The butter market size is projected to be valued at USD 46.8 billion in 2023, and is expected to rise to USD 67.6 billion by 2033. The sales of butter are expected to register a CAGR of 3.8% during the forecast period. Various factors propelling the demand for butter are:
The demand for butter has increased, as it is one of the staple commodities utilized across many food products prepared in households around the world.
The global demand for dairy products has shifted away from vegetable oil-based substitutes toward dairy fats. This trend can be attributed to changes in taste preferences, as well as a better understanding of the benefits of dairy fat.
Food consumption is currently increasing as a result of the growing population. This is one of the main factors contributing to a positive market outlook, along with the expanding food and beverage (F&B) business and growing reliance on ready-to-eat (RTE) food goods.
The demand is also being fueled by the widespread use of butter in the preparation of multiple recipes, including baked goods and as a condiment on cooked foods. Butter sales are also rising as a result of the global expansion of cafés, cloud kitchens, and quick service restaurants (QSRs).
The market is distinguished by a sizable number of brands that serve the B2C market by providing high-quality goods at flexible pricing ranges. The modernization of dairy farming and the rise in dairy product production allow for a large growth in butter production across several regions.
Manufacturers are spending more on aggressive marketing strategies, such as influencer marketing on social media platforms and television (TV). In addition, the easy availability of the product across offline and online distribution channels is assisting in the market's expansion.
The threat posed by counterfeit products is expected to be a significant obstacle for the butter market. These fake goods are subpar or could endanger customers' safety and the brand's reputation.
Additionally, the growing trend of eating out and consuming ready meals may drive business growth in the next few years.
| Attribute | Details |
|---|---|
| Market Estimated Size (2023) | USD 46.8 billion |
| Market CAGR (2023 to 2033) | 3.8% |
| Market Forecasted Size (2033) | USD 67.6 billion |
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Market to witness an absolute dollar growth of USD15.8 billion between comparison periods. As per Future Market Insights (FMI), consumption of premium products, such as organic butter and lactose-free butter, which is free from the dairy product, may boost the market. Furthermore, rising awareness regarding the benefits offered by healthy products despite high prices may improve sales.
Organic products are highly in demand due to increasing health consciousness among consumers despite high prices and lack of easy availability. Health-conscious consumers are opting for private-label goods which are high-quality, healthy, and sustainable.
These preferences are expected to create new opportunities for organic product manufacturers. On the back of this, the demand for organic butter is increasing. The increasing need for high-quality, tasty, and convenient food is fueling the sales of butter over the coming years.
Hence, end users such as catering, quick service restaurants, and artisanal bakeries have become a constant source of revenue generation for butter manufacturers. The butter market is projected to remain steady, exhibiting growth at 3.8% CAGR between 2023 and 2033 and witnessing an absolute dollar growth of USD 20.8 billion between the comparison period.
Due to the rising demand for low-fat butter, non-spreadable butter is expected to see the steady CAGR of 3.7% throughout the 2023 to 2033 period. Growing customer demand for reduced cholesterol and fat products is to account for the segment's expansion over the assessment period.
These channels can offer a variety of extra benefits, such as free shipping and coupon advantages. In addition to the abundance of lactose-free butter products available online, the segment is anticipated to expand in popularity over the projected period due to the rising prevalence of delivery services and app-based merchants.
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As a result of the rising demand for clean-label and sustainable dairy and milk products, the United Kingdom is predicted to develop at a substantial rate. Europe's economy is mostly driven by customers' rising demand for bread and other bakery goods.
Over the past few years, consumer preferences have evolved toward favoring healthier and more nutritious products. In the upcoming years, the market expansion is anticipated to be driven by the rising demand for butter that is organic and free of genetically modified organisms (GMOs).
| Attributes | Details |
|---|---|
| United Kingdom Market Size (USD million/billion) by End of Forecast Period (2033) | USD 998.4 million |
| United Kingdom Market Absolute Dollar Growth (USD million/billion) | USD 167.3 million |
| CAGR % 2017 to 2022 | 1.4% |
| CAGR % 2023 to End of Forecast (2033) | 1.9% |
The significant product demand in the United States contributes over USD 5.8 billion by 2033. Additionally, the market is driven by the rising purchasing power of the people in this area. The consumer goods market in North America offers appealing opportunities, therefore the region is expected to have significant expansion throughout the forecast period. Lactose intolerance affects up to 50 million Americans. As a result, the demand for lactose-free butter has increased across the United States.
| Attributes | Details |
|---|---|
| United States Market Size (USD million/billion) by End of Forecast Period (2033) | USD 5.8 billion |
| United States Market Absolute Dollar Growth (USD million/billion) | USD 1.1 billion |
| CAGR % 2017 to 2022 | 1.7% |
| CAGR % 2023 to End of Forecast (2033) | 2.1% |
The greater manufacture of western-style pastries has increased demand for butter as China's baking industry has grown. Leading dairy companies are increasing the sales of packaged butter products through strategic marketing initiatives. Consumer demand for cooking and baking is rising, which has compelled key firms to improve their processing skills to meet the demand.
| Attributes | Details |
|---|---|
| China Market Size (USD million/billion) by End of Forecast Period (2033) | USD 1.9 billion |
| China Market Absolute Dollar Growth (USD million/billion) | USD 729.3 million |
| CAGR % 2017 to 2022 | 6.6% |
| CAGR % 2023 to End of Forecast (2033) | 5.1% |
The demand for snacks with increased flavor and taste is anticipated to increase as customers' lifestyles change and their purchasing power rises. ;Additionally, makers are developing cutting-edge butter products to meet the needs of the growing number of lactose-intolerant people worldwide.
For instance, India's dairy-free food company WhiteCub announced the introduction of its WhiteCub Vegan Butter in August 2021. This product is entirely plant-based, free of dairy, and contains vitamins D and B12.
The global butter market is fragmented, with many local and international competitors striving for market dominance, and product innovation is a key strategic stance taken by the major players. In addition, collaborations with other businesses and mergers, expansions, and acquisitions are frequently used tactics to strengthen a company's position and expand its market.
Fonterra Co-operative Group, Arla Foods Amba, Dairy Farmers of America, and Land O' Lakes Inc. are a few of the well-known businesses active in the sector under study. Companies are vying for customers based on promotions, quality, innovation, and pricing. They are thus concentrated on strategic endeavors to obtain significant market shares.
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Key Companies Insights
Leading New Zealand-based dairy producer Fonterra actively invests in new product developments in the butter market to bolster its product line and solidify its position in the international market. For instance, to meet the rising demand for organic dairy products, the company introduced a new carbon-zero-certified organic butter in March 2021.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 3.8% from 2023 to 2033 |
| Base Year of Estimation | 2023 |
| Historical Data | 2017 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and Volume in Units and F-CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
| Key Segments Covered | By Product, By Application, By Distribution Channel, By Consumer, By Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; The Middle East & Africa; Oceania |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
| Key Companies Profiled | Fonterra Co-operative Group; Arla Foods; Dairy Farmers of America; Gujarat Co-operative Milk Marketing Federation; Ornua Co-operative Ltd.; Land O’Lakes, Inc.; Nestle India Ltd.; Organic Valley Family of Farms; Royal FrieslandCampina NV; The Kraft Heinz Company |
| Customization & Pricing | Available upon Request |
North America is contributing a maximum share in the global market.
China market to grow at 5.1% CAGR through 2033.
Online retailer is a key contributor in the global market.
Processed butter segment holds a maximum revenue of the global market share.
From 2018 to 2022, the global market exhibited 3.8% CAGR.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Nature 5.1. Organic 5.2. Conventional 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Cultured Butter 6.2. Uncultured Butter 6.3. Salted Butter 6.4. Whipped Butter 6.5. Others 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Form 7.1. Spreadable 7.2. Non-Spreadable 8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By End Use 8.1. Food Processing Industry 8.2. Food Service Industry 8.3. Retail/Household 9. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Distribution Channel 9.1. B2B 9.2. B2C 9.2.1. Supermarkets/Hypermarkets 9.2.2. Specialty Stores 9.2.3. Convenience Stores 9.2.4. Online Stores 9.2.5. Others 10. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. East Asia 10.5. South Asia 10.6. Oceania 10.7. Middle East and Africa 11. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 15. South Asia Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 16. Oceania Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 17. Middle East and Africa Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 18. Key Countries Market Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. Amul 20.2. Dean Foods Co 20.3. Glanbia Plc. 20.4. Saputo Inc. 20.5. Nestlé S.A. 20.6. Kerry Group 20.7. Sodiaal International SA 20.8. Britannia Industries Ltd 20.9. Dairy Farmers of America 20.10. Valio Oy 20.11. Meiji Holdings Company, Ltd. 20.12. Royal FrieslandCampina N.V 20.13. Fonterra Co-operative Group Limited 20.14. Groupe Lactalis S.A. 20.15. Arla Foods amba 20.16. Land O' Lakes, Inc. 20.17. Granarolo S.P.A. 20.18. Savencia Fromage & Dairy 20.19. DMK Group 20.20. OMIRA GmbH 21. Assumptions & Acronyms Used 22. Research Methodology
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Butter Market
