Butter Market Size & Outlook, 2025-2033

Butter Market Overview

The global butter market size was valued at USD 55.90 billion in 2024 and is projected to grow from USD 57.46 billion in 2025 to reach USD 71.55 billion by 2033, growing at a CAGR of 4.2% during the forecast period (2025–2033). Major drivers include the upward trend in demand for bakery goods, increasing consumption of dairy fats in emerging economies, and growing disposable incomes.

Key Market Indicators

• Asia Pacific dominated the butter industry and accounted for a 36% share in 2024.
• Based on type, the salted segment held a significant 64% share of the global market in 2024.
• Based on application, the industrial processing segment is growing in 2024, driven by the rising need for butter within the food processing sector

Market Size & Forecast

• 2024 Market Size: USD 55.90 Billion
• 2033 Projected Market Size: USD 71.55 Billion
• CAGR (2025–2033): 2.78%
• Asia Pacific: Largest market in 2024
• Europe: Fastest-growing region

Increasing consumer demand for prepared foods, the growing acceptance of plant-based and lactose-free diets, the supply of butter in the Asia-Pacific region have always been heavily influenced by the local market, and this influence has only increased over time.

Globally speaking, the industry is exhibiting clear signs of enormous expansion. Demand in the food industry has dramatically increased as a result of rising consumer interest in processed food items such as bakery goods, confectionery, desserts, and ready-to-eat meals. This trend can be seen across the whole food industry. The expansion of the market for butter is anticipated to be driven during the projected period by the growing demand for packaged products across the retail and foodservice channels.

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Butter Market Growth Factors

Growing Demand for Processed Food Products

The demand for dairy products across the world has been shifting away from their replacements that are based on vegetable oil and toward dairy fats instead. This tendency can be related to a shift in taste preferences as well as an improved perception of the health benefits of dairy fat. It is projected that more dairy products will be consumed in emerging nations due to a rise in the consumption of processed foods as a result of rising discretionary incomes among consumers and the increasing globalization of diets.

The increased consumption of butter in the bakery industry is being driven in large part by the ever-increasing demand for baked goods such as cakes, bread, cookies, and biscuits. The production of confectionery cannot proceed without the incorporation of this component. It is anticipated that the demand for butter would expand as a result of the increased popularity of a variety of different confectionery foods. It has found extensive use in ready-to-cook and ready-to-eat meals, which are exploding in popularity as a result of the rise in demand for convenience foods. In the next years, it is anticipated that the dairy beverage industry will continue to see growth in the number of inventions and advances that involve the use of butter.

Market Restraint

The Increasing Popularity of Lactose-Free and Plant-Based Foods

The growing consciousness among consumers about the treatment of animals contributes to an increase in the demand for foods derived from plants. Additionally, food and beverages made entirely from plants are rapidly making their way into the mainstream retail items market. The ever-increasing idea that plant-based goods are healthier and safer drives up the demand for natural butter substitutes such as soymilk and nut milk-based butter. Likewise, the demand for nut milk-based butter also increases.

The number of people who are lactose intolerant is on the rise, which drives up the need for dairy substitutes. Products that include lactose are regarded as unhealthy because of their role in the development of obesity and other conditions associated with lifestyle choices. It is anticipated that the rapidly expanding dairy alternatives industry, with its new product developments including non-dairy ice creams, vegetable oil-based bakeries, and confectionery items, will impede the expansion of the global butter market.

Market Opportunity

The Rising Popularity of Butter across Retail & Foodservice Sectors

One of the things that sells at a rapid pace across all retail channels is packaged. During the epidemic and subsequent nationwide lockdowns, a significant number of consumers resorted to preparing meals and baked goods at home. Because of these considerations, the demand for its retail packaging skyrocketed in both developed and developing economies. Over the past few years, premium-grade products have also seen increased demand from customers in developed countries. Butter made from A2 milk, butter made from organic milk, and butter with no added ingredients are all considered premium types of butter. The expectation is that rising levels of consumers' discretionary spending will further boost the demand for premium butter among customers.

Butter is an ingredient that can be found in a broad variety of establishments around the world, including hotels, restaurants, cafes, and catering companies. The ever-evolving preferences of consumers have led to a surge in the use of it in a wide variety of cuisines that are provided freshly in cafes and restaurants. In the next years, it is projected that the developing pattern of eating away from home and purchasing ready-made meals would present an opportunity for the expansion of the industry.

Regional Insights

The Asia-Pacific region, which dominated the butter market with a 36% share in 2024, is also the fastest-growing regional market. The local market has always been a significant factor in the Asia-Pacific butter supply, and that role has only grown more important over time. In order to fulfill the rising demand of consumers in the Asia-Pacific region, butter processing factories have been rapidly growing in recent years. This has contributed to the expansion of the market. Also, although butter is most commonly associated with Western cuisines, its possible application in Chinese cuisine has been aggressively marketed by large producers such as Fonterra, leading to an increase in its use in Asian cuisine and, as a result, in the Asian market.

Products made with peanut butter have a significant majority share in the nut butter market. However, the majority of the market for spreads is serviced by companies that specialize in chocolate spreads, such as Nutella. This is because chocolate spreads are the most popular type of spread. In recent years, the demand for nut butter has shifted away from its traditional use in spreads and toward its utilization as a component in the preparation of meals. Artisanal nut butter is becoming increasingly popular in nations where brands are placing a greater emphasis on the development of one-of-a-kind recipes that utilize organic raw materials as their primary component. KP Snacks introduced its very own line of palm oil-free peanut butter products in August 2020. Both the jar and the lid are made from 100 percent recyclable materials, the product has 35 percent less salt, and it does not include any added sugar or artificial flavors.

Type Insight

The salted segment dominated the global market in 2024, holding the largest share of 64%. Due to higher consumption, their global reach and popularity, salted products have the highest market value on a global scale. It is largely sold in retail and food service channels as packaged butter. Salted butter has a longer shelf life than unsalted butter and is easier to preserve. Additionally, salted butter enhances the flavor and texture of the product. It is anticipated that the ever-expanding distribution channels and burgeoning internet retail will continue to fuel industry expansion.

The unsalted variety is utilized in a variety of processed items, including bakery goods, noodles, and pasta. The desire for unsalted varieties has expanded dramatically among food makers. In addition, the rising consumption of refined butter can be ascribed to its increased use in new culinary products such as premixes and ready-to-cook meals.

Application Insight

The industrial processing segment holds the major market share. The industrial processing sector is the market leader. The segment's growth is primarily driven by the increased demand for butter in the food processing industry. The confectionery industry uses butter extensively as its principal ingredient. The increasing investment by manufacturers in the innovation and development of unique confectionery goods has raised the segment's need for butter. Butter is a common ingredient in numerous baked goods, especially bread and cakes. In the foreseeable future, it is projected that the rapidly expanding bakery industry will propel market expansion.

The rapid expansion of retail channels is a result of their improved distribution capabilities. These channels provide a solid foundation for packaged butter sales. As a need or pastime, consumers have developed an interest in baking at home in recent years. During the pandemic, the packaged butter segment has undergone significant expansion due to home-growing and cooking practices.

List of key players in Butter Market

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)

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Recent Development

• Jul 2025:-  Kerrygold (Ornua) introduced new Cinnamon & Sugar Butter Sticks. Kerrygold (Ornua’s global consumer butter brand) launched a cinnamon & sugar flavored 1-lb butter stick SKU product innovation in the butter category.
• Jun 2025:-  Annual Report 2024 published (June 2025 release). Ornua published its 2024 Annual Report (sales/ops data, global footprint, and strategy that affect its Kerrygold/ingredient businesses). Useful for market metrics and export positions.
• Jun 2025:-  Launch of Amul fresh milk in Spain (initial rollout) GCMMF expanded exports/market penetration by launching Amul fresh milk into Spain (Madrid & Barcelona initially), signaling continued international expansion of the Amul portfolio (butter is part of their export product set).
• Apr 2025:-  Appointment of a Chair-Designate, Ornua announced leadership changes, including the appointment of a Chair-Designate as part of governance updates (company newsroom).
• Apr 2025:-  Strong FY 2024–25 revenue/brand valuation reporting. Multiple reports in Apr-2025 note Amul’s turnover growth and brand strength (useful context for capacity and export/retail moves in butter).
• Feb 2025:-  Q1/H1 reporting and medium-term outlook   Arla reported higher revenues in early 2025, driven by higher dairy prices and noted pressures on branded volumes (including Lurpak). This affects branded butter sales/strategy.