The increasing demand for butter in food processing and growth of the Horeca industry are driving the growth of the Butter Market at a CAGR of 5.54% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Butter Market” that contains the information from 2019 to 2035.

The Global Butter Market is estimated to register a CAGR of 5.54 % during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Butter Market — Gujarat Cooperative Milk Marketing Federation Ltd., Arla Foods, Land O’Lakes, Inc., Lactalis Group, Ornua Co-operative Limited, Delta Nutritives, Dairy Farmers of America, Inc., Fonterra Co-operative Group, Organic Valley, Savencia Fromage & Dairy, Royal FrieslandCampina N.V. and others.

The Global Butter Market accounted for registering a CAGR of 5.54% during the forecast period and is estimated to reach USD 104.87 Billion by 2035.

The increasing demand for butter in food processing is a key factor driving the growth of the global butter market. Butter is pivotal in enhancing the flavor, texture, and shelf life of various processed foods, including baked goods, confectioneries, and ready-to-eat meals. This demand is fueled by the versatility of butter as an ingredient, coupled with the rising consumption of processed foods worldwide. The Department of Agriculture (USDA) often reports strong demand for butter in the US. Butter's essential role in food production is shown in the retail and food service industries' consistent butter sales, according to Dairy Market News. While the food service sector depends significantly on butter for recipe usage across restaurants, bakeries, and catering companies, retailers regularly restock inventory to satisfy customer demands. Butter's significance in both direct consumer usage and commercial food processing is shown by this dual demand.

Globally, the USDA's Foreign Agricultural Service (FAS) draws attention to the rise in butter consumption brought on by changing dietary patterns and rising processed food preferences. Due to the growing use of butter in domestic and foreign cuisines, the demand is especially noticeable in emerging markets. These shifts are being driven by urbanization and increased wages, according to FAS statistics, and butter is a desirable ingredient in processed foods like cookies, pastries, and savory snacks. The global butter market was first affected by the COVID-19 pandemic, which had a special impact on sales in the food service and hospitality industries. However, the demand for butter has increased as economies have gradually reopened, and consumer behavior has become more normalized. Additionally, a move toward home cooking during the pandemic briefly increased retail butter sales, according to a paper published in the open-access journals of the National Institutes of Health. The butter market has recovered because of this trend and the resurgence of commercial food production.

Additionally, butter consumption is expanding because of the food processing industry in emerging nations like Sub-Saharan Africa. A USAID report claims that butter is being utilized more and more in processed foods that are adapted to regional preferences. These advancements support the worldwide butter market by increasing its presence in formerly disadvantaged areas, in addition to fostering local economic growth. The supply chain demands made by the butter processing sectors frequently assist small-scale farmers and cooperatives in these areas, demonstrating how butter influences both domestic and global market dynamics. Furthermore, government initiatives to promote agricultural sustainability and dairy production are indirectly supporting the butter market. For instance, the European Union's Common Agricultural Policy emphasizes improving the competitiveness of the dairy sector, which includes butter production. Such policies aim to stabilize supply chains, ensuring a consistent flow of butter for food processing industries. These government-backed efforts enhance the market's resilience and capacity to meet growing global demands.

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Segmental Analysis

The Global Butter Market has been segmented based on Product Type, by Category, by Form, by End-Use.

Based on Product Type, this segment includes Standard Butter, Clarified Butter, Whipped Butter, Others. The Standard Butter segment dominated the global market in 2024, while the Clarified Butter segment is projected to be the fastest–growing segment during the forecast period. Standard butter refers to the normal butter obtained directly from milk or cream without further processing. It is the salted or unsalted butter used directly by the retail consumers and the food processing industry. It is uncultured butter that is sold directly without changing its natural nutrient profile i.e. mainly the fat content. Standard butter is the most well-known type of butter, and it is eaten most often, with a creamy texture and rich flavor. Usually produced by whipping up cream until butterfat separates from buttermilk, this item is consumed at home and in Foodservice kitchens as well.

Based on Category, this segment includes Salted and Unsalted. The Salted segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Salted butter refers to the butter in which salt has been added to give it a saltier taste and act as a preservative. It is majorly used for spreading bread, topping veggies & pasta, and used in recipes that do not require much control over the amount of salt to be added. Salted butter is being used in various households and is one of the widely consumed butters globally. The salty taste of it makes it a versatile ingredient for cooking, baking, and spread for bread or crackers.

Based on Form, this segment includes Spreads, Liquid/ Oil, Blocks, Others. The Spreads segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Spreads refers to pure butter with enough oil content to make it spread on the applied surface. It is mainly a mixture of butter and vegetable oil, generally canola oil. The oil added to the butter prevents it from hardening and thus offers ease while spreading it over a surface. Majority of the retail brands offer butter in the form of spreads, use canola oil. However, other oils such as extra-virgin olive, flaxseed, grape seed, and hemp seed oils can also be used depending upon the final flavor profile required. The spreads are generally softened, whipped, or mixed with oils for enhancing their spread ability even at low temperatures.

Based on End-Use, this segment includes Food Processing, Food Service, Food Retail. The Food Retail segment dominated the global market in 2024, while the Food Processing segment is projected to be the fastest–growing segment during the forecast period. The food retail segment includes both store-based retail sales and non-store-based retail sales of butter. Store-based retail refers to the sale of butter through brick-and-mortar stores such as supermarkets, hypermarkets, convenience stores, and specialty stores. Whereas non-store-based retail mainly refers to the sale of butter through e-commerce. Food retail is a crucial distribution channel for butter in the global market, with much of the revenue generated from store-based retail stores. Product packaging, brand name, and shelf space are the most crucial factors influencing the sale of butter in the store-based retail channels. The growth of e-commerce in the retail sector is boosting the growth of the segment and is expected to increase the growth rate of the segment during the forecast period.

Regional Analysis

Geographically, the Global Butter Market has been segmented into North America, Europe, Asia-Pacific and Rest of the World.

Major demand factors driving the Asia-Pacific market are the increasing demand for butter in food processing and growth of the Horeca industry. Asia-Pacific is the most lucrative market for butter. The major countries included in the Asia-Pacific butter market are China, Japan, India, Australia, and New Zealand. Asia-Pacific is the most lucrative market for butter. The major countries included in the Asia-Pacific butter market are China, Japan, India, Australia, and New Zealand. The rising demand for convenience foods and bakery & confectionery products in Asia-Pacific is yet another determinant that is boosting the consumption of butter in the region.

North America harbors several regional and global producers of butter. Rising health awareness among consumers is hampering the growth of the butter market as its consumption leads to several cardiac problems. However, market players are launching healthy products that contain low content of saturated fats and high content of polyunsaturated fats. The HoReCa industry is a major revenue contributor in the North American butter market as a major volume of butter is being consumed in the industry.

Europe accounts for a significant share of the global butter market. Germany, France, and the UK are the major countries that are fueling the market growth. The region is expected to render lucrative opportunities to the market players during the upcoming years owing to the increasing consumption of butter in bakery & confectionery products. Also, butter is gaining traction in the European market due to its increasing consumption during breakfast. Spain is emerging as a beacon in the European HoReCa industry which in turn is anticipated to boost the consumption of butter in the regional market. The rising health awareness among consumers is propelling the market players to focus on their R&D activities to launch new healthy butter in the European market. However, the regional market is expected to grow at a slower pace as it is reaching its saturation level.

The rest of the World mainly comprises of the Middle East, Africa, and South America. The growing tourism sector in the Middle East is a major determinant that is driving the growth of the butter market in the rest of the world. Infrastructural developments in the Middle East are attracting several tourists in the region. Thus, the food service industry in the region is on a rise which in turn is driving the growth of the butter market. There are several untapped markets in the region owing to which the market players are expected to witness several lucrative opportunities to post their penetration in these untapped markets.

Key Findings of the Study

• The Global Butter Market is expected to reach USD 104.87 Billion by 2035, at a CAGR of 5.54% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market.


• Based on the Product Type, the Standard Butter segment was attributed to holding the largest market in 2024.


• Gujarat Cooperative Milk Marketing Federation Ltd., Arla Foods, Land O’Lakes, Inc., Lactalis Group, Ornua Co-operative Limited, Delta Nutritives, Dairy Farmers of America, Inc., Fonterra Co-operative Group, Organic Valley, Savencia Fromage & Dairy, Royal FrieslandCampina N.V. and others are some of the players in the market.