Global Clarified Butter Market Grows at a Staggering CAGR of 7.0%

Introduction

Ghee is a clarified butter product that removes water and milk solids from regular butter through slow boiling. A traditional dairy staple, ghee has been used in global cuisines for centuries due to its high smoke point and rich, nutty flavor, making it suitable for frying, baking, and sautéing. Beyond culinary uses, ghee has entered the wellness and beauty industries for its moisturizing qualities and has long been incorporated into Ayurvedic medicine for therapeutic purposes. The global clarified butter market centers on the production and trade of this refined butterfat. As awareness of its nutritional value spreads, demand continues to rise across the food, wellness, and personal care sectors, mainly where lactose-free and shelf-stable fats are in demand.

The global clarified butter market is gaining momentum due to increasing interest in natural, lactose-free fats and the growing popularity of health-centric lifestyles such as Ayurveda and ketogenic diets. Manufacturers are responding by focusing on organic, grass-fed, and artisanal product lines that align with clean-label consumer preferences. The market has remained stable thanks to ghee's versatility, long shelf life, and nutritional profile, which includes healthy fats, antioxidants, and fat-soluble vitamins. These qualities make it appealing to health-conscious consumers worldwide. In addition, evolving dietary habits have pushed organic and sustainable food choices to the forefront, allowing clean-label clarified butter variants to gain notable market share.

Market Dynamics

Rising consumer preference for natural and organic ingredients drives market growth

The shift toward natural, clean-label, and organic eating has significantly amplified the demand for clarified butter, especially grass-fed and organic types. These variants are healthier, environmentally conscious, less processed, and appealing to informed and health-driven consumers. Ghee’s chemical-free preparation and absence of additives align well with growing calls for food purity and ingredient transparency.

• For instance, in April 2024, Organic Valley expanded its organic dairy product line by introducing Grassmilk Clarified Butter, targeting health-conscious shoppers interested in nutrient-dense fats.
• In August 2024, Amul announced a 27% growth in organic ghee exports, citing robust demand from global markets like the U.S., UAE, and Australia for clean-label Indian clarified butter.

Such developments underscore how health, sustainability, and culinary heritage are converging to fuel growth in the clarified butter segment across global consumer markets.

Emerging markets adopting Western culinary trends

Urbanization and digital media are exposing consumers in Asia-Pacific, Latin America, and Africa to Western food trends, accelerating the adoption of ghee as both a cultural staple and a modern health ingredient. These urban middle-class consumers are showing increasing interest in clarified butter for its heritage value and perceived wellness benefits.

• In 2024, Parag Milk Foods expanded its premium Pride of Cows Ghee to Singapore and the UAE, appealing to NRIs and local health-conscious shoppers by marketing the product around purity, Ayurveda, and artisanal production.

Social media, food influencers, and nutrition-forward platforms continue to raise awareness around clarified butter as a gourmet and functional fat. Food delivery platforms in these markets also feature ghee in clean-eating meal kits and wellness menus. With rising incomes and expanding culinary horizons, clarified butter is positioned firmly as both a traditional essential and a modern luxury item.

Regional Analysis

Asia-Pacific leads the global clarified butter market, driven by cultural heritage, widespread culinary use, and growing health consciousness. Ghee is a staple in everyday cooking and religious rituals in India, Pakistan, Bangladesh, and Sri Lanka. Rapid urbanization, rising disposable incomes, and increased awareness of ghee’s health benefits propel the market. The growth of modern retail channels and the expansion of food service businesses also contribute to increased consumption. Moreover, the rising popularity of Ayurvedic and holistic health practices reinforces ghee’s position in culinary and medicinal spaces, boosting consumption across all age groups.

Key Highlights

• The global clarified butter market size was valued at USD 2.68 billion in 2024 and is projected to grow from USD 2.87 billion in 2025 to reach USD 5.10 billion in 2033, exhibiting a CAGR of 7.0% during the forecast period (2025-2033).
• By Type, the market is bifurcated into organic and conventional. The conventional segment holds the largest market share.
• By Application, the market is bifurcated into food & beverages (dairy products, bakery products, confectionery, cooking & frying), cosmetics (skincare, haircare), and pharmaceuticals (supplements, medicinal uses). Food & beverages holds the largest market share.
• By Packaging Type, the market is bifurcated into glass jars, plastic containers, and pouches. Plastic containers hold the largest market share. Plastic Containers hold the largest market share.
• By Distribution Channel, the market is bifurcated into supermarkets & hypermarkets, online retail, specialty stores, and convenience stores. Supermarkets and hypermarkets have a larger share of ghee.
• By End-User, the market is bifurcated into household, food service, and industrial. Households constitute the largest consumer group in the market.
• Based on region, the global market is segmented into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa. Asia-Pacific dominates the global market.

Competitive Players

1. Amul (GCMMF)
2. Nestlé
3. Britannia Industries
4. Patanjali Ayurved Limited
5. Haryana Dairy Development Cooperative Federation Limited.
6. Pure Indian Foods
7. Ancient Organics
8. GHEE EASY
9. Almarai
10. Annapurnagroup and M/s Sundarbans Food Products (I) Pvt. Ltd.

Recent Developments

• In January 2025, Taj Hotels Group began featuring regional ghee-centric dishes across its luxury properties, promoting clarified butter as a heritage-rich, wellness-enhancing fat.
• In March 2024, Nova Dairy launched its A2 Cow Ghee, targeting consumers interested in premium dairy products. A2 ghee is derived from cows that produce A2 beta-casein protein, which offers better digestibility and health advantages over regular ghee.

Segmentation

1. By Type
   1. Organic
   2. Conventional
2. By Application
   1. Food & Beverages
      1. Dairy Products
      2. Bakery Products
      3. Confectionery
      4. Cooking & Frying
   2. Cosmetics
      1. Skincare
      2. Haircare
   3. Pharmaceuticals
      1. Supplements
      2. Medicinal Uses
3. By Packaging Type
   1. Glass Jars
   2. Plastic Containers
   3. Pouches
4. By Distribution Channel
   1. Supermarkets & Hypermarkets
   2. Online Retail
   3. Specialty Stores
   4. Convenience Stores
5. By End-User
   1. Household
   2. Foodservice
   3. Industrial
6. By Region
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa