Due to the rising demand for butter in the food processing industry, the Global Butter Market is predicted to expand at a CAGR of 4.52% over the forecast period

December 2022, Market Research Future has published a Report on the Global Butter Market

Butter Market Highlights

Global Butter Market is projected to be valued at USD 27,879.1 Million by 2027, expanding at a CAGR of 4.52% during the forecast period. Butter is a high-fat dairy product processed from milk or cream. The growth of the global butter market is driven by the growth of hotels/restaurants/cafes (HoReCa) industry. However, the rising demand for vegan and plant-based butter is hampering the growth of the market. The increasing investments in R&D for innovation are expected to create lucrative opportunities for market players in the coming years.    

Asia-Pacific accounted for a dominant share of the butter market in 2019 owing to the growing chocolate industry in the region. India, followed by China, is among the most lucrative markets for manufacturers in the region. The growing HoReCa industry in the region is fueling the market growth for butter in Asia-Pacific. As per the data revealed by the Malaysian Palm Oil Council (MPOC), the hotel and restaurant sector is expected to reach a revenue of USD 908.6 billion by 2019. China, Japan, South Korea, Taiwan, Indonesia, and India are the major investment pockets for the manufacturers of butter to invest. Additionally, the rising demand for convenience food and bakery & confectionery products in Asia-Pacific is yet another determinant that is boosting the consumption of butter in the region.

Segmental Analysis

Global Butter Market has been segmented based on product Type, Category, Form, And End Use, and Region.

By Product Type, the market has been divided into standard butter, clarified butter, whipped butter, and others. The standard butter segment accounted for the maximum market share in 2019, whereas, whipped butter segment is expected to register the highest CAGR of 4.52% during the forecast period. Whipped butter is spreadable butter that is made by adding air to the standard butter. It is light and less dense as compared to the other types of butter. Whipped butter contains fewer calories and lowers fat content as compared to standard butter. Due to the presence of less fat solids in whipped butter, it is not suitable for use in baking applications. Instead, it is used for topping and as a table spread as it melts quickly and gives a lot of foam.

By Category, the market has been divided into salted and unsalted. The salted segment accounted for the maximum market share in 2019, whereas the unsalted segment is expected to register the higher CAGR during the forecast period. Unsalted butter is butter in its purest form in which no salt has been added. It has a lower shelf life as compared to salted butter. In terms of flavor, unsalted butter is sweeter than salted butter. It is mainly used in recipes that require the use of an exact amount of ingredients and complete control over the amount of salt to be added to the final product.

By Form, the market has been divided into spreads, liquid/oil, blocks, and others. The blocks segment accounted for the maximum market share in 2019, whereas, the spreads segment is expected to register the highest CAGR of 4.52% during the forecast period. Spreads refer 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 offering 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.

Based on End Use, the global butter market has been classified as food processing, foodservice, and food retail. The food processing segment is further bifurcated into bakery & confectionery, dairy & frozen desserts, sauces, dressings, & spreads, and others. The food retail segment accounted for the maximum market share in 2019. 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.

Regional Analysis

Geographically, the global butter market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. As per MRFR analysis, Asia-Pacific dominated the market, accounting for the largest share in 2019. The butter market in Europe accounted for the second-largest market share in 2019. North America is projected to register the highest CAGR of 4.52% during the forecast period.

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Key Players

Market Research Future identified Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF/Amul) (India), Arla Foods amba (Denmark), Land O'Lakes, Inc. (US), Lactalis Group (France), Royal FrieslandCampina N.V. (Netherlands), Ornua Co-operative Limited (Ireland), Delta Nutritives (India), Dairy Farmers of America, Inc. (US), Fonterra Co-operative Group (New Zealand), and Organic Valley (US) as the Key Players in the Global Butter Market.

Key Findings of the Study

• The Global Butter Market is projected to register a growth rate of 4.52% from 2020 to 2027. The increasing demand for butter in food processing industry followed by growing hotel/restaurants/café (HoReCa) industry are projected to propel the growth of the global butter market.

• The standard butter segment is estimated to retain its prominent share by 2027. The whipped butter segment is anticipated to register a growth rate of 4.52% during the forecast period.

• The salted segment is estimated to retain its prominent share by 2027. The unsalted segment is anticipated to register a higher growth rate of 2.47% during the forecast period.

• The blocks segment accounted for the largest market share in 2019 and is expected to grow at a rate of 2.37% during the forecast period.

• The food retail segment is estimated to retain its prominent share by 2027. The foodservice segment is anticipated to register the highest growth rate of 2.50% during the forecast period.