The Global Butter Blocks Market size is expected to reach $41.2 billion by 2031, rising at a market growth of 3.3% CAGR during the forecast period. In the year 2023, the market attained a volume of 2,487.5 Kilo Tonnes, experiencing a growth of 9.8% (2020-2023).
According to the International Trade Association (ITA) data, in 2023, the revenue of the retail industry in Mexico is estimated to be USD 76 billion, according to statistics from the Mexican Retailers’ Association, ANTAD. Share of retail sales in Mexico in 2022 was hyper stores (15%), discount stores (11%), cash and carry (9%), convenience stores (7.5%), pharmacies (8%), supermarkets (6%), food service (4%), and eCommerce (12%). Hence, North America region captured $5,351.5 million revenue in the year 2023. In terms of volume, North America consumed 400.9 kilo tonnes of butter blocks in 2023. Butter is a fundamental component in the gastronomy of North America, comprising a wide array of recipes that progress from sweet treats such as pastries and confections to savory preparations like sautéed vegetables, mashed potatoes, and sauces.
Artisanal butter blocks are prized for their rich, nuanced flavors, which result from factors such as the breed of cows, the quality of the milk, and the traditional methods of butter production. Consumers appreciate the authentic taste and aroma of artisanal butter blocks, which vary depending on regional and seasonal factors. Additionally, Advertising and marketing campaigns can educate consumers about the benefits of butter blocks, including their taste, versatility, and nutritional value. Therefore, increasing adoption of advertising and marketing strategies boosts the growth of the market.
Margarine and butter substitute often have lower prices than butter blocks, making them more appealing to cost-conscious consumers. This price difference can lead some consumers to opt for margarine or substitutes over butter blocks, particularly during economic uncertainty. Many margarine and butter substitute products are formulated to be vegetarian or vegan-friendly, appealing to consumers who follow plant-based diets or have ethical concerns about animal products. Hence, competition from margarine and substitutes can pose challenges for the market.
According to the International Trade Association (ITA) data, in 2023, the revenue of the retail industry in Mexico is estimated to be USD 76 billion, according to statistics from the Mexican Retailers’ Association, ANTAD. Share of retail sales in Mexico in 2022 was hyper stores (15%), discount stores (11%), cash and carry (9%), convenience stores (7.5%), pharmacies (8%), supermarkets (6%), food service (4%), and eCommerce (12%). Hence, North America region captured $5,351.5 million revenue in the year 2023. In terms of volume, North America consumed 400.9 kilo tonnes of butter blocks in 2023. Butter is a fundamental component in the gastronomy of North America, comprising a wide array of recipes that progress from sweet treats such as pastries and confections to savory preparations like sautéed vegetables, mashed potatoes, and sauces.
Artisanal butter blocks are prized for their rich, nuanced flavors, which result from factors such as the breed of cows, the quality of the milk, and the traditional methods of butter production. Consumers appreciate the authentic taste and aroma of artisanal butter blocks, which vary depending on regional and seasonal factors. Additionally, Advertising and marketing campaigns can educate consumers about the benefits of butter blocks, including their taste, versatility, and nutritional value. Therefore, increasing adoption of advertising and marketing strategies boosts the growth of the market.
Margarine and butter substitute often have lower prices than butter blocks, making them more appealing to cost-conscious consumers. This price difference can lead some consumers to opt for margarine or substitutes over butter blocks, particularly during economic uncertainty. Many margarine and butter substitute products are formulated to be vegetarian or vegan-friendly, appealing to consumers who follow plant-based diets or have ethical concerns about animal products. Hence, competition from margarine and substitutes can pose challenges for the market.
Driving and Restraining Factors
Drivers- Consumer Preferences for Natural and Artisanal Products
- Increasing Adoption of Advertising and Marketing Strategies
- Rapid Expansion of Distribution Channels
- Competition From Margarine and Substitutes
- Increasing Health Consciousness and Wellness Trends
- Rising Baking and Cooking Trends
- Growing Manufacturing and Processing Activities in The Food Sector
- Increasing Awareness of The Environmental Impact
- Rising Awareness Against Animal Cruelty
Application Outlook
By application, the market is fragmented into baking, cooking, spreading, and flavoring. The baking segment procured 33% revenue share in the market in 2023. In terms of volume, 1,103.3 kilo tonnes of butter blocks would be utilized for baking. The baking segment drives innovation and creativity in the butter blocks market, inspiring chefs, bakers, and food manufacturers to develop new recipes, flavor combinations, and product offerings.Distribution Channel Outlook
Based on distribution channel, the market is characterized by online stores, supermarkets & hypermarkets, departmental stores, and convenience stores. In 2023, the online stores segment recorded 23% revenue share in the market. In terms of volume, 936.3 kilo tonnes of Butter blocks would get sold online. Online stores often offer various butter blocks, including niche or specialty varieties that may not be readily available in traditional brick-and-mortar stores. Consumers can explore artisanal, organic, imported, or flavored butter blocks, catering to their preferences and dietary requirements.
Type Application
On the basis of type, the market is classified into salted, unsalted, and others. The salted segment recorded 49% revenue share in the market in 2023. In terms of volume, it is expected that 1,628.4 kilo tonnes of salted butter blocks would be consumed by the year 2031. Salted butter blocks are a staple ingredient in cooking and baking due to their versatile flavor profile. They add depth and richness to various dishes, including sautéed vegetables, sauces, soups, and baked goods like cookies, cakes, and pastries.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment garnered 58% revenue share in the market in 2023. In terms of volume, 2,113.4 kilo tonnes of butter blocks would be consumed by the year 2031 in Asia Pacific. Demand for butter products has increased in the Asia-Pacific region as a result of urbanization, shifting dietary preferences, and the growth of the middle class, which has led to a greater disposable income. As Western cuisine gains popularity and lifestyles evolve, butter consumption has been on the rise.List of Key Companies Profiled
- Fonterra Co-operative Group Limited
- Kerry Group PLC
- Royal FrieslandCampina N.V.
- Lactalis Group
- Arla Foods, Inc.
- Amul (The Gujarat Co-operative Milk Marketing Federation Ltd.)
- Glanbia PLC
- Danone S.A.
- Land O'Lakes, Inc.
- Nestle S.A.
Market Report Segmentation
By Type (Volume, Kilo Tonnes, USD Billion, 2020-2031)- Salted
- Unsalted
- Others
- Supermarkets & Hypermarkets
- Convenience Stores
- Online Stores
- Departmental Stores
- Baking
- Cooking
- Spreading
- Flavoring
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Global Butter Blocks Market by Type
Chapter 5. Global Butter Blocks Market by Distribution Channel
Chapter 6. Global Butter Blocks Market by Application
Chapter 7. Global Butter Blocks Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- Fonterra Co-operative Group Limited
- Kerry Group PLC
- Royal FrieslandCampina N.V.
- Lactalis Group
- Arla Foods, Inc.
- Amul (The Gujarat Co-operative Milk Marketing Federation Ltd.)
- Glanbia PLC
- Danone S.A.
- Land O'Lakes, Inc.
- Nestle S.A.
Methodology
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