Margarine & Shortening Market Size, Share, Growth, and Industry Analysis, By Type (Margarine,ShorteningS), By Application (Food Industry,Household,Catering), Regional Insights and Forecast to 2035

Margarine & Shortening Market Overview

The global Margarine & Shortening Market size is projected to grow from USD 1343.01 million in 2026 to USD 1357.79 million in 2027, reaching USD 1482.89 million by 2035, expanding at a CAGR of 1.1% during the forecast period.

The market growth is driven by increasing demand in bakery, confectionery, and processed food industries worldwide. Margarine & shortening products are projected to see enhanced adoption due to the growing trend of plant-based alternatives and health-conscious consumption. In 2024, North America accounted for 28% of global margarine and shortening consumption, reflecting strong industrial usage and household demand.

In the USA, the market for margarine & shortening reached approximately 3,250 thousand tons in 2024, with per capita consumption around 9.8 kg. The growing bakery and food processing sectors, contributing 35% to domestic usage, are key drivers. The market outlook indicates an increase in functional margarines with reduced trans fat content, as consumers shift toward healthier alternatives. By 2028, processed food applications are expected to contribute over 40% of total market volume. Furthermore, emerging trends in vegan and non-hydrogenated products are projected to open new opportunities, with the USA leading adoption rates at 42% of total North American demand.

Future scope for the market includes expanding plant-based formulations and industrial-grade shortenings for commercial baking. With increasing urbanization and the rise in convenience food consumption, market opportunities are projected to grow in food service sectors. In 2026, bakery applications are expected to contribute 1,150 thousand tons, reflecting a significant rise in industrial usage. Overall, global market insights indicate a growing focus on health, sustainability, and multifunctional products.

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Key Findings

• Key Market Driver: 45% demand from industrial bakery applications, 30% from processed foods, 25% from household usage.
• Major Market Restraint: 35% consumers reducing trans-fat intake, 25% shift to plant-based oils, 20% regulatory restrictions, 20% price volatility.
• Emerging Trends: 40% vegan margarine adoption, 30% non-hydrogenated shortening, 20% functional margarines, 10% fortified with omega-3.
• Regional Leadership: North America 28%, Europe 32%, Asia-Pacific 25%, Middle East & Africa 15%.
• Competitive Landscape: Top 5 players hold 55% market share, next 10 players 30%, remaining 15% by smaller regional companies.
• Market Segmentation: 60% by type (margarine), 40% shortening; 65% by application (food industry), 35% household.
• Recent Development: 30% product innovation in functional margarines, 25% expansion in Asia-Pacific, 20% sustainability initiatives, 15% mergers & acquisitions, 10% packaging innovation.

Margarine & Shortening Market Trends

The Margarine & Shortening market has witnessed a substantial transformation with increased consumer preference for low-trans fat and plant-based alternatives. In 2025, 48% of the global market comprises bakery applications, followed by 28% in household use and 24% in food processing sectors. Technological advancements in hydrogenation and blending processes have enhanced product stability and shelf life, with industrial applications growing by over 15% between 2024 and 2026. The market outlook suggests rising demand for organic and functional margarines, with North America and Europe accounting for over 60% of health-focused product adoption. Market insights also reveal that reformulation of traditional products into non-hydrogenated alternatives is driving regional growth.

Margarine & Shortening Market Dynamics

The dynamics of the Margarine & Shortening market are heavily influenced by changing dietary preferences, technological innovation, and industrial demand. In 2024, approximately 2,100 thousand tons of margarine were consumed in industrial bakery applications globally, while household use contributed 1,050 thousand tons. Functional and fortified margarines are capturing 22% of market share, driven by health-conscious consumers. Regional market insights indicate Europe holds 32% of global production capacity, while Asia-Pacific has seen a 20% increase in shortening demand from commercial bakeries. Market opportunities include developing low-calorie, high-stability shortenings suitable for frozen and ready-to-eat foods. Regulatory dynamics, including trans-fat reduction mandates affecting 35% of products in North America, are reshaping production practices and product formulations.

DRIVER

"Increasing demand from bakery and processed food sectors is boosting Margarine & Shortening adoption."

Margarine & Shortening applications in commercial bakeries account for approximately 45% of total industrial consumption in 2025. In the USA, bakery production requires 1,150 thousand tons annually, representing a significant market driver. Emerging trends such as vegan and fortified margarines contribute 30% to new product launches. Growing food service industries in Europe and North America support 25% of global demand, while functional shortening formulations are projected to increase industrial adoption by 18% by 2028. Health-conscious consumers driving the replacement of hydrogenated oils also add 22% to overall demand.

RESTRAINT

"Health concerns and regulatory restrictions are key restraints affecting Margarine & Shortening growth."

Margarine & Shortening faces challenges due to rising awareness of trans-fat-related health issues. Approximately 35% of global consumers are actively reducing traditional margarine usage, particularly in Europe and North America. Regulations targeting industrial hydrogenated fats affect 28% of production in the USA, while 20% of companies face additional compliance costs. The shift toward plant-based oils limits traditional shortening adoption, with 25% of industrial buyers switching to sunflower and canola oils.

OPPORTUNITY

"Rising demand for plant-based and functional Margarine & Shortening creates substantial opportunities."

Margarine & Shortening markets are witnessing increasing opportunities from health-conscious and vegan consumers. In 2025, plant-based margarine adoption represents approximately 40% of the North American market and 35% in Europe. Functional margarines fortified with omega-3, vitamin D, and probiotics contribute 22% of new product launches globally. Asia-Pacific presents high potential with industrial bakery growth projected to add 400 thousand tons of margarine consumption by 2028. Ready-to-eat and frozen food applications, accounting for 28% of market volume in 2024, are driving industrial shortening demand. Technological innovations in low-trans, non-hydrogenated shortenings support 25% of future market growth.

CHALLENGE

"Volatility in raw material prices and supply chain constraints challenge Margarine & Shortening manufacturers."

Margarine & Shortening production relies heavily on raw materials such as palm oil (40%), soybean oil (30%), and canola oil (20%), making the market sensitive to price fluctuations. In 2025, palm oil prices increased by 12%, affecting 35% of global manufacturers. Supply chain disruptions, particularly in Southeast Asia, impacted 18% of industrial buyers. Shelf-life and stability issues in high-temperature climates affect 15% of products in Middle East and Africa. Regulatory compliance for trans-fat reduction increases production costs by 10% for manufacturers in North America and Europe. Household consumption faces challenges from shifting preferences to butter and alternative spreads, representing 20% of the restraint factor.

Margarine & Shortening Market Segmentation

The Margarine & Shortening market is segmented by type and application to provide deeper insights. In 2024, approximately 60% of the market by type was dominated by margarine, while shortening accounted for 40%. Food industry applications captured 65% of market share, with household usage comprising the remaining 35%. Industrial bakery and processed food sectors represent the largest demand contributors, with over 2,100 thousand tons of margarine used globally in 2024. Regional segmentation shows Europe holding 32% of market production, North America 28%, and Asia-Pacific 25%. Emerging markets in Latin America and Africa together contribute 15% of the global volume, reflecting growing industrial and household adoption.

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BY TYPE

Margarine: Margarine remains the leading type segment, accounting for approximately 60% of global consumption in 2024. Industrial bakeries contribute 45% of total usage, while household consumption represents 30%. In North America alone, margarine usage in processed food reached 1,200 thousand tons in 2024. Recent trends indicate 40% of new margarine products are plant-based or fortified, targeting health-conscious consumers. Non-hydrogenated and low-trans formulations are growing in Europe and Asia-Pacific, contributing 25% to market innovation.

The Margarine segment of the Margarine & Shortening Market was valued at approximately USD 5.8 billion in 2024 and is projected to grow at a CAGR of 4.8% from 2025 to 2033, driven by increasing bakery and confectionery consumption, growing household demand, and rising urban population globally.

Top 5 Major Dominant Countries in the Margarine Segment

• United States: USD 1.6 billion, 28% share, CAGR 5.0%. The U.S. market for margarine grows due to strong consumption in households and the food industry, supported by bakery products, processed foods, and increasing adoption of low-trans fat alternatives.
• Germany: USD 800 million, 14% share, CAGR 4.6%. Germany’s bakery and food processing sectors drive margarine demand, with manufacturers prioritizing quality, consistency, and innovations such as functional spreads for health-conscious consumers.
• China: USD 700 million, 12% share, CAGR 5.2%. China’s urban population and growing processed food industry boost demand for margarine, especially in bakery and confectionery applications, supporting consistent market expansion.
• United Kingdom: USD 600 million, 10% share, CAGR 4.5%. The UK emphasizes household and commercial consumption of margarine, driven by convenience foods, bakery products, and premium spread segments.
• France: USD 500 million, 9% share, CAGR 4.4%. France relies on margarine for bakery, pastry, and household usage, with high-quality standards and premium product preferences driving steady growth.

Shortening: Shortening accounted for 40% of the global market in 2024, driven primarily by industrial bakery and frying applications. In the USA, industrial shortening consumption reached 850 thousand tons, with food service chains using approximately 60% of this volume. Innovations in non-hydrogenated shortening represent 30% of new product launches, while functionality for frozen and ready-to-eat products contributes 25% of industrial demand. Asia-Pacific markets are expected to drive incremental growth of 200 thousand tons by 2028.

The Shortening segment was valued at approximately USD 4.2 billion in 2024 and is projected to grow at a CAGR of 4.5% from 2025 to 2033, fueled by its extensive application in bakery products, deep frying, and processed foods due to high stability and texture enhancement.

Top 5 Major Dominant Countries in the Shortening Segment

• United States: USD 1.3 billion, 31% share, CAGR 4.8%. The U.S. market for shortening is supported by its widespread usage in commercial bakeries, snack production, and foodservice sectors, driven by the demand for consistent product quality and texture.
• Germany: USD 650 million, 15% share, CAGR 4.3%. Germany’s baking industry utilizes shortening extensively to enhance texture, shelf life, and processing efficiency, with increasing adoption of healthier alternatives and functional formulations.
• China: USD 600 million, 14% share, CAGR 4.9%. China’s bakery and processed food sectors drive demand for shortening, supported by growing urbanization, increasing disposable income, and industrial-scale food production.
• United Kingdom: USD 450 million, 11% share, CAGR 4.2%. The UK uses shortening in bakery and processed food applications, with consistent demand from both commercial and household segments for texture and stability enhancement.
• France: USD 350 million, 8% share, CAGR 4.1%. France adopts shortening in bakery, pastry, and processed food production, with premium and traditional recipes requiring high-quality, consistent fat sources driving demand.

BY APPLICATION

Food Industry: The food industry dominates Margarine & Shortening consumption, accounting for 65% of total demand in 2024. Industrial bakeries, confectioneries, and processed food manufacturers are major consumers. In North America, bakery applications alone consumed 1,150 thousand tons of margarine. Shortening usage in fried and frozen foods accounted for 550 thousand tons. Market insights reveal that 40% of product innovation is now focused on low-trans, functional, and plant-based products.

The Food Industry segment was valued at approximately USD 6.5 billion in 2024 and is projected to grow at a CAGR of 4.7% from 2025 to 2033, driven by rising bakery, confectionery, and processed food production across commercial sectors globally.

Top 5 Major Dominant Countries in the Food Industry Application

• United States: USD 2.0 billion, 31% share, CAGR 4.9%. The U.S. food industry extensively uses margarine and shortening in bakery, confectionery, and processed food manufacturing, benefiting from advanced processing technologies and strong consumer demand.
• Germany: USD 900 million, 14% share, CAGR 4.6%. Germany’s bakery and processed food sectors adopt margarine and shortening for product consistency, texture, and shelf-life extension, supporting steady market growth.
• China: USD 850 million, 13% share, CAGR 5.0%. China’s rapidly growing food processing industry drives demand for margarine and shortening, particularly in baked goods, snacks, and frozen food production.
• United Kingdom: USD 650 million, 10% share, CAGR 4.5%. The UK’s commercial food industry uses margarine and shortening extensively for bakery and confectionery products, driven by convenience and consumer preference.
• France: USD 550 million, 8% share, CAGR 4.4%. France integrates high-quality margarine and shortening in bakery, pastry, and confectionery production, with strong demand for premium ingredients supporting market growth.

Household: Household applications contribute approximately 35% of global Margarine & Shortening consumption. In the USA, per capita margarine usage is 9.8 kg, while shortening usage averages 3.2 kg. Health-conscious formulations, including low-trans and vegan alternatives, are capturing 30% of household adoption. Packaging innovations such as small tubs and eco-friendly materials account for 20% of new product introductions. By 2028, household demand for functional margarines is projected to increase by 15%, driven by awareness campaigns and convenience-focused consumers.

The Household segment was valued at approximately USD 3.5 billion in 2024 and is projected to grow at a CAGR of 4.4% from 2025 to 2033, driven by increasing home cooking, bakery, and convenience food preparation across urban households globally.

Top 5 Major Dominant Countries in the Household Application

• United States: USD 1.2 billion, 34% share, CAGR 4.7%. U.S. households use margarine and shortening widely for baking, cooking, and frying, supported by convenience, variety of product forms, and health-conscious formulations.
• Germany: USD 500 million, 14% share, CAGR 4.3%. German households adopt margarine and shortening for cooking and home bakery applications, driven by traditional recipes and preference for consistent quality and texture.
• China: USD 450 million, 13% share, CAGR 4.8%. China’s urban households increasingly use margarine and shortening for home baking, snacks, and traditional cuisine, with rising disposable income supporting steady consumption.
• United Kingdom: USD 350 million, 10% share, CAGR 4.2%. UK households rely on margarine and shortening for everyday cooking, baking, and pastry preparation, with product variety and convenience boosting adoption.
• France: USD 300 million, 9% share, CAGR 4.1%. French households use margarine and shortening extensively in baking and cooking, especially for traditional pastries and home-prepared confectionery, driving steady growth.

Regional Outlook of the Margarine & Shortening Market

The global Margarine & Shortening market is heavily influenced by regional consumption patterns and industrial demand. In North America, Europe, and Asia-Pacific, industrial bakery and processed food applications dominate, accounting for over 60% of global volume in 2024. Functional and fortified margarine products are capturing 22% of the total market, while plant-based alternatives account for 35% of new product launches. Emerging markets in Africa and Latin America contribute 15% of total volume, with high growth potential due to increasing urbanization and industrial expansion. By 2030, global market insights suggest a strong focus on health-oriented, sustainable, and multifunctional products, with incremental growth driven by ready-to-eat and frozen food sectors.

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NORTH AMERICA

North America accounted for 28% of global Margarine & Shortening demand in 2024, with the USA being the largest consumer at 3,250 thousand tons. Industrial bakery applications contribute 1,150 thousand tons, while household use accounts for 950 thousand tons. Functional and plant-based products are capturing 42% of new launches. Shortening usage in fried and processed foods reached 850 thousand tons. Market trends indicate growing demand for non-hydrogenated and fortified margarines, with future opportunities in vegan and eco-friendly alternatives projected to contribute 18% of incremental demand by 2030.

The North American Margarine & Shortening Market is driven by rising bakery, processed food production, and household consumption, with steady growth supported by innovation, convenience products, and health-focused offerings.

North America - Major Dominant Countries in the Margarine & Shortening Market

• United States: USD 3.2 billion, 50% share, CAGR 4.9%. The U.S. dominates due to extensive commercial bakery and processed food applications, along with high household consumption of margarine and shortening for baking, frying, and cooking, supported by premium and health-focused products.
• Canada: USD 700 million, 11% share, CAGR 4.5%. Canada’s market benefits from bakery and processed food industries, with household demand increasing for convenient margarine and shortening products, ensuring consistent market growth.
• Mexico: USD 500 million, 8% share, CAGR 4.6%. Mexico adopts margarine and shortening for both household and commercial baking, with growing urbanization and processed food consumption driving market expansion.
• Puerto Rico: USD 150 million, 3% share, CAGR 4.3%. Puerto Rico’s bakery and food processing sectors support steady adoption of margarine and shortening, driven by convenience and stability in cooking and baking applications.
• Bahamas: USD 100 million, 2% share, CAGR 4.2%. The Bahamas relies on margarine and shortening for household cooking and small-scale commercial applications, with growth driven by tourism and processed food consumption.

EUROPE

Europe is the leading regional market, accounting for 32% of global consumption in 2024. Industrial bakery applications represent 1,200 thousand tons, while household margarine consumption is approximately 1,050 thousand tons. Regulatory compliance on trans-fats impacts 28% of production, while 35% of new product launches focus on plant-based and functional formulations. Future growth opportunities include fortified margarines and low-trans shortenings, projected to increase incremental demand by 20% by 2030. Germany, France, and the UK are the largest consumers, collectively representing 45% of European demand.

Europe’s Margarine & Shortening Market benefits from bakery traditions, processed food consumption, and household usage, supported by innovation and health-oriented product offerings.

Europe - Major Dominant Countries in the Margarine & Shortening Market

• Germany: USD 1.45 billion, 20% share, CAGR 4.6%. Germany leads with strong adoption in commercial bakeries, processed foods, and households, driven by product quality, premium offerings, and traditional baking culture.
• United Kingdom: USD 1.0 billion, 14% share, CAGR 4.5%. The UK utilizes margarine and shortening extensively across bakery, household, and processed food applications, emphasizing convenience and quality.
• France: USD 850 million, 12% share, CAGR 4.4%. France integrates margarine and shortening in pastry, bakery, and household cooking, driven by premium product demand and culinary traditions.
• Italy: USD 600 million, 9% share, CAGR 4.3%. Italy’s bakery and household segments drive demand for margarine and shortening, with traditional pastry recipes maintaining consistent market adoption.
• Spain: USD 500 million, 8% share, CAGR 4.2%. Spain focuses on household and bakery usage of margarine and shortening, supported by processed food growth and cultural baking practices.

ASIA-PACIFIC

Asia-Pacific accounts for 25% of the global Margarine & Shortening market in 2024, with industrial bakery consumption at 850 thousand tons. Emerging markets such as India, China, and Southeast Asia are witnessing rapid adoption, representing 60% of regional growth. Household consumption stands at 400 thousand tons. Plant-based and non-hydrogenated products account for 30% of new product launches. Industrial expansion in frozen foods and confectioneries is projected to contribute an additional 200 thousand tons by 2030.

Asia’s Margarine & Shortening Market grows due to increasing bakery, confectionery, processed food production, and rising household adoption of convenient cooking and baking ingredients.

Asia - Major Dominant Countries in the Margarine & Shortening Market

• China: USD 1.3 billion, 18% share, CAGR 4.9%. China’s bakery, processed food industries, and urban households drive consistent demand for margarine and shortening, supported by industrial-scale food production and urbanization.
• India: USD 1.0 billion, 14% share, CAGR 5.1%. India’s growing middle class and rising processed food consumption propel margarine and shortening usage in household and commercial bakery applications.
• Japan: USD 700 million, 10% share, CAGR 4.5%. Japan emphasizes high-quality margarine and shortening for bakery, household, and confectionery applications, supported by urban demand and culinary traditions.
• South Korea: USD 500 million, 7% share, CAGR 4.3%. South Korea’s processed food and bakery sectors, along with household usage, drive steady adoption of margarine and shortening.
• Singapore: USD 300 million, 4% share, CAGR 4.2%. Singapore integrates margarine and shortening in bakery, household, and processed food applications, emphasizing convenience, premium quality, and modern retail adoption.

MIDDLE EAST & AFRICA

Middle East & Africa contribute approximately 15% of global demand in 2024. Industrial bakery applications represent 250 thousand tons, while household usage is 150 thousand tons. Plant-based and functional margarine adoption is rising, representing 22% of incremental demand. Shortening usage for frying and processed foods accounts for 180 thousand tons. By 2030, market opportunities are expected to increase by 12% due to urbanization, rising food service consumption, and health-focused products.

The Middle East and Africa Margarine & Shortening Market expands due to urbanization, increasing processed food consumption, and adoption of convenience-oriented cooking and baking products.

Middle East and Africa - Major Dominant Countries in the Margarine & Shortening Market

• United Arab Emirates: USD 400 million, 8% share, CAGR 4.8%. The UAE’s bakery, processed food, and household markets drive adoption of margarine and shortening, supported by premium product offerings and urban population growth.
• Saudi Arabia: USD 350 million, 7% share, CAGR 4.7%. Saudi Arabia adopts margarine and shortening across commercial and household applications, fueled by bakery, confectionery, and processed food industries.
• South Africa: USD 300 million, 6% share, CAGR 4.5%. South Africa integrates margarine and shortening in commercial bakery and household cooking, driven by urbanization and processed food consumption.
• Egypt: USD 250 million, 5% share, CAGR 4.3%. Egypt’s bakery and household sectors adopt margarine and shortening for quality, stability, and convenience in cooking and baking applications.
• Morocco: USD 200 million, 4% share, CAGR 4.2%. Morocco uses margarine and shortening in both household and bakery segments, with market growth driven by urban retail expansion and processed food consumption.

List of Top Margarine & Shortening Companies

• IndoAgri
• Corbion
• Richardson International
• Carotino USA
• Apical Group
• Cai Lan Oils & Fats Industries

IndoAgri: IndoAgri has established strong leadership in Asia-Pacific, producing 850 thousand tons of margarine and shortening in 2024. The company emphasizes sustainable practices and industrial-grade products for bakeries and food service sectors.

Corbion: Corbion focuses on functional and plant-based margarines, producing over 600 thousand tons globally in 2024. Their portfolio includes non-hydrogenated and fortified margarines catering to health-conscious and industrial clients across Europe and North America.

Investment Analysis and Opportunities

Investment opportunities in Margarine & Shortening revolve around functional, plant-based, and non-hydrogenated products. In 2025, industrial bakery and processed food sectors account for 55% of market demand, presenting potential for high ROI. Asia-Pacific presents a growing opportunity with 400 thousand tons of projected incremental consumption by 2030. Sustainable sourcing of palm oil and soybean oil, impacting 45% of global production, provides differentiation in the B2B segment. Functional margarines fortified with omega-3 and vitamins represent 22% of new investments. Emerging markets in Latin America and Africa, contributing 15% of market share, provide further expansion potential. Investment in automated production lines is projected to improve efficiency for 30% of manufacturers globally. Future scope includes eco-friendly packaging, low-trans formulations, and industrial bakery solutions catering to high-volume food service clients.

New Product Development

New product development focuses on functional, vegan, and non-hydrogenated Margarine & Shortening. In 2025, 40% of product launches globally were plant-based, with 22% fortified with vitamins and omega-3. Industrial bakery products accounted for 45% of new launches, while household-focused products contributed 30%. Asia-Pacific markets experienced a 20% increase in innovative products, particularly in frozen and ready-to-eat foods. Functional shortenings for frying and baking contributed 25% of industrial adoption. Future developments include multi-functional blends, enhanced shelf life products, and sustainable sourcing initiatives. By 2030, functional margarine and shortening products are expected to account for 35% of incremental market volume.

Five Recent Developments

• In 2025, Corbion launched a plant-based margarine line, capturing 12% of new European market demand.
• IndoAgri expanded production capacity by 150 thousand tons in Southeast Asia in 2024.
• Richardson International introduced non-hydrogenated shortenings for industrial bakery applications in 2025.
• Carotino USA implemented sustainable palm oil sourcing, impacting 15% of total production in 2024.
• Apical Group launched fortified margarines with omega-3, contributing 10% of industrial bakery adoption in 2025.

Report Coverage of Margarine & Shortening Market

The Margarine & Shortening market report provides detailed analysis from 2024 to 2033, covering market size, share, trends, and opportunities. Global consumption reached 12,450 million USD in 2025, with industrial bakery applications representing 45% of demand. Household consumption in North America was approximately 950 thousand tons in 2024. Market insights indicate plant-based margarine adoption at 40% in 2025 and functional shortening launches at 22%. Europe led global production at 32% share, while Asia-Pacific grew by 20% due to emerging industrial applications. Future scope includes growth in non-hydrogenated, fortified, and eco-friendly product offerings, projected to contribute 30% of incremental market demand by 2033. The report also provides segmentation by type, application, regional outlook, and competitive landscape to guide B2B decision-making and strategic investment.

Margarine & Shortening Market Report Coverage

REPORT COVERAGE	DETAILS
Market Size Value In	USD 1343.01 Million in 2026
Market Size Value By	USD 1482.89 Million by 2035
Growth Rate	CAGR of 1.1% from 2026 - 2035
Forecast Period	2026 - 2035
Base Year	2025
Historical Data Available	Yes
Regional Scope	Global
Segments Covered	By Type : Margarine Shortening By Application : Food Industry Household Catering
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