The Butter Market was valued at USD 58.48 Billion in 2024. The Butter Market industry is projected to grow from USD 61.56 Billion in 2025 to USD 104.87 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.54% during the forecast period (2025-2035).
The increasing demand for butter in food processing and growth of the Horeca industry are driving the growth of the Butter Market.
As per the Analyst at MRFR, the increasing demand for butter in food processing is a key factor driving the growth of the 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.
FIGURE 1: BUTTER MARKET VALUE (2019-2035) USD BILLION
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Butter Market Opportunity
INVESTMENTS IN R&D FOR INNOVATIONS
Investments in research and development (R&D) innovations present significant opportunities within the Butter Market, a sector that is evolving rapidly due to changing consumer preferences and health trends. As consumers increasingly seek natural, minimally processed food products, dairy companies are responding by investing in innovative butter products that align with these demands.
One notable trend is the growing popularity of cultured butter, which accounted for a substantial share of the market in recent years. Cultured butter is made through a fermentation process that enhances its flavor and texture, making it appealing to consumers looking for gourmet options. Companies like Fonterra have capitalized on this trend by launching products such as carbon-zero certified organic butter, responding to the rising demand for organic dairy products. This move not only addresses consumer health concerns but also aligns sustainability goals, showcasing how R&D can drive product innovation while meeting market demands. In addition to cultured butter, there is a noticeable shift towards functional butters that cater to specific dietary needs. For instance, some manufacturers are developing low-calorie or reduced-fat butter options to attract health-conscious consumers. The increasing awareness of the nutritional benefits of butter, including its role in a balanced diet, has prompted companies to explore healthier formulations while maintaining flavor and quality. This trend is particularly evident in Europe, where changing consumer perceptions about butter's health implications have led to a resurgence in its popularity.
The rise of home baking during the COVID-19 pandemic has further fueled demand for butter, as consumers seek high-quality ingredients for their culinary endeavors. This shift has encouraged companies to innovate by offering convenient packaging solutions and smaller portion sizes, making it easier for home bakers to use butter without waste. The trend towards home cooking is expected to continue, providing an ongoing opportunity for R&D investments focused on product convenience and versatility.
The competitive landscape of the butter market is becoming increasingly dynamic due to the entry of small players who are also investing in R&D. These smaller companies often focus on niche markets or unique flavor profiles, which can differentiate their products in a crowded marketplace. For example, some brands are experimenting with flavored butters infused with herbs or spices, appealing to gourmet consumers looking for distinctive culinary experiences. Technological advancements also play a crucial role in shaping the future of the butter market. Innovations in processing techniques can enhance product quality and shelf life while reducing production costs. Companies are exploring eco-friendly packaging solutions as part of their sustainability initiatives, which not only appeal to environmentally conscious consumers but also comply with increasing regulatory pressures regarding packaging waste.
Butter Market Segment Insights
Butter by Product Type Insights
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.
FIGURE 2: BUTTER MARKET SHARE BY PRODUCT TYPE 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Butter by Category Insights
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.
Butter by Form Insights
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.
Butter by End-Use Insights
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.
Butter Regional Insights
Based on the Region, the Global Butter is segmented into North America, Europe, Asia-Pacific, Middle East & Africa and Rest of the World. The Asia-Pacific dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. 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.
FIGURE 3: BUTTER MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, UK, France, Spain, Italy, Finland, China, Japan, India, Australia & New Zealand, South Korea, South America, Middle East & Africa and others.
Global Butter Key Market Players & Competitive Insights
Many global, regional, and local vendors characterize the Butter Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major competitors in the market are 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. are among others. The Butter Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Butter Market include
Global Butter Products Market Industry Developments
March 2024: GCMMF partnered with the Michigan Milk Producers Association (MMPA) to introduce Amul-branded fluid milk products in the United States. This collaboration not only marks Amul's entry into the U.S. fluid milk market but also paves the way for expanding its butter and other dairy product offerings internationally.
October 2024: To cater to evolving consumer preferences, Land O'Lakes introduced innovative butter products. Notably, the launch of Butter Balls, pre-portioned half-tablespoon servings, aims to enhance convenience for home cooks. Additionally, the company capitalized on seasonal trends by offering limited-edition flavors like Pumpkin Pie Spice Butter Spread and Maple Me Crazy Butter Spread, appealing to consumers seeking unique taste experiences.
Aug 2022: Dairy Farmers of America (DFA) acquired two extended shelf-life (ESL) processing facilities from SmithFoods. The processing plants, located in Richmond, Ind., and Pacific, Mo., produce a variety of extended shelf-life dairy and non-dairy beverages, ice cream and shake mixes for both retail and food service customers. The facilities will become part of the DFA Dairy Brands division and will operate like Richmond Beverage Solutions and Pacific Dairy Solutions.
January 2018: Fonterra invested USD 13.5 million in its Cobden site, which is Fonterra’s largest site for boosting butter production.
Butter Market Segmentation
Butter by Product Type Outlook
Butter by Category Outlook
Butter by Form Outlook
Butter by End-User Outlook
Butter Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2024 | USD 58.48 Billion |
| Market Size 2025 | USD 61.56 Billion |
| Market Size 2035 | USD 104.87 Billion |
| Compound Annual Growth Rate (CAGR) | 5.54% (2025-2035) |
| Base Year | 2024 |
| Forecast Period | 2025-2035 |
| Historical Data | 2019-2023 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Product Type, By Category, By Form, By End-Use |
| Geographies Covered | North America, Europe, Asia Pacific and Rest of the World |
| Countries Covered | The US, Canada, Mexico, Germany, UK, France, Spain, Italy, Finland, China, Japan, India, Australia & New Zealand, South Korea, South America, Middle East & Africa |
| Key Companies Profiled | 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. |
| Key Market Opportunities | · Investments in R&D in innovations · Sustainable practices |
| Key Market Dynamics | · Increasing demand for butter in food processing · Growth of the Horeca industry |
Butter Market Highlights:
Frequently Asked Questions (FAQ) :
USD 58.48 Billion is the Butter Market in 2024
The Standard Butter segment by Product Type holds the largest market share and grows at CAGR of 5.69 % during the forecast period.
Asia-Pacific holds the largest market share in the 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. are the prominent players in the Butter Market.
The Spreads segment dominated the market in 2024.
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Research Analyst Level II I have about two years of experience working in the consumer goods and retail industries and i am a biotech graduate.a tech-savvy analytically focused professional with a strong capabilities in identification, concept generation, and strategy evaluation. i can produce data-driven solutions while fusing unusual viewpoints with original concepts. i have been extensively working on business case studies, competitive & comparative analyses, and strategic reports. my primary areas of experience include client management, financial analysis, supply chain evaluation, market entry strategy evaluation, and estimating and forecasting market size.
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