Flavored Butter And Oils Market

Flavored Butter and Oils Market Outlook (2023 to 2033)

The global Flavored Butter And Oils Market is expected to be valued at USD 498.3 million in 2023. With homemade breakfasts and lunches becoming more popular than takeout, flavored butter and oils sales are expected to reach USD 930.8 million by 2033.

Flavored butter and oils are adding an extra element of flavoring to today's kitchen. A growing population of health-conscious consumers, coupled with a growing diet, have resulted in an increase in the use of these products in the market.

Increasing consumer awareness of good and bad cholesterol has given rise to a demand for natural flavoring substances on the market. In an era where shelf life has extended, consumers prefer traditional methods of acquiring flavored butter and oils in the market.

Cooking at home is becoming more popular among millennials. Young chefs and the growing popularity of national and international cooking shows have increased demand for this product. The pandemic has led to an influx of flavored butter breakfasts and health flavored oil snacks in the marketplace.

Data Points	Key Statistics
Flavored Butter and Oils Market Value (2023)	USD 498.3 million
Flavored Butter and Oils Market Projected Value (2033)	USD 930.8 million
Flavored Butter and Oils Market CAGR (2023 to 2033)	6.4%

A variety of flavoring agents are used to infuse butter and oils with flavor. This results in a high growth rate for the market. Herbs and spices can serve as flavoring agents, with their recipes offering a delicious combination of taste and flavor.

The mixing of flavor into butter and oils is certainly not a very recent phenomenon though the practice transcends age-old barriers. The commercialization of these goods is something uncommon. The ingredients are to be considered as the final garnishing to the recipe and are not primary cooking bases.

Flavored Butter and Oils Demand Analysis (2018 to 2022) Vs Market Outlook (2023 to 2033)

• Global sales of flavored butter and oils grew by 5.4% from 2018 to 2022.
• Westernizing diets in countries like India have increased purchasing power, so there is a greater acceptance of these products.
• Retail outlet chains have succeeded in introducing these products to consumers in metropolitan areas.
• Flavors are becoming more diverse, which is pushing the market forward.
• By combining these products, home cooks and chefs are experimenting with new flavors and creating new flavor combinations.
• Plant-based alternatives or omega-3-rich oils become more popular as health-conscious consumers become more aware of their health.
• The popularity of home cooking and social media channels have spurred growth for this business.
• Butter and oil are the primary carrier substances for these products. It is projected that the market will continue to grow despite several economic fluctuations over the past few years.
• Along with improving the taste and visual appeal of products, these flavoring agents foster market growth.

Flavored Butter and Oil Industry Market Drivers

Incorporation of Citrus and Floral Flavors to Promote Market Growth

Consumers are becoming increasingly aware of various product categories. This is especially evident in the food & beverages domain. Besides seeking out flavors that enhance their taste buds, consumers are also looking for flavors that provide a host of health benefits.

A number of major food & beverage companies have invested in the flavored butter & oils industry as a result of the growing demand for flavored butter and oils. According to the 2022 Flavor of the Year report published by Beck Flavors, botanical floral notes and refreshing fruit flavors are likely to emerge as the dominant flavor categories across major food formulations.

As per its research, the popularity of these flavors is augmenting due to consumer focus on strengthening immunity. Globally, 83% of consumers concur that healthy diets can boost immunity to a very large extent.

With its citrus aroma and taste, clementines are compatible with other fruit flavors, such as cranberry, apple, mango, and pear, as well as ginger and other spices, making them highly suitable ingredients in making flavored oils and butter.

Many players have already forayed into this landscape, with Challenge Dairy emerging as a significant player. The company offers a range of citrus butter, including a combination of orange, lime, and lemon.

Extensive Uptake of Flavored Oils in the Cosmetics and Personal Care Industry

The global cosmetics, beauty, and personal care industry is expected to be highly lucrative, expected to surpass USD 700 Billion by 2025. The majority of all consumers are gravitating towards naturally sourced cosmetic ingredients, a trend that is likely to widen the adoption of naturally flavored oils in various personal care formulations.

Out of all cosmetics, nutricosmetics are expected to be a promising growth category, with an expected market valuation of over USD 6.4 Billion in 2022. Besides providing extensive nourishment, these products are crafted to simultaneously provide strength and immunity. The majority of these nutricosmetics formulations are derived from natural ingredients such as flavored oils.

Skincare is expected to be the dominant category that will experience the highest uptake of flavored oil-based cosmetic and beauty care products. Skincare is likely to be the frontrunner in the beauty industry’s global expansion throughout 2022 and beyond.

A number of medium to large-scale manufacturers are incorporating flavored oils in their product formulations. For instance, Glow Recipe manufactures the Watermelon Glow Hyaluronic Clay Pore-Tight Facial skincare gel, infused with congestion-clearing exfoliants and blueberry seed powder, besides the primary ingredient which is watermelon.

Factors Restricting the Growth of Flavored Butter and Oils

Limitations

Flavored Butter and Oils High fat and cholesterol content is leading to negative perception of saturated fats. Overweight and obesity will pose a major challenge to market growth. Growing diabetes incidences and medical recommendations to limit butter consumption. Healthier alternatives, such as olive oil and avocado oil spreads, could threaten flavoring oils. Consumers on a tight budget may find flavoring butter and oil prohibitively expensive. Regulations and labeling guidelines for individual ingredients or packaging claims can significantly affect development.

Region-wise Insights

Country	United States
Estimated Values (Market Share) (2022)	30.3%
Key Growth Factors	Diets based on flexitarian foods are becoming increasingly popular The effects of intensive dairy farming are increasingly visible to consumers. Consumers are seeking out vegan-based butter and oils as an alternative. Growing popularity of flavored products. Changing consumer preferences to enhance culinary experiences. Multicultural food culture and a desire to explore global cuisine. Consumers are more likely to experiment in the kitchen with the ease of cooking. Strategy employed by manufacturers and retailers to market their products and promote their services

Country	India
Estimated Values (Market Share) (2022)	8.5%
Key Growth Factors	Changing and evolving lifestyles. Penetration of e-commerce Westernization and cuisine adoption. Educational programs and workshops in culinary arts. Social media Influences and packaging innovations Branding, storytelling, and marketing campaigns can generate consumer interest and sales. Infusions of ayurvedic herbs and ingredients are gaining popularity With wellness and taste in mind, consumers are seeking out products that promote a healthy lifestyle.

Country	Germany
Estimated Values (Market Share) (2022)	7.9%
Key Growth Factors	Increased snacking and fast food consumption to grow demand. Consumers aged 18-24 in Germany prefer yellow fats with longer shelf lives. Promotion of flavored butter and oils at food shows, culinary events, and workshops. Increasing food enthusiasts and professionals. A brand that communicates versatility and benefits is more likely to attract customers. Gourmet and premium butter and oils can attract consumers seeking premium ingredients.

Category-wise Insights

Preference for Salted Flavored Butter and Oils to Aggrandize

According to Future Market Insights, demand for salted flavored butter and oils registered a market share of 80.3% in 2022. Increasing health benefits are encouraging consumers to consume salted butter in moderation.

Due to the high levels of fat-soluble vitamins contained in these products, the market for these products is expected to grow. With the aim of improving the flavor and texture of foods and dishes in the future, this butter is expected to increase in demand.

Several factors contribute to the growing popularity of salted butter in the market, including the high-fat content. Furthermore, salt is regarded as a natural preservative that provides a significant extension of butter's shelf life. It is therefore expected that the market will grow in the coming years.

Natural Herbs Will Drive Demand for Herb Flavored Butter and Oils

Herbs are commonly used in cooking as condiments, spreads and ingredients. Herb-flavored butter and oils had a market share of 40.5% by 2022. According to a survey conducted by the World Health Organization, 70–80% of the world's population relies heavily on modern medicine and herbal sources.

Several herbs have anti-inflammatory properties, antioxidant properties, anti-diabetic properties, antihypertensive properties, and antimicrobial properties. Adding herbs to dairy foods could therefore contribute to providing functional dairy products with nutritional and medicinal benefits.

An Upswing in Milk and Dairy Product will Boost Sales for the Flavored Butter and Oils

Dairy manufacturers are diversifying their product offerings as food enthusiasts seek out new culinary delights in the market. The availability of flavored butter and oil has created an opportunity to introduce a variety of flavored butter and oil products in the market.

The consumer is increasingly seeking out high-quality and natural ingredients. Instead of relying solely on artificial additives or flavor enhancers to enhance the flavor of butter and oil, manufacturers are increasing their flavor profiles by adding herbs, fruits, and spices.

Consumers are offered a variety of flavors that suit their preferences when it comes to butter and oil, allowing them to customize their selection to suit their tastes. In addition to making the experience more personal, consumers can become more engaged with the products they purchase when they feel a sense of personalization.

According to the report, the market recorded a growth of 34.4% by 2022. A growing number of hotels and restaurants as well as the demand for products with potential health benefits will increase demand for flavored butters and oils in the milk and dairy sector.

The Start-up Ecosystem: How key Players are opening Frontiers for Future Growth?

Manufacturers are adopting various marketing strategies such as new product launches, geographical expansion, mergers and acquisitions, partnerships, and collaboration to identify the interest of potential buyers and create a larger customer base. For instance,

• A start-up named ‘Land O' Lakes, Inc., a dairy products manufacturing company has introduced two new spreadable butter products namely, LAND O LAKES Light Spreadable Butter with Canola Oil and LAND O LAKES Less Sodium Butter with Canola Oil. This product has less cholesterol than regular butter and 50% less fat and calories.
• Likewise, FabaButter- a Brooklyn-based start-up, has introduced its own range of vegan spreads which mimics the texture and taste of conventional butter. The primary ingredients comprise coconut oil, sunflower oil, and aquafaba

Competitive Landscape

Some of the leading players in the market include Land O’ lakes, Lurpak, Kerrygold, Amul, Carrington Farms, Golden Barrel, etc. Their players are emphasizing introducing innovative flavor formulations in order to garner a wider customer base. Besides, other growth strategies such as collaborations to strengthen distribution networks, strengthening supply chains, and acquisitions are also relied upon.

• In May 2023, AAK unveiled Cebes choco 15, a patented compound that enhances the flavor of baked goods and confectionary bars with up to 15% cocoa butter replacement. It has been reported that other substitutes for cocoa butter may have bloom properties and sensory qualities if more than 5% of cocoa butter ingredients are present, according to AAK in Malmö, Sweden.
• In August 2023, Irish food brand Nobó, a pioneer of plant-based chocolate and ice cream, launched its delicious nut butter and spread collection across the country.

Scope of the Report

Attribute	Details
Market Size Value in 2023	USD 498.3 million
Market Forecast Value in 2033	USD 930.8 million
Global Growth Rate	6.4% CAGR
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	MT for Volume and USD million for Value
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia & Pacific; East Asia; Middle East & Africa
Key Countries Covered	United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Russia, Poland, Czech, Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Kay Segments Covered	Product Type, Flavoring Type, Application, Distribution Channel, Region
Key Companies Profiles	Land O’ Lakes; Lurpak; Kerrygold; Amul; Carrington Farms; Golden Barrel; Butter Buds Inc; Mainland; Arla Foods amba; Tatua
Customization & Pricing	Available Upon Request

Flavored Butter and Oils Market by Category

By Product Type:

• Salted
• Unsalted

By Flavoring Type:

• Herb
• Spices
• Roots
• Citrus
• Vegetable
• Others

By Application:

• Milk and Dairy
• Bakery Products
• Value-added Food & Beverages
• Dips & Sauces
• Blends & Seasonings

By Distribution Channel:

• Store-based Retailing
• Hypermarkets and Supermarkets
• Convenience Stores
• Specialty Stores
• Discounters
• Forecourt Retailers
• Online-based Retailing

Frequently Asked Questions

What is the market value in 2023?

The market is valued at USD 498.39 million in 2023.

What is the CAGR from 2023 to 2033?

The market will expand at a 12% CAGR through 2033.

What are the driving forces behind market growth?

Rising health-conscious consumers and diets to grow the market.

What was the CAGR from 2018 to 2022?

From 2018 to 2022, the market expanded at a 5.4% CAGR.

Which application is likely to grow in demand?

Milk and dairy products are most preferred.