Butter Market

Butter Market Outlook (2023-2033)

The global butter market has observed substantial growth in the historical period registering a value-CAGR of 4.5% and is valued at US$ 46,753.6 million in 2023. Growing consumption of bakery & confectionery products globally is expected to aid in the growth of the product, where butter is extensively used for flavored shortening and tenderness.

Butter is a pale yellow dairy product that contains saturated fats, water, and other milk solids. It is made by churning cream and it is used as a spread, flavor in packaged foods, or in cooking. Demand for butter is expected to witness rapid growth in the food-processing sector as butter is widely used as a flavoring ingredient in various baked such as cookies, cakes, and wafers, and as a flavor in processed foods and other snacks. The growing millennial demand for flavor-packed products is boosting the demand for butter in the food processing industry.

Butter is mostly available in its pure form. However, unique taste profiles and textures are in demand. Innovation in butter product offerings by the addition of other ingredients & toppings.

Attributes	Key Insights
Butter Market Size (2023E)	US$ 46,753.6 Million
Projected Market Value (2033F)	US$ 74,008.5 Million
Global Market Growth Rate (2023 to 2033)	4.7% CAGR
Historical Growth Rate (2018 to 2022)	4.5% CAGR
Revenue Share of Top 4 Countries (2022E)	55%

What are the Key Trends in the Market for Butter?

“Foodservice and Food Processing Industry is Attuned towards Using Butter as a Key Ingredient in Food Products”

Butter is widely used in the food industry for manufacturing various food products and for sauce making and frying. It is used in flavoring various packaged foods or snacks such as cookies and wafers. Demand for unique taste profiles and textures by millennials is expected to create opportunities for manufacturers of butter. Besides, the demand for butter is growing in the food service industry due to the increasing consumption of fast food in developing economies as a result of busier lifestyles, and higher expenditure over out-of-home food consumption.

Most of the younger generation and working-class demographic consume fast food at least once a day. This growing trend of consumption of fast food has a significant impact on the butter market, as butter is widely used for frying and for flavoring a variety of fast food products. Butter is also a staple in households; hence, manufacturers are launching various butter-based products such as spreadable butter, flavored butter, low-fat butter, and many others to attract consumers.

• Land O' Lakes, Inc., a dairy products manufacturing company, launched two new spreadable butter products. The two butter products are LAND O LAKES Less Sodium Butter with Canola Oil and Light Spreadable Butter with Canola Oil. This product has 50% less fat and calories, and less cholesterol than regular butter

“Utilization of Butter Flavor in Beverages Anticipated to Boost Demand”

Butter is widely used as a flavor in various ready-to-eat drinks and foods. Additionally, food manufacturers are incorporating butter as a flavor in their products. Butter used by snack manufacturers to enhance the flavor of their products includes wafers, and biscuits, among others.

The addition of a buttery flavor makes food increasingly pleasant and delicious in terms of taste. Thus, demand for this flavor is growing globally. Manufacturers are launching new products containing butter in response to the popularity of butter flavor among consumers.

• For instance, Know Brainer Foods LLC, an American company, is offering coffee creamer that contains organic grass-fed butter. It is offering various instant butter drinks.

“Increasing Popularity of Premium and Organic Dairy Products to Create Opportunities for Manufacturers”

In U.S. and Western European countries, organic butter is gaining popularity as compared to conventional butter. Especially, supermarkets/hypermarkets stores are selling a wide range of organic dairy products, attracting customers who spend more on premium, branded, and organic food products. Moreover, consumers are aware of the benefits of healthy products and choose to purchase them despite high prices.

The premiumization trend and demand for organic products are expected to create lucrative opportunities for manufacturers in the global butter market. The manufacturers are expanding their product portfolio by offering premium-class butter that includes organic butter, flavored butter, low-sodium butter, and low-saturated fat butter.

• In 2023, OMSCO has expanded its Grass Roots Dairy Co product portfolio and launched its novel organic salted butter. The butter is made with 100% organic cream from grass-fed cows and free-range owned by Omsco Members and is produced in small batches using traditional techniques.

“Risks Associated with High Cholesterol Expected to Restrict Revenue Growth”

Butter consists of milk fat and small amounts of milk solids and water. Most of the fat in butter is saturated fat. Saturated fats are linked with LDL (low-density lipoprotein) cholesterol, also known as bad cholesterol. Bad cholesterol can increase the risk of heart disease and stroke. One tablespoon of butter contains around 31 mg of cholesterol. The U.S. Department of Agriculture recommends that only 100 to 300 mg of cholesterol can be consumed daily. It is not advisable to consume butter in large quantities. Heart diseases have become very common. As a result, people are becoming increasingly conscious about health. High cholesterol content in butter may negatively influence the demand for butter and butter products.

Country-Wise insights

How the Demand for Butter is Generating in the Indian Marketplace?

“Increasing Food Processing Industry in India”

India butter market is expected to witness a high CAGR of 6.6% in South Asia & Pacific market during the forecast period. Butter is an integral part of the ancient traditions in the South Asia & Pacific region. The demand for the product is been driven by the extensive use of butter in the preparation of numerous recipes, including baked goods and fried foods, and as a condiment on cooked foods owing to its rich creaminess.

Consumers show more preference for flavored snacking products and other food products. Furthermore, the growing number of cafes, cloud kitchens, and quick service restaurants (QSRs) across the country is driving up butter sales.

What are the Factors Driving the Market in the U.K Butter Market?

“Increasing Demand of Sustainable Dairy Products to Propel the U.K. Market”

According to the PMR, the U.K. market accounted for the sales of butter of around US$ 831 million in 2023. The country is experiencing the expansion of nutrition centers across the European region. Moreover, consumers demand clean-label, transparency, and natural dairy products is boosting the demand of dairy products in the U.K butter market.

Category-Wise Insights

Which End Use Industry is Expected to Project High Growth Rate in the Global Butter Market during the Forecast Period?

“Increasing Popularity of Butter across the Retail/Household Sector to Stimulate the Market Growth”

The market growth for retail/household segment is anticipated to grow at a high CAGR of 4.8% during the forecast period. The promotion of butter products through usage in food dishes on televised cooking shows has inspired consumers to attempt their versions. This has led to a rise in cooking and baking in home kitchens, boosting demand for butter as it is a staple ingredient for cooking a variety of dishes using techniques such as frying, baking, and others.

Which Form of Butter Market is anticipated to thrive the Market Sales during the Forecast Period?

“Growing Demand of High-quality and Convenient Food Propel the Market Growth in the Global Market”

Based on the form segment, the market is segment into spreadable and non- spreadable. The non-spreadable butter market accounts a market value of around US$ 37,290.8 million in 2023. Owing to the growing demand for low-fat butter and the increasing health-conscious population globally. Moreover, consumers prefer low-cholesterol fat products, which embraces the growth of the market during the forecast period.

Competitive Dashboard

Butter manufacturers are targeting their product offerings, especially towards foodservice industry, food processing industry and direct consumers. Due to the existence of multiple big and small producers, the butter market is extremely fragmented and competitive. Some of the major competitors in the global butter market are Royal FrieslandCampina N.V, Land O' Lakes, Inc., Fonterra Co-operative Group Limited, Lactalis S.A., Arla Foods amba, Saputo Inc., Glanbia Plc., Sodiaal International SA.

• In February 2019, Fonterra Co-operative Group Limited signed with New Zealand farms to supply milk to The a2 Milk company. The a2 Milk Company aims to grow in the new and existing market segments with the support of farmers.
• In January 2019, Lactalis acquired the milk products business of Prabhat Dairy Limited, which is located in India. This acquisition will help the company expand its dairy products production capacity including butter. The company aims to become a top private dairy player in the world’s leading milk-producing country.
• Valio is focusing on expanding its presence where the potential customers or the market lies with its wide product portfolio. It is offering its products in China though its Chinese subsidiary, where the company sees its potential market in the region for butter-based dairy products.
• Meiji Holdings Company, Ltd. launched its novel product Meiji SpreaTable, which is a butter-based spread made from only four ingredients. The butter-based spread can be used on bread and other baked stuffs.

Butter 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 China Japan South Korea India ASEAN GCC countries Türkiye South Africa
Key market segments covered	Nature Form End Use Distribution Channel Region
Key companies profiled	Royal FrieslandCampina N.V Fonterra Co-operative Group Limited Groupe Lactalis S.A. Arla Foods amba Amul (GCMMF) Dean Foods Co Glanbia Plc. Saputo Inc. OMSCO Dairy Farmers of America Valio Oy Meiji Holdings Company, Ltd. Land O' Lakes, Inc. Granarolo S.P.A. Nestlé S.A. Kerry Group Sodiaal International SA Britannia Industries Ltd Savencia Fromage & Dairy DMK Group OMIRA GmbH Others (Available on 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 Industry Research Segmentation

By Nature:

• Organic
• Conventional

By Form:

• Spreadable
• Non-Spreadable

By End Use:

• Food Processing Industry
• Food Service Industry
• Retail/Household

By Distribution Channel:

• Business to Business
• Business to Consumer
  • Hypermarkets/Supermarkets
  • Specialty Stores
  • Convenience Store
  • Online Retail
  • Others

By Region:

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

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