Emulsified Shortenings Market Size - By Product Type, By Application, By Distribution Channel, Forecast, 2025 - 2034

Emulsified Shortenings Market Size

The global emulsified shortenings market size was valued at USD 4.1 billion in 2024, with expectations to reach USD 7.2 billion by 2034, growing at a CAGR of 5.9%.
 

Emulsified shortenings are specialty fat blends with emulsifiers to stabilize water in oil mixes that deliver enhanced aeration, consistency and texture in processed and baked food products. They are of importance in commercial baking, confectionery, and foodservice sectors helping in adding volume, shelf life, and mouthfeel. The worldwide market of emulsified shortenings is growing relatively steady, as there is an increased interest in ready-made foods, trans-fat-free emulsions, and plant-derived substitutes.
 

Another important trend is the change in the direction of clean-label and non-hydrogenated products, which are also backed by technological and regulatory factors. There is high potential in the marketplace of manufacturers producing products to meet an increasingly diverse range of consumer demand with custom formulations, sustainable-sourced ingredients such as RSPO-certified palm oil and health-based product lines. The existent emerging economies, fast growth of foodservice outlets, and increased home baking industry also pose high market growth opportunities in the forthcoming years.
 

For instance, according to the World Health Organization (WHO) which has recommended eliminating industrially produced trans fats found in traditional shortenings by 2023 to reduce cardiovascular disease risk. This policy shift is accelerating demand for healthier, trans-fat-free emulsified shortenings. Also, limiting industrial trans-fat in food (from partially hydrogenated oils) significantly decreases heart diseases prompting reformulations that favour emulsified, healthier fat blends within this market.
 

Together with rising consumer interest towards trans-fat-free shortenings, changing regulatory mandates and continuous technological innovation are fuelling growth in the emulsified shortenings market. The market is showing shifting demand focused on clear label and healthy plant-based products, highlighting a broad opportunity in the market, while considering the rising environmental and sustainability concerns.
 

Emulsified Shortenings Market Trends

The emulsified shortenings industry is experiencing a significant change around the globe due to various aspects, especially technological advancements in fat processing, and changing food industry requirements. Developed processes like enzymatic interesterification and high-pressure hydrogen have helped the manufacturers produce a more stable, shelf-friendly, trans-fat-free formulation. The increasing number of processed and bakery food consumption, particularly in commercial baking and food production, has increased the need of food industry shortenings which could be multipurpose and functional.
 

Furthermore, plant-based and clean-label products are making their way into the market and pushing manufactures to come up with healthier and sustainable fat substitutes. Not only are these developments enhancing the quality of products but also boosting consumer acceptance around the world.
 

Although there is a forward movement in the market, there are still some challenges. The issues of saturated fat content, despite this improvement, remain a matter of concern in the health sector and this affects consumer perception. In addition, the technical sophistication required to manufacture performant emulsified shortenings and the high cost in terms of Research and Development that lead to the production of non-hydrogenated and specialty fat products and products can inhibit the chances of smaller players to compete.
 

Further pressure comes in the form of regulatory scrutiny, and most importantly the sustainable nature of palm oil and labeling. Nevertheless, the market perspectives are positive because large participants are investing in sustainable sourcing, clean-label solutions, and tailored applications to respond to the emerging market demands. Such efforts are likely to strengthen expansion and ensure the emulsified shortenings industry remains on a stable and upward trend.
 

Emulsified Shortenings Market Analysis

The emulsified shortenings market by product type is segmented into all-purpose shortenings, cake and icing shortenings, frying shortenings and specialty shortenings. All-purpose shortenings segment accounted for 38.5% of the market share in 2024 with a market size of USD 1.6 billion.
 

• The emulsified shortenings market is primarily dominated by all-purpose shortenings. These shortenings have found a wide use in bakery, snack and processed foods applications, owing to their versatility, low cost and reliability in different formulations. They are under demand by commercial bakeries and industrial level food producers looking to get multipurpose solutions.
   
• Moreover, other segments such as cake and icing shortenings are becoming popular since they provide better texture, volume, and stability in baked products. Frying shortenings are gaining more popularity in foodservice applications because of their high cooking temperatures and long shelf lives. In the meantime, specialty shortenings, such as plant-based, non-hydrogenated, are growing in popularity, facilitated by the clean-label push, and niche demand.
   

The emulsified shortenings market by application is segmented into commercial baking, food service, food manufacturing and retail manufacturing. The commercial baking accounted for 45.4% of the market share in 2024 with a market size of USD 1.9 billion.
 

Commercial baking emerged as the leading application segment in the market. This domination is fuelled by extensive application of the emulsified shortenings in high yield processes of breads, pastries and cakes where texture, stability and shelf life are important. They are vital in industrial fusion due to their element of aerating and lubricating properties.
 

The emulsified shortenings market is segmented into generation direct sales, distributors & wholesalers, retail channels and food service distributors based on distribution channel. The direct sales are made up 48.8 % of the market in 2024 and expected to grow at a faster rate of 5 % CAGR to reach a wider consumer base.
 

Direct sales are the dominant channel, contributing to the largest share in the market. This channel is favourable by the giant bakeries and food manufacturing that need customized formulations, bulk orders, and consistent quality straight out of the producing companies. It allows more competitive product pricing, technological assistance, and swift logistics, which is the most prevailing and fast-growing channel of distribution.
 

Other key channels include distributors and wholesalers, who bridge supply to small manufacturers and regional processors. Retail channels cater to household and small-scale users through supermarkets and online platforms, while food service distributors serve QSRs and restaurants with high-performance frying shortenings.
 

The emulsified shortenings market is dominated by Europe, accounting for 34.3% of total revenue in 2024.
 

• Europe stands as the leading region in the emulsified shortenings industry. This domination is driven by the fact that region’s bakery industry is well established, because of increasing demand for processed and premium bakery products, and the use of clean-label and free of trans-fat products. Consumers having strong demand for processed and frozen bakery products, and advanced food processing infrastructure which is ultimately driving this growth.
   
• The region also has reliable regulatory measures promoting healthier substitutes fat as well as environmentally friendly sourcing procedures, mostly RSPO-certified palm and plant oil. Furthermore, the developed food processing facilities and specialty shortenings research in cakes, pastries and frozen baked food products strengthen Europe in occupying the leading positions in the world market.
   
• Following closely behind, North America is backed by its large commercial foodservice network and strong presence of major shortening manufacturers. The U.S. leads in innovation and consumption, with rising consumer preference for organic, non-GMO, and zero-trans-fat products. Meanwhile, Asia Pacific, is witnessing the fastest growth, driven by urbanization, growing disposable income, and the rapid expansion of bakery chains in China, India, and Southeast Asia.
   

Emulsified Shortenings Market Share

The Cargill Incorporated, Archer Daniels Midland Company, Bunge, Wilmar International and AAK AB are significant 5 players in the emulsified shortenings industry with respect to innovation and distribution. These are prominent companies within the emulsified shortenings market industry operating in their respective regions. These companies hold strong positions globally due to their extensive experience in the market. Their diverse product portfolios, backed by robust production capabilities and distribution networks, enable them to meet the rising demand across various regions.
 

Emulsified Shortenings Market Companies

Cargill, Incorporated: Cargill is a global leader in the food and agribusiness sector, playing a pivotal role in the emulsified shortenings industry through its extensive range of specialty fats and oils. With a strong focus on innovation and sustainability, Cargill offers trans-fat-free, non-hydrogenated, and customized emulsified shortening solutions for bakery, confectionery, and foodservice industries. Their global manufacturing network, advanced R&D capabilities, and commitment to RSPO-certified palm oil sourcing make them a dominant force, addressing evolving consumer demands for clean-label and functional ingredients.
 

Bunge Limited: Bunge is a major agribusiness and food ingredient company known for its leadership in oilseed processing and specialty fat production. In the emulsified shortenings space, Bunge delivers versatile, functional shortening blends for baking, frying, and icing applications. Its robust sourcing network and focus on plant-based, sustainable formulations have made it a key supplier to both industrial food processors and commercial bakeries. Bunge's deep market penetration across North America, Latin America, and Asia ensures consistent supply and innovation tailored to regional requirements.
 

Archer Daniels Midland Company (ADM): ADM is a prominent player in the emulsified shortenings market, offering a comprehensive portfolio of specialty fats through its Wild Flavors & Specialty Ingredients division. Known for technical expertise and clean-label innovation, ADM supplies emulsified shortenings tailored for baking, frying, and consumer-packaged foods. The company’s vertical integration from raw oil processing to finished blends, enables consistent quality and customized functionality. ADM is especially strong in North America and Europe, and its investment in R&D has strengthened its role in delivering healthier, high-performing shortening alternatives.
 

Wilmar International: Wilmar International is one of Asia’s largest agribusiness groups, with a stronghold in palm oil processing and specialty fats manufacturing. It plays a significant role in the emulsified shortenings market by supplying a wide variety of functional shortening products used in commercial baking, frying, and industrial food production. With vertically integrated operations from plantations to processing and distribution, Wilmar ensures product consistency and cost-efficiency. Its global reach, particularly in the Asia-Pacific and Middle East regions, positions it as a reliable partner for volume-based and custom shortening solutions.
 

AAK AB: AAK AB is a Swedish company specializing in plant-based oils and fats and is a recognized leader in emulsified shortening solutions. The company’s focus on co-development with customers enables it to offer tailored shortening formulations with improved aeration, stability, and mouthfeel for bakery and confectionery applications. AAK's innovation centres across Europe, Asia, and the Americas help address regional taste profiles and functional needs.
 

Emulsified Shortenings Industry News:

• In August 2021, ADM & Wilmar deepened their partnership via a full-function joint venture, Olenex, transferring specialty fats and palm refining assets in Hamburg, Germany.
   
• In August 2021, AAK introduced its Cisao-8116 emulsified shortening, improving aeration and stability in batters and icings.
   
• In September 2021, AAK acquired BIC Ingredients’ lecithin business to bolster its natural emulsifier portfolio—supporting emulsified shortening innovation and global reach.
   
• In July 2023, AAK unveiled new emulsified shortening systems for icing and bakery applications at IFT23, featuring plantbased, zerotrans fats and enhanced whippability and shelflife
   
• In July 2024, Cargill partnered with Spanish startup Cubiq Foods to commercialize “Go!Drop,” a plant-based structured emulsion that mimics animal fat in burgers, ice cream, and more.
   
• In March 2025, Bunge agreed to sell its European margarines & spreads business to Vandemoortele, refocusing on core emulsified fats operations.
   

The emulsified shortenings market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion from 2021 – 2034 for the following segments:

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Market, By Product Type

• All-purpose shortenings
• Cake and icing shortenings
• Frying shortenings
• Specialty shortenings

Market, By Applications 

• Commercial baking
• Food service
• Food manufacturing
• Retail and consumer

Market, By Distribution Channel

• Direct sales
• Distributors and wholesalers
• Retail channels
• Food service distributors

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE