Clarified Butter Market Size, Share & Trends Analysis Report By Type (Organic, Conventional), By Application (Food & Beverages, Cosmetics, Pharmaceuticals), By Packaging Type (Glass Jars, Plastic Containers, Pouches), By Distribution Channel (Supermarkets & Hypermarkets, Online Retail, Specialty Stores, Convenience Stores), By End-User (Household, Foodservice, Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Clarified Butter Market Size

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 USD 5.10 billion by 2033, exhibiting a CAGR of 7.0% during the forecast period (2025-2033).

Ghee is a boiled butter product that removes water and milk solids from butter. A traditional dairy product, ghee has been a staple of many cuisines worldwide for centuries because of its high smoking point and nutty flavor, making it versatile for cooking, frying, or baking. Ghee is increasingly being used beyond the kitchen in the beauty and wellness world for its moisturizing effect and other benefits in the treatment in Ayurveda. The global market refers to the production and trade of ghee or clarified butter, which is butterfat rendered by removing water and milk solids.

The global clarified butter market is driven by the growing demand for natural, lactose-free fats and the rising interest in Ayurveda and ketogenic diets. Key players focus on organic, grass-fed, and artisanal offerings. The global market has been very stable, mainly because of its health benefits, versatility in cooking, and rich taste. With healthy fats, antioxidants, and vitamins, health-conscious consumers are attracted by ghee. Organic, clean-label variants have also taken a high market share as consumer choices change toward natural, sustainable food options. Its therapeutic properties extend its application even to the cosmetics and pharmaceutical fields.

Latest Market Trends

Growing demand for healthier fats

As health consciousness rises globally, consumers increasingly turn to clarified butter (ghee) as a preferred alternative to refined oils and trans fats. Ghee is rich in butyrate, fat-soluble vitamins (A, D, E, K), and medium-chain triglycerides, making it ideal for those following ketogenic, paleo, and Whole30 diets. Its high smoke point (around 485°F) also makes it superior to many plant-based oils for high-heat cooking.

• For example, in July 2024, Aashirvaad Svasti, a prominent dairy brand under ITC, introduced a Lower Cholesterol Ghee. This product boasts 90% less cholesterol than the brand's regular cow ghee, catering to health-conscious consumers seeking traditional flavors with improved health benefits.

Additionally, being naturally lactose- and casein-free, clarified butter is compatible with dairy-sensitive diets. The growing popularity of Ayurvedic and functional foods further strengthens ghee’s appeal.

Clarified Butter Market Growth Factors

Rising consumer preference for natural and organic ingredients

The global shift toward clean-label and organic products has amplified interest in clarified butter, particularly grass-fed and organic variants. These types are perceived as healthier, minimally processed, and more environmentally sustainable. Clarified butter’s simple production—without chemicals or preservatives—aligns with rising consumer demand for purity and transparency in food labeling.

• For instance, in April 2024, Organic Valley expanded its organic dairy lineup with a Grassmilk Clarified Butter product aimed at health-conscious home cooks looking for whole-food fat options.
• Similarly, in August 2024, Amul reported a 27% YoY increase in organic ghee exports, driven by rising demand in the U.S., UAE, and Australia—underscoring the international appetite for Indian-origin clarified butter. In April 2024, Organic Valley added a Grassmilk Clarified Butter product to its organic dairy portfolio, catering to health-focused consumers seeking better-for-you alternatives in cooking fats.

Restraining Factors

High production cost of clarified butter

Despite growing demand, the high production cost of clarified butter continues to be a significant barrier to mass-market expansion. The production process involves slow simmering, skimming, and straining, which is labor- and energy-intensive. The use of premium raw milk, especially from grass-fed or organic sources, adds to the cost.

Additionally, quality assurance, small-batch processing, and longer shelf-life packaging further raise manufacturing and distribution expenses. Dairy price volatility, influenced by weather, feed costs, and supply chain disruptions, can erode profit margins. This results in higher retail prices, limiting accessibility in price-sensitive markets and making it less competitive against vegetable oils and margarine.

Market Opportunity

Emerging markets adopting Western culinary trends

Rapid urbanization, digital exposure to global food cultures, and increasing health awareness in emerging economies are unlocking new growth avenues for clarified butter. Urban middle-class consumers in Asia-Pacific, Latin America, and Africa are embracing ghee as a traditional staple and a modern, health-forward cooking fat.

Western-style recipes, nutrition content on social media, and influencer-driven content promote clarified butter as both gourmet and functional.

• For example, in 2024, Parag Milk Foods expanded its premium Pride of Cows Ghee to Singapore and the UAE, targeting NRIs and health-aware locals with branding emphasizing purity, wellness, and Ayurveda.

Additionally, food delivery services in these markets incorporate ghee-based dishes as part of “clean eating” menus, further enhancing visibility and trial. As disposable incomes rise, clarified butter benefits from being positioned as a traditional and aspirational product.

Regional Insights

Asia-Pacific: Dominant region with 53% market share

Asia-Pacific leads the global 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.

North America: Fastest-growing region

North America is witnessing significant growth in the global market, primarily due to rising interest in alternative cooking fats, ketogenic diets, and organic food trends. With a multicultural population and exposure to global cuisines, clarified butter is increasingly being adopted in diverse dishes. The U.S. and Canada also show growing demand for Ayurvedic and natural wellness products, leading to increased use of ghee in supplements and cosmetics. The presence of numerous specialty brands, online retail growth, and support for sustainable agriculture practices also contribute to the region's rapid expansion of the global market.

Country Insights

• U.S.: The U.S. clarified butter market is flourishing due to strong consumer demand for organic and high-quality fats. Companies like 4th & Heart and Tin Star Foods have expanded their offerings with flavored and grass-fed ghee. Government incentives promoting sustainable agriculture further support market growth, while increased awareness of gut-friendly, dairy-free products boosts household and wellness segment consumption.
• Japan: Japan is witnessing increased usage of clarified butter as part of modern fusion cooking. With government efforts to diversify dietary habits and encourage healthier oil usage, clarified butter has been introduced into Japanese curry recipes and other popular meals. Innovation in domestic food service and raising awareness of international food trends support this market’s development.
• India: As the birthplace of ghee, India maintains strong demand due to cultural, religious, and dietary habits. Government support through initiatives like the National Mission on Edible Oils and subsidies for dairy development programs help maintain a robust supply chain. Export demand is also rising, supported by efforts to promote traditional Indian foods globally.
• Germany: Germany is showing a growing demand for clarified butter as consumers increasingly seek organic and sustainable food products. The country’s strict labeling laws and high culinary standards make it a prime market for premium and artisanal ghee, especially among health-conscious and vegan-friendly communities embracing dairy alternatives in cooking.
• Brazil: Brazil’s clarified butter market is expanding through agricultural diversification and export initiatives. With policies supporting organic production and environmentally friendly practices, clarified butter has started penetrating local and international markets. The rise of fusion cuisine and awareness of healthy cooking oils also support domestic consumption.
• France: France, known for its gourmet culinary traditions, has seen a notable increase in demand for clarified butter among chefs and health-conscious consumers. Government support for sustainable farming and organic products aligns with this trend. The preference for high-quality, richly flavored cooking fats contributes to clarified butter’s inclusion in haute cuisine.
• Mexico: In Mexico, clarified butter consumption is gaining ground both in traditional uses and modern culinary innovation. Government programs encouraging food diversification and organic agriculture aid local producers. As exports of Latin American specialty products grow, clarified butter is positioned as a value-added dairy product, favored for its flavor and health attributes.

Clarified Butter Market Segmentation Analysis

By Type

Conventional ghee dominates in price-sensitive regions such as India, Southeast Asia, and parts of Africa, where affordability outweighs premium labeling. It is widely available, cost-effective, and deeply embedded in local cuisines and daily diets, particularly in South Asian households. Conventional ghee remains the go-to option for mass-market consumption due to its accessibility and established trust. It is commonly used across food service sectors, small restaurants, and households prioritizing traditional cooking over clean-label trends.

By Application

Ghee’s high smoking point and aromatic flavor make it a preferred fat for cooking, baking, and frying across the food & beverages sector. It is used extensively in traditional and fusion recipes, dairy-based desserts, and global bakery items. In addition to culinary uses, ghee is prized in the cosmetics industry for its nourishing and healing properties, particularly in organic and Ayurvedic skincare and haircare products. It is also widely used in pharmaceuticals, especially in Ayurvedic and holistic medicine formulations, owing to its anti-inflammatory, detoxifying, and digestive-enhancing effects. This diverse usability continues to drive its growth across sectors.

By Packaging Type

Plastic containers remain the dominant packaging type for clarified butter, particularly in regions where cost-effectiveness and mass consumption are priorities. These containers are lightweight, durable, and well-suited for retail and wholesale distribution. In contrast, glass containers offer a premium aesthetic, preserve product quality, and are favored by high-end or organic brands—especially in North America and Europe, where sustainable packaging is a growing trend. Emerging packaging formats like flexible pouches are gaining momentum due to their convenience, lower material usage, and better storage efficiency, making them ideal for urban consumers and e-commerce platforms seeking space-saving formats.

By Distribution Channel

Supermarkets and hypermarkets serve as the primary retail outlets for clarified butter due to their extensive brand variety, competitive pricing, and consumer trust. These retail chains are robust in North America and Europe, with expanding health and wellness sections. E-commerce is growing swiftly, offering organic and niche ghee products directly to consumers with convenience and wider availability. Specialty health food stores cater to premium buyers looking for artisanal, organic, and grass-fed ghee. Meanwhile, local grocery and convenience stores in emerging markets maintain demand for conventional ghee. Omni-channel strategies are increasingly vital to reach segmented consumers across regions.

By End-User

Households are the leading end-users of clarified butter, especially in regions where ghee is culturally embedded in daily diets, such as South Asia and the Middle East. Ghee is favored for its flavor, nutritional benefits, and use in traditional cooking. The food service sector, including restaurants, hotels, and caterers, is a fast-growing end-user segment as clarified butter gains popularity in premium and ethnic cuisines worldwide. The industrial use of ghee is also expanding in the packaged food sector, where it is used for its rich flavor, texture, and long shelf life. This broad application across end-user groups sustains robust market growth.

Company Market Share

The clarified butter market is highly competitive, and market leaders dominate regional and global markets. The Amul brand from India leads the market there with its reputation for quality at affordable prices. It finds a niche in organic and Ayurvedic-based products through Patanjali Ayurveda. The region of the Middle East is dominated by Almarai, with regional players like Haryana Dairy and Annapurna Group also contributing to its market share.

Recent Developments

• 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.
• 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.

Analyst Opinion

As per our analyst, the global clarified butter market is experiencing strong growth, driven by rising consumer awareness around healthier fat alternatives and traditional dietary practices. Ghee, a form of clarified butter, is being reintroduced in modern diets for its high smoking point, rich taste, and functional health benefits such as improved digestion and heart health. Organic and grass-fed variants are gaining traction in developed markets, especially among clean-label and keto-friendly consumers.

Meanwhile, conventional ghee remains dominant in emerging economies due to its affordability and deep cultural integration. Key growth drivers include expanding food service demand, increasing adoption in bakery and packaged food sectors, and a surge in e-commerce sales. Countries like India, the U.S., and Germany contribute significantly to innovation and product diversification. As clarified butter finds new applications in beauty, wellness, and pharmaceuticals, its market potential continues to broaden.