According to a detailed industry analysis by Persistence Market Research, the global margarine market is valued at over USD19bn in 2022, and is estimated to register value growth at a CAGR of 3.3% over the forecast period (2022-2032).
Butter is produced by churning cream or milk to separate the solid constituents from butter. It generally finds application in cooking, baking, and as a spread. It is an animal-based fat and the increasing vegan population tends not to consume it for the very basic reason that it is derived from animals. Moreover, the medical community argues that butter is not good for human health as it has some portion of bad saturated fat content.
This has triggered food scientists to come up with alternatives that are both, healthy and plant-derived. The best and most easily available options are vegetable oils and plant-derived oils. Margarine is manufactured by mixing a plant-based oil, such as soybean oil, canola oil, palm oil, or any other oil, with either water or milk. The vegetable oil part is almost 80% of the overall margarine. Now, as margarine is plant-based and also a cheaper option as compared with butter, it is preferred in major industry segments such as bakery and confectionery.
Furthermore, margarine contains an array of ingredients. Margarine producers add salt and other compounds to it to make the flavor and texture enjoyable and mouth-watering for consumers, which is further driving market expansion.
Key takeaways from the study:
- Based on source, majority of market share is held by soybean oil-based margarine. Market value of this category stands at USD5.29bn in 2022.
- Based on nature, majority of market share is held by GMOs; however, the non-GMO segment is estimated to register higher growth at a CAGR of 4.2%.
- Based on type salted margarine is anticipated to reach USD6.59bn by the end of 2032.
- Margarine end use is greatly dominated by the bakery industry. This end-use industry holds more than 70% market share.
- In the bakery industry, majority of margarine gets consumed in patisserie and bread & baked rolls. The patisserie segment is anticipated to register growth at a CAGR of 3.3% over the forecast period.
- When it comes to distribution channel, modern trade is expected to increase at CAGR of 4.3%.
- Based on region, highest consumption of margarine is in North America with more than 40% market value share.
- The COVID-19 pandemic had a moderate impact on the margarine market. Due to nationwide lockdowns, supply chain disruptions took place, but due to the provided leniency for the F&B industry by most governments, it was restored to some extent if not to full potential.
“Key manufacturers of margarine are targeting rising market trends such as vegan, kosher, organic, etc., and are offering their products in line with these labels. This will help them expand their market across various end-use industries, especially the bakery industry,” says a Persistence Market Research analyst.