Fats and oils provide a great deal of functionality, whether it’s the shortening in a laminated pastry or the frying oil that cooks a donut. Removing partially hydrogenated oils was a major challenge nearly 10 years ago, but since then, functionality has come a long way. Today, customer and consumer demands have bakers looking for their fats and oils to do more than just provide structure and flavor.
“There are a lot of balls in the air these days trying to satisfy the market for our customers’ products’ functionality, and flavor is of the utmost importance to all,” said Joe Loveshe, sales representative at Columbus Vegetable Oils.
Those demands can be fat and oil solutions that are sustainably sourced, longer shelf life or reduced saturated fat content. And bakers are always interested in ways to save on costs. But bakers beware of going for these value-adds at the cost of their finished product quality.
“As can be expected, bakers want it all,” said Michelle Peitz, technical solutions and marketing, refined oils, ADM. “Multiple aspects of fats and oils make baked goods successful; ultimately, functionality must come first. We understand that building additional value-states into existing products can be extra challenging, as it often coincides with the need to uphold the consumer’s experience of a product they know and love.”
When bakers are seeking something a little extra from their fats and oils, there are several trends that stand out and align with other trends in the food industry.
“Beyond functionality and flavor, some bakers are interested in nutritional aspects such as reducing or eliminating saturated fats; other bakers seek sustainability,” said John J. Miller, chief executive officer, Patco Products. “In contrast, nearly all bakers are focused on sensory aspects such as odor, color and the texture imparted by a fat or oil system.”
Fats and oils, especially those derived from palm oil, are ingredients that can often be vulnerable to harmful sourcing practices, so sustainability is top of mind for bakers as they try to meet consumer and retailer demands as well as goals set forth by their own leadership teams.
“We are seeing an increased trend in consumers seeking products that contain sustainably sourced ingredients,” said Ashley Beech, bakery applications development manager, Corbion. “Bakers can formulate using sustainably sourced oils such as RSPO (Roundtable for Sustainable Palm Oil) palm oils to meet this demand.”
Nutrition is another aspect of fats, which have endured their time as the demonized macro nutrient on the block. These nutrition benefits can be increasing omega-3 fatty acid content or reducing saturates.
“Specialty oils like algae oils can provide ingredient functionality as well as health benefits from the omega-3 fatty acids they contain,” Beech said.
Closely tied to this is the need for clean label, which can also include certifications like non-GMO and organic.
“Some may require organic certification which typically involves expeller pressing the oil rather than chemically extracting the oil from the source,” said John Neddersen, principal food scientist, IFF. “In addition, the refining, bleaching, deodorizing and winterizing steps are different for organic fats and oils versus conventionally made fats and oils.”
Winterized oil may be preferred in the winter months when the outside temperatures are colder, Neddersen explained. Winterization removes high-melting waxes and other components from an oil that can cause cloudiness as it’s cooled.
For improved product quality, bakers are looking for ingredients that extend the shelf life and quality of a finished product. Since fat is sensitive to oxidation, it makes sense that bakers would search for those ingredients that carry some shelf life extension capabilities.
“When fats and oils oxidize, the rancid smell and taste will produce unpleasant sensory attributes that lower the quality of the baked goods,” said Marie Shen, associate innovation scientist, Kemin Food Technologies. “Including preservatives like antioxidants can help bakers ensure product qualities like freshness and desirability are maintained.”
Not only are bakers wanting their products to go further on the shelf, but consumers and retailers are also looking to reduce food waste. Shelf life directly impacts the bottom line of all involved in a food purchase, making it a priority for all.
“Food waste has become a difficult challenge to manage,” Shen explained. “For bakers and retailers, unpurchased food means lost sales. For consumers, wasted food equals wasted money, and in today’s economic environment, consumers are buckling down on their finances, which could result in lost future purchases for bakers and retailers if the product doesn’t hold up to their expectations.”
All of these value-adds, however, come at a price during a time when everyone wants to reduce their costs, particularly input costs like ingredients.
“Sustainable sourcing has been a consistent theme in the United States for a while,” said Mike Hogberg, director, commodity procurement, Dawn Foods. “More recently with the price of oil having a step change function higher due to use in energy production (renewable diesel), bakers have sought oil that is lower cost in use.”
Cost isn’t as straightforward as the price of an ingredient, however, as Peitz explained. Bakers must look at a variety of impacts on their ingredients in order to optimize their overall costs.
“With fats and oils, it’s helpful to understand how market influences might affect cost over time,” she said. “Quality within the production facility is another factor. For example, we can help bakers understand quality in donut fryers and what it means for the overall life of their oils and finished products. ADM’s scope goes above and beyond a finished product or single ingredient to assess all the other nuances that can impact overall cost. We also optimize logistics, focusing on supply, delivery and how the customer receives it.”
This article is an excerpt from the October 2024 issue of Baking & Snack. To read the entire feature on Fats & Oils, click here.