As per the FMI’s updated research market report, sales of butter and margarines garner a current valuation of USD 4,885.40 million in 2024. As the competitiveness of the market rises, butter and margarine manufacturers focus on product differentiation and diverse marketing strategies to secure a broader share among transitioning consumer demands.
Going by this pattern, the butter and margarine market amplifies and equates to a market valuation of USD 8,935.40 million, with a steady CAGR of 6.2% by 2034.
| Attributes | Details |
|---|---|
| Market Value for 2024 | USD 4,885.40 million |
| Market Value for 2034 | USD 8,935.40 million |
| Market CAGR from 2024 to 2034 | 6.2% |
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Consumers' busy lifestyles and evolving dietary habits generate a demand for convenience foods. People are on the lookout for food options that reduce the time for meal preparation. These spreads and other types save time on the hectic schedule of the consumers, which is why a spur in sales of butter and margarine is experienced.
The food industry is a major end-user of the butter and margarine market. Food manufacturers have a steady demand for butter and margarine because of their diverse applications in the dishes.
As there is a booming demand for organic food, this creates an opportunity for the dairy spreads market. Organic products free of chemicals and preservatives are surging in demand, as people are more aware of the food they put in their bodies. This intensifies the adoption of butter and margarine among health-conscious people.
With the emergence of online shopping platforms, novel distribution channels have opened up for butter and margarine products. The butter and margarine producers can reach and acquire a wider audience base. This thrives the sales of butter and margarine.
| Attributes | Details |
|---|---|
| Market Value for 2019 | USD 3,879.50 million |
| Market CAGR from 2019 to 2023 | 5.79% |
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Though a significant demand has been witnessed for healthier alternatives, butter, and margarines see a roadblock ahead. This is due to the high fat content which is linked with chronic heart disease. The availability of substitute products and the consumers' inclination towards them hampers the butter and margarine market growth.
Another major obstacle to the growth path is the ever-fluctuating raw material costs for the production of butter and margarine. These fluctuations cannot be controlled and negatively impact the profit margin of the butter and margarine manufacturers. This inhibits butter and margarine market expansion.
The categorical butter and margarine market analysis is mentioned in the below subsection. Based on inclusive investigations, the spreadable sector is controlling the usage category. Followed by, the sales via the retail channel segment are ushering the distribution channel category upwards.
| Category | Usage |
|---|---|
| Top Segment | Spreadable |
| Share (2024) | 89.8% |
The versatility of spreadable products in the cooking process attracts a wider customer base, resulting in higher sales of butter and margarine. The convenience of using spreadable butter and margarine in the busy schedule of consumers surges butter and margarine adoption as it is easy to use for a quick meal prep. The diverse flavor available grabs the attention of consumers and accelerates butter and margarine sales.
| Category | Distribution Channel |
|---|---|
| Top Segment | Sales via Retail Channel |
| Share (2024) | 78.9% |
The retail channels provide easy access to consumers as the products are visible on shelves for the consumers to buy, which increases the inclination towards sales via the retail channel segment.
When consumers tend to see something, there are high chances of impulse purchasing, which is very popular in retail. This serves as an opportunity to stimulate sales of butter and margarine. A sense of trust is created when shoppers see something displayed on the shelves of retail outlets.
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The butter substitutes market is extensively evaluated in the below subsection, which points out the leading economies in Germany, India, the United States, China, and Japan. An exhaustive analysis validates that Germany has substantial margarine product market opportunities, advancing at a moderate CAGR of 4.6% through 2034.
| Nation | Germany |
|---|---|
| CAGR (2024 to 2034) | 4.6% |
The environmentally safe packaging and sustainability gained traction in the German dairy spreads industry. The German consumers are health-conscious, which catapults the demand for fat and plant-based alternatives in the butter and margarine sector. Widespread usage of convenience foods is flourishing in the German butter and margarine industry.
| Country | India |
|---|---|
| CAGR (2024 to 2034) | 4.4% |
The developing trend of Western-style bakery products advances the market growth of butter and margarine in India. The inclination of Indian consumers towards ghee and clarified butter positively impacts the butter and margarine adoption.
Urbanization and the rising disposable income of the middle-class population accelerate the sales of premium butter and margarine in India. Changing lifestyles and evolving taste preferences according to regions in India prompt the butter and margarine demand across Indian states.
| Nation | United States |
|---|---|
| CAGR (2024 to 2034) | 2.2% |
As people adopt vegan lifestyles and vegetarian dietary trends in the United States, a rising demand for plant-based butter alternatives is observed. The sales of butter and margarine have gained attention from online retail channels, traditional supermarkets, and hypermarkets in the United States.
| Nation | China |
|---|---|
| CAGR (2024 to 2034) | 1.1% |
Awareness of Western cuisines and bakery items escalates the demand for butter and margarine in China, serving as a growth opportunity in the baking sector. Flavors and packaging suitable to Chinese taste preferences are major schemes adopted by butter and margarine producers in China.
A prominent distribution channel aiding in butter and margarine market growth in China in e-commerce helps to reach the products to the urban areas of China.
| Nation | Japan |
|---|---|
| CAGR (2024 to 2034) | 0.9% |
The Japanese adopt butter and margarine in creating fusion dishes that support product diversification in the margarine products market. Sustainable production and sourcing pick up steam in Japan, positively impacting the butter and margarine market and exhibiting ecological cognizance in the consumers.
Diverse butter and margarine manufacturers strive for market share and consumer loyalty in the market's competitive landscape. Arla Foods, Farmers’ Cooperative Creamery, and Dean Foods Company are prominent butter and margarine producers that provide various products catering to different consumer choices.
OJSC Creative Group and Kraft Foods are the market innovators, whereas AMUL India and Friesland Campina deliver their expertise in dairy products.
BRF, NMGK Group, and NamChow add to the dynamics with their distinctive contribution to diversify the spreadable fats industry. These major butter and margarine vendors continue to innovate as per the shifting demands of the consumer, boosting growth, and carving the market landscape.
Each producer brings a different opportunity to the butter substitutes market, and the competition remains aggressive. The butter and margarine vendors compete to grab a significant market share and develop their global footprints. As customers are more health conscious, the butter and margarine manufacturers navigate the deterrents and opportunities and stay at the top of the market.
Noteworthy Advancements
| Company | Details |
|---|---|
| HEINZ | A new array of HEINZ 57 was launched by HEINZ in July 2022. It is an assortment of sauces and spreads, specialized to add magic to the cooking experience. It is just a spoonful, drizzle, or spread anytime and anywhere. |
| Fuji Oil Group | In September 2021, Fuji Oil Group and ITOCHU Group collaborated to expand their vegetable oil business sales channel to attain a broader consumer base. To solidify their market position in North America. |
| Wilmar International | Wilmar International declared the launch of a new building to process cruder vegetable oil in March 2020. The business unit made margarine, mayo, and other cooking oils. |
| Arla | Arla launched new plant-based products in March 2020. Arla was ready to launch three oat drinks under the brand Jörð, to meet European customer demand. The vendor has manipulated its apprehension and proficiency to create a new category of exciting flavors. Jörð aims to be an umbrella brand under which a complete range of plant-based products would be available. |
The butter and margarine industry to procure a valuation USD 4,885.40 million in 2024.
The butter and margarine industry has the proficiency to possess a worth USD 8,935.40 million by 2034.
Through 2034, the butter and margarine industry indicate a steady CAGR of 6.2%.
From 2019 to 2023, the butter and margarine industry thrived at a 5.79% HCAGR.
The spreadable butter and margarine sector in the butter substitutes market to garner a share of 89.8% in 2024.
The sales via the retail channel sector in the spreadable fats market to reap a segment share of 78.9% in 2024.
1. Executive Summary
2. Market Overview
3. Market Background
4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type
5.1. Solidified
5.2. Liquidified
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Format
6.1. Spreadable
6.2. Non-Spreadable
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User
7.1. Household Use
7.2. HoReCa
7.3. Institutional Use
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel
8.1. Hypermarket & Supermarket
8.2. Convenience Store
8.3. Online Retail
8.4. Others Distribution Channel
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
9.1. North America
9.2. Latin America
9.3. Western Europe
9.4. Eastern Europe
9.5. South Asia and Pacific
9.6. East Asia
9.7. Middle East and Africa
10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
12. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
13. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
14. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
16. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
17. Key Countries Market Analysis
18. Market Structure Analysis
19. Competition Analysis
19.1. Arla Foods
19.2. Farmers’ Cooperative Creamery
19.3. Dean Foods Company
19.4. OJSC Creative Group
19.5. Kraft Foods
19.6. AMUL India
19.7. Friesland Campina
19.8. BRF
19.9. NMGK Group
19.10. NamChow
19.11. Groupo Lala
20. Assumptions & Acronyms Used
21. Research Methodology
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Butter and Margarine Market
