According to the report, the butter market size reached approximately USD 49.43 billion in 2023. Aided by the increasing demand for natural and organic food products and the growing applications of butter in various sectors, the market is projected to grow at a CAGR of 3.20% between 2024 and 2032, reaching a value of around USD 65.67 billion by 2032.
Butter, a dairy product made by churning milk or cream, is widely used as a spread, in baking, and as an ingredient in various culinary applications. It is rich in fats, vitamins, and minerals, making it a significant source of nutrition. Besides its nutritional value, butter possesses excellent flavour-enhancing properties and is known for its versatility in both sweet and savoury dishes. This makes it an indispensable ingredient in the food sector, from household kitchens to professional culinary settings.
The increasing consumer preference for natural and organic food products is driving the butter market growth. With the growing awareness of the health benefits associated with the consumption of minimally processed foods, there has been a significant shift towards natural and organic butter. Consumers are increasingly seeking products that are free from artificial additives and preservatives, leading to a surge in demand for organic butter varieties.
The rising trend of home baking and cooking has further contributed to the increasing popularity of butter. During the COVID-19 pandemic, many consumers turned to home cooking and baking, which led to a spike in the demand for butter as a key ingredient in numerous recipes. This trend is expected to continue as people increasingly embrace home-cooked meals for health and cost reasons.
The expanding applications of butter in various sectors also play a significant role in propelling the butter market expansion. In the food sector, butter is a crucial ingredient in the production of baked goods, confectioneries, and dairy products. Its unique properties, such as its ability to enhance flavour and texture, make it a preferred choice among chefs and food manufacturers.
North America holds a significant portion of the butter market share, driven by the high consumption of butter in the United States and Canada. The preference for organic and natural food products, coupled with the rising trend of home baking, supports the market growth in this region.
Europe is a major market for butter, with countries like France, Germany, and the United Kingdom being prominent consumers. The strong culinary traditions and the high demand for premium and artisanal butter products contribute to the market expansion in this region.
As per the butter market analysis, the Asia Pacific is witnessing rapid growth in the market, driven by increasing urbanisation, rising disposable incomes, and changing dietary habits. Countries like China, India, and Japan are emerging as significant markets for butter, with a growing preference for Western-style baked goods and dairy products.
The market is witnessing several key developments aimed at enhancing product offerings and expanding market reach. Leading companies are investing in product innovation and expanding their distribution networks to cater to the growing demand for butter.
Companies are increasingly focusing on offering organic and grass-fed butter to meet the rising consumer demand for natural and ethically sourced products. These varieties are marketed as healthier and more sustainable options.
To cater to diverse consumer preferences, manufacturers are introducing flavoured and functional butter varieties. These include options like garlic butter, herb-infused butter, and butter with added nutrients such as omega-3 fatty acids, propelling the butter market development. Moreover, with the growing emphasis on sustainability, companies are adopting eco-friendly packaging solutions for their butter products. This includes the use of recyclable materials and reduced plastic usage.
Butter, a dairy product made by churning milk or cream, is widely used as a spread, in baking, and as an ingredient in various culinary applications. It is rich in fats, vitamins, and minerals, making it a significant source of nutrition. Besides its nutritional value, butter possesses excellent flavour-enhancing properties and is known for its versatility in both sweet and savoury dishes. This makes it an indispensable ingredient in the food sector, from household kitchens to professional culinary settings.
The increasing consumer preference for natural and organic food products is driving the butter market growth. With the growing awareness of the health benefits associated with the consumption of minimally processed foods, there has been a significant shift towards natural and organic butter. Consumers are increasingly seeking products that are free from artificial additives and preservatives, leading to a surge in demand for organic butter varieties.
The rising trend of home baking and cooking has further contributed to the increasing popularity of butter. During the COVID-19 pandemic, many consumers turned to home cooking and baking, which led to a spike in the demand for butter as a key ingredient in numerous recipes. This trend is expected to continue as people increasingly embrace home-cooked meals for health and cost reasons.
The expanding applications of butter in various sectors also play a significant role in propelling the butter market expansion. In the food sector, butter is a crucial ingredient in the production of baked goods, confectioneries, and dairy products. Its unique properties, such as its ability to enhance flavour and texture, make it a preferred choice among chefs and food manufacturers.
North America holds a significant portion of the butter market share, driven by the high consumption of butter in the United States and Canada. The preference for organic and natural food products, coupled with the rising trend of home baking, supports the market growth in this region.
Europe is a major market for butter, with countries like France, Germany, and the United Kingdom being prominent consumers. The strong culinary traditions and the high demand for premium and artisanal butter products contribute to the market expansion in this region.
As per the butter market analysis, the Asia Pacific is witnessing rapid growth in the market, driven by increasing urbanisation, rising disposable incomes, and changing dietary habits. Countries like China, India, and Japan are emerging as significant markets for butter, with a growing preference for Western-style baked goods and dairy products.
The market is witnessing several key developments aimed at enhancing product offerings and expanding market reach. Leading companies are investing in product innovation and expanding their distribution networks to cater to the growing demand for butter.
Companies are increasingly focusing on offering organic and grass-fed butter to meet the rising consumer demand for natural and ethically sourced products. These varieties are marketed as healthier and more sustainable options.
To cater to diverse consumer preferences, manufacturers are introducing flavoured and functional butter varieties. These include options like garlic butter, herb-infused butter, and butter with added nutrients such as omega-3 fatty acids, propelling the butter market development. Moreover, with the growing emphasis on sustainability, companies are adopting eco-friendly packaging solutions for their butter products. This includes the use of recyclable materials and reduced plastic usage.
Market Segmentation
The global butter market can be divided based on type, usage, end use, distribution channel, and region.Market Breakup by Type
- Salted Butter
- Unsalted Butter
Market Breakup by Usage
- Spreadable
- Non-spreadable
Market Breakup by End Use
- Food Processing
- Food Service
- Food Retail
Market Breakup by Distribution Channel
- Supermarkets/Hypermarkets
- Convenience Stores
- Online
- Others
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Competitive Landscape
The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global butter market. Some of the major players explored in the report are as follows:- Lactalis International
- Land O’Lakes, Inc.
- Fonterra Co-operative Group Limited
- Royal FrieslandCampina N.V.
- Arla Foods amba
- Gujarat Co-operative Milk Marketing Federation Ltd (AMUL)
- Dairy Farmers of America, Inc.
- Müller Group
- Ornua Co-operative Limited
- Organic Valley
- Meadow Foods Limited
- Others
Table of Contents
1 Preface2 Report Coverage - Key Segmentation and Scope4 Key Assumptions7 Opportunities and Challenges in the Market16 Price Analysis18 Key Trends and Developments in the Market
3 Report Description
5 Executive Summary
6 Market Snapshot
8 Global Butter Market Analysis
9 North America Butter Market Analysis
10 Europe Butter Market Analysis
11 Asia Pacific Butter Market Analysis
12 Latin America Butter Market Analysis
13 Middle East and Africa Butter Market Analysis
14 Market Dynamics
15 Trade Data Analysis (HS Code - 040510)
17 Competitive Landscape
List of Key Figures and Tables
Companies Mentioned
- Lactalis International
- Land O’Lakes, Inc.
- Fonterra Co-operative Group Limited
- Royal FrieslandCampina N.V.
- Arla Foods amba
- Gujarat Co-operative Milk Marketing Federation Ltd (AMUL)
- Dairy Farmers of America, Inc.
- Müller Group
- Ornua Co-operative Limited
- Organic Valley
- Meadow Foods Limited
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 164 |
| Published | July 2024 |
| Forecast Period | 2024 - 2032 |
| Estimated Market Value ( USD | $ 51.04 Billion |
| Forecasted Market Value ( USD | $ 65.67 Billion |
| Compound Annual Growth Rate | 3.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
