The shortenings market in Latin America is expected to be valued at USD 30.77 bn in 2024 and USD 38.86 billion by 2029, growing at a CAGR of 4.78% from 2024 to 2029.
Shortening can be defined as fats that are solid at room temperature. They are normally used in making pastries and other foods. Shortening is utilized in pastries which should not be elastic, like cake. Though butter is solid at room temperature and frequently used in pastry making, the word "shortening" rarely refers to butter but to margarine. Originally shortening referred to lard, but the discovery of margarine included it as well to the term. The water content in them is less, hence they can be fried easily without the fear of splattering. As shortenings need not be refrigerated and cheap to produce, they gained popularity in recent times as food production became increasingly industrialized.
The growth of the Latin American shortenings market is primarily driven by factors like their favorable functioning properties, rising convenience food sector, and increasing usage of shortenings in bakery and confectionary foods, among others. The growing urbanization and changing lifestyles, advancements in food processing technologies, growing disposable income of the population of Latin America and rising popularity of Western-style foods in Latin America are contributing to the Latin American market growth.
Y-o-Y growth in the retail sector, the growing health consciousness population in Latin America, increasing demand for healthier shortenings, Y-o-Y growth in the confectionery industry and rising awareness of the benefits of shortenings in baking in Latin America are further fuelling the demand for shortenings in this region and propel the regional market growth. Furthermore, factors such as, the growth of the packaged food industry in Latin America, rapid adoption of technological advancements in the manufacturing of shortening, rapid adoption of home baking trends, the growing demand for trans-fat-free shortenings and supportive government policies and incentives in Latin America are further contributing to the Latin American market growth.
However, the regional market growth is constrained by factors like the risk of adverse health effects from it. Furthermore, rising preference for natural and organic alternatives, volatilities in raw material prices, stringent government regulations on food ingredients and competition from substitute products like butter and oils are further impeding the shortenings market growth in Latin America. Limited awareness about the benefits of shortenings, economic instability in some Latin American countries and high cost of production and processing of shortenings are further hampering the growth of the Latin American market.
Brazil is currently leading the shortenings market in Latin America. Factors such as the vast agricultural base and robust food processing industry in Brazil are propelling the Brazilian market growth. The large population and growing middle class of Brazil are propelling the demand for shortenings in Brazil, particularly in the bakery and confectionery sectors, which is contributing to the Brazilian market growth.
Mexico and Argentina are anticipated to account for a substantial share of the Latin American market during the forecast period.
Companies playing a major role in the Latin America shortenings market include Cargill, Bunge Limited, Conagra Brands, Wilmar International Limited, Archer Daniels Midland Company, International Foodstuff Company Holdings Limited (IFFCO), Ventura Foods, LLC., Manildra Group and AAK AB.
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