Butter Market Report Highlights
Butter Market Size Outlook
Global Butter Market Analysis
Butter is a dairy product made exclusively from milk or cream with or without salt, with or without additional coloring matter, and containing not less than 80 percent by weight of milk fat. It contains saturated fat made from fresh cream and milk.
The butter market is significantly gaining demand driven by increasing preference for processed and frozen food products. These frozen foods products are easy to prepare at lower costs. Further, a positive demand outlook for convenience foods, a rise in disposable incomes of individuals, and increased spending on food and beverages like eating out will boost the demand for butter manufacturing.
Increasing demand for organic butter driven by increasing health consciousness and preference for natural and fresh ingredients is expected to drive the market for organic butter. Butter comprises vitamins, proteins, calcium, phosphorous, and high-calorie food.
It is manufactured using organic milk and lowers the risk of antibiotics, synthetic hormones, GM organisms, pesticides, and other additives or preservatives.
Natural butter is largely consumed worldwide. On the other hand, processed butter comprising of spreads is also gaining quick market value and is forecast to register a strong growth rate over the forecast period.
On the other hand, fluctuating prices of butter ingredients such as salt, vegetable oils, dairy milk can have a negative effect on the profit margins of the vendors in the industry.
The COVID-19 pandemic has affected daily life worldwide. The food chains are relatively less affected as home-based cooking supported the market demand. However, supply chain disruptions had a significant negative impact on perishable products such as milk, butter, cheese, and other dairy products.
The price of butter has been considerably higher during 2021 with recovered demand conditions.
Developed countries continue to import a high level of cheese and butter.
The global butter market is expected to grow at a CAGR of 4.3% during the forecast period.
The Asia Pacific was the largest region in the butter market worth $24 billion in 2020, accounting for 45.9% of the global butter market, followed by Europe at 27.2% and North America at 18.1% respectively.
Global butter market trends- To boost efficiency, companies are focusing on technological innovation
Automatic packing machines for butter are designed to offer maximum versatility in terms of the weight and shape of the packs. Investments in technological upgrades resulted in increased efficiency. Companies are investing in robotic case packers to handle trays as well as new retail-ready packaging for butter containers in a range of shapes, sizes, and product mixes. The dairy products manufacturing process must adhere to strict hygiene, safety, and efficiency rules and accordingly, companies are focusing on developing worldwide personalized solutions for individual customer requirements.
Launch of premium butter varieties with a premium butterfat content of up to 86% content is being marketed to consumers preferring extra-creamy premium kinds of butter to home recipes. For instance, Minerva Dairy launched a premium version of its butter hand-rolled butter in a smaller and appealing format with 85% butterfat content.
The internet of things (IoT) technology is increasingly being used to track butter movement and ingredients used in manufacturing to ensure safe product handling. Internet-enabled equipment is deployed in trucks and storage facilities to monitor the technical specifications of dairy products. These technological innovations in packaging, production, and launch of premium varieties are set to boost the demand in developed countries.
Global butter market drivers- Increase demand for developing countries
An increased consumer enthusiasm in developing countries for butter driven by more positive health assessment of dairy fat, increased consumption in middle-class population, change in consumer perceptions towards taste and towards less processed food. Further, as incomes and population increase, and diets become more globalized, demand for butter is expected to be consumed in developing countries.
Rapidly expanding middle class in Asia Pacific countries such as China, India, South East Asian markets, Latin American countries including Brazil and Argentina, Eastern Europe, Sub-Saharan Africa, and other markets are set to propel the growth of emerging markets, which in turn, drives the butter market growth.
Global butter market challenges- Healthy Substitutes for Butter
A wide range of healthy substitutes for butter is marketed worldwide. Consumers prefer healthy alternatives to butter in their daily diets as they aim to lower cholesterol levels. Greek yogurt, peanut butter, almond butter, and other butter types are marketed. Further, butter-flavored olive oil, Avocado, coconut oil, pumpkin puree, apple sauce, and others are increasing rapidly. Jams and cheese are witnessing rapid growth. Among substitutes, peanut butter is witnessing a strong growth rate. Consumers look for taste, new flavors, and products with nutritional value. As suppliers of these substitutes market these features, the increasing popularity of butter substitutes can pose a significant threat for butter market growth.
United Kingdom Butter market outlook
Arla, Unilever, Dairy Crest, Ornua Foods, and others are among the leading companies marketing butter in the country. Further, private label companies also present significant growth potential in the country.
Partnerships and collaborations with supermarkets, grocery retail chains, and other distribution channels are some of the key strategies opted by companies in the country.
The UK continues to be a net importer, although the trade deficit is dropping. The net imports in the UK declined from 43.8 thousand tons in 2017 to 26.8 thousand tons in 2020.
The lockdown during the pandemic resulted in a significant boost in sales. For instance, Arla reported that total sales of its butter brands Lurpak and Puck increased by 17.7% and 16.7% respectively, despite the decline in its overall business. Home consumption and e-commerce sales supported the market volume during the year.
As British consumers are increasingly opting for more natural products over-processed foods, the demand for butter is significant in the country. The health and wellness trend is encouraging market potential for leading companies such as Arla Foods, Unilever Foods UK, and Dairy Crest. Over the forecast period, switch from margarine and spreads to butter, supportive butter prices, and other factors are set to drive the UK butter market size from $2.6 billion in 2020 to $3.4 billion in 2028 at a CAGR of 3.4%.
Butter Companies analyzed in the report-
Fonterra Co-operative Group Limited
Arla Foods
Ornua Co-operative Limited
Koninklijke Friesland Campina N.V
Land O’ Lakes, Inc
Butter Market Study Segmentation -
1. TABLE OF CONTENTS 2
1.1 List of Tables 7
1.2 List of Figures 8
2. EXECUTIVE SUMMARY 10
2.1 Summary 10
2.2 The global food and beverage industry in 2021 11
2.3 Butter Industry Outlook, 2020 – 2028 12
2.4 Abbreviations 13
3. INTRODUCTION TO BUTTER MARKET 14
3.1 Market Segments - Types, Applications, and Countries 14
3.2 Research Methodology 15
4. MACROECONOMIC & DEMOGRAPHIC OUTLOOK 16
4.1 GDP Outlook, 2010 – 2030 16
4.2 Population Outlook of Select Countries, 2010 – 2030 17
5. OVERVIEW OF THE BUTTER MARKET 18
5.1 Industry Panorama 18
5.2 Companies Profiles in the Report 19
5.3 Market Trends 19
5.3.1 Increased home cooking activities 19
5.3.2 Increase in Demand for Low-fat Butter 20
5.3.3 Growth of Organized Retail Sector 20
5.3.4 Increase in marketing initiatives 20
5.4 Market Drivers 21
5.4.1 Increasing demand for food with natural ingredients 21
5.4.2 Increasing Demand from Developing Countries 21
5.4.3 Butter Trade Analysis- Leading Exporters and Importers 22
5.4.4 Companies focus on innovative packaging to attract customers 23
5.4.5 To boost efficiency, companies are focusing on technological innovation 24
5.5 Market Challenges 24
5.5.1 Healthy Substitutes for Butter 24
5.5.2 Regulatory, Adulteration and other challenges 25
5.5.3 Intense competition 25
5.6 Regional Analysis 26
6. TRENDS IN BUTTER MARKET TYPES 27
6.1 Largest Types 27
6.1.1 Cultured Butter 28
6.1.2 Uncultured Butter 29
6.1.3 Others 30
7. GLOBAL OUTLOOK ACROSS COVID-19 SCENARIOS 31
7.1 Reference Case Scenario 32
7.2 Pre- COVID Scenario 32
8. TRENDS IN DISTRIBUTION CHANNELS 33
8.1 Supermarkets and Hypermarkets 34
8.2 Convenience Stores 35
8.3 Online 36
8.4 Specialty Stores and Others 37
9. NORTH AMERICA BUTTER MARKET 38
9.1 Outlook 38
9.2 Trends and Opportunities 39
9.2.1 Uncultured Butter dominates the North American Butter slices Market 39
9.2.2 Supermarkets and Hypermarkets dominate the North American Butter slices Market 40
9.2.3 The US dominates the North American Butter slices Market 41
9.3 Market Outlook by Country 42
9.3.1 United States 42
9.3.2 Canada 44
9.3.3 Mexico 45
10. EUROPE BUTTER MARKET ANALYSIS 46
10.1 Outlook 46
10.2 Trends and Opportunities 47
10.2.1 Cultured Butter dominate the European Butter slices Market 47
10.2.2 Supermarkets and Hypermarkets dominate the European Butter slices Market 48
10.2.3 France dominates the European Butter slices Market 49
10.3 Market Outlook by Country 50
10.3.1 Germany 50
10.3.2 United Kingdom 51
10.3.3 France 52
10.3.4 Spain 53
10.3.5 Rest of Europe 54
11. ASIA PACIFIC BUTTER MARKET 55
11.1 Outlook 55
11.2 Trends and Opportunities 56
11.2.1 Cultured Butter dominate the Asia Pacific Butter slices Market 56
11.2.2 Supermarkets and Hypermarkets dominate the Asia Pacific Butter slices Market 57
11.2.3 India dominates the Asia Pacific Butter slices Market 58
11.3 Market Outlook by Country 59
11.3.1 China 59
11.3.2 India 60
11.3.3 Japan 61
11.3.4 Rest of Asia Pacific 62
12. LATIN AMERICA BUTTER MARKET 64
12.1 Outlook 64
12.2 Trends and Opportunities 65
12.2.1 Uncultured Butter dominate the Latin American Butter slices Market 65
12.2.2 Supermarkets and Hypermarkets dominate the Latin American Butter slices Market 66
12.2.3 Brazil dominates the Latin America Butter slices Market 67
12.3 Market Outlook by Country 68
12.3.1 Brazil 68
12.3.2 Argentina 69
12.3.3 Rest of Latin America 70
13. MIDDLE EAST AND AFRICA BUTTER MARKET 71
13.1 Outlook 71
13.2 Trends and Opportunities 72
13.2.1 Cultured Butter dominate the Middle East and Africa Butter slices Market 72
13.2.2 Supermarkets and Hypermarkets dominate the Middle East and Africa Butter slices Market 73
13.2.3 Africa dominates the MEA Butter slices Market 74
13.3 Market Outlook by Country 75
13.3.1 Middle East 75
13.3.2 Africa 76
14. COMPETITIVE LANDSCAPE 77
14.1 Fonterra Co-operative Group Limited 77
14.2 Arla Foods 86
14.3 Ornua Co-operative Limited 91
14.4 Royal Friesland Campina N.V. 97
14.5 Land O’ Lakes, Inc. 102
15. APPENDIX 106
15.1 About USD Analytics 106
15.2 Sources and Research Methodology 106
15.3 Copyright and Disclaimer 107