Butter Market

Industry Insights-

• The Global Butter Market was valued at USD 37.63 Billion in 2021
• It is anticipated to reach USD 50.19 Billion by 2028
• A CAGR of 4.20% is anticipated over the forecast period

Market Overview-

Butter is solid dairy product made by mixing fresh or fermented cream or milk, to separate the butterfat from the buttermilk. Butter is rich in nutrients and favorable compounds like butyrate and conjugated linoleic acid. High-fat dairy foods like butter have been linked to a reduced risk of obesity, diabetes, and heart problems. It is mostly used as a spread on plain or toasted bread products and a condiment on cooked vegetables as well as in cooking such as baking, sauce making and pan frying. Most frequently made from cow’s milk, butter can also be manufactured from the milk of other animals including sheep, goats, buffalo, and yaks.

It is a vital edible fat in northern Europe, North America and other places where cattle are the primary dairy animals. Cultured butter claims a full and rich flavor with a clean finish. It is more stable than regular butter because the sourness that results from the fermentation proves cuts through the rich creaminess. Consequently, it should be lighter than standard butter and there should be no aftertaste. Uncultured butter prepared from fresh, pasteurized cream is commonly referred to as sweet cream butter, which was named after the advent of refrigeration to distinguish it from butter made with soured cream. It is the most common style in North America.

Covid-19 Impact-

The COVID-19 pandemic caused a downturn in the butter market's growth rate. Governments around the world enacted lockdowns and other restrictions as a safety measure, which impacted the global supply chain, trade, and production of butter. The supply of raw materials to manufacturing plants decreased, resulting in reduced production. Furthermore, the lack of customers caused retail sales at supermarkets, grocery stores, and other outlets to drop. Nevertheless, the market is likely to make a comeback to its pre-pandemic growth rate in the forecast period, due to loosen restrictions, resumed activities, and the surge in online delivery services.

Key Players-

Some of the key players for global Butter Market are

• Fonterra
• Ornua
• Kalona SuperNatural
• Dairy Farmers of America
• MS Iceland Dairies
• Bertolli
• Cabot
• Yeo Valley Farms
• Clover Stornetta Farms
• Arla Foods
• Amul
• Land O Lakes
• Organic Valley
• Horizon Organic
• Tillamook
• Devondale Murray Goulburn
• WCB
• President Cheese
• Rochefort
• others

Segmentation Analysis-

By Product Type:

• Plain
• Barbecue
• Sour Cream and Onion
• Salt and Vinegar
• Others

On the basis of type, the global butter market is segmented as plain, barbecue, sour cream and onion, salt and vinegar, and others. Over the forecast period, the plain butter segment is expected to experience the fastest growth rate in the global butter market. Plain butter is derived by churning pasteurized cream and has a neutral flavor and unsalted taste, making it ideal for use in baking. Its increasing popularity in North America and other regions, coupled with the rising demand from the bakery and confectionery industry, are expected to drive the growth of the segment. Furthermore, the increasing trend of home baking due to the COVID-19 pandemic is likely to further contribute to the segment’s growth.

By Application:

• Supermarket/Hypermarket
• Independent Retailer
• Other

Based on application, the global butter market is segmented as supermarket/hypermarket, independent retailer, and other. The food industry has seen a surge in the demand for butter, driven by the rise of millennials' demand for unique taste profiles and textures. In addition, the increasing consumption of convenience food in developing countries due to busy lifestyles and higher expenditure on out-of-home food consumption has also contributed to the growth of the butter market. This has opened up opportunities for manufacturers of butter to meet the growing demand.

By Regional & Country Analysis:

• North America

  • U.S.
  • Canada

• Europe

  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Sweden
  • Netherland
  • Turkey
  • Switzerland
  • Belgium
  • Rest of Europe

• Asia-Pacific

  • South Korea
  • Japan
  • China
  • India
  • Australia
  • Philippines
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Rest Of APAC

• Latin America

  • Mexico
  • Colombia
  • Brazil
  • Argentina
  • Peru
  • Rest of South America

• Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest Of MEA

North America is expected to dominating the global butter market due to the increasing demand for butter in food processing in this region. Demand for salted butter is increasing due to its longer shelf life as compared to unsalted butter and changing eating habits of most of the individuals. Butter is used in various applications including food service and food processing. In 2018, the U.S. food and beverage industrial sector employed more than 1.7 million people or just over 1 percent of all U.S. nonfarm employment, according to economic research service. China’s butter is consumed almost entirely by the baking and HRI industries.

As China’s baking industry has boomed, the better production of western-style pastries has driven demand for butter. European butter exports shrunk for the second successive year on strong internal demand Global butter exports expanded by 7.5 percent to 917 920 tons in 2018, mainly contributed by New Zealand, the United States of America and India, but those of the European Union decayed. Global butter markets were tight in the first half of the year due to reduced export availabilities on strong internal demand in Europe and North America, coinciding with limited supplies from Oceania.

Market Drivers-

Increasing disposable income and change in consumer preferences

The major factors driving the growth of the global butter market are increasing disposable income, change in consumer preferences and the growing food industry. Increasing demand for butter is the major factor driving the growth of the butter market. Increase in disposable income has improved the purchasing power of consumers globally and this will facilitate the growth in butter supply in the global market. Higher disposable income leads to a protein-rich diet.

Consumption of milk products such as cheese, butter, ice-cream, flavored milk, etc. are highly correlated with the level of earning and this is true in the case of rural area. Disposable Personal Income in India increased to 206,752,290 INR Million in 2019 from 192,817,450 INR Million in 2018, according to trading economy. In addition, change in consumer preferences and the growing food industry are also fostering the global butter industry growth.

The biggest trend driving change in the food and beverage industry right now is transparency. Consumers want to know and understand what ingredients are going into their products, which is why they are seeing so many innovative products with shorter ingredient lists that can pronounce. Consumers are seeking simplicity in addition to better quality foods. Butter with specific technological properties is suitable for meeting the requirements of the food industry.

Market Opportunities-

Growing food industry to create opportunities

Butter has widespread applications in the food processing industry, especially bakery and confectionery. According to Food Industry Statistics 2020, the fast food industry revenue in the US alone makes about USD110 billion annually. However, accessibility of healthy alternatives to butter, such as margarine, along with government regulations in the production and distribution of butter may restrain the market growth. In spite of that, new product innovation and rising health consumer consciousness and growing demand in developing countries can be considered as an opportunity the further growth of the market.

Recent Developments-

• May 9th, 2018; Upfield Group, producer of plant-based spreads and butters, has debuted a new plant butter brand with the launch of Flora Plant Butter in the United States. Flora Plant Butter is a vegan, dairy-free, gluten-free and non-GMO plant butter with a rich and creamy taste, according to the company. The launch comes as demand for more plant-based products is raising with many industry players shifting their focus or including plant-based offerings in their portfolios.

Report Analysis	Details
Historical data	2016 - 2021
Forecast Period	2022 - 2029
Market Size in 2021:	USD 37.63 Billion
Base year considered	2021
Forecast Period CAGR %:	4.20%
Market Size Expected in 2028:	USD 50.19 Billion
Tables, Charts & Figures:	175
Pages	300
Companies	Fonterra, Ornua, Kalona SuperNatural, Dairy Farmers of America, MS Iceland Dairies, Bertolli, Cabot, Yeo Valley Farms, Clover Stornetta Farms, Arla Foods, Amul, Land O Lakes, Organic Valley, Horizon Organic, Tillamook, Devondale Murray Goulburn, WCB, President Cheese, Rochefort, Ornua Co-operative Ltd, Lactalis International, Meadow Foods Ltd., Muller, others.
Segments Covered	By Product Type, By Application
Regional Analysis	North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa