In 2023, the world butter powder market projected a market value of USD 2.4 billion. Owing to the booming of industries like baked goods, confectionery, nutritious snacks, dietary supplements, and dairy, the butter powder market is anticipated to grow at the rate of CAGR 6.3% from 2023 to 2033.
As an outcome of an expeditious growth rate, in 2033, the butter powder market is anticipated to be valued at USD 4.4 billion, nearly twice its market size in 2023.
Butter powder is dehydrated butter used as an alternative to butter due to its numerous advantages over butter. Primarily, butter powder is considered a superior substitute due to its long shelf life requiring no refrigeration. Moreover, with its myriad applications across the food and beverage industry, butter powder is becoming a consumer favorite.
Veganism as a consequence of a human conscience among customers is likely to be a massive factor that may play a vital role in swelling the butter powder market across the globe.
| Attribute | Key Statistics |
|---|---|
| Butter Powder Market Value (2023) | USD 2.4 billion |
| Projected Market Value (2033) | USD 4.4 billion |
| CAGR (2023 to 2033) | 6.3% |
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Much like most industries across the globe, the butter powder market is driven by rising consumer demands, of which a large fraction consists of millennials and the more recent generational youth.
Nutritional awareness and dietary enhancement plans well received by the youth result in the ascending demand for butter powder among food manufacturers. Since butter powder is a probable choice of ingredient in various food items such as nutrition bars, cereals, healthy snacks, etc., the market is highly driven by other food and beverage markets.
Personalization of goods is an upcoming trend in the butter powder market, which key players are adopting, pushing the demand for the product even higher.
The need for clean label products and organic pickings of products is likely to drive the butter market powder during the forecast period as the upcoming youth are at the higher end of the awareness scale regarding health and nutrition, climate change, and other humanitarian causes.
The global butter powder market recorded a keen CAGR of 5.5% from 2018 to 2022. A further ambitious CAGR of 6.3% for the same has been forecasted by FMI from 2023 to 2033. The influential expansion of the butter powder market during the forecast period is inevitable due to its multitude of applications and facets.
The demand for butter powder among consumers is increasingly growing, owing to the evolving lifestyle of the present generational youth. With health consciousness and value for nutritious food intake becoming a regular ordeal, companies that manufacture products catering to these desires have adopted butter powder as a necessary ingredient.
Butter powder’s shelf life is much higher than its parent product, butter shelf life which makes it a compelling choice for producers as well as consumers. As an ingredient in dry concoctions of beverages, butter powder is also used as a flavor enhancer. In this case, its shelf life also plays an integral role in maintaining the main products' shelf life.
Veganism or a plant-based diet is likely to accelerate the growth of the butter powder market during the forecast period due to the rapid spread of humanitarian awareness and changing lifestyle choices of consumers. Vegan butter powder is the foreseeable future of the market in 2033.
In 2022, the global share of the United States in the butter powder market was valued at 22.8%. The bakery culture of America is the prime reason for the country's rising popularity of butter powder. Bakery product manufacturers are raising higher demands for butter powder to meet their needs.
The sweet tooth in the United States has grown deeper with increased production and consumption of bakery and confectionery food articles. As per a statistical report provided by Statista, the United States preserved pastry and cakes industry generated a massive revenue of USD 81 billion in 2022.
In the upcoming forecast period, the increasing trend of bakery and confectionery product consumption is likely to be a major driver of the United States butter powder market.
As of 2022, Germany holds a global value share of 7.45% of the butter powder market. As per FMI, the volant advancement of the food and beverage industry in Germany, as props to the increasing awareness of the benefits of butter powder and the rising popularity of plant-based diet, is predicted to allow a steady pace of growth of the butter powder market during the forecast period.
The vegan butter powder variety in Germany is widely popular due to a steep drop in meat-infused diet consumption. This phenomenon has led to easier availability of vegan options in food chain stores and the products they consume.
Consumer demand for butter powder is what drives the market in Germany. Furthermore, this is also forecasted to be the cause of the amplification of the market by 2033. Deliberate efforts to decrease carbon footprints and increase environmental consciousness are other factors that are likely to contribute to the growth of the butter powder market.
The butter powder market of India is anticipated to inflate in a speedy manner at a rate of 5% CAGR, owing to increased consumer spending and the rapid growth of the food and beverage industry in the country. With these market occurrences at bay, the Indian market will probably adopt butter powder as an alternative to butter based on convenience.
Many bakeries and food manufacturing brands choose butter powder for its nutritional value and appeal. It is safe to say that during the forecast period, the butter powder market is likely to mushroom into a dominant food market due to increasing consumer expenditure.
As per the current scenario and trends observed by FMI, dairy based butter powder has higher sales than vegan butter powder. Nevertheless, increase in plant-based diet options and the vegan conscience of consumers, vegan butter powder is predicted to grow quickly during the forecast period resulting in a higher CAGR in 2033.
Growing humanitarian conscience and health consciousness have led consumers to endorse a plant-based diet daily. As a direct consequence, the consumption of vegan butter powder is gradually soaring and is expected to soar higher in the upcoming period.
Various other industries, such as bakery goods, nutritional bars, and cereal brands, are pursuing offering vegan alternatives to their products, which provides an opportunity for the blossom of the vegan butter powder industry.
Organic produce, dairy, and farm, have been appreciated in the market during the historic period of 2018 to 2023 due to its upper hand in nutrition and lack of additives. Organic butter powder has been preferred by consumers time and again, as per data provided by FMI.
During the forecast period, this trend is predicted to continue due to customer preference and its multitude of benefits.
The global bakery industry has been exponentially expanding in variety and size due to voluntary increases in customer spending. As a result, butter powder in the baked goods industry is projected to assert greater dominance in the forecast period of 2023 to 2033 due to its ability as a taste enhancer and elongated shelf life.
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Brands manufacturing and producing butter powder would likely reap the rewards by taking a step toward digital marketing, such as social media channels, advertisements, and other similar marketing techniques.
Utilizing the customer base derived from influencers' followers on social media is another way to familiarise consumers with the convenience and other advantages of butter powder over conventional butter.
Building, developing, and enhancing e-commerce channels is a tactic employed by leading companies that manufacture butter powder. Overall, to thrive in the butter powder market and have the edge over competitors, contending brands may consider strong advertisement tactics and strengthening their sales and distribution channels.
Olam International
Olam International is one of the leading businesses in the butter powder arena. With its headquarter office in Singapore, Olam International is one of the thirty largest primary listed companies in Singapore in terms of market capitalization.
Olam Food Ingredient (of) is a part of Olam Group Limited that focuses on the supply of natural food and beverage ingredients and solutions. In 2022, of observed a strong revenue growth of 15.3%, resulting in a revenue of USD 16.4 billion, as per financial records published by the company.
Olam International is conjectured to remain a staunch competitor in the butter powder market due to the success of Olam Food Ingredient since 2020.
Alpen Dairies
The Alpen Food Group is a Dutch company with headquarters in the Netherlands. It specializes in the supply of food ingredients. Alpen Dairies is a brand name under this group that is a significant company in the butter powder market.
Alpen supplies butter powder as butter replacement while advertising its cost-saving attribute, making it more appealing to consumers. Alpen Dairies is a global competitor with supply chains across Europe and countries like New Zealand, France, Ireland, and Germany.
Arla Foods
Arla Foods is a global dairy cooperative known for its high-quality dairy products. Founded in 2000, it is owned by over ten thousand farmers across Europe, ensuring a sustainable and responsible approach to farming and production. Arla Foods specializes in a wide range of dairy products, including milk, cheese, butter, and yogurt, catering to consumers and professionals in the food industry.
Arla Foods is a leading player in the global butter powder market with its variety in product range catering to customers across a bandwidth of needs. It earned a profit of USD 15 billion in 2022, and relying on its historical financial figures, Arla Foods is highly probable to continue flourishing in the butter powder market during the forecast period.
With a shift in the health and wellness sector due to increasing awareness, consumers choosing dairy-free alternatives over butter powder may be a concern. However, this can be overcome by vegan butter powder as an alternative.
Customers may prefer conventional butter due to customary practice and a preferred taste that butter powder may not provide as compared to butter. Producers are likely to overcome this challenge through marketing and advertising the benefits of butter powder.
The manufacturing cost of butter powder is anticipated to be higher as it includes an intermediary process of dehydration which is not required to manufacture regular butter.
The market is estimated to secure a valuation of USD 2.4 billion in 2023.
The global market size is expected to reach USD 4.4 billion by 2033.
The growth potential of the market is 6.3% through 2033.
India market is expected to thrive at a CAGR of 5% through 2033.
Dairy-based butter powder displays higher adoption in the market.
| Market Share (2023) | USD 288 million |
|---|---|
| Market Share (2033) | USD 569.4 million |
| Market CAGR (2023 to 2033) | 7% |
| Market Estimated Size (2023) | USD 46.8 billion |
|---|---|
| Market Forecasted Size (2033) | USD 67.6 billion |
| Market CAGR (2023 to 2033) | 3.8% |
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