“The use of industrial fats in baked goods provides product quality and economic benefits, but their health impacts must be carefully monitored. Reducing trans fats and promoting unsaturated fats can steer the industry toward a more sustainable and healthier direction. While vegetable oils lead due to scalability and cost advantages, animal fats maintain their value in niche markets.”

Baked goods, as a staple of daily diets, have a broad consumer base worldwide. Industrial fats play a critical role in the production of products like bread, cakes, cookies, savory pastries, and pastries, enhancing product quality and optimizing manufacturing processes. The types of industrial fats used in baked goods, their effects on products, their implications for human health, the size of the industry, and the use of vegetable versus animal fats are of great significance to the sector.
Fats in baked goods have a decisive impact on texture, flavor, shelf life, and processability. The type of fat used directly influences the final characteristics of the product. The common types of fats used in baked goods production and their effects can be outlined as follows:
Margarine:
Margarine is an industrial fat obtained by hydrogenating or interesterifying vegetable oils to solidify them. It is a commonly used fat in baked goods production and is often preferred as an alternative to butter. In baked goods, margarine is a key ingredient that affects texture, flavor, and shelf life. For instance, it provides consistency to dough, delivering a crispy or soft structure. It supports layering in products like croissants or puff pastries while giving cakes and cookies a moist, light texture. It also facilitates dough handling and remains stable during baking.

Margarine varieties vary depending on their intended use. For example, puff pastry margarine with high plasticity is used for laminated doughs, while creamier margarine is preferred for cakes. There are also margarines designed to enhance crispiness in biscuits or suitable for creams and fillings in pastries. Margarine’s advantages include cost reduction, long shelf life, and stability across different temperatures. Additionally, lactose-free vegetable-based margarines are a good option for those with lactose intolerance.
However, there are some drawbacks. In the past, trans fat-containing margarines faced health criticisms, but trans fat-free options are now widespread. Previously known for high trans fat content, modern technologies have reduced trans fat levels in margarines to below 1%, making them healthier. Still, some consumers prefer the natural flavor of butter or perceive margarine as artificial. Health and naturalness perceptions can impact margarine use, especially in premium products.
In baked goods, margarine appears in various forms. It provides softness in bread and rolls, a melt-in-the-mouth texture in cookies, layering in croissants, and supports rising in cakes. Today, trans fat-free and plant-based margarines are popular, frequently used in vegan products. Margarines sourced sustainably or with lower fat content are also in demand. When using margarine, care is needed. Selecting the right margarine for the product, ensuring quality control, and using the correct dosage are crucial. Excessive margarine can make products greasy.
Palm Oil:
Palm oil is widely used in baked goods production due to its functional and economic advantages. Its high saturated fat content provides a semi-solid structure at room temperature, making it ideal for maintaining dough consistency, imparting a crispy texture, and ensuring a long shelf life. It is frequently chosen over butter or margarine in products like biscuits, cakes, crackers, and pastries due to its affordability. Palm oil’s resistance to high temperatures prevents oxidation during baking, preserving product freshness longer. Its neutral flavor allows other tastes to stand out, which is valuable in chocolate-coated or flavored baked goods.
Moreover, palm oil is trans fat-free, an advantage in the food industry, especially given the negative health effects of trans fats. Its ability to be used in solid form without hydrogenation offers cost and processing benefits for manufacturers. However, palm oil use is not without controversy. Health-wise, its high saturated fat content raises concerns about excessive consumption potentially harming cardiovascular health.
Palm oil is extensively used in baked goods for both technical and commercial reasons. Its high saturated fat content allows it to remain solid at room temperature, providing a butter-like texture in baked goods. It is commonly used in cakes, biscuits, and industrial bread production. Palm oil extends shelf life and resists oxidation. However, its high saturated fat content requires careful health considerations.

Sunflower and Soybean Oil:
Sunflower oil is frequently chosen as a liquid fat in baked goods production. Its neutral flavor highlights natural aromas in products like cakes, muffins, and biscuits. High in unsaturated fatty acids, it offers a lighter health profile, but it is less effective than palm oil in baked goods requiring solid fats, such as croissants or hard biscuits. High-oleic varieties are more stable with longer shelf lives but may be costlier than palm oil. Its susceptibility to oxidation can lead to flavor deterioration during long storage. Environmentally, it is less controversial than palm oil, but sustainable production remains a key industry concern.
Soybean oil, used in both liquid and partially hydrogenated forms, is a versatile option for biscuits, crackers, and cakes. It is cost-effective, has a neutral flavor, and its natural emulsifying properties strengthen dough structure. It withstands high baking temperatures, but its hydrogenated form may carry trans fat risks, which draws health criticism.
While both oils are alternatives to palm oil, they cannot fully compete with its solid texture, oxidation resistance, and low cost. Still, sunflower and soybean oils are valuable in products requiring liquid fats and in health-focused formulations.
Butter:
Butter holds a significant place in baked goods production as both a traditional and high-quality fat source, offering unique contributions to flavor, texture, and structure. Its rich, distinctive aroma makes it a preferred choice for products like baklava, cakes, cookies, croissants, puff pastries, and pastries. With approximately 80-82% fat content, it contains saturated fatty acids, small amounts of monounsaturated fatty acids, and natural milk solids, making it a versatile ingredient. In laminated doughs like baklava, puff pastries, and croissants, butter’s solid structure creates a layered texture, producing steam during baking that results in flaky, airy products.
Butter’s functional advantages include enhancing dough elasticity, creating a melt-in-the-mouth sensation, and imparting a golden color to products. However, it tends to burn at high temperatures, requiring careful use in some industrial baking processes.
Cost-wise, butter is generally more expensive than alternatives like palm oil, sunflower oil, or soybean oil, limiting its use in industrial production. Health-wise, its high saturated fat content draws criticism from some consumers, but its natural, unprocessed nature makes it a preferred choice for premium products. Butter delivers unmatched flavor and superior texture in baked goods, but its cost and technical limitations mean it is often used in artisan or high-quality products. In industrial settings, it is sometimes blended with or replaced by more economical fats to balance costs.

Hydrogenated Fats (Shortening):
Hydrogenated vegetable oils are used in cakes, biscuits, and donuts to provide a uniform structure and long shelf life. These fats improve dough workability and give products a melt-in-the-mouth texture. However, due to trans fats formed during hydrogenation, their use is restricted in some countries.
Health Impacts of Fat Use
The type and amount of fats used in baked goods significantly affect human health, with effects varying based on the fat’s chemical composition and processing methods:
Trans Fats:
Trans fats, formed during hydrogenation, raise LDL (bad cholesterol) levels and lower HDL (good cholesterol), increasing the risk of cardiovascular diseases. They also cause systemic inflammation, negatively impacting vascular health. The World Health Organization (WHO) recommends that trans fats should not exceed 1% of daily energy intake. While modern margarine production has reduced trans fat content, older formulations may still be available in some markets.
Saturated Fats:
Saturated fats, like those in palm oil and butter, can elevate LDL cholesterol levels, potentially increasing cardiovascular disease risk over time. However, some studies suggest that natural trans fats in butter (e.g., conjugated linoleic acid - CLA) are not harmful in small amounts. Conversely, excessive palm oil consumption is discouraged due to its high saturated fat content.
Unsaturated Fats:
Polyunsaturated fats, such as those in sunflower and soybean oil, are rich in omega-6 fatty acids and can support heart health. However, their tendency to oxidize at high temperatures may lead to harmful compounds forming during frying or prolonged baking in baked goods.
Size of the Baked Goods Industry
The baked goods sector is one of the largest segments of the global food industry. According to 2023 data, the global baked goods market was valued at approximately $500 billion, with an expected annual growth rate of 4-5% through 2030. In Türkiye, as of 2024, the sector’s sales volume exceeds 10 billion TL, with a significant share in exports.
Industry growth is driven by increasing urbanization, demand for convenience foods, and innovative product development trends. However, growing awareness of healthy eating is boosting demand for low-fat and trans fat-free products.

Use of Vegetable and Animal Fats
Vegetable Fats:
Vegetable fats dominate baked goods production due to their cost advantages and ease of processing. Palm oil, margarine, and liquid oils (sunflower, soybean, canola) are the most preferred in industrial production. Vegetable fats align with vegan product demands and benefit from extensive supply chains. However, palm oil’s environmental impact and health concerns keep the search for alternative fats active.
Animal Fats:
Animal fats, such as butter and tallow, are typically used in traditional and premium products. Butter, with its unique flavor, is favored in artisan breads and desserts, while tallow is used in some pastries for texture. Animal fats are more expensive than vegetable alternatives and may conflict with health trends due to their saturated fat content. Nevertheless, their natural composition remains appealing to some consumers.
The use of industrial fats in baked goods delivers product quality and economic benefits, but their health impacts require careful monitoring. Reducing trans fats and promoting unsaturated fats can guide the industry toward a more sustainable and healthier future. Vegetable fats lead with scalability and cost advantages, while animal fats retain value in niche markets. The industry’s size can grow further with innovative and healthy products, but scientific research supported by reliable sources and consumer awareness will play a critical role in this process.