Expanded Margarine Industry Projected to Reach USD 5.0 Billion by 2034
The margarine market is experiencing significant growth, driven by the increasing demand for healthier and cost-effective alternatives. This transformation is being spearheaded by key players such as Associated British Foods PLC (Primark Foods), Cargill, BRF Global, Bunge Limited, and China Mengniu Dairy Company Limited, who are focusing on sustainable production, reducing palm oil usage, and launching plant-based margarine variants.
Europe currently leads the global margarine market, with Europe and North America being mature markets undergoing innovation in plant-based and palm-oil-free margarine products. However, Asia Pacific is emerging as a growth hotspot due to rising consumer income, industrial food production, and premium product adoption.
Soft margarine dominates the market, accounting for over 55% share. However, the fastest-growing segment is liquid margarine, expected to expand at a CAGR of approximately 5.82% through 2030 due to its industrial usage in food manufacturing.
The market is witnessing a premiumization trend, with low-fat and fortified margarine variants becoming more popular. The “clean-label” movement, favoring minimally processed, natural ingredients, is boosting demand for natural butter and margarine alternatives, though butter currently benefits more strongly from this trend.
Industrial demand, particularly from frozen bakery manufacturers in North America and Europe, is surging, propelling growth in industrial margarine products. The bakery sector remains a key driver for the margarine market globally.
Expansion of private-label margarine in discount retail formats is accelerating, aiding wider accessibility and cost competitiveness. Retail chains remain principal distribution points, supported by increasing demand for affordable yet quality margarine options.
The global margarine market is forecasted to grow at a CAGR around 4-5% from 2024 to 2031. Sustainability and health consciousness will continue to drive formulation changes, with more palm-oil-free and fortified margarine products entering the market. Industrial use, especially in frozen bakery and confectionery, will be a strong growth lever. Private-label and cost-competitive products will expand in emerging regions.
In conclusion, the margarine market is advancing through product diversification, a shift towards plant sources and sustainable formulations, expansion in industrial bakery applications, and differentiated regional growth driven by evolving consumer preferences and regulatory environments.
- Investing in companies that cater to the food-and-drink sector, particularly those specializing in margarine production, could prove profitable given the market's expected growth.
- For those interested in healthy cooking, there's an increasing variety of plant-based margarine options available, a response to the growing demand for sustainable and palm-oil-free products.
- As for those in the real-estate industry, commercial properties housing food-manufacturing establishments may see higher demand due to the surging industrial use of margarine, particularly in the bakery sector.
- For those passionate about baking, the growth in the margarine market could offer exciting opportunities, especially with the trend of premiumization and "clean-label" products gaining traction.
