Butter Market Size
|Study Period||2018 - 2028|
|Market Size (2023)||USD 30.06 Billion|
|Market Size (2028)||USD 36.20 Billion|
|CAGR (2023 - 2028)||3.79 %|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Butter Market Analysis
The Butter Market size is expected to grow from USD 30.06 billion in 2023 to USD 36.20 billion by 2028, at a CAGR of 3.79% during the forecast period (2023-2028).
Butter is regarded as one of the staple foods used in many food products cooked in the household globally, leading to its increased demand. Also, the availability of several kinds of flavored butter is further expected to increase its demand in the market studied. The availability of healthy alternatives to butter, such as margarine, along with government regulations in the production and distribution of butter, is one factor that is restraining the market growth. Additionally, the rising consumer preference for shelf-stable dairy products, including butter, for at-home consumption is identified as the key market driver in the region.
Further, the market is characterized by a large number of brands catering to the B2C market by offering quality products at different price points. Furthermore, the increase in the production of dairy products due to the modernization of dairy farming allows significant production of butter across Asia, North America, and other regions. Also, households are increasingly cooking with butter or spreading it on their morning toast. Consumers have easy access to wide-ranging brands of butter at any grocery store, hypermarket, and online retailers. Such factors have been driving the butter market around the globe.
Butter Market Trends
This section covers the major market trends shaping the Butter Market according to our research experts:
Rise in Popularity of Lactose Free Butter
While physical reactions to foods are common, an increasing number of residents around the globe, especially in the United States and Canada, are suffering from lactose intolerance, thereby further increasing the demand for lactose-free dairy products. There has been an increase in the demand and popularity of various butter variants, which are free from lactose and are either made from lactose-free milk (milk added with some amount of lactase enzyme) or made from plant-based or microbial sources (cultured butter). Lactose is a sugar that is present in milk and dairy products like butter and is one of the most frequent food intolerances. Individuals with lactose intolerance often have trouble digesting fresh milk products like butter and ice cream but can consume lactose-free dairy products without any difficulties.
Even though butter has lesser amounts of lactose than milk, there has been a substantial increase in demand for lactose-free butter as well as plant-based butter as a ripple effect of higher demand for lactose-free dairy products. Moreover, manufacturers are coming up with innovative butter products that can cater to the increasing population of lactose intolerants around the globe. For instance, in August 2021, India's dairy-free food brand, WhiteCub, announced the launch of their WhiteCub Vegan Butter. This is a dairy free product and is completely plant-based with vitamins B12 and D.
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Asia-Pacific is the Fastest Growing Market for Butter
Butter supply in the Asia-Pacific region has always been highly influenced in increasing quantities by the domestic market. Butter processing plants in the Asia-Pacific region have been significantly expanding to meet consumer demand, thus fueling market growth. Also, while butter is primarily associated with Western cuisines, its potential use in Chinese cuisine has been heavily promoted by major producers such as Fonterra, thus increasing its application in Asian cuisine and, subsequently, in the Asian market. The market for nut butter is inclined toward peanut butter products. However, most of the market for spreads is catered to by brands dealing with chocolate spreads, such as Nutella. The nut butter demand, instead of being in spreads itself, has garnered interest as a cooking ingredient for meals. The growth of artisanal nut butter is growing in countries where brands are focusing on creating unique recipes that have organic raw ingredients as a base material.
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Butter Industry Overview
The global butter market is fragmented in nature, with a large number of domestic and multinational players competing for market shares and innovation in products being a major strategic approach adopted by the leading players. Additionally, mergers, expansions, acquisitions, and partnerships with other companies are common strategies to enhance the company's presence and boost the market. Some of the major companies operating in the market studied are Fonterra Co-operative Group, Arla Foods Amba, Dairy Farmers of America, and Land O' Lakes Inc., among others. Companies are competing based on price, quality, innovation, and promotions. Therefore, they are focused on strategic initiatives to achieve prominent market shares.
Butter Market Leaders
Fonterra Co-operative Group
Dairy Farmers of America
Ornua Co-operative Ltd.
Land O' Lakes, Inc.
Arla Foods Amba
*Disclaimer: Major Players sorted in no particular order
Butter Market News
- October 2022: Singapore's EATNUF brand of natural nut butter announced its plans to expand its presence in China and Malaysia in 2023. The company announced that it would start selling black sesame seed spread on e-commerce platforms alongside the original almond and cashew nut butter by 2023.
- June 2022: Cavin's brand, one of the renowned FMCG companies, CavinKare, with headquarters in Chennai, introduced new butter in the market. The brand launched two variants of butter available - frying butter and table butter.
- April 2022: The New Zealand Dairy Co-operative and Anchor Fonterra launched its organic carbon zero-certified butter, which has been independently certified by ToitūEnvirocare to reduce and offset carbon emissions.
Butter Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Cultured Butter
5.1.2 Uncultured Butter
5.1.3 Other Product Types
5.2 Distribution Channel
5.2.2 Convenience Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
5.3.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
5.3.4 South America
188.8.131.52 Rest of South America
5.3.5 Middle East and Africa
184.108.40.206 South Africa
220.127.116.11 United Arab Emirates
18.104.22.168 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Fonterra Co-operative Group
6.3.2 Arla Foods Amba
6.3.3 Ornua Co-operative Ltd
6.3.4 Land O' Lakes, Inc.
6.3.5 CROPP Cooperative (Organic Valley)
6.3.6 Dairy Farmers of America Inc.
6.3.7 Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF)
6.3.9 Anchor Fonterra
6.3.11 Lactalis International
6.3.12 Danone SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Butter Market Research FAQs
How big is the Butter Market?
The Butter Market size is expected to reach USD 30.06 billion in 2023 and grow at a CAGR of 3.79% to reach USD 36.20 billion by 2028.
What is the current Butter Market size?
In 2023, the Butter Market size is expected to reach USD 30.06 billion.
Who are the key players in Butter Market?
Fonterra Co-operative Group, Dairy Farmers of America, Ornua Co-operative Ltd., Land O' Lakes, Inc. and Arla Foods Amba are the major companies operating in the Butter Market.
Which is the fastest growing region in Butter Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Butter Market?
In 2023, the North America accounts for the largest market share in the Butter Market.
Butter Industry Report
Statistics for the 2023 Butter market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Butter analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.