The global margarine products market was valued at USD 5.55 billion in 2021 and is projected to expand at a CAGR of 4.8% from 2022 to 2029. Margarine, a soft spreadable food product, is primarily made from a blend of plant-based oils, such as vegetable oil, and water. Margarine is a popular alternative to butter due to its low cost, and its ability to be used as a spread and a cooking ingredient, as well as its low level of saturated fat. Margarine is a versatile product and is used in the production of various food products, such as cakes, pastries, cookies, and bread. Furthermore, the growing demand for convenience food is expected to drive the market growth over the forecast period.

The margarine products market is witnessing significant growth due to the rising demand for trans-fat-free products, particularly in countries such as the US, Canada, and the UK, as trans-fatty acids have been linked to serious health issues such as heart disease and stroke. This has led to an increase in the number of margarine manufacturers launching trans-fat-free products, such as Smart Balance, which is a trans-fat-free margarine. Furthermore, the rising vegan population and the increasing demand for vegan products, such as margarine, is expected to drive the market growth.

The market is witnessing an increase in the number of innovative product launches by key players to cater to the growing demand from consumers. For instance, in April 2021, Unilever launched a new line of plant-based margarine spread, called Flora Plant. The product is made from a blend of sunflower and rapeseed oils and is free from artificial colors, flavors, and preservatives.

The rising demand for convenient food products is expected to boost the market growth over the forecast period. The increasing disposable income of consumers in developing countries is allowing them to spend more on convenience food. Furthermore, the emergence of online food delivery services is providing a platform for convenience foods to reach a larger base of consumers, which is expected to drive the market growth. Additionally, the increasing number of health-conscious consumers is expected to spur the demand for low-fat and low-calorie margarine products.

The spreadable margarine segment held the largest market share of around 33.9% in 2020. Increasing consumer preference for margarine, due to its low-fat content and availability at a lower price than butter, is driving the growth of the margarine market. According to a study published in the Journal of Food Science and Technology in 2020, margarine is considered a healthy substitute for butter due to its lower saturated fat content and higher polyunsaturated fat content. Furthermore, the increasing number of bakery and confectionery products and the emergence of flavored and organic margarines are anticipated to drive the growth of the market.

The baking margarine segment is projected to expand at the fastest CAGR of 5.1% during the forecast period. The increasing demand for margarine in baking products such as cakes, cookies, and pastries is anticipated to propel the growth of the baking margarine segment. According to a study published in the International Journal of Food Sciences and Nutrition in 2020, margarine is used as a butter replacement in bakery applications to reduce the saturated fat content of the product. Additionally, the increasing use of margarine in bakery products due to its flavor and texture is projected to fuel the growth of the market.

The supermarkets and hypermarkets segment held the largest share of the margarine products market in 2022. This large share is attributed to the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase food & beverages products. Supermarkets and hypermarkets offer consumers a wide variety of products under the same roof. Supermarkets & hypermarkets also provide convenience to customers in terms of product selection, browsing, price comparison, and quick purchase decision-making, which is likely to drive the segment growth. Furthermore, they provide attractive discounts and offers, which further accelerates the segment growth.

The online segment is anticipated to expand at the highest CAGR of 11.2% over the forecast period. The development of e-commerce in the food & beverages industry has been increasing, with companies launching online websites and apps to increase their brand visibility among consumers. For instance, in October 2022, Unilever launched an online store on Amazon to expand its presence in the online space. The online store offers all its products across categories like spreads, dressings, and condiments. Additionally, the online segment offers convenience to customers, as they can purchase their desired products from the comfort of their home. This is likely to drive the segment growth in the near future.

The spreadable margarine segment accounted for the largest revenue share of 57.3% in the year 2022 owing to the increasing demand for convenience foods. The spreadable margarine is an easy-to-use product, which provides convenience to the consumer, thus driving its demand. The product is used in multiple food preparations such as cakes, pies, cookies, and doughnuts. Moreover, the introduction of several variants with various flavors such as garlic, onion, and herbs is further propelling the demand for spreadable margarines.

The baking margarine segment is anticipated to expand at the highest CAGR of 8.9% over the forecast period. The increasing demand for baking margarine in baking and confectionery food preparation is mainly driving the segment. Furthermore, the various advantages of baking margarine such as its ability to control fat content in food items, provide fluffiness and texture, and easy melting is likely to propel the segment growth in the forecasted period.

Europe dominated the margarine products market and accounted for the largest revenue share of over 45.2% in 2022. This can be attributed to the rising health consciousness among consumers in the region. The margarine market in Europe is driven by the increasing demand for margarine in various applications, such as bakery products, confectionary, spreads, and other food products. Additionally, the presence of key players, such as Unilever, Kraft Foods, and others, is expected to further drive the growth of the market in the region.

Asia Pacific is expected to witness the fastest growth in the coming years. The increasing disposable income of consumers in the region has led to an increased demand for margarine products in the region. Moreover, technological advancements, such as the introduction of bio-based margarine products, are expected to drive the market growth in the region. For instance, in April 2021, Unilever launched a new range of plant-based margarine and spread products in Australia.

In this part of the margarine products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your margarine products. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a margarine products business comes from sales of margarine products to retail outlets, foodservice operators, and other channels. Here you will find a list with a description of each of them and other possible sources of profit such as private-label production, export sales, and the sale of promotional items.

Projecting Expenses

In this section, all the regular expenses related to keeping the margarine products business running will be described. The list of operating expenses includes raw material costs, packaging supplies, wages, marketing expenses, distribution costs, insurance policies, and others.

Some of the key companies operating in the margarine products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In June 2022, Unilever launched a new range of plant-based margarine products under its Flora brand.

– In August 2022, Nestlé launched a new range of dairy-free margarine products.

– In October 2022, Danone launched a new range of organic margarine products.

Some of the prominent players in the margarine products market include:

– Unilever
– Kraft Heinz Company
– Nestlé SA
– Danone
– General Mills, Inc.
– FrieslandCampina
– Land O’Lakes, Inc.
– Lactalis Group
– Upfield Group
– Koninklijke DSM NV

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global margarine products market based on product type, distribution channel, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Low Fat Margarine
– Non-hydrogenated Margarine
– Regular Margarine
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Key Drivers of the Global Margarine Products Market?
[A]: The primary drivers of the global margarine products market include the increasing demand for healthy and nutritious food products, the growing demand for convenience food, and the rising disposable income of consumers. In addition, the rising trend of veganism and vegetarianism is also driving the market growth. Moreover, the availability of different flavors and the increasing preference for low-fat margarine products are positively influencing the market growth.

[Q]: Who are the Key Players in the Global Margarine Products Market?
[A]: Key players in the global margarine products market include Unilever, Arla Foods, FrieslandCampina, Nestle SA, Kerry Group, Kraft Heinz, Danone SA, American Ingredients Company, and Upfield Group.

[Q]: What are the Recent Innovations in Margarine Products?
[A]: Margarine manufacturers are continuously innovating new flavors and product varieties in order to cater to the changing consumer preferences. For instance, Unilever launched a new vegan margarine brand called ‘Flora Freedom’ in the UK, in 2018. This product is dairy-free and contains no artificial colors or preservatives.

[Q]: What are the Potential Applications of Margarine Products?
[A]: Margarine products have a wide range of applications in the food industry. Margarine is mainly used as a spread in bakery, convenience food, and ready-to-eat meals. It is also used in the production of confectionery items and as a fat source for frying, baking, and other cooking processes. In addition, margarine is often used as an ingredient in various sauces and dressings.

[Q]: What is the Market Outlook for Margarine Products?
[A]: The global margarine products market is expected to register a CAGR of 3.9% over the forecast period (2020-2025). Growing health consciousness among the consumers, the increasing demand for convenience food, and the rising trend of veganism are some of the major factors driving the market growth.