4 industry trends that are shaping the future of margarine production

1. Population growth and the rise of plant‑based demand 

A growing population is intensifying the need for affordable, versatile food ingredients. At the same time, more consumers are adopting vegan and vegetarian diets, fueling demand for margarine as a plant-based alternative to butter. 

Demographic changes are also influencing consumption patterns. By 2050, the global population over age 65 is expected to double, spurring demand for heart-healthy products. With its plant-based profile and the discontinuation of trans-fatty acids, margarine is well-positioned to meet the scale requirements of a larger population and the health preferences of older consumers.

2. Growing demand for industrial margarine among food producers

The appeal of margarine and shortenings extends well beyond household consumers. Food manufacturers increasingly rely on it as a healthy, cost-effective ingredient. Bakeries and confectioners, in particular, value margarine as a dependable alternative to butter, helping them meet consumer expectations for affordable, high-quality products. 

This shift is accelerating growth across the industrial margarine and shortening markets. Producers must adapt their processes, scale production, and innovate product offerings to meet rising demand from consumers as well as commercial kitchens and ingredient supply chains. 

3. Health and wellness are driving the margarine and shortening industry

Health-conscious living is reshaping food choices across all age groups worldwide. Consumers are actively seeking food and spreads that are lower in fat, salt, cholesterol and calories – without sacrificing taste and texture. Plant-based, low-cholesterol margarines, made without trans fats, align well with this health-driven mindset. 

In response, producers are developing new formulations with plant-based ingredients, added nutritional benefits, and clean labels. This positions margarine as a smart alternative to butter – balancing health benefits with consumer appeal.

4. Sustainability is shaping the future of margarine and shortenings

The health of our planet is also a growing concern among consumers and policymakers. With a smaller carbon footprint compared to animal-based alternatives, plant-based foods are increasingly viewed as part of the solution to global sustainability challenges. 

Food manufacturers face challenges in acting responsibly, as consumers pay more attention to a company’s environmental practices when making purchasing decisions. At the same time, many governments are imposing stricter regulations on production methods across the margarine industry. To stay ahead, producers must be agile, integrating sustainable practices across all areas of operations. 

Plant-based margarine is already more sustainable than animal-based spreads but further improving margarine production practices allows companies to strengthen their sustainability profiles and position themselves as socially responsible brands. 

How to capitalize on growth in the industrial margarine market 

Efficiency is key for companies looking to compete successfully in the industrial margarine market, whether they plan to optimize existing margarine production lines or invest in new downstream capacity fo refining and fat modification processes. 

Reducing water and energy use, minimizing carbon footprint, and cutting operational costs are essential steps. Automation also plays a crucial role, enabling consistent quality, increased throughput, and wiser use of resources. Smart investments in processing efficiency not only support sustainability but also drive profitability.

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