The scope of our recent study on the "Industrial Hard Margarine Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type and Application" includes the description of factors fueling the market growth, estimation and forecast of revenue, and identification of significant market players and their key developments. The report also provides a market share analysis.
The industrial hard margarine market is expected to grow from US$ 2,414.51 million in 2022 to US$ 2,869.63 million by 2028; it is estimated to register a CAGR of 2.9% from 2022 to 2028.
Industrial hard margarine is majorly used as a shortening in bakery products such as cakes, pastries, biscuits and cookies, and bread and rolls. It improves the texture of bakery products and keeps them soft, fresh, and tender. Moreover, margarine increases the volume of bakery products by preventing the cross-linking of gluten molecules when liquid is added. Additionally, margarine is cheaper than butter which increases its popularity among industrial bakers because it produces high-quality products at low cost. Margarine is usually produced by hydrogenating vegetable oils such as palm oil, sunflower oil, canola oil, and safflower oil. For the production of hard/stick margarine, the hydrogenation process is carried out for a longer period of time. Hard margarine has more oxidative stability and shelf life than other kinds of margarine, which is why food manufacturers prefer it. The rising demand for industrial hard margarine in the global bakery & confectionery industry is driving the market.
Based on application, the industrial hard margarine market is segmented into bakery and confectionery, RTE and RTC food, meat and dairy substitutes, and others. The bakery and confectionery segment is subsegmented into cookies and biscuits, cakes, flaky pastries, and other bakery and confectionery. The bakery and confectionery segment held the largest market share in 2022 and is expected to register the highest CAGR during the forecast period. Increasing purchasing power and changing eating habits of people have led to the increasing popularity of bakery and confectionery products among the masses. Bakery products such as biscuits account for a major share of the total bakery products produced worldwide. The bakery sector includes cakes, puffs, and frozen bakery products. Hard margarine is an integral baking ingredient as it provides tenderness, improved texture, and a better sensory profile and increases the nutritional value of food.
The industrial hard margarine market is segmented into five main regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America held the largest market share in 2021, and Asia Pacific is expected to register the highest CAGR during the forecast period. The market growth in Asia Pacific is attributed to the growing food & bakery industry, increasing demand for low-cost alternatives for butter, and changing consumer preference for healthier alternatives. The region holds promising growth potential for the industrial hard margarine market players due to the flourishing food industry and rising foreign investment. The demand for industrial hard margarine products is growing with the rise in popularity of the western diet and increased requirement for ready-to-eat and ready-to-cook products in China, India, Japan, and other countries in Asia Pacific.
Impact of COVID-19 Pandemic on Industrial Hard Margarine Market
The COVID-19 pandemic affected economies and industries in various countries across the globe. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America, and the Middle East & Africa (MEA) hampered the growth of several industries, including the food & beverages industry. The shutdown of manufacturing units disrupted global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Moreover, the bans imposed by governments of various countries in Europe, Asia Pacific (APAC), and North America on international travel compelled companies to temporarily discontinue their collaboration and partnership plans. All these factors hampered various industries in 2020 and early 2021, thereby restraining the growth of various markets, including the industrial hard margarine market.
Rising demand for margarine as a low-cost alternative to butter, growing requirement for margarine from the food industry in emerging economies, and increasing consumer enthusiasm toward adopting a healthy lifestyle were the key factors that boosted the growth of the industrial hard margarine market. Before the onset of the COVID-19 outbreak, the industrial hard margarine market was also driven by the rising consumption of bakery products and growing demand for affordable, sustainable, and healthier ingredients by food manufacturers. However, industries experienced unprecedented challenges after the onset of the COVID-19 pandemic in 2020, including supply chain constraints caused by nationwide lockdowns, trade bans, and travel restrictions. The supply chain disruptions created a shortage of raw materials, which affected the production and distribution of various products, leading to increased prices.
In 2021, various economies resumed operations as governments of various countries announced relaxation in the previously imposed restrictions, which boosted the global marketplace. Further, manufacturers were permitted to operate at full capacity, which helped them overcome the demand and supply gap and other repercussions.
Further, the COVID-19 pandemic had a long-term favorable impact on the industrial hard margarine market as the food processing industries observed a remarkable growth owing to rising demand for process and convenience food. The growing adoption of industrial hard margarine by food manufacturers to replace butter with a low trans-fat substitute fueled the market growth. Consumers gravitated toward a healthy lifestyle and increased adoption of healthy food options due to the rising number of COVID-19 patients. Due to the COVID-19 pandemic, consumers have been increasingly attentive to their health and wellness. Furthermore, the market witnessed an increased demand for food products with high clean ingredients used in them, which boosted the sales of industrial hard margarine. As consumers' focus increased on finding healthier alternatives during the pandemic, the need for industrial hard margarine also grew globally.
The report segments the industrial hard margarine market as follows:
Based on type, the industrial hard margarine market is segmented into spreadable, all-purpose, and butter blend. The industrial hard margarine market, by application, is segmented into bakery and confectionery, RTE and RTC food, meat and dairy substitutes, and others. The bakery and confectionery segment is subsegmented into cookies and biscuits, cakes, flaky pastries, and other bakery and confectionery. Based on geography, the industrial hard margarine market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.
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