Global Butter Market Worth USD 65.9 Billion With a CAGR of 2.78%

Introduction

The global butter market was valued at USD 51.49 billion in 2021 and is projected to reach USD 65.9 billion by 2030, registering a CAGR of 2.78% from 2022 to 2030.

Market Synopsis

Globally, the market is experiencing tremendous growth. The demand for processed food goods such as bakeries, confectionery, sweets, and ready-to-eat meals has expanded dramatically across the food industry as a result of rising consumer demand. The increased demand for packaged goods across retail and foodservice channels is anticipated to drive the growth of the butter market over the forecast period.

Growing demand for processed food products

Globally, dairy fats are replacing vegetable oil-based replacements in dairy products. This development is due to a healthy perception of dairy fat and taste progression. As consumer incomes rise and diets become more globalized, more dairy products will be consumed in developing countries due to greater processed food consumption.

Rising demand for cakes, bread, cookies, and biscuits drives butter to use in the baking business. It's used in candy-making. Popular candy will boost butter demand. It's used extensively in convenience foods including ready-to-cook and ready-to-eat meals. Increasing dairy beverage innovations and improvements will enhance butter use in the next years.

The increasing popularity of lactose-free and plant-based foods

Animal welfare awareness raises demand for plant-based diets. Plant-based food & beverages are quickly entering mainstream retail. The impression that plant-based goods are healthier and safer increases the demand for soymilk and nut milk-based butter.

Lactose sensitivity raises the demand for dairy alternatives. Lactose-containing goods cause obesity and lifestyle-related illnesses. The fast-developing dairy alternatives business, with non-dairy ice creams, vegetable oil-based bakery, and confectionery items, is predicted to slow worldwide market growth.

The rising popularity of butter across retail & food service sectors

Packaged butter is a top-selling product. During the pandemic and lockdowns, many consumers cooked at home. These reasons boosted retail pack demand in developed and developing nations. Premium-grade has gained popularity among developed-country customers. A2 milk, organic, and clean-label butter are premium. Increasing discretionary money should boost demand for premium butter.

Worldwide, hotels, restaurants, cafes, and caterers use butter. Changing consumer tastes have boosted its use in fresh cafes and restaurants. Eating out and buying ready-made meals is expected to boost the business in the coming years.

Regional Analysis

The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the butter market with the highest growth rate. The Asia-Pacific butter supply has always been heavily influenced by the domestic market and to a growing degree. To fulfill customer demand, butter processing factories in the Asia-Pacific region have expanded dramatically, hence driving market expansion. In addition, while butter is generally associated with Western cuisines, its potential use in Chinese cuisine has been extensively marketed by large producers such as Fonterra, thereby expanding its application in Asian cuisine and, consequently, its market share in Asia. The nut butter market is dominated by peanut butter products. However, the majority of the spread market is dominated by chocolate-based brands, such as Nutella. Instead of spreads, the demand for nut butter has increased in popularity as a cooking element. The growth of artisanal nut butter is increasing in nations where firms are emphasizing the creation of unique recipes using organic raw materials as the foundation. KP Snacks released its own palm oil-free peanut butter line in August of 2020, with 100 percent recyclable jars and lids, 35 percent reduced sodium, and no added sugar or artificial flavors.

Key Highlights

• The global butter market was valued at USD 51.49 billion in 2021 and is projected to reach USD 65.9 billion by 2030, registering a CAGR of 2.78% from 2022 to 2030.
• The salted segment holds the largest market share due to higher consumption
• Industrial Processing Segment Holds the Major Market Share
• Asia-pacific is the fastest growing market for butter

Competitive Players

1. Ornua Co-operative Limited (Ireland)
2. Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF/Amul) (India)
3. Arla Foods amba (Denmark)
4. Dairy Farmers of America, Inc. (the US)
5. Fonterra Co-operative Group (New Zealand)
6. Organic Valley (US)
7. Land O Lakes, Inc. (US)
8. Lactalis Group (France)
9. Royal FrieslandCampina N.V. (Netherlands)
10. Delta Nutritive (India)

Recent Developments

March 2022, A well-known supplier of packaging, Wipak UK, is getting ready to launch a recyclable paper wrap for butter. This wrap will be the first of its kind in the United Kingdom, and it will be the first of its kind to be able to be recycled kerbside within the paper waste stream. Additionally, this wrap will have a carbon footprint that is 68 percent smaller than market-standard wraps, which are made of aluminum/low-density polyethylene (LDPE)/paper laminate.

February 2022, The introduction of Majestic Brand Dairy's organic butter, which is produced through an "old school" method, was recently announced. The Majestic butter is available in both unsalted and salted forms. It is sold in packages of four wrapped sticks weighing 4 ounces each and has an estimated retail price of $7.99.

March 2022, Willamette Valley Pie Company has unveiled its freshly revamped appearance. The corporation has acknowledged that it is revising its image to bring it in line with its continued expansion and the expanded selection of products it provides.

Segmentation

1. By Form
   1. Spreads
   2. Blocks
   3. Liquid/Oil
   4. Others
2. By Category
   1. salted
   2. unsalted
   3. Spreadeble
   4. Non-Spredable
3. By Product Type
   1. clarified butter
   2. Cultured Butter
   3. Uncultured Butter
   4. standard butter
   5. Whipped Butter
   6. others
4. By End-use
   1. food processing
   2. foodservice
   3. food retail
   4. Bakery
   5. Dairy and Frozen Desserts
   6. Dressings and Spreads
   7. Others
5. By Distribution Channel
   1. Direct
   2. Indirect