Butter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Butter market is segmented by Product Type (Cultured butter, Uncultured Butter, and Others); By Distribution Channel (Supermarkets/hypermarkets, Convenience stores, Speciality stores, Online retail stores, and others); and by Geography (North America, Europe, Asia-Pacific, South America and Middle East and Africa). The report offers market size and forecasts in value (USD million) for the above segments.

Market Snapshot

Butter Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 3.6 %
Butter Market Key Players

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Market Overview

The global butter market is expected to grow at a CAGR of 3.6% during the forecast period (2021-2026).

Due to Covid-19 restrictions, the butter market experienced an increasing demand trend as a result of panic buying and hoarding several food items by the consumers, there was also a significant supply shock as a result of disruptions in export markets due to government regulations. Also, the advent of lockdown around the globe and the increasing inclination of people to prepare home-cooked food further increased the demand for butter sold in retail stores by the consumers.

Butter is regarded as one of the staple food which is applied in many of the food products cooked in the household globally, thus its demand is driving in the market studied. Also, the availability of different flavoured butter is further expected to increase the demand of the market studied.

Geographically, Europe and North America dominate the butter market. However, Asia-Pacific is expected to be the fastest-growing market for butter, during the forecast period, with India being the major market. As per the data provided by the USDA Foreign Agricultural Service, the average Canadian consumed 3.68 kilograms of butter per capita in the year 2020. New Zealand came in first place at 6.22 kilograms of butter per capita in 2020.

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.

Scope of the Report

Butter is a solid dairy product made by separating the butterfat from the buttermilk by churning fresh or fermented cream or milk. The global butter market has been segmented based on type, distribution channel, and geography. By product type, the market is segmented into cultured butter, uncultured butter, and others. By distribution channel, the market has been segmented into supermarkets/hypermarkets, convenience stores, specialty stores, online retail stores, and others. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America and the Middle East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Product type
Cultured Butter
Uncultured Butter
By Distribution Channel
Convenience Stores
Specialty Stores
Online Retail Stores
Other Distribution Channels
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Asia Pacific
Rest of Asia-Pacific
South America
Rest of South America
Middle East and Africa
South Africa
United Arab Emirates
Rest of Middle East and Africa

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Key Market Trends

Increase in Demand For Low Fat/Calorie/Cholesterol Butter

Awareness of excessive butter fat intake which can lead to cardiovascular diseases has led to a shift in the category of low fat, low cholesterol, and low-calorie butter. Therefore owing to such factors, butter brands such as Fonterra, Arla Foods, etc. have introduced butter of low fat and cholesterol to meet the consumer's needs in the market. For instance, in 2017 Finlandia launched a spreadable butter with canola oil and a 25% reduced-fat spreadable butter with canola oil. The butter is made with non-GMO canola oil.

Also, with the increasing inclination towards healthy butter, countries around the world have started to increase the production of low-fat butter. For instance, as per the data analysed by the Office for National Statistics (UK), there is a significant increase in sales volume of low-fat butter (not exceeding 85% by weight) from the year 2016 to 2019 in the United Kingdom thus, further leading to the overall sales in the market studied.

Butter Market Key Trends

Asia-Pacific Region is the Fastest Growing Market for Butter

As per the US Department of Agriculture and Economic Research Service, India was one of the leading butter-producing countries in 2018, producing 5.6 million metric tons of butter. The Asia-Pacific butter supply 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 the consumer's demand, and therefore fueling the 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 further increasing application in Asian cuisine and subsequently in the Asian market.

Butter Market Growth by Region

Competitive Landscape

The global butter market is considered competitive in nature having a large number of domestic and multinational players competing for market share and with innovation in products being a major strategic approach adopted by 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, Dairy Farmers of America, Ornua, and others. Companies are competing based on price, quality, innovation and promotions. Therefore, they are focused on strategic initiatives to achieve prominent market shares.​

Recent Development

  • In March 2021, NZMP, Fonterra's brand of dairy launched a carbonzero certified organic butter in North American market. It will help the company to meet its sustainability targets.
  • In March 2021, Arla Foods announced that it is set to extend its Lurpak lighter range with a new lighter butter which is made of only 3 ingredients- butter, water and salt.
  • In Aug 2018, Fonterra Cooperative Group Ltd, the New Zealand-based multinational dairy cooperative, established its first innovation center in China. As an extension of Fonterra's research capabilities worldwide, the Shanghai facility is designed to be responsible for everything from product development, technical skills, sensory assessments, consumer science, nutrition science to packaging for dairy products like butter, cheese, yogurt, and milk.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Product type

      1. 5.1.1 Cultured Butter

      2. 5.1.2 Uncultured Butter

      3. 5.1.3 Others

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience Stores

      3. 5.2.3 Specialty Stores

      4. 5.2.4 Online Retail Stores

      5. 5.2.5 Other Distribution Channels

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Spain

        2. United Kingdom

        3. Germany

        4. France

        5. Italy

        6. Russia

        7. Rest of Europe

      3. 5.3.3 Asia Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle East and Africa

        1. South Africa

        2. United Arab Emirates

        3. Rest of Middle East and Africa


    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Fonterra Co-operative Group

      2. 6.4.2 Arla Foods

      3. 6.4.3 Ornua Co-operative Ltd

      4. 6.4.4 CROPP Cooperative (Organic Valley)

      5. 6.4.5 Dairy Farmers of America, Inc.

      6. 6.4.6 Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)

      7. 6.4.7 Meadow Foods Ltd.

      8. 6.4.8 MS Iceland Dairies

      9. 6.4.9 Yili Group

      10. 6.4.10 Lactalis International

      11. 6.4.11 Danone S.A

    5. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The Butter Market market is studied from 2016 - 2026.

The Butter Market is growing at a CAGR of 3.6% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Fonterra Co-operative Group, Arla Foods, Dairy Farmers of America, Gujarat Cooperative Milk Marketing Federation (GCMMF), Ornua Co-operative Ltd. are the major companies operating in Butter Market.

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