Butter Powder Market Report 2025

This Butter Powder market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The butter powder market size has grown strongly in recent years. It will grow from $2.25 billion in 2024 to $2.39 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to longer shelf life compared to regular butter, convenience of using butter powder, increase in demand for processed and convenience foods, increasing production capabilities, and rising disposable income of consumers.

The butter powder market size is expected to see strong growth in the next few years. It will grow to $3.03 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to rising health consciousness among consumers, rise in cooking and baking products demand, expanding foodservice industry, growing consumer awareness and preference, and increases prevalence of vegan and plant-based diets. Major trends in the forecast period include eco-friendly packaging, innovations in the production of butter powder, and product innovations.

The butter powder market is poised for growth due to rising demand for bakery products. Bakery products encompass a wide array of food items crafted and sold by bakeries. This demand is fueled by efforts to enhance consumer experiences, meet increasing demand for healthier choices, and expand product offerings. Butter powder serves as a convenient ingredient in bakery goods, providing a means to incorporate buttery flavor and texture without fresh butter. For example, in February 2024, the Agriculture and Horticulture Development Board reported a 1% increase in baking demand to 13 million occasions in 2023, driven by a surge in sweet home baking, which rose by 29 million occasions. Thus, the expanding bakery product market is a key driver of butter powder consumption.

Major companies in the butter powder market are focusing on innovation, particularly in developing products such as additive-free butter powder, in response to growing consumer demand for natural and clean-label ingredients. Additive-free butter powder, a dairy-based product, maintains the natural qualities of butter while excluding artificial ingredients, resulting in a clean-label, all-natural option. For example, Epi Ingredients, a French company specializing in butter powder, introduced additive-free butter powder in May 2024. According to the company, this product is derived from natural milk fat, offering manufacturers a clean-label choice. It finds application across various sectors such as pastries, baked goods, premixes, sauces, ready meals, and dairy products. This butter powder is recognized for its excellent integration into formulations, superior dispersion and hydration properties, and ease of storage.

In March 2024, Lakeland Dairies, an Ireland-based dairy company, finalized the acquisition of De Brandt Dairy International NV for an undisclosed sum. This strategic move aims to enhance Lakeland Dairies' footprint in the European market and strengthen its operational capacity in the premium texturized butter segment. De Brandt Dairy International NV, headquartered in Belgium, specializes in manufacturing various dairy products, including butter powder.

Major companies operating in the butter powder market are Olam International, United Natural Foods Inc., Fonterra International, Hoosier Hill Farm, Arla Foods Group, Valio Ltd., Goodman Fielder, Westland Milk Products, California Dairies Inc., Grassland Dairy Products Inc., Murray Goulbam Co-operative Co. Limited, Nutricost, BetterBody Foods, Betty Lou's Inc., PB2 Foods Inc., Kanegrade Limited, LAITA PGC, Meggle Group, EPI Ingredients, Packit Gourmet, Nutrient Survival, Powbab Inc.

North America was the largest region in the butter powder market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the butter powder market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the butter powder market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Butter powder is derived from real butter that undergoes a dehydration process to remove water and milk solids, resulting in a powdered form rich in butterfat. It maintains the flavor and richness of butter, serving as a convenient substitute for fresh butter across different culinary uses.

There are two primary types of butter powder, salted and unsalted. Salted butter powder is a dehydrated, shelf-stable version of regular salted butter. These products, sourced from various ingredients such as milk, peanuts, almonds, and cocoa, are available in organic and conventional varieties. They are distributed through supermarkets, hypermarkets, online retail, and other channels, catering to applications such as bakery, confectionery, snacks, sauces, and condiments.

The butter powder market research report is one of a series of new reports that provides butter powder market statistics, including butter powder industry global market size, regional shares, competitors with a butter powder market share, detailed butter powder market segments, market trends, and opportunities, and any further data you may need to thrive in the butter powder industry. This butter powder market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The butter powder market consists of the sale of sweet cream powder, regular butter powder, organic butter powder, butter substitute powder, and, fat-free butter powder. Values in this market are ‘factory gate’ values, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.