are experiencing increased consumer demand for processed and convenience foods, driven by changing lifestyles and improved access to modern retail outlets. Shortening powders can play a role in meeting this demand by offering reliable and high-quality ingredients for local food production. As infrastructure and economic conditions stabilize, the market for shortening powders in Africa is expected to grow, providing opportunities for market expansion and development.
Competitive Landscape Analysis
Key players in Global Shortening Powder Market include :
- Archer Daniels Midland Company
- Cargill, Incorporated
- Augason Farms
- The J.M. Smucker Company
- Honeyville, Inc.
- Bluegrass Dairy & Food, Inc.
- DairiConcepts, L.P.
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Source
- Market Snapshot, By End-Use
- Market Snapshot, By Sales Channel
- Market Snapshot, By Region
- Global Shortening Powder Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Convenience foods
- Automated baking processes
- Consistent product performance
- Restraints
- High production costs
- Limited awareness or adoption
- Supply chain disruptions
- Opportunities
- Growth in convenience foods
- Innovations in healthier formulations
- Expansion into emerging markets
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
-
Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Shortening Powder Market, By Source, 2021 - 2031 (USD Million)
- Palm
- Soybean
- Others
- Global Shortening Powder Market, By End-Use, 2021 - 2031 (USD Million)
- Food Industry
- Foodservice/HoReCa (Hotels/Restaurants/Café)
- Household
- Global Shortening Powder Market, By Sales Channel, 2021 - 2031 (USD Million)
- Direct Sales
- Indirect Sales
- Hypermarkets/Supermarkets
- Wholesalers
- Convenience Stores
- Specialty Stores
- Online Retailers
- Global Shortening Powder Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia/New Zealand
- South Korea
- ASEAN
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Shortening Powder Market, By Source, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Archer Daniels Midland Company
- Cargill, Incorporated
- Augason Farms
- The J.M. Smucker Company
- Honeyville, Inc.
- Bluegrass Dairy & Food, Inc.
- DairiConcepts, L.P.
- Company Profiles
- Analyst Views
- Future Outlook of the Market