Mr. Bhushan Tambe
Global Market Insights, Inc. Content Developer
Industrial margarine market is set to grow from its current market value of more than USD 2.75 billion to over USD 3.5 billion by 2025; according to a new research report by Global Market Insights, Inc. Industrial margarine market share is projected to witness significant growth prospects owing to the rising demand from the consumers for low-calorie food products. This has led to the rising adoption in baked food as a substitute for butter and oil in an attempt to meet the surging consumer demand.
Growing demand for low fat food & beverages owing to changing lifestyles and rising health consciousness should boost industrial margarine market growth. Global low calorie food market size surpassed USD 9.5 billion in 2018 which indicates ample growth potential. Young consumers are increasingly aware of the health benefits of adopting a healthy diet such as prevention of obesity and diabetes. Rising number of low-calorie food products stocked by supermarkets, and significant research & development initiatives undertaken by manufacturers to expand their product portfolio and offer improved products at low prices should further promote market growth.
Changing food preferences, rising disposable income and increasing packaged food consumption should fuel bakery sector growth and drive product demand. Global bread & bakery market size surpassed USD 460 billion in 2019 which is an indicator of tremendous growth opportunities. This product finds extensive usage in puff pastries, croissants, cakes, breads, sweet rolls and biscuits. Growing availability of in-store bakeries in hypermarkets & supermarkets which offer freshly-baked & pre-baked products should stimulate market growth.
Rising prevalence of stringent food regulations which seek to limit fat content in industrial margarine-based products should hinder market growth. For instance, EU Regulation (EC) no. 1308/2013 categorises the product in the “fats” group and levies restrictions on the milk-fat content. Similarly, Indian Food safety regulator FSSAI seeks to reduce the trans-fatty acid content of these products to below 2 percent in a phased manner. However, manufacturers focus on innovations to improve product properties and ensure regulatory compliance which should trigger market growth.
Convenience food application segment is expected to account for over USD 650 million of total industrial margarine industry share by 2025 on account of the a fast-paced lifestyle and a growing elderly population. With the growth in food expenditure due to the changing preference for diets, along with the time shortage for cooking, the demand for the product will experience major growth.
Food manufacturers have created different functional & organic ingredients that allow advanced packaging and convenient consumption of the product. There has been a rise in the tendency of consumers to sample different cuisines. Further, the growth of premium convenience food consumption that rich in nutrients like fibers, probiotics, vitamins, and proteins will accelerate industrial margarine market share over the forecast timeframe.
The demand across Germany soft industrial margarine market had exceeded 45 million in 2018 and will exhibit healthy growth prospects due to the growing availability of products in supermarkets and grocery stores. The baking industry uses the product regularly in several baked products like pastries, biscuits, cookies, and cakes due to the capability of improving the flavor and mouthfeel. There has been an increasing adoption of a healthy lifestyle that has resulted in the rising consumption of allergy-free & nutritious bakery products.
Industrial Margarine Market, By Source
Global plant-based product demand should register over 3.5% gains by 2025 owing to growing adoption of vegetarianism & veganism. Consumers increasingly prefer natural & organic products which have a lower impact of the environment as compared to meat based alternatives. This product offers low fat content and fewer calories which should stimulate market growth owing to rising health awareness.
Global animal-based market demand should surpass USD 305 million by 2025 pertaining to growing adoption of animal fat in confectionery & bakery industries. These products assure easy availability, low cost of production, capability of storage at room temperature and high shelf life. Growing demand from the food industry for deep frying & baking owing to its heat stability and ability to be shaped easily should trigger market growth.
Industrial Margarine Market, By Form
Global hard form market size surpassed USD 1.7 billion in 2018 and is predicted to witness significant growth owing to growing demand for sautéing, pressure cooking, low-heat baking and condiments industries. This product allows convenient addition of flavours and functional ingredients in food products. This substance finds extensive usage in rusks, crackers, pastries, doughnuts, cookies, confectionery and croissants owing to its low cost which should further accelerate market growth.
Global soft form market size may register gains close to 4% by the end of the predicted timeframe on account of growing awareness of the adverse health effects of trans fats. These products lack trans fats which significantly reduces the risk of heart disease, metabolic disorders and strokes. Growing demand from functional food and diet spread sector owing to its high softness and smooth consistency which should boost market growth.
Industrial Margarine Market, By Type
Global butter blend type market demand should register over 4% gains by 2025 owing to its growing adoption as a cheaper, low-cholesterol butter substitute. Various food manufacturers are offering butter blends to meet rising demand for food products with low saturated fat content and buttery flavour. These products find widespread usage in grilling, cooking, baking, condiment and sautéing sectors owing to buttery performance, appearance and flavour which should fuel market growth.
Global all-purpose type market size surpassed USD 155 million in 2018 and is estimated to witness significant growth pertaining to increasing adoption in savouries, bread and bakery industries. These products are ideal for preparation of cookies, short eats from bread dough & sweet buns owing to their ability to maintain product freshness and prevent dryness. Growing per-capita consumption of ready-to-eat products has stimulated the demand for various baked goods such as hot dogs, buns, fish buns and cakes which should promote market growth.
Industrial Margarine Market, By Application
Global sauces, spreads and toppings application should surpass USD 930 million by 2025 on account of growing consumer preference for international cuisine and substantial urbanisation. Food manufacturers are increasingly offering healthier and innovative flavors to meet the rising requirement for diverse culinary trends. Growing preference for spicy food along with rising consumer awareness of various food ingredients should trigger market growth.
Global convenience food application demand should register significant gains at about 4% by 2025 owing to increasing preference for ready-to-eat food products among young consumers. Growing spending on food, improving lifestyles and rising disposable incomes has led to growing product adoption. Increasing adoption of busy lifestyles, aging population and growing demand for fresh food should further boost market growth.
North America, driven by Canada, Mexico and U.S. industrial margarine market size surpassed USD 1 billion in 2018 pertaining to growing consumer health awareness and rising incidence of lifestyle disorders such as constipation, high blood pressure and atherosclerosis. The region offers a well-established manufacturing base and various firms are engaging in developing products with low trans fats which should stimulate market growth.
Europe industrial margarine market size driven by France, UK, and Germany is estimated to surpass USD 1.15 billion by the end of the foreseeable period owing to the presence of a substantial number of restaurants which offer international cuisines. Growing demand for chilly sauces, salad dressings & dips and significant manufacturer efforts to develop innovative products such as preservative-free, organic & low calorie items should further promote market growth.
Asia Pacific industrial margarine market demand led by India, Japan, and China should register over 4% gains by 2025 on account of the presence of a substantial youth population segment and improvements in distribution network. Various manufacturers in the region offer products in small packs to attract price-sensitive consumers and boost market growth. Various global confectionery manufacturers have shifted their facilities to the region to reduce supply costs and improve efficiency which should further drive product demand.
Competitive Market Share
Global industrial margarine market share is moderately consolidated and includes various manufacturers such as Currimjee Group, Fuji Oil, Bunge, Conagra Brands, Puratos, Richardson International and Sime Darby Oils. Several industry participants are engaged in strategic acquisitions to widen their product portfolio and new product development to cater to specific requirements & attract new customers.
This product is an emulsion of edible vegetable oils or animal fats catering to various industries such as baking and confectionery. It serves as a low-cost butter substitute with similar taste, consistency, appearance and properties but without its unhealthy saturated fat content. Growing consumer health awareness regarding chronic diseases, booming baked food industry and significant economic growth in China, India, Brazil and Mexico should trigger market growth.
Frequently Asked Questions:
Why is soft form industrial margarine gaining demand in functional food industry?
The lack of trans fats in soft industrial margarine has increased its demand in functional food and diet spread products owing to reduced risk of metabolic issues, heart diseases and strokes.
What factors are driving plant-based industrial margarine market trends?
Growing preference of consumers for vegan and organic products due to increased health consciousness is driving the consumption of plant-based margarine. It also ensures low fat content and reduced calorie intake.
Which region will witness a higher consumption of industrial margarine products?
Europe industrial margarine market size is projected to reach US$1.15 billion owing to consistent development of innovative organic and preservative free products and a large number of international cuisine restaurants.
How are convenience food applications fueling the demand for industrial margarine?
Higher spending on food, growing geriatric population and a rising demand for ready-to-eat meals among younger consumers is influencing the surge in demand for industrial margarine to manufacture convenience food products.