Butter Market

Butter Market

Butter Market Report Highlights

  • The global Butter Market Size stood at $52.3 Billion in 2020 and is poised to register 4.3% growth over the forecast period to 2026
  • The COVID-19 resulted in a year-on-year increase of 5.4% in market value
  • Cultured Butter is the most consumed type with a 45% market share
  • Supermarkets and Hypermarkets continue to be the largest distribution mode of Butter, with a 55% share
  • The Asia Pacific dominates the global Butter market with a 45.9% market share
  • Increasing demand for food with natural ingredients, Increasing Demand from Developing Countries, Companies focus on innovative packaging to attract customers, To boost efficiency, companies are focusing on technological innovation, and others are main driving factors
  • On the other hand, Healthy Substitutes for Butter, Regulatory, Adulteration and other challenges, Higher Cost Relative to Other Products and Intense competition are main market challenges
  • Key trends observed in the industry include Increased home cooking activities, Increase in Demand for Low-fat Butter, Growth of the organized retail sector, and an increase in marketing initiatives
  • The butter Market is relatively fragmented and is characterized by the presence of both small and large scale players.


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 -

  • Types
    • Cultured Butter
    • Uncultured Butter
    • Others
  • Distribution Channels
    • Hypermarkets and Supermarkets
    • Convenience Stores
    • Online
    • Specialty Stores and Others
  • Regions
    • North America
    • Europe
    • Asia Pacific
    • Middle East Africa
    • Latin America

1.1 List of Tables    7
1.2 List of Figures    8

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

3.1 Market Segments - Types, Applications, and Countries    14
3.2 Research Methodology    15

4.1 GDP Outlook, 2010 – 2030    16
4.2 Population Outlook of Select Countries, 2010 – 2030    17

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

6.1 Largest Types    27
6.1.1 Cultured Butter    28
6.1.2 Uncultured Butter    29
6.1.3 Others    30

7.1 Reference Case Scenario    32
7.2 Pre- COVID Scenario    32

8.1 Supermarkets and Hypermarkets    34
8.2 Convenience Stores    35
8.3 Online    36
8.4 Specialty Stores and Others    37
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

10.1 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

11.1 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

12.1 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

13.1 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

14.1 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

Sample Request