PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1608907
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1608907
The global butter market is projected to expand from USD 48.94 billion in 2024 to USD 74 billion by 2031, reflecting a compound annual growth rate (CAGR) of 6.1%. This growth is fueled by the increasing popularity of bakery products, innovations in food processing, and rising consumer demand for premium options, indicating a flourishing future for the butter industry.
Market Insights
Market Drivers
Butter is essential in producing bakery items such as cookies, cakes, and pastries due to its flavor-enhancing and texture-improving properties. Fast food outlets, particularly in developing economies, heavily rely on butter for frying and flavoring, showcasing its indispensable role in the foodservice sector.
Millennials' preference for unique, flavor-packed products has driven manufacturers to develop innovative offerings, including spreadable and flavored butter.
The rising demand for organic and premium dairy products, particularly in North America and Europe, has pushed companies to introduce health-conscious options, such as low-fat and organic butter, to meet consumer needs.
Opportunities for Growth
Companies are introducing new butter products to adapt to evolving consumer preferences.
Example: OMSCO launched organic salted butter crafted using traditional methods and grass-fed cream.
Butter's flavor-enhancing properties have made it a popular ingredient in snacks and ready-to-drink beverages.
Example: Know Brainer Foods LLC developed a butter-based coffee creamer using organic grass-fed butter.
The growth of online retail has opened new channels for butter sales, providing consumers convenient access to a variety of products.
Regional Insights
India (South Asia & Pacific)
India's butter market is experiencing robust growth, driven by its extensive use in traditional recipes, baked goods, and the rapid expansion of foodservice outlets, such as cafes and cloud kitchens.
United Kingdom
The U.K. market is witnessing increased demand as consumers prioritize sustainable and clean-label dairy products that align with healthier lifestyle choices.
North America and Europe
These regions dominate the organic butter market, supported by rising consumer awareness and preferences for premium, health-focused food products.
Competitive Analysis
These companies are focused on product innovation, organic options, and expanding their global presence.
Challenges
Butter's high cholesterol content raises health risks, including heart disease and stroke, leading some consumers to explore healthier alternatives.
Meeting the rising demand for sustainable and clean-label products poses challenges for manufacturers, especially in ensuring transparency and eco-friendly production practices.
Butter Market Segmentation