The global Butter Flavor Market size is anticipated to gain substantial growth from 2023 to 2033. According to the research report published by Future Market Insights, the global market is poised to cross a valuation of USD 288 million in 2023.
It is anticipated to reach a valuation of USD 569.4 million by 2033. The market is predicted to showcase a CAGR of 7% from 2023 to 2033.
The market accounts for 8% of the food flavor enhancer market which is anticipated to be valued at USD 8,736 million in the year 2023.
Alternative tastes and culinary alternatives are becoming more and more popular with consumers. Several people like the rich, creamy, and luxurious taste that butter flavor offers. There is an increasing demand for butter flavor in many culinary products as customer preferences change.
Butter flavor can be used as a flavoring ingredient to give food a buttery flavor without the extra fat and calories, even if it may not be a straight substitution for actual butter. Butter flavor enables consumers to experience the taste of butter while limiting their consumption of fat.
This is becoming increasingly important as individuals become health-conscious and look for better substitutes.
The popularity of plant-based diets and veganism has raised a demand for dairy-free substitutes. To appeal to the expanding vegan and vegetarian customer base, butter flavor offers a means to mimic the flavor of butter in plant-based goods.
To keep up with consumer demand, manufacturers are always creating fresh, innovative products. To capitalize on the appeal of the flavor, companies are releasing butter-flavored versions of already-existing items or developing whole new ones.
To promote butter flavor and increase its market presence, effective marketing methods are also essential and are likely to bolster market growth in the coming years.
| Attribute | Details |
|---|---|
| Butter Flavor Market Share (2022) | USD 277.10 million |
| Butter Flavor Market Share (2023) | USD 288 million |
| Butter Flavor Market Share (2033) | USD 569.4 million |
| Butter Flavor Market Share (2023 to 2033) | 7% |
| Market Share of Europe | 41.8% |
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The global butter flavor market size expanded at a CAGR of 2.7% from 2018 to 2022. In 2018, the global market size stood at USD 249.4 million. In the following years, the market experienced significant growth, accounting for USD 277.10 million in 2022.
The increasing need for ingredients that add value to the final product in the food & beverage industry is the key driving force in the butter flavor industry. This is aided by the growing demand for value-added products and the desire to try new food items among consumers.
Cutthroat competition in the food and beverage sector has led manufacturers to improve the taste and quality of their products, resulting in the expansion of the market. Furthermore, there has been a considerable increase in the global milk and dairy industry, which has resulted in high growth in the butter taste market.
However, the recent changes in rules and government regulations on the addition of butter flavor have hampered the market's growth to an extent.
Furthermore, consumers around the world are shifting away from artificially added flavors toward natural and organically added real flavors. This could negatively impact the sales of butter flavor in the coming years.
The globalization of food products is driving the growth of the butter flavor industry. The butter flavor is getting easier to find in many places as global commerce and distribution networks advance, which supports the expansion of its market.
Prominent users of butter flavor include large-scale food producers in the baking, confectionery, dairy, and snack sectors. They add butter flavor as an ingredient to a variety of goods to improve their flavor, fragrance, and all-around customer appeal.
Cookies, cakes, pastries, ice cream, popcorn, and salty snacks are just a few of the products these producers may flavor with butter. Another important market for butter flavor is the food service sector, which includes eateries, coffee shops, hotels, and catering companies.
They employ butter flavor to give foods and sauces, and spreads a buttery flavor, giving customers a rich flavor experience. Bread, sauces, spaghetti, and flavored butter are all frequently made with butter flavor.
Organic Butter Flavor to Remain Highly Sought-after Worldwide
The rising incidence of heart-related diseases, obesity, and diabetes among today’s youth and similar other health concerns have caused a shift in the consumption pattern around the world. As a result, there has been a rise in demand for organic butter flavor products despite being scarcely available and relatively expensive.
To meet this increasing demand, butter flavor manufacturers are producing organic butter flavors for health-conscious consumers who are reaching out for private label products due to their better quality. The market for organic butter flavors is highly concentrated in developed regions like North America and Europe.
This has, in turn, encouraged the market players to penetrate untapped regions like East Asia and South Asia. As the demand for organic butter flavor products is anticipated to rise in the foreseeable future.
Europe is estimated to be one of the fast-growing regions for the butter flavor market owing to the easy availability of dairy and dairy-based products.
The region’s free-range cattle farming in the alpines in addition to specialized dairy farms in central Europe plays a significant role in strengthening its position at the global level. In 2022, Germany and the United Kingdom captured 3.0% and 5.6% shares in the global market, respectively.
The rising standard of living in the region has resulted in high demand for innovative food items. Thus, Europe-based food & beverage manufacturers are increasingly incorporating different flavors and experimenting with their products.
This has led to an increase in the consumption of butter flavors across European countries. It has been witnessed that in comparison to other regions, consumers in Europe are quick to adopt new product offerings.
Thus allowing producers to launch novel products in different butter flavors. Besides this, the rising consumption of confectionery products in Europe is anticipated to fuel demand for butter flavors in the coming future.
The global market is highly competitive and fairly fragmented due to the presence of numerous local and regional manufacturers. Leading companies in the market are focusing on product innovation and new product launches.
Such as sugar-free butter flavors to attract health-conscious consumers keeping in mind the rising cases of diabetes and obesity in developed countries.
Key players dominating the market include Butter Buds Inc., DairyChem Inc., The Tatua Co-operative Dairy Company Limited, H.B. Taylor CO., The Edlong Corporation, Blue Pacific Flavors, Comax Flavors, Firmenich Incorporated, Givaudan, International Flavors and Fragrances among others.
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| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value, MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; The Middle East & Africa (MEA) |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASEAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Form, Nature, Product Type, End-use Application, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
Increasing trend of adopting healthy lifestyle habits.
Butter Buds Inc., DairyChem Inc., and H.B. Taylor CO. are the key players.
Improvements in taste and quality of products.
The global market exhibited a 2.7% CAGR from 2018 to 2022.
The easy availability of dairy and dairy-based products supports market growth.
| Market Size (2023E) | USD 1.20 billion |
|---|---|
| Market Projected Size (2033F) | USD 2.76 billion |
| Value CAGR (2023 to 2033) | 8.7% |
| Market Value (2023) | USD 16,390 million |
|---|---|
| Market Anticipated Value (2033) | USD 26,827.2 million |
| Projected Growth Rate (2023 to 2033) | 5% |
| Expected Market Value (2023) | USD 4.4 billion |
|---|---|
| Projected Forecast Value (2033) | USD 7.1 billion |
| Anticipated CAGR (2023 to 2033) | 5.5% |
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