An emulsion composition useful as a reduced-fat shortening substitute in bakery applications which comprises an emulsion with an aqueous phase containing water and konjac as a gelling agent and a lipid phase containing a lipid component and an emulsifier component. The konjac is preferably partially deacylated to provide controlled melt characteristics in the emulsion composition that replicate those of the full-fat shortening it replaces in bakery food products. A process for preparing the emulsion compositions is also disclosed. Bakery food products containing the emulsion compositions may be prepared using the emulsion compositions as a one-to-one replacement for full-fat shortening in the formulations. The reduced-fat bakery products made with the emulsion compositions exhibit sensory characteristics similar to those of the full-fat equivalents.