The Global Emulsified Shortening Market was valued at USD 281.50 Million in 2024 and is projected to reach USD 404.14 Million by 2032, growing at a Compound Annual Growth Rate (CAGR) of 4.10% during the forecast period (2024–2032). This growth is being driven by rising demand for bakery products, expansion in the foodservice sector, and the increasing preference for plant-based and sustainable ingredients that enhance moisture retention and product quality in baked goods.
As the food industry evolves toward healthier, more sustainable processing solutions, the focus turns to essential suppliers who innovate in formulations, ensure consistent performance, and support clean-label trends. In this blog, we profile the Top 10 Companies in the Emulsified Shortening Market—a blend of global agribusiness leaders, specialty ingredient manufacturers, and pioneers in emulsified technologies shaping the future of baking and confectionery worldwide.
🔟 1. Cargill, Incorporated
Headquarters: Minnetonka, Minnesota, USA
Key Offering: Plant-based emulsified shortenings, high-ratio cake shortenings, and custom bakery fats
Cargill stands as a dominant force in the emulsified shortening sector, with decades of expertise in developing ingredients that meet the demands of modern baking. Their emulsified shortenings are designed to create stable mixtures of water, oil, and fats, which is crucial for maintaining moisture in high-sugar baked goods like cakes and icings. This capability allows bakers to produce fluffier, more tender products that stand out on shelves and menus. Operating through an extensive global supply chain, Cargill delivers these solutions to large-scale manufacturers and smaller operations alike, ensuring reliability even during peak production seasons. Because of their emphasis on research and development, Cargill continually refines formulas to reduce saturated fats while preserving functionality, helping clients navigate regulatory changes and consumer preferences for healthier options. Furthermore, their commitment to sustainability extends to sourcing practices that minimize environmental impact, making them a preferred partner for eco-conscious brands.
Sustainability Initiatives:
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Commitment to 100% responsibly sourced oils by 2025
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Investment in plant-based innovations to replace trans fats
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Partnerships with farmers for sustainable agriculture practices
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9️⃣ 2. Bunge Limited
Headquarters: Chesterfield, Missouri, USA
Key Offering: Vegetable oil-based emulsified shortenings for bakery and confectionery applications
Bunge Limited has established itself as a vital player by offering emulsified shortenings that excel in high-ratio formulations, where they can incorporate significantly more sugar and liquid without compromising structure. This is particularly valuable for creating rich, moist cakes and creamy fillings that appeal to consumers seeking indulgent yet quality products. With operations spanning North and South America, Europe, and Asia, Bunge’s integrated model—from oilseed processing to final product delivery—ensures cost efficiency and quality control at every step. However, as health trends push for reduced fat content, Bunge is actively developing variants with lower saturated fats derived from sustainable vegetable sources, allowing manufacturers to meet labeling requirements without sacrificing taste or texture. Their approach not only supports scalability for industrial bakers but also fosters innovation in response to global dietary shifts.
Sustainability Initiatives:
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Zero-deforestation palm oil commitments
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R&D in non-GMO emulsified products
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Collaborations for circular economy in oil processing
8️⃣ 3. Archer Daniels Midland Company (ADM)
Headquarters: Chicago, Illinois, USA
Key Offering: Soy-based and blended emulsified shortenings for industrial baking
Archer Daniels Midland Company (ADM) leverages its expertise in soy processing to produce emulsified shortenings that provide outstanding aeration and emulsion stability, essential for achieving the light, airy textures in items like donuts and muffins. These products are formulated to resist breakdown during mixing and baking, ensuring consistent results in high-volume production lines. ADM’s advanced technologies also focus on oxidation prevention, which extends shelf life and reduces waste for food processors. As trans fat regulations continue to evolve, ADM has successfully transitioned to healthier blends, incorporating more plant-based components that align with clean-label demands. This pivot has not only sustained their market position but has also opened doors to new applications in gluten-free and low-calorie baking, demonstrating their adaptability in a competitive landscape.
Sustainability Initiatives:
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Sustainable soybean sourcing programs
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Reduction in carbon footprint through efficient refining
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Innovation in bio-based emulsifiers
7️⃣ 4. Wilmar International Limited
Headquarters: Singapore
Key Offering: Palm and soybean emulsified shortenings for Asian and global markets
Wilmar International Limited commands a strong presence in the Asia-Pacific region, where its emulsified shortenings are tailored for challenging humid conditions, preventing separation and maintaining performance in tropical climates. These high-ratio products are staples in cake and pastry production, contributing to softer crumbs and stable icings that hold up under heat and transport. Drawing on abundant palm resources, Wilmar provides economical solutions that don’t compromise on quality, but they are proactively addressing sustainability concerns through certifications and traceability efforts. This strategic focus enables expansion into vegan markets, where plant-derived emulsifiers are increasingly sought after, positioning Wilmar to capture growth in emerging economies with rising bakery consumption.
Sustainability Initiatives:
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RSPO-certified sustainable palm oil supply
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Investments in traceability technologies
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Development of low-emission production facilities
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6️⃣ 5. AAK AB
Headquarters: Malmö, Sweden
Key Offering: Specialty emulsified fats for premium bakery and confectionery
AAK AB distinguishes itself through customized emulsified shortenings that cater to premium brands prioritizing clean labels and trans-fat elimination. Their formulations shine in demanding uses like whipped toppings and cake mixes, delivering enhanced volume and a superior mouthfeel that elevates end products. With a robust footprint in Europe, AAK works hand-in-hand with R&D teams to craft solutions that incorporate health-promoting elements, such as reduced calories or added nutrients. This collaborative model has propelled their growth in the organic sector, where consumers demand transparency and natural ingredients, allowing AAK to build long-term relationships with innovative food companies.
Sustainability Initiatives:
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100% traceable sustainable oils
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Carbon-neutral production goals by 2030
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Support for regenerative agriculture
5️⃣ 6. Fuji Oil Holdings Inc.
Headquarters: Osaka, Japan
Key Offering: Emulsified shortenings for Asian baking and dairy alternatives
Fuji Oil Holdings Inc. excels in developing emulsified shortenings suited for traditional Asian pastries and rice-based goods, where precise moisture control and stability are paramount. Their advanced emulsification allows for greater sugar absorption, perfect for sweet treats that require a delicate balance of flavors and textures. As plant-based diets gain traction, Fuji Oil is broadening its range of vegetable fats compatible with vegan formulations, ensuring seamless integration into dairy-free recipes. Their streamlined supply chain facilitates timely deliveries, supporting global food processors in maintaining production efficiency amid fluctuating demands.
Sustainability Initiatives:
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RSPO membership and sustainable sourcing
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Energy-efficient manufacturing processes
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Research into algae-based fats
4️⃣ 7. IOI Group Berhad
Headquarters: Johor Bahru, Malaysia
Key Offering: Palm-based emulsified shortenings for confectionery and bakery
IOI Group Berhad serves as a cornerstone supplier in Southeast Asia, with emulsified shortenings engineered to endure high-heat processes without emulsion failure, ideal for chocolates and icings that demand a smooth, glossy appearance. These products extend shelf life, reducing spoilage in supply chains prone to temperature variations. While palm oil sustainability poses challenges, IOI’s certification advancements reassure international buyers, facilitating market access and growth in ethical sourcing-focused regions. This dedication strengthens their foothold in expanding markets, where quality and responsibility drive purchasing decisions.
Sustainability Initiatives:
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No-deforestation, no-peat, no-exploitation policy
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Partnerships for biodiversity conservation
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Transition to green energy in refineries
3️⃣ 8. Mallet & Co.
Headquarters: Godmanchester, United Kingdom
Key Offering: Animal and plant-blended emulsified shortenings for European bakers
Mallet & Co. specializes in emulsified shortenings that evoke traditional British baking flavors, blending animal and plant elements for buttery richness enhanced by superior emulsification. These aid in moisture retention for scones and biscuits, boosting appeal in a market favoring authentic tastes. Targeting smaller producers, Mallet offers tailored advice, building trust in Europe’s regulated environment. As health regulations advance, their hybrid developments balance indulgence with wellness, enabling bakers to innovate while adhering to standards.
Sustainability Initiatives:
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Local sourcing to reduce transport emissions
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Animal welfare standards in blends
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Packaging reduction efforts
2️⃣ 9. Lonza Group Ltd.
Headquarters: Basel, Switzerland
Key Offering: High-performance emulsified shortenings for pharmaceuticals and food
Lonza Group Ltd. applies pharmaceutical rigor to emulsified shortenings, guaranteeing purity for low-fat and sensitive baked goods. Their emulsifiers maintain stability across conditions, facilitating gluten-free and allergen-free innovations. Global operations and biotech prowess drive functional enhancements like fortified nutrients, placing Lonza ahead in health-oriented advancements.
Sustainability Initiatives:
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Biotech-driven sustainable ingredient development
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Water conservation in production
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Life-cycle assessments for products
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1️⃣ 10. Schou ApS
Headquarters: Billund, Denmark
Key Offering: Specialty emulsified shortenings for industrial and artisanal use
Schou ApS pioneers Danish-engineered emulsified shortenings that enhance flavor and texture in premium confections, renowned for airy cakes and fillings with clean profiles. As an agile innovator, Schou delivers bespoke solutions, empowering boutique makers to rival giants through meticulous quality.
Sustainability Initiatives:
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Organic certification for select lines
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Renewable energy-powered facilities
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Collaborations for waste-free production
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🌍 Outlook: The Future of Emulsified Shortening Is Sustainable and Versatile
The emulsified shortening market is poised for steady evolution, with traditional uses persisting while investments surge in plant-based innovations, emulsification advancements, and resilient supply chains to address consumer and regulatory shifts.
📈 Key Trends Shaping the Market:
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Rising adoption of plant-based emulsified shortenings in vegan baking
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Regulatory pressures to eliminate trans fats, boosting innovation
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Expansion in Asia-Pacific due to growing bakery consumption
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Digital tools for supply chain optimization and quality control
Market Trends Affecting Emulsified Shortening Innovation
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Shift to plant-based sources (Cargill, ADM) — Driven by vegan trends, companies are reformulating with soy and palm alternatives, simplifying compliance but necessitating verification of nutritional labels and supply ethics. Recent sustainability pledges are redefining sourcing strategies.
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Clean-label and non-GMO demands — Manufacturers prioritize transparent ingredients and GMO-free options to align with consumer preferences, reducing allergens and enhancing market access. Bunge’s non-GMO lines exemplify this transition.
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Functional enhancements for health — Integration of omega-3s and fibers into emulsified shortenings via cloud-based R&D platforms is vital for health-focused brands (Wilmar, AAK), aiding multi-product operators in meeting dietary guidelines.
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Versatile formulations for diverse applications — Multi-purpose shortenings for bakery and confectionery cut costs and space, favored in efficient production. Fuji Oil leads in adaptable, high-performance blends.
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Automation in production and distribution — IOI and others implement robotic mixing and logistics to minimize waste and labor in scalable food processing, supporting high-volume, consistent output.
Market segmentation highlights opportunities in plant-based versus animal-based types, applications like supermarkets and online stores, and regions including North America to Asia-Pacific. North America commands a notable share at USD 78.60 million in 2024, with a 3.51% CAGR, propelled by sophisticated food processing infrastructure.
FAQs – Global Emulsified Shortening Market (2024–2032)
1. What is the market size of emulsified shortening in 2024?
The global emulsified shortening market is valued at USD 281.50 million in 2024, driven by rising demand in the bakery and foodservice industries.
2. What is the projected size of the emulsified shortening market by 2032?
By 2032, the market is forecasted to reach USD 404.14 million, showing steady expansion across industrial and commercial baking sectors.
3. What is the expected CAGR for the emulsified shortening market from 2024 to 2032?
The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 4.10% over the forecast period.
4. What is emulsified shortening used for?
Emulsified shortening is mainly used in:
- Commercial baking (cakes, pastries, donuts)
- Improving texture and volume in baked goods
- Enhancing moisture retention and shelf life
5. What factors are driving the growth of the emulsified shortening market?
Key growth drivers include:
- Rising consumption of ready-to-eat and bakery products
- Growth of the global foodservice industry
- Demand for consistent product quality in large-scale food production
Key Benefits of This Market Research:
- Industry drivers, restraints, and opportunities covered in the study
- Neutral perspective on the market performance
- Recent industry trends and developments
- Competitive landscape & strategies of key players
- Potential & niche segments and regions exhibiting promising growth covered
- Historical, current, and projected market size, in terms of value
- In-depth analysis of the Emulsified Shortening Market
- Overview of the regional outlook of the Emulsified Shortening Market
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Chapter Outline
- Chapter 1 mainly introduces the statistical scope of the report, market division standards, and market research methods.
- Chapter 2 is an executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the Emulsified Shortening Market and its likely evolution in the short to mid-term, and long term.
- Chapter 3 makes a detailed analysis of the market’s competitive landscape of the market and provides the market share, capacity, output, price, latest development plan, merger, and acquisition information of the main manufacturers in the market.
- Chapter 4 is the analysis of the whole market industrial chain, including the upstream and downstream of the industry, as well as Porter’s five forces analysis.
- Chapter 5 introduces the latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.
- Chapter 6 provides the analysis of various market segments according to product types, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
- Chapter 7 provides the analysis of various market segments according to application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
- Chapter 8 provides a quantitative analysis of the market size and development potential of each region from the consumer side and its main countries and introduces the market development, future development prospects, market space, and capacity of each country in the world.
- Chapter 9 shares the main producing countries of Emulsified Shortening, their output value, profit level, regional supply, production capacity layout, etc. from the supply side.
- Chapter 10 introduces the basic situation of the main companies in the market in detail, including product sales revenue, sales volume, price, gross profit margin, market share, product introduction, recent development, etc.
- Chapter 11 provides a quantitative analysis of the market size and development potential of each region during the forecast period.
- Chapter 12 provides a quantitative analysis of the market size and development potential of each market segment during the forecast period.
- Chapter 13 is the main points and conclusions of the report.
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The companies listed above are not only essential to global baking—they’re leading the sustainable transformation of food ingredients.