Margarine is a fat-rich source of energy and a cheaper substitute to butter. Growing concerns due to intake of cholesterol and saturated fats, and rising aging population at global level have resulted in decline in butter consumption, and this leads to an increment in the demand for vegetable fats such as margarine. At present, premium quality industrial margarine is highly used in production of bakery products and increase in consumption of bakery and confectionery products is positively impacting the industrial margarine market. Presently, artisan bakers and food manufacturers are more incline towards quality pastry margarine, owing to rising demand for healthier options to consumers related to fat choice.

In recent years, the food industry is leveraging various scientific developments in food products to satisfy the diverse consumer demands. The advancements in methods of refining oils and compounding margarine supported the production of premium quality products with improved flavor and nutrients values. Thus, these factors are accelerating the growth in the consumption of margarine.

Margarine producers are showcasing their interest in producing effective solutions by providing healthier options to consumers related to fat choice. Consequently, Margarine producers are concentrating on new formulations that deal with less trans fats and high functionality, which in turn, increase their industrial margarine market share. Increased emphasis by industrial margarine manufacturing companies on product development resulted in innovative margarine with high quality, convenience, and taste. On contrary, a shift in consumer trend related to consumption of processed food products along with the changing lifestyles and dietary habits of millennial is driving the industrial margarine market growth. Furthermore, 

The global Industrial Margarine Market size stood at $2.34 billion in 2018, and is projected to grow with a CAGR of 3.7% throughout the forecast period 2019-2025.   

Bakery application of industrial margarine is expected to grow at a CAGR of 3.4%, during 2019-2025. Industrial margarine acts as an ideal fit for all types of bakery applications, as it is GMO-free, does not contain animal fats, holds halal certification, and is available with added color and flavor. Increasing consumption of industrial margarine in spreading, baking and cooking processes to improve the texture and flavor of baked goods of the bakery and confectionery industry results in expansion of the industrial margarine market size. These kinds of margarine are highly preferred, as they provide high resistance to oxidation, good aeration properties, stable emulsion, and easy shaping & dough jigging. Also, industrial margarine offers optimum volume and softness to pastry products along with firm crumb structure. Cost-effective margarine is highly adopted in the growing bakery and confectionery industries, thereby boosting the industrial margarine market revenue in the same. Buttercream, croissant, puff pastry, cake, and hard puff kinds of margarine are different types of margarine which are highly preferred in commercial baking. Rise in the number of health-conscious consumers that prefer low-fat and low-calorie baked products are fuelling the demand for industrial margarine. Hence, manufacturers are experiencing increment in sales of industrial margarine, due to its large scale usage in the bakery industry. Also, margarine acts as an emulsifier which helps to prolong the final product shelf-life by providing organoleptic characteristics to it. Hence, this factor is raising the industrial margarine demand in the baking industry.  

North America Industrial Margarine Market:

Baking plays vital role in the U.S. economy. According to the American Bakers Association, the baking industry accounts for a $311.0 billion in total economic output of the U.S. It nearly equates to 2.1% of GDP. The baked goods industry holds about 8% in the total food and beverage sales across the store in the U.S. Growing application of industrial margarine particularly in food processing is representing North America as its largest consumer. The wide adoption of margarine in this region is primarily due to the continuous growth in the product innovation and foodservice industry. Therefore, North America has occupied a larger regional share of 36.5% in the global industrial margarine market in 2018.  

Major Players in Industrial Margarine Market – Competitive Landscape:

Congara Foodservice, Inc., Bunge Limited, Puratos, Associated British Foods, Fuij Oil Holdings Inc., Richardson International, Royale Lacroix, Aigremont, Vandemoortele, NMGK Group, EFCO Group, and Wilmar International are some major industrial margarine market players. These companies are adopting business strategies to mark their position by increasing their industrial margarine market share. For instance, recent developments in the industrial margarine market are:    

Bunge Loders Croklaan, global manufacturers of premium quality vegetable oils and fats, announced a product launch of new plant-based margarine namely Delica Pro Gold in 2018.  It is a liquid margarine and is non-hydrogenated with a good nutritional profile. Additionally, this eco-friendly product is free of artificial colors, low in saturated fatty acids and has optimal functionality. This innovative formulation ensures sensory attributes and elevates as an ideal option for both artisanal and industrial bakeries. This is because of its outstanding nutritional profile with a 3:1 ratio of omega-6 to omega-3 fatty acids and act as a natural source of vitamin E. This margarine aids in maintaining product volume and homogenous structure by enhancing aeration, which results into a fluffier and lighter structure, especially in muffins, pound cakes, and sponge cakes. Therefore, this product innovation business strategy aids in increasing the company’s share in the global industrial margarine market revenue.  

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