Butternut Squash Market

Butternut Squash Market Size and Forecast (2023-2028):

The Global Butternut Squash Market size is expected to grow at a CAGR of 5.3% during the forecast period 2023-2028 to reach USD 3.42 billion by 2028 from USD 2.16 billion in 2022.

Market Overview:

Butternut squash is commonly used in cooking and is a versatile and nutrient-rich winter squash. It can be readily recognized due to its tan shell and sweet, orange flesh, also known as butternut pumpkin or gramma in Australia & New Zealand. It has several health benefits and is high in dietary fiber, vitamins A and C, minerals magnesium, potassium, and also antioxidants. For soups, stews, and side dishes, butternut squash is used as a vegetable, and it can be roasted, sautéed, or pureed. Its lightly nutty flavor blends well with a wide range of herbs and spices. Due to its warm and comforting characteristics, this squash is a favorite choice for winter and fall dishes. Butternut squash is an excellent addition to a balanced diet, whether it is used in savory or sweet dishes.

REPORT COVERAGE:

Drivers:

The butternut squash market demand is strongly influenced by its nutritional benefits. It is widely used as a vegetable in various food preparations because it is a good source of fiber, vitamins, minerals, and other essential nutrients. Butternut squash is a prominent source of vitamins A and C, both of which boost the immune system and promote healthy skin. Also, its significant amounts of minerals, mainly potassium, help to maintain healthy cardiac function and electrolyte balance. Further, dietary fiber helps with weight management by producing a feeling of fullness and supporting the overall digestive system. As it has low contents of calories and fat, it is becoming an attractive food ingredient for people who are seeking nutrients and low-fat and calorie food alternatives. All attributes together make butternut squash a valued ingredient and align it with the growing trend of health consciousness among people, which is significantly boosting the overall Butternut Squash Market growth globally.

Also, the growing culinary applications of butternut squash are driving the market demand. As butternut squash is a versatile vegetable, it is widely used in cooking, and its little bit of sweet flavor makes it a popular ingredient. It is used to prepare curries, casseroles, and even baked products by adding a distinctive and delicious flavor. It is also a main ingredient in soups, grilled foods, kinds of pasta, and savory pies. Butternut squash can blend with many dishes and act as a base for purees and dips. The numerous and satisfying uses of butternut squash continue to significantly contribute to its demand and attract a large consumer base.

The butternut squash market size is expanding significantly due to consumers' changing dietary preferences. The prominence of nutrients in butternut squash is becoming increasingly attractive as more people adopt various kinds of eating habits these days, such as vegetarian, vegan, and plant-based diets. Butternut squash is an ideal option for individuals who are seeking nutritious and plant-based alternatives due to its rich nutrition presence, which includes vitamins, minerals, dietary fiber, etc. Because of its many uses in food preparation, including as a substitute for pasta and in soups and roasted dishes, and as butternut squash is a completely plant-based ingredient, it is essential for satisfying these changing dietary preferences of consumers. This attribute promotes the overall growth of the market.

Restraints:

A major restraint on the butternut squash market demand is the seasonal availability of it. Because butternut squash is mainly available in the fall and winter, which means it is limitedly available in the summer season. Nowadays, people want access to their preferred food throughout the year, so this seasonal availability of butternut squash can lead to challenges in satisfying consumers off-season. Hence, people may seek alternatives that are available the whole year, and this can restrict the demand for butternut squash leading to an effect on the butternut squash market growth.

Another restraint on the market expansion is growing competition from other vegetables. Butter squash is not the only vegetable with nutrients, but there are many other veggies available in the market. As consumers are changing their dietary preferences, they are seeking multiple alternatives with various nutritional requirements. Every vegetable has its unique taste and flavor, and this can make consumers choose other veggies according to use. Also, some vegetables in the market are available throughout the year, which can attract a significant consumer base. Overall these attributes are restricting the butternut squash market growth.

Opportunities:

A significant opportunity for the market is provided by the growing use of butternut squash in the food and beverage industry. The rich nutritional content and flavor of butternut squash make it an attractive ingredient for various food product preparations, especially as consumer preferences are shifting in favor of healthier, plant-based, and creative culinary offerings. The increase in its use in distinct dishes can satisfy the need for natural and flavorful ingredients as well as serve health-conscious consumers by improving the nutritional value of functional food and beverages and also by boosting menu options in restaurants and cafes. With the help of evolving dietary trends and consumer preferences, this expanding combination between butternut squash and the food and beverage industry has an opportunity to boost butternut squash market growth globally.

COVID-19 Impact on Butternut Squash Market:

COVID-19 had negatively impacted butternut squash market growth. During the pandemic, the perishability of butternut squash presented challenges for the market all over the world. Transporting and distributing fresh butternut squash became more difficult due to disruptions in the supply chain and travel restrictions. Due to lockdowns and restricted restaurant business dropped, the market demand, hence resulting in the wastage of butternut squash. Due to this, farmers also had difficulty getting their products to market. Farmers who were highly dependent on export markets suffered as a result of disruptions in global trade. This resulted in less availability of butternut squash in the market during the pandemic, further leading to a decline in the overall growth of the butternut squash market.

Butternut Squash Market Segmentation Analysis:

By Form:

• Puree Form
• Frozen Form
• Fresh Form

By form, the fresh segment is ruling the butternut squash market share during the forecasted period. In this segment, fresh butternut squash is a whole vegetable, usually sold raw and with its skin intact. As consumers can peel, dice, and cook the winter squash according to their cooking references, the demand for it is boosting. At the same time, the puree form is expected to grow at the fastest rate during the projected period. This is a processed form of butternut squash, and it is suitable for a wide range of food preparations, such as soups, sauces, baked goods, and baby food, which boosts the demand for puree form.

By Distribution Channel:

• Offline Sales
• Online Sales

By distribution channel, the offline sales segment is dominating the butternut squash market share during the anticipated period. Retailers, including supermarkets, grocery stores, farmers' markets, and specialty food shops belong to this segment. Direct buying of fresh or processed butternut squash is offered at these stores. Hence, the offline sales segment is expanding. However, the online sales segment is expected to grow at a healthy CAGR during the projected period. Because through e-commerce platforms, customers can order butternut squash in various forms and have it delivered straight to their door, providing convenience and access to them without having to go to a physical store. This attribute is driving the expansion of this segment.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

By region, North America is anticipated to rule the butternut squash market share during the forecasted period. Countries like the United States and Canada are great producers of butternut squash in this region. Also, the increased use of butternut squash in various culinary and seasonal dishes is boosting its demand. Additionally, the growing consumer demand for nutritional and healthy food ingredients is causing expanding its market in this region. However, the Asia Pacific is expected to gain significant shares of the market during the projected period. Due to the increasing population and their growing demand for various ingredients and culinary trends, the demand for butternut squash is gradually increasing in this region.

Key Players in the Market:

Major Key Players in the Global Butternut Squash Market are

• Stonehill Produce
• JDM Food Group
• Harris Seeds
• Stahlbush Island Farms
• Mackenzie
• ALDI