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Butter Fat Fraction Market

Global Market Study on Butter Fat Fraction: Growing Demand of Premium Infant Products Has Spurred New Opportunities for the Butter Fat Fraction Market

Butter Fat Fraction Market Segmened By Milk Fat Fractions, Industrial Fat Fraction with Milk Fat Globule Membrane, Phospholipid, Ganglioside Ingredient Type

Butter Fat Fraction Market Outlook (2023-2033)

The global butter fat fraction market incurred high sales in the historical period assessment and showed a growth rate of 7.9% during (2018-2022). The market value increased decidedly and registered sales of US$ 148.0 million in the year 2023.

Butter fat fraction is stearin and olein milk fat fraction with different melting points and SFI’s (solid fat index). The butter fat faction is obtained from a physical process. These butter fat fractions are of two different types such as industrial fat fraction, and value-added fraction. The process used to obtain butter fat fraction is the slow cooling of melted fat.

A short stabilization time is required during the fractionation temperature. The crystals are then separated by vacuum filtration using a perforated disc, which is made up of stainless steel from the liquid oil. The fractionation temperatures utilized for producing butter fat fraction are 29, 26, 23, and 19°C in the winter. 29°C and 19°C are utilized for summertime butter fat fraction.

Attribute Key Insights

Butter Fat Fraction Market Size (2023E)

US$ 148.0 Million

Projected Market Value (2033F)

US$ 325.5 Million

Global Market Growth Rate (2023 to 2033)

8.2% CAGR

Historical Growth Rate (2018 to 2022)

7.9% CAGR

Revenue Share of Top 4 Countries (2022E)

42%

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What are the Key Trends in the Market for Butter Fat Fraction?

Infant Nutrition Products Gaining Ground, Thereby Propelling Demand for Butter Fat Fraction.

According to the United Nations Department of Economic and Social Affairs, in 2017, the total world population stood at 7.6 billion, and is estimated to increase by approximately 1 billion by 2030, and reach 9.8 billion by 2050.

This constantly growing population is expected to increase the demand for infant nutrition products. The demand for infant formula is significantly high in China as well as in certain countries in Asia Pacific, owing to the high infant population coupled with increasing urbanization.

Moreover, the increasing population with high birth rates is one of the major factors boosting the demand for infant nutrition products in the developing countries of Asia Pacific. Infant mortality rate has also reduced considerably in these regions during the past few years.

“Butter Fat Fraction as a Key Ingredient in Functional Food & Beverages”

The functional food and beverage segment offers ample growth opportunities for butter fat fraction, owing to the rising awareness among consumers related to the consumption of such products, as they offer a plethora of associated health benefits such as neuronal and cognitive development, healthy gut, and supports healthy microbiota, among others.

Currently, due to low production yield and high pricing, almost all butter fat fraction ends up as an ingredient in infant formula and medical nutrition. However, through research & development (R&D), manufacturers can scale up production, lower operational costs, and cater to the surging demand from the functional food and beverage segment.

“Consumers are Preferring Healthier Products Boosting the Butter Fat Fraction Demand”

Consumers' approach to healthier products is shifting; instead of focusing just on functional components, they are emphasizing natural products and avoiding products that are high in chemicals, preservatives, and stabilizers despite claiming to be low in fat. Furthermore, consumers are unwilling to compromise on taste and take a holistic approach to their health. As a result, consumers are shifting away from margarine to spreads and butter, which include ingredients that are more natural and are thus more trusted for their quality.

Lack of Comparable Clinical Studies, and High Cost of Production with Low Output Yields

Manufacturers of infant formula, functional food, and beverages are using substitutes rather than dairy-based value-added fractions such as phospholipids, due to the low cost and high availability. These alternatives to dairy-based value-added fractions with almost identical functional benefits are significantly limiting the overall market growth.

The commercialization of the above products as of the current market scenario is highly expensive, as it requires state-of-the-art machinery, along with the technical expertise about extracting these fractions from dairy sources. There are a limited number of clinical trials based on these ingredients.

Moreover, these studies use various concentrations and compositions of these fractions in their studies. As such, the resultant data is incomparable due to varying parameters, which makes the approval of these ingredients by various regulatory bodies to be used in food and beverages more technical and time-consuming. In addition, the value-added fraction market is also struggling with low yield output.

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Country-wise insights

Why is China Evolving as a Significant Market in MFGM (Milk Fat Globule Membrane) Sector?

“Increasing Demand for Premium Infant Formula”

China's demand for high-quality infant formula is growing because of increasing disposable income and increasing food-safety concerns. As a result, manufacturers have been seeking approaches to enhance the nutritional content of their products, and MFGM has attracted attention as an ingredient with the potential to boost the nutritional and functional value of infant formula.

However, China market holds the highest value market share of around 73.3% in the East Asian Butter Fat Fraction Market in 2023.

Why the U.S. Butter Fat Fraction Market is expected to hold the Highest Market Share in 2023?

"Consumers are Preferring Organic Food Products"

In the North American region, the U.S. butter fat fraction market embraces the highest market share of around 85.0% in 2023. Owing to the consumers inclination towards functional foods and increasing adoption of chemical-free, and organic products are some of the factors aiding the growth of the butter fat fraction, Moreover, it helps the producers to boost the development of innovative and new products with lower butter fat content and cater different products across the country.

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Category-wise insights

Which Ingredient Type of Butter Fat Fraction is anticipated to dominate the Market?

Health Benefits of MFGM Ingredient Consumption

Based on the ingredient type, the global butter fat fraction market is segregated into MFGM, phospholipid, and ganglioside. MFGM segment is expected to hold the highest market share of around 72.1% and expected to reach around US$ 105.1 million in 2023 in the global market.

An increase in the elderly population, which has lowered muscle strength and agility, also plays a significant role in developing products that contain MFGM as an ingredient, which will favorably influence market growth. MFGM has a positive influence on infant brain development, intestinal integrity and gut microbiota, immune system enhancement against many infectious illnesses, and others.

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Competitive Dashboard

Companies manufacturing butter fat fraction are focusing on continuously improving their production processes by installing new technologies. Manufacturers are committed to proactively dealing with customer services, quality-controlled products, competitive pricing, and scheduled deliveries in stipulated timing. Multinational companies with a wide variety of products account for roughly around 34% of the worldwide butter fat fraction industry. Glanbia Plc, Groupe Lactalis S.A., Arla Foods Ingredients Group, and Fonterra Co-operative Group Limited, among others, are some of the major players operating in the global butter fat fraction market. Regional players account for a market share of around 43%, while local players account for around 23%. The latter is engaged in the business of providing butter fat fraction, operates at a small scale, and is more export-oriented.

  • In September 2021, Arla Food Ingredients Group launched its new ingredient i.e. Lacprodan Premium MFGM-10. It is a dry-blend version blend of its MFGM ingredient, which is rich in phospholipid, and gangliosides. It allows the manufacturers to reduce energy production and usage costs. It also offers greater flexibility to manufacture more recipes from one base powder.
  • In June 2020, FrieslandCampina Ingredients announced an MFGM ingredient designed to meet consumer needs around brain and immunological development. The company's Early Life Nutrition sector introduced Vivinal MFGM, an infant food-grade whey protein concentrate including proteins, lipids, and bioactives such as immunoglobulin (IgG), phospholipid, and lactoferrin.
  • Royal VIV Buisman collaborated with one of the well-renowned company in the market i.e. VIV (Vreeland). With this collaboration, the company has gained the specialization in the production and processing of milk fat and milk fat related products.
  • Glanbia PLC participated in the Wellness Food Japan at Tokyo Big Sight, Tokyo, Japan. The exhibition provides a platform to explore valuable information related to supplements, functional foods, and natural foods from around the world. The company displayed three RTM beverages that focus on concepts such as sports recovery, meal replacement, and weight management.

Butter Fat Fraction Industry Report Scope

Attribute Details

Forecast period

2023-2033

Historical data available for

2018-2022

Market analysis

USD million for value

Key regions covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • Middle East & Africa

Key countries covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Poland
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Oceania
  • GCC countries
  • South Africa

Key market segments covered

  • Ingredient Type
  • Region

Key companies profiled

  • Arla Foods Ingredients Group P/S
  • Corman SA
  • Murray Goulburn Co-Operative Co. Limited
  • Groupe Lactalis S.A
  • FrieslandCampina N.V.
  • Royal VIV Buisman
  • Land O'Lakes, Inc.
  • Dairy Crest Group Plc
  • Glanbia Plc
  • Fonterra Co-operative Group Limited
  • Agropur Ingredients, LLC
  • The Tatua Co-operative
  • Others ( on Additional Request)

Report coverage

  • Market forecast
  • Company share analysis
  • Competition intelligence
  • DROT analysis
  • Market dynamics and challenges
  • Strategic growth initiatives

Customization & pricing

Available upon request

Butter Fat Fraction Industry Research by Category

By Ingredient Type:

  • MFGM (Milk Fat Globule Membrane)
  • Phospholipid
  • Ganglioside

By Region:

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • Middle East & Africa

- Companies Covered in This Report -

  • Arla Foods Ingredients Group P/S
  • Corman SA
  • Murray Goulburn Co-Operative Co. Limited
  • Groupe Lactalis S.A
  • FrieslandCampina N.V.
  • Royal VIV Buisman
  • Land O'Lakes, Inc.
  • Dairy Crest Group Plc
  • Glanbia Plc
  • Fonterra Co-operative Group Limited
  • Agropur Ingredients, LLC
  • The Tatua Co-operative
  • Others (on additional request)

- Frequently Asked Questions -

The global market for butter fat fraction has a value of US$ 148.0 million in 2023.

The European market for phospholipid has a value CAGR of around 5.4% from 2018-2022.

The global market for butter fat fraction has a value of US$ 325.5 million in 2033.

The global market for butter fat fraction has a value CAGR of 8.2% from 2023-2033.

The U.S., Germany, Japan, China, and India lead as far as the consumption of butter fat fraction is concerned.

The top players in the global butter fat fraction market include Glanbia Plc, Groupe Lactalis S.A., Arla Foods Ingredients Group, and Fonterra Co-operative Group Limited.

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