Industrial Margarine Market by Type (All Purpose Margarine, Spreadable, Butter Blend, Spray), Form (Hard and Soft), Source (Plants and Animals), Application (Bakery, Confectionery, Toppings, Sauces, and Spreads) - Global Forecast to 2030

The Industrial Margarine Market is Slated to Register a CAGR of 4.3% from 2023–2030 to Reach $3.54 Billion by 2030. The growing bakery industry, rising vegan population, and low-cost alternatives to butter drive the growth of the industrial margarine market. Furthermore, the rising demands for spreads and dips and emerging economies in Latin America, Asia, and the Middle East & Africa are expected to provide significant opportunities for the players operating in this market. However, the growing health-conscious consumer base is expected to restrain the growth of this market to some extent.

The Growing Bakery Industry Drives the Growth of the Industrial Margarine Market

The growing bakery industry has significantly impacted the demand for industrial margarine. Industrial margarine is a type of margarine specifically formulated for commercial bakery applications, such as the production of cakes, pastries, cookies, and other baked goods on a large scale. The bakery industry is one of the most well-established industries in Western Europe and North America. In recent years, the bakery industry has developed significantly due to technological advancements and increased per capita income, resulting in more demand for these items. According to the European Regional Development Fund (ERDF), in 2020, the bakery industry acquired a major portion of the food industry, with global sales estimated at USD 350 billion. One of the factors driving this trend is the increasing demand for commercially baked prepackaged goods. Margarine plays a prominent role in bakery products. Also, margarine is inexpensive than butter and provides similar quality, which drives its application in bakery products.

Gluten is a protein found in wheat, barley, and rye, which gives structure and elasticity to baked goods. Achieving the desired texture and moisture retention can be challenging when baking gluten-free products. Industrial margarine, specifically formulated for bakery applications, can help enhance the texture and moisture in gluten-free baked goods. It can provide a tender crumb, improve the mouthfeel, and contribute to the overall quality of gluten-free products. In addition, bakery products such as bread and pizza are stapled food products in various regions and countries, increasing global demand. Furthermore, emerging markets, such as Latin America, the Middle East & Africa, and Asia, hold great potential as Western lifestyles and eating habits continue to gain popularity in these regions. Technological advancements and increased per capita income levels have significantly developed the bakery industry, resulting in higher demand for bakery products and a growing demand for industrial margarine.

When using industrial margarine in a gluten-free bakery, it's crucial to ensure it is gluten-free and certified. Cross-contamination with gluten-containing ingredients can be a concern, especially in shared manufacturing facilities. Gluten-free certification and thorough ingredient sourcing practices are necessary to maintain the integrity of gluten-free products and meet the dietary requirements of individuals with gluten sensitivities or celiac disease.

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Key Findings in the Industrial Margarine Market Study:

The All-Purpose Margarine Segment to Dominate the Industrial Margarine Market in 2023

Based on type, the global industrial margarine market is segmented into all-purpose margarine, spreadable margarine, butter blend margarine, and spray margarine. In 2023, the all-purpose margarine segment is expected to account for the largest share of the global industrial margarine market. The large market share of this segment is attributed to its increasing demand from the food service industry, increasing bakery industry, and growing vegan population. One of the main benefits of all-purpose margarine is that it is lower in saturated fat than butter, which can benefit people looking to reduce their intake of saturated fat. It can be used in cooking, baking, and as a spread for bread, toast, or crackers.

In 2023, the Hard Margarine Segment is Expected to Account for the Larger Share of the Market

Based on form, the global industrial margarine market is segmented into hard and soft margarine. In 2023, the hard margarine segment is expected to account for the larger share of the industrial margarine market. The large market share of this segment is attributed to the low prices, growing demand for hard margarine from the bakery industry, and growing demand due to its nutritional value of margarine as it is cholesterol-free. Hard margarine has a longer shelf life compared to softer margarine or spreads. Its solid form helps preserve freshness and prevent spoilage, making it a convenient option for storing and using over an extended period. Hard margarine is widely available in grocery stores and foodservice establishments, making it easily accessible for home cooks and professional chefs.

However, the soft margarine segment is expected to witness significant growth during the forecast period. The rapid growth of this segment is mainly attributed to new product developments and the increasing consumer spending on spreads and dips products.

The Plant-based Margarine Segment to Dominate the Industrial Margarine Market in 2023

Based on source, the global industrial margarine market is segmented into plant and animal-based margarine. In 2023, the plant-based segment is expected to account for the largest share of the global industrial margarine market. The large market share of this segment is attributed to the growing vegan population, growing lactose intolerance population, and people moving towards plant-based foods. Plant-based industrial margarine is designed to provide similar functionality and characteristics as traditional industrial margarine while being free from animal-derived fats or other animal-based ingredients. Manufacturers of plant-based industrial margarine may offer custom formulations tailored to specific bakery requirements. These formulations can be designed to meet certain dietary preferences, allergen considerations, or desired characteristics for particular bakery products.

The Toppings, Sauces, and Spreads Segment to Register Fastest Growth During the Forecast Period

Based on application, the global industrial margarine market is segmented into bakery; confectionery; toppings, sauces, and spreads; convenience food; and other applications. The toppings, sauces, and spreads segment is expected to register the fastest growth in the global industrial margarine market. The growth of this segment is attributed to the changing consumption pattern of consumers and consumer preference for fast foods containing toppings and sauces.

Asia-Pacific: The Fastest-growing Regional Market

The industrial margarine market is segmented into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific is slated to register the fastest growth during the forecast period. The growth of this regional market is mainly attributed to the rising demand for ready-to-use packaged foods with changing lifestyles, rising disposable incomes, rapid urbanization & industrialization, and rising number of working women.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments by leading market participants in the industry. Some of the key players operating in the global industrial margarine market are Wilmar International Limited (Singapore), Bunge Limited (U.S.), Remia C.V. (Netherlands), Currimjee Group (Mauritius), Fuji Oil Holdings Inc. (Japan), Richardson International Limited (Canada), S.A. Aigremont N.V.(Belgium), NMGK Group (Russia), Vandemoortele NV (Belgium), Royale Lacroix SA (Belgium), Conagra Brands, Inc. (U.S.), Puratos Group NV(Belgium), and Upfield B.V.(Netherlands).

Scope of the Report:

Industrial Margarine Market Assessment, by Type

• All Purpose Margarine                                                                                                                                       
• Spreadable Margarine                                                                                                                                        
• Butter Blend Margarine                                                                                                                                      
• Spray Margarine

Industrial Margarine Market Assessment, by Form

• Hard Margarine                                                                                                                                                   
• Soft Margarine

Industrial Margarine Market Assessment, by Source

• Plants                                                                                                                                                   
• Animals

Industrial Margarine Market Assessment, by Application

• Bakery                                                                                                                                                    
• Confectionery                                                                                                                                                       
• Toppings, Sauces, and Spreads                                                                                                                         
• Convenience Food
• Other Applications

Industrial Margarine Market Assessment, by Region

• North America
  • U.S
  • Canada
• Europe
  • Germany
  • France
  • U.K
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • Rest of Asia-Pacific
• Latin America
• Middle East & Africa

Key Questions Answered in the Report: