Butter Market

Global Butter Market Size (2024 to 2032)

The global butter market size is worth US$ 19.86 billion in 2024, and it is estimated that it will reach US$ 26.97 billion by 2032 with a compound annual growth rate of 3.90% between 2024 and 2032

Butter is made by whipping cream or fresh/fermented milk to separate the milk fat from the buttermilk. Butter is one of the most consumed dairy products and is used as a basic ingredient in the food industry. It is also one of the fastest-growing food sectors across the world. Like all food products, butter is at the mercy of supply and demand. Butter supply depends on milk production. This shortage is communicated to consumers through higher prices. Extreme temperatures or droughts reduce supply. The key factors contributing to the growth of the global butter market are population growth, increasing urbanization rate, and Western influence on traditional cooking methods.

MARKET DRIVERS

Growing demand for butter in food processing is majorly driving the growth of the global butter market.

 In addition, the growth of the hotel/restaurant/cafe industry is accelerating market growth. Butter is widely used in the food processing industry, especially in bakery and confectionery. The world butter market is expected to register significant growth during the forecast period. Cakes, biscuits, and cookies have a low melting point, so they melt in your mouth to provide texture and flavor. Overall, it helps add flavor, balance salt and moisture content, and ferment flour to trap steam. The market for salt and unsalted butter is growing as demand for these products increases. The demand for bread, ready-to-eat products, cakes, muffins, cookies, donuts, breakfast cereals, and pastries is increasing due to low prices, rapid urbanization, product diversity, and a busy lifestyle. The global dairy industry is now experiencing a period of turmoil. Demand for dairy products is experiencing slow and slow growth during the forecast period due to a number of factors including health concerns, regulatory scenarios, and changes in consumer diets and habits. Despite slow growth, the long-term outlook for the dairy sector remains positive. Butter is obtained from pure heavy cream and can be spread at room temperature from cold to solid and liquid at high temperatures. Butter is expected to see significant growth and profitability in developing countries due to increasing urbanization and increasing urbanization coupled with increasing consumers' per capita disposable income, breakfast habits, the home baking culture of consumers, Western culinary influences, and the revitalization of hotel culture.

Restaurants and cafes, and innovations in traditional butter products from manufacturers in developing countries. Butter is a popular dairy product used by consumers around the world as a breakfast delicacy for bread, bakery ingredients, and molding agents in chocolate and confectionery. The butter market is in increasing demand due to the convenience and flexibility associated with packaging. Butter is available in boxes, cartons, and cups, providing consumers with added comfort and convenience. Increased urbanization and changes in consumer eating habits have led to increased demand for butter during the forecast period. Additionally, increased product launches and innovations from leading manufacturers active in the table butter market are again driving consumer demand for butter. The growing demand for butter in developing countries is due to consumer eating habits and rising trends in breakfast. The demand for butter among consumers is sensory indulgence and the flavor associated with it. Also, the growing trend of home baking and the influence and popularity of Western cuisines are increasing the butter market sooner or later. Increased investment in R&D to launch innovative products is expected to create profitable opportunities for players operating in global markets. Manufacturers and large brands operating in the table butter market are focusing on the evolution of traditional butter to win a broader customer base. Manufacturers are releasing flavored butter to provide consumers with sensational indulgence and tasty products, while manufacturers are also offering organic and non-GMO butter varieties to captivate health-conscious individuals. In addition, we adopt convenient and flexible packaging to bring the convenience and ease of use of our products to consumers.

MARKET RESTRAINTS

The growing awareness of health is limiting the growth of the global butter market.

Due to changes in lifestyle and eating habits, health problems are increasing among the population. Consumers are increasingly aware of the benefits and side effects of ingredients in their diet. Growing awareness of the negative effects of excessive butter consumption on the body has led consumers to limit its use and favor products that are low in calories and saturated fat, which in turn hinders the growth of the global butter market. The increasing demand for vegan and vegetable butter is hampering the growth of the market. Also, strict government regulations such as licensing, labeling and many other regulations for the manufacture and marketing of food products such as butter and margarine are expected to hamper the growth of the industry. Furthermore, the rise in consumer obesity is having a negative impact on market growth at the moment.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Butter Market Analysis By Type

The non-cultured butter segment is anticipated to have a prominent share of the market, whereas salt butter is deemed to have the highest CAGR by the end of the forecast period. Non-cultured butter is made by churning the fresh cream until it solidifies. The solidified butter is then added to salt to make it salt butter. These are highly used in many of the bakery products and even in various dishes. The rising prominence of eating different food products like salads, sandwiches, and pasta, among others, in both developed and emerging countries is attributed to leveraging the growth rate of the market.

The increasing awareness among people to make varied dishes even at home using butter to maintain proper health and well-being is sustainable to escalate the growth rate of the market.

Global Butter Market Analysis By Processing

The non-processed segment is expected to have a significant growth rate in the market during the forecast period. People’s preference for non-processed butter, which is fresh and healthy comparatively, is likely to elevate the growth rate of the market to the extent. Non-processed butter has a natural abundance of bioavailable bacteria, and active enzymes that aid in digestion are gearing up to expand the growth rate of the market.

The processed segment is set to have the highest CAGR by the end of the forecast period. The importance of storing the freshness for a longer period than usual with added preservatives is surging the growth rate of this segment. The processed butter has a different taste that adds richness to the sauces and pasta dishes.

Global Butter Market Analysis By Usage

The spreadable segment is anticipated to lead the largest share of the market. Growing usage of butter in daily routine diet options, especially among fitness freaks, is likely to elevate the growth rate of the market. The growing disposable income and rising interest in high-quality food products like snacks will eventually enhance the growth rate of the butter market.

The non-spreadable segment is growing steadily during the forecast period. This butter is pure that is made from fresh cream. Rising risk factors due to eating high-fat foods are attributed to adopting the traditional way of butter approach, which is healthy mainly to enhance the growth rate of this segment.

Global Butter Market Analysis By Distribution channel

The convenience stores segment is leading with the highest share of the market, whereas the online retail stores segment is accounted to have the fastest growing during the forecast period. The rapid launch of innovative food delivery applications is likely to elevate the growth rate of the market. Many people are solely adopting this application to order desired food products, which is quietly escalating the demand for food products, especially in metropolitan cities. Stringent rules and regulations by the government to promote only quality food products in favor of the public’s safety will eventually gear new opportunities for the butter market.

REGIONAL ANALYSIS

The supply of butter from Asia Pacific has always been strongly influenced by increasing volumes in the domestic market, mainly the confectionery and bakery industries. Butter processing plants in the Asia Pacific region have been greatly expanded to meet consumer demand, which has driven market growth. The growth of the Asia Pacific market can also be attributed to the growth of the chocolate industry in the region. South and East Asia are expected to show significant growth rates during the forecast period. However, the risks associated with high cholesterol in butter are preventing the market from reaching its full potential. Various rules and regulations for butter set by food authorities in different regions can hamper the growth of the global butter market. Butter is a key ingredient in the chocolate industry, so the growth of the chocolate industry is driving the growth of the region's butter market. In addition, the European market occupies a significant part of the world butter market due to the expansion in the industry. Growing consumer health awareness is prompting market participants to focus on R&D activities to launch new healthy butter on the European market.

KEY PLAYERS IN THE GLOBAL BUTTER MARKET

Major Key Players in the Global Butter Market are Groupe Lactalis, Unilever PLC, Koninklijke FrieslandCampina NV, Fonterra Co-operative Group Limited, Gujarat Co-operative Milk Marketing Federation Ltd, Nestlé SA, Land O'Lakes, Inc, Hatsun Agro Product Limited, Arla Foods, and Glanbia plc.

RECENT HAPPENINGS IN THE MARKET

• Land O'Lakes, Inc., launched the first reduced-sodium butter for health-conscious boomers and millennials. The company released less soda butter with canola oil.

DETAILED SEGMENTATION OF THE GLOBAL BUTTER MARKET INCLUDED IN THIS REPORT   

This research report on the global butter market has been segmented and sub-segmented based on type, processing, usage, distribution channel, & region. 

 By Type

• Non-cultured butter
• Cultured butter
• Whipped
• Salt

 By Processing

• Processed
• Non-processed

 By Usage

• Spreadable
• Non-spreadable

 By Distribution channel

• Convenience stores
• Supermarkets/hypermarkets
• Online retail stores
• Specialty stores

  By Region 

• North America 
• Europe 
• Asia Pacific 
• Latin America 
• Middle East and Africa