MARGARINE MARKET ANALYSIS

Market Challenges And Opportunities

Global Margarine Market Drivers:

Growing application in the bakery industry is propelling growth of the market

Margarine is widely used in preparation of cakes and biscuits as it gives flaky texture to the bakery products. Moreover, it also helps in prolonging shelf-life of the bakery products. Hence growing demand for bakery products is expected to contribute to the market growth. Margarine is rich in unsaturated fat but sometimes trans-fat.

Increasing demand for sustainable margarine is augmenting market growth

Consumers are becoming more health conscious which is turn creating demand for sustainable and plant-based foods. Government is taking initiatives to eliminate unhealthy food ingredients. For instance, Argentina’s high heart risk problem was tackled by the initiatives of the government organizations, which finally led to the adoption of schemes that could help to encourage sustainable food by getting rid of industrially-produced Tans-fats.

Global Margarine Market Opportunities:

Growing demand for specialized products due to increasing demand for perfection across food sector is expected to hold potential market opportunities. For this key manufacturers are adopting solutions in order to develop product-specific margarine variants to cater versatile applications of food sector. For instance, East Asia Palm Products Sdn Bhd produces a range of vegetable laminating margarine designed specifically to meet the needs of laminated products such as croissants, Danishes, and puff pastries.

Increasing demand for clean-label margarine is expected to provide significant growth opportunities. For instance, in November 2019, Netherlands-based ingredients supplier Bunge Loders Crocklaan (BLC) introduced a clean-label shea margarine that is produced using a 'unique' crystallization process particularly appropriate for the bakery sector, enhancing the ‘puff, crispiness’ in products like croissants and Danish pastries.

Global Margarine Market Restraints:

Health concerns associated with trans-fats

Trans-fats are a type of fat that has been associated with an increased risk of chronic diseases. Because of this, the Food and Drug Administration is now banning Trans-fats in processed foods. According to World Health Organization, 58 countries have laws that protect 3.2 billion people from harmful trans-fat by the end of 2021. Consumption of industrially produced trans-fats is estimated to cause around 500,000 deaths per year due to coronary heart disease. Fifteen countries account for around two-thirds of the deaths linked to trans- fat intake.

Butter as alternative to restrict use of margarine

As per the data provided by the USDA Foreign Agricultural Service, the average Canadian consumed 3.68 kilograms of butter per capita in 2020. Butter is healthy alternative to margarine, thus hindering market growth. However, emergence of sustainable and plant-based margarine is expected to open new avenue for the market.