MARKET OVERVIEW - EUROPE INDUSTRIAL MARGARINE MARKET
The Europe industrial margarine market was valued at USD 877.4 Million in 2022 and is projected to grow at a CAGR of 3.80 % for the forecast period 2023 to 2029. The Europe market is estimated and forecasted in terms of revenue (USD Million) generated by the Europe industrial margarine market.
Industrial margarine is a fat that is obtained from animal fat as well as from vegetable oils fat, it is used in many of the food recipes. It has almost similar cooking quality as butter, and is most commonly used in bakery and confectionary, since it adds unique appearance to many of baked items along with adding creaminess to the baked items. Margarine holds a lot of healthy properties such as unsaturated fats such a polyunsaturated fat and mono-saturated fat which are helpful in controlling cholesterol level and good for the heart. Along with that, margarine contains vitamin A and D low in energy and fats. Also, there are new variants of margarine which are low in trans-fats as well due to which these are highly popular among health-concious population. In the bakery industry, margarine is widely used as an ingredient in products such as pastries, doughnuts, and cookies. Moreover, the market for margarine is driven by the product’s cost-effectiveness. It is a low-cost alternative to butter and other fat-soluble spreads. Thus, rising health awareness and health conscious food consumption is driving the industrial margarine market.
MARKET DRIVERS
The Increased health consciousness among Europeans is likely to drive the market. Now a day’s people are becoming more and more concerned about the health and shifting their preference to healthy foods. As plant-based foods have a smaller carbon footprint as compared to animal-based margarines hence, more people are switching to meat-free alternatives for a good cause. Which is directly driving the plant based industrial margarine market. Food retailers in France, Germany, Italy and the Netherlands are finding growing demand for sustainably sourced products. Around 98% of food retailers reported increased sales of healthy products over the last five years. Sustainable products show around 18.3% growth from last year. Further, the demand for the industrial margarine has been raised, as population across the Europe is growing rapidly, due to which demand of processed food products and bakery products are growing and helping to boost the market.
Margarine products require less energy to produce than butter. In the UK margarine requires about 50% less energy, in Germany the difference is about 25%. This is also one of the key factors in increasing the demand for industrial margarine. In addition to that, European consumer have become more and more demanding with the quality of the food they eat, as they should be. They want healthier food and expect greater transparency and traceability. Government’s health ministries are partnering with the agriculture ministries to get rid of the unhealthy components of food, including trans-fat, which is further anticipated to promote the growth of the market for sustainable margarine.
MARKET OPPORTUNITIES
Bakeries and baking companies are seeking plant-based margarine alternatives with superior functionality and good flavour, while consumers are demanding non-hydrogenated, sustainable alternatives to palm oils and GMO oils, as well as healthier products. Thus, there is increase in demand for new product innovations and variety of margarine products which creates an opportunity for industrial.
MARKET RESTRAINTS
Margarine is mostly used in backing industry. However, there are many substitutes for the margarine in the backing. Olive oil, coconut oil, canola oil, avocado oil, or vegetable oil and peanut butter is mostly used as a substitute for margarine. Furthermore, industrial Margarine is a fat used widely as an ingredient or a spread that resembles butter, but is a common butter substitute. Which may act as a restraining factor for the margarine market during the forecasted period.
MARKET GROWTH CHALLENGES
There is growing demand of trans-fat free margarine as trans-fat is a key problem in margarine. And increase in strict government regulation against the commercialization and use of industrially produced trans fats in food products are the challenging factors for growth of the industrial margarine market. Further, growing need to fulfil with international quality standards for commercialization of industrial margarine ingredients. Thus, above mentioned factors challenge the growth of the industrial margarine market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the Europe industrial margarine market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The booming bakery & confectionary industries in Europe region is expected to witness growth at a specific CAGR from 2023-2029.
EUROPE INDUSTRIAL MARGARINE MARKET SEGMENTAL OVERVIEW
The Country Europe Industrial Margarine Market consists of different market segments like By Type, Form, Source, Application, and region.
EUROPE INDUSTRIAL MARGARINE MARKET BY TYPE
The Europe Industrial Margarine market on the basis of type include:
- Spreadable
- All purpose
- Butter blend
Based on type, the industrial margarine market is segmented into spreadable margarine, all-purpose margarine, and butter blend. The spreadable margarine segment is expected to witness high growth over the estimated time period. Spreadable is 80% fat, and that fat, comes from either a vegetable source, or milk fat or some combination of the two. Margarine spreads are low in cholesterol and trans fats, which makes them a better alternative. As margarine has a superior spreadability than butter, hence, it is exceedingly preferred by most consumers. Also, it is less expensive, and industrial margarine is used to a great extent as it is less costly than butter. Therefore, due to these key advantages, margarine spreads are becoming increasingly popular, and due to this factor, the spreadable segment is expected to lead the market over the forecast period.
EUROPE INDUSTRIAL MARGARINE MARKET BY FORM
The Europe Industrial Margarine market on the basis of form include:
Based on form, Europe industrial margarine market is segmented into hard and soft. Hard forms of industrial margarines are most commonly used in pastry making, but if softened, they can be used in creaming. It finds a wide range of applications in the food industry, which includes bakery, confectionary, cake, pastry etc. Which increases its demand in the overall market. Therefore, the hard industrial margarine segment is expected to dominate the market over the estimated time period.
EUROPE INDUSTRIAL MARGARINE MARKET BY SOURCE
The Europe Industrial Margarine market on the basis of source include:
Based on source, Europe industrial margarine market is segmented into plant and animal. Margarine is made mainly of hydrogenated or refined plant oils and water. Plant-based oils including canola oil, palm fruit oil, and soybean oil are used to make vegan margarine which reduces obesity and heart diseases, hence consumers are shifting to plant-based margarines. Although most margarine is made from plant-based ingredients, it remains a refined product. This means that they’re produced from extracted components of whole foods, such as plant oils, instead of the whole foods themselves. Consumers are switching to plant-based margarines in order to maintain their long-term health. Thus, plant-based margarines are expected to lead the market over the forecast period.
EUROPE INDUSTRIAL MARGARINE MARKET BY APPLICATION
The Europe Industrial Margarine market on the basis of application include:
- Bakery and Confectionery
- Spreads, sauces, and toppings
- Convenience food
- Desert
Based on application, industrial margarine is segmented into bakery and confectionery, spreads, sauces, and toppings, convenience food and desserts. Bakery and confectionery segment dominates the market. Margarine has long been a favourite ingredient for bakers as its soft texture makes it a suitable option to whip up into buttercream frosting or to cream into sugar for a sponge cake. Margarine can also be used to improve the eating quality of products, which helps prolong shelf life, and makes fillings and icing creamier. It is used in bakeries to produce a wide range of confectioneries such as puff pastries, cakes, croissants, etc. The function of margarine in baking is to give tenderness to the baked product. Industrial margarine is widely used as a spread for flavouring, cooking, and baking. Due to all these factors, the bakery and confectionery segment is expected to dominate the market over the projected time period.
EUROPE INDUSTRIAL MARGARINE MARKET BY REGION
The Europe Industrial Margarine market is studied for the following region:
- United Kingdom
- Germany
- France
- Spain
- Italy
- Netherland
- Hungary
- Belgium
- Rest of the Europe
For the Europe industrial margarine market, Germany is expected to witness the largest share in the Europe industrial margarine market. Germany is estimated to hold the largest share of the overall spreadable market in 2022. Germany is witnessing an increase in the middle class and upper middle class population as well as growth in the food and beverage industry, which provides ample opportunities for key players in the industrial margarine market. Margarine is widely used in a variety of applications that include bakery, spreads, sauces and toppings, confectionery, semi-finished products, and more. European countries such as Italy, France, Spain, and the United Kingdom have well-established baking and confectionery industries. Products produced in these countries are consumed locally and exported to other regions such as North America and the rest of Europe. The high production of bakery and confectionery products in Europe, is expected to increase the demand for industrial margarine.
COVID-19 IMPACT ANALYSIS ON THE COUNTRY EUROPE INDUSTRIAL MARGARINE MARKET
Axiom MRC provides a 360-degree analysis of the micro and macro-economic factors of the Europe industrial margarine market. The report included an exclusive analysis of the impact of COVID-19. Governments in many hard-hit countries around the globe have imposed nationwide lockdowns and travel restrictions to avoid further virus infection of COVID-19, which creates several difficulties across the supply chain in the Europe industrial margarine market. The market players have taken many strategic decisions to address the uncertain period to get their revenues on track. In addition, the demand from end users such as bakery, confectionary, convenience food among others may also harm the Europe industrial margarine market. However, the increased demand from bakery industry after 3rd wave of COVID has provided opportunity for Europe industrial margarine market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Europe industrial margarine is primarily focused on expanding the Europe growth of industrial margarine market with new form innovation, business expansion, and the increasing presence of a range of manufacturers operating in the Europe industrial margarine market has led to growing demand for the market.
The key players studied in the market are
- Puratos (Belgium)
- Fuji Oil Europe (Japan)
- Associated British Foods plc. (United Kingdom)
- NMGK Group (Russia)
- Vandemoortele (Belgium)
- EFKO Group (Russia)
- Bunge Limited (United States)
- Royale Lacroix sa (Belgium)
- Aigremont (Belgium)
RECENT DEVELOPMENT:
June 2022: Vandemoortele has started a collaboration with MCC Verstraete to have mono-material packaging for the company’s margarine tubes. The company offers a PP seal that is sealppeal that substitutes for the typical aluminium foil. This partnership for new packaging will make the company go for sustainable benefits for the environment.
December 2019: Bunge Limited has announced that the company has entered into an agreement to sell its margarine and mayonnaise assets in Brazil to Seara Alimentos S.A. This deal also includes three production plants and the brands used for these two products. This deal also streamlines Bunge Limited’s operations in Brazil.
December 2020: Bunge Limited’s margarine and mayonnaise business in Brazil has been acquired by JBS SA, which is a meat processing company. The deal is closed for 700 million Brazilian reais and includes three manufacturing facilities in Gaspar, São Paulo, and Suape.
