Global Butter Market, By Product Type (Uncultured butter, Cultured butter, Salted, Whipped, and Others), By Processing (Processed and Non-Processed), By Usage (Spreadable and Non-Spreadable), By Distribution Channel (Convenience Stores, Supermarkets/Hypermarkets, Online Retail Stores, Specialty Stores, and others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) Trend Analysis, Competitive Market Share & Forecast, 2021-2027

  • Published Date: August 2021
  • Report ID: BWC2139
  • Available Format: PDF
  • Page: 200

Report Overview

Butter consumption is driven by increased demand for confectionary and baked goods, which is one of the major factors driving the global butter market. Urbanization and Western influences on cooking methods are other factors driving market growth

The global butter market was worth USD22.1 Billion in 2020 and is further projected to reach USD30.3 Billion by 2027, at a CAGR of 4.8% during 2021-2027 (forecast period). The growing demand for confectionery and bakeries items is one of the reasons driving the growth of the global butter market. The market growth is also attributed to urbanization and the popularity of Western-style cooking methods. Additionally, new substitute products and consumer preference for food products with less artificial ingredients, along with the declining prices of butter are also driving the global butter market. Moreover, promotional campaigns are promoting the use of natural products, which have helped butter manufacturing companies to increase their sales.

global butter market

Source: BlueWeave Consulting

Global Butter Market Overview

Churned cream is the source of butter, which is made by concentrating its fat and protein ingredients. Butter is commonly made from cow's milk, but it can also be made from the milk of sheep, goats, buffaloes, and yaks. The butter is used in baking and cooking, as well as in sauces, and as a spread for plain and toasted bread products. Butterfat, milk proteins, and water are the parts of butter. Butter is mainly used in retail, however, with the growth of the economy, food-processing industries have also started using it.

 

Growth Drivers

Increasing demand for organic products

The global butter market is expected to see a growth in profits due to a trend of premiumization and increased demand for organic products. Consequently, butter manufacturers are increasingly broadening their product portfolio, which now includes organic butter, flavored butter, and low-sodium butter with low saturated fats. Additionally, consumers are becoming more aware of the benefits of healthy food products, such as butter, and prefer them despite their high prices. Moreover, supermarkets and hypermarkets offer a variety of organic dairy products that are causing customers to spend more on premium and organic food products.

 

Opportunities for the global market

Globalization has brought a variety of opportunities for butter exporters, including the possibility of the increasing demand across the globe. In many countries, research and development have been increasing in order to provide consumers with innovative and high-quality butter products. Development in the bread-and-butter market has opened up global market opportunities for market players. Moreover, with the increasing urbanization and rising per capita income of consumers, butter players are seeing growth opportunities on the global market.

 

Restraints

The demand for ready-to-eat products has been increased among the population, due to the lower market prices of butter and easy availability of different varieties of products in the market. However, increasing consumer health awareness brought a major challenge for the butter market. Due to this, many key players have already started providing healthy substitutes of butter products to serve their customer base better. Diet restrictions have become more common because consumers have become more focused on the ingredients of food products. Furthermore, people have curtailed their butter consumption because it is harmful to their health, which is impeding the growth of the global butter industry.

 

Impact of COVID-19 in the industry

Almost every industry has been disrupted by the COVID-19 outbreak. Milk and butter manufacturers have seen their supply chains disrupted due to declines in consumption during lockdowns imposed by governments around the world. Different countries had restricted the movement of goods across borders, and local manufacturers had to cease production due to a lack of raw materials. Besides government restrictions on the sale of non-essential goods, the fear of infection spreading through manufacturing facilities also hindered the development of the global butter market.

 

Global Butter Market: By Product Type

Based on product types, the global butter market has been segmented into Uncultured butter, Cultured butter, Salted, Whipped, and others. Out of these, the whipped butter segment holds the largest market share. Butter that has been whipped to add air or nitrogen to increase its volume is whipped butter. This process makes the butter much easier to spread. Increasing urbanization and changing lifestyle of consumers, rising preferences towards ready-to-eat foods, and the growth of the food industry across the globe are some of the factors responsible for the increasing popularity of the whipped butter market.

 

Global Butter Market: By Usage

Based on usage, the global butter market is grouped into Spreadable and Non-Spreadable. The spreadable butter segment dominates the market with the largest market share. Butter and oil are combined to make spreadable butter. Since spreadable butter is made of this combination, it has all the flavor of butter and can be spread smoothly on bread right out of the refrigerator. Several factors make spreadable butter popular among consumers in every distribution channel, including its ability to remain soft in cold temperatures, its ability to be consumed directly from the refrigerator, and the availability of multiple flavors and options.

 

Global Butter Market – Regional Insights

Based on the region, the global butter market is grouped into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. Among all the regions, North America is dominating the global butter market. The growth can be attributed to the high consumer purchasing power and increasing consumer awareness of maintaining a healthy lifestyle. Additionally, due to expanding population and improved standards of life in terms of adopting a healthy diet, Asia Pacific is also noted as a significant market for low-fat butter.

Regional Insights

Source: BlueWeave Consulting

Recent Developments

March 2021: In an effort to meet market demand for more sustainable products and assist its customers to reach their sustainability goals, Fonterra has introduced a carbonzero-certified organic butter under the NZMP brand.

 

June 2021- Arla Foods signed a contract with another leading dairy company, Dale Farm, to supply whey protein concentrate for Arla’s global ingredients business. This is the first time the two dairy cooperatives have partnered as part of a major supply contract.

 

Competitive Landscape

The key players in the global butter market are Ornua Co-operative Limited (Ireland), Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF/Amul) (India),Arla Foods amba (Denmark),Dairy Farmers of America, Inc. (the US),Fonterra Co-operative Group (New Zealand),Organic Valley (US),Land O'Lakes, Inc. (the US), Lactalis Group (France), Royal FrieslandCampina N.V. (Netherlands), Delta Nutritives (India), and other manufacturers.

Having a large number of domestic and multinational players contending for the limelight, the global butter market is highly competitive in nature, with product modernization being an important market strategy accepted by major players.

 

Scope

Attribute

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, Argentina, UAE, South Africa, Saudi Arabia

Product/Service Segmentation

By Product Type,By Processing, By Usage, By Distribution Channel, By Region

Key Players

Key players for Global Butter Market are Ornua Co-operative Limited (Ireland), Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF/Amul) (India), Arla Foods amba (Denmark),Dairy Farmers of America, Inc. (the US),Fonterra Co-operative Group (New Zealand),Organic Valley (the US),Land O'Lakes, Inc. (US), Lactalis Group (France), Royal Friesland Campina N.V. (Netherlands), Delta Nutritives (India) and other key manufacturers.

         

 

  • By Product Type
  • Uncultured butter
  • Cultured butter
  • Salted
  • Whipped
  • Others Non-flavored
  • By Processing
  • Processed
  • Non-Processed
  • By Usage
  • Spreadable
  • Non-Spreadable
  • By Distribution Channel
  • Convenience Stores
  • Supermarkets/Hypermarkets
  • Online Retail Stores
  • Specialty Stores
  • Others
  • By Region
  • North America
  • Latin America
  • Europe
  • The Asia Pacific
  • The Middle East
  • Africa

 

FAQs

  1. What is the current size of the Global Butter Market?

Answer: The global butter market reached USD22.1 Billion in 2020.

  1. What are the major factors driving the growth of Global Butter Market?

Answer: Increasing demand for confectionery and bakeries in the butter industry is one of the reasons responsible for the growth of the global butter market. Additionally, increased competition among substitute products and consumers' preference for food with less artificial ingredients, along with the lower prices of butter, are driving the demand for butter in the market.

3. Who are the key players in the Global Butter Market?

Answer: The key players in the global butter market are Ornua Co-operative Limited (Ireland), Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF/Amul) (India), Arla Foods amba (Denmark),Dairy Farmers of America, Inc. (the US),Fonterra Co-operative Group (New Zealand),Organic Valley (the US),Land O'Lakes Inc. (the US), Lactalis Group (France), Royal Friesland Campina N.V. (Netherlands), Delta Nutritives (India) and other key manufacturers.

4. Which product type segment accounted for the largest share in the Global Butter Market?

Answer: Based on product types, the whipped butter segment, accounted for the largest share in the global butter market.

5. Which usage segment accounted for the largest share in Global Butter Market?

Answer: The spreadable butter segment is growing at a higher rate in the global butter market.