According to the current analysis of Reports and Data, the global Industrial Margarine Market was valued at USD 2.29 Billion in 2018 and is expected to reach USD 3.06 Billion by the year 2026, at a CAGR of 3.7%.

Industrial margarine is extensively used in the food & beverage industry owing to the rising demand for bakery and confectionery products in the food and beverage industry. Margarine acts as an emulsifier in food products and provides organoleptic characteristics to the final product apart from increasing the shelf-life. This fosters the demand for industrial margarine in the baking industry. It is essentially a blend of around 80% vegetable oil with 20% brine solution, flavoring, preservatives, and color. These proportions vary based on regional regulations. The oil content can be lowered to as low as 20% in low-fat spreads with similar contents. To replace the viscosity and bulking effect of the fat and to ensure stable water-in-oil emulsion formation, gums, and thickeners such as gelatin, alginates are used.

The low-fat content of industrial margarine and their reasonable price as compared to butter are the key factors fueling demand of the industrial margarine market. Manufacturers in the bakery industry use industrial margarine on a large scale to target health-conscious consumers by offering low-fat and low-calorie baked products. Manufacturers also prefer plants as a source to produce industrial margarine in order to control the hydrogenation level. The use of the plant as a source of industrial margarine production is also increasing owing to the significant rise in vegan and vegetarian population.

However, stringent regulations against the consumption of industrially-produced trans fats across regions hamper the growth of the market. The World Health Organization (WHO) released a program called Replace to eliminate industrially-produced trans fats completely from the global food supply chain. The manufacturers are focusing on producing new trans-fat-free margarine products. Industrial margarine is a dairy product and is used as a substitute for butter. Although both butter and industrial margarine are used in cooking, baking, or as spreads in various dishes to enrich its taste, both have different properties. Butter consists of butterfat, water, and proteins, whereas Industrial margarine is made up of refined vegetable oil and/or animal fat. The industrial margarine market is growing in developed economies, mainly due to a lot of product innovation and growing food and service industry. Government regulations on manufacturing and marketing of margarine and the availability of substitutes of industrial margarine restrain the growth of the global industrial margarine market.

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Further key findings from the report suggest

  • Asia Pacific regional segment is expected to account for 23.6% of the global Industrial Margarine market. Developing nations such as China and India are likely to witness high growth for the market due to rapid industrialization and expanding food industry in the region
  • Plant segment dominates the global industrial margarine market owing to rising vegan and vegetarian population globally
  • Based on the application, the bakery segment is expected to reach USD 936.73 Million over the forecast period. The growing bakery and confectionary industry is expected to have a positive impact on the industrial margarine market
  • Although margarine contains some heart-friendly nutrients, it also contains trans-fat, which has been associated with an increased risk of heart diseases. This is likely to limit the growth of the industrial margarine market
  • Key participants include Conagra, Bunge, Puratos, Wilmar International, Associated British Foods, Fuji Oil, Vandemoortele among others

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For the purpose of this study, Reports and Data have segmented the Industrial Margarine market on the basis of source, form, type, application, and region:

Source Type (Revenue in USD Million; Volume in Kilo Ton; 2016–2026)

  • Plant
  • Animal

Form (Revenue in USD Million; Volume in Kilo Ton; 2016–2026)

  • Hard
  • Soft

Type (Revenue in USD Million; Volume in Kilo Ton; 2016–2026)

  • Spreadable
  • Butter Blend
  • All-Purpose

Application (Revenue in USD Million; Volume in Kilo Ton; 2016–2026)

  • Bakery
  • Spreads, sauces, and toppings
  • Confectionery
  • Convenience food
  • Others

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Regional Outlook (Revenue in USD Million; Volume in Kilo Ton; 2016–2026)

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

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