Global Butter Market Forecast, Trend Analysis And Competition Tracking - Global Market Insights 2015 to 2031

Global Butter Market Revenue Outlook:

“The global Butter Market size is expected to be worth around US$ xx Billion by 2021 from US$ X.xx million in 2031, growing at a CAGR of X.x% during the forecast period 2021 to 2031.

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Butter is a dairy product made from protein and fat components of cream or milk by the churning process. It has been the main product of the dairy industry for many years and is an excellent source of protein from a nutritional point of view.

Butter can be prepared at home as it is made from one ingredient, i.e., milk. Generally, the butter purchased is made up of cow’s milk, but other butter varieties made from buffalo, sheep, goat, or yak milk are also available in the market.

The color of butter can vary from white to deep yellow, which is based on the animal’s diet. Earlier, butter was exported and imported in significant quantities compared to other dairy products. Major brands such as Land O´Lakes, Anchor, Lurpak, Kerrygold, and Président were established internationally.

Various brands of butter have been introduced in the market, and the most significant factor that differentiates them is the fat content, which has an ultimate effect on the taste and texture of butter. All commercially sold butter has at least 80% fat in the US. Butter comprises animal fat and contains cholesterol and saturated fat, whereas margarine is a non-dairy product created as a substitute for butter.

Growing awareness of consumers pertaining to saturated fats and cholesterol problems is a major concern that has resulted in demand for low-fat or low-cholesterol butter. Furthermore, brand value or preference is based on the product’s characteristics, cost, and other factors. The brand image reflects the brand name, reputation, and overall value.

Promotion is a way to communicate information about a product between the seller and buyer to build a brand image and brand value. Various tools like an advertisement, publicity, word-of-mouth, sales promotion, etc.0, can be used by a company for promotion to create and strengthen its brand image in the mind of customers.

Manufacturers and suppliers operating in the target market have potential growth opportunities due to an increase in sales through online platforms to cater to customers across the globe in the coming years. Recently, it has been proven that butter is not unhealthy, whereas palm oil has high saturated fats and is produced through unsustainable methods.

Thus, the foodservice and food industry outlets are using butter to replace other types of fats. Manufacturers are focusing on developing and launching low-fat butter and butter blends to enhance their product portfolio and strengthen their geographical footprint.

Driving Factors and Lucrative Opportunities of Butter

Increasing use for butter in bakeries and confectionery due to growing demand and consumption of packaged food items such as biscuits, cakes, cookies, macaroons, meringues, etc., is expected to drive the growth of the global butter market. It is usually used to add flavor and texture to the products and balance salt and moisture content.

Additionally, growing demand for ready-to-eat products such as bread, rolls, breakfast cereals, doughnuts, etc. owing to rapid urbanization, increasing disposable income of individuals, changing lifestyle and living standards, coupled with the increasing number of the working population are some of the other factors expected to fuel the growth of the global butter market.

Moreover, Increasing investments in R&D and expanding production capabilities, coupled with the development and launch of healthier products, will offer immense growth opportunities for most players operating in the target market.

Also, the increasing number of retail chains and discounters creates a natural outlet for new products and effective marketing campaigns. In addition, increasing penetration into untapped markets in developing economies is expected to offer enormous growth opportunities for prominent players operating in the global butter market over the forecast period.

These factors are expected to bolster the projected profit margin for this given market in the forecast period.

COVID-19 impact on the Butter Market

The COVID-19 pandemic has slowed down critical trade activities across several countries. The primary factor behind this slowdown is various countermeasures adopted by respective governments to curb the trajectory of this virus.

As significant economies enforce precautionary lockdowns, a considerable gap between market supply and demand is being created, resulting in increased difficulties for both manufacturers and distributors to manage their respective operations effectively.

This is a primary factor that is anticipated to influence prospects for revenue growth. However, as these lockdowns are gradually lifted, and economies begin to recover, this market is expected to regress to its post-COVID state.

Significant Trends in Butter Market

Currently, increasing adoption of low-fat and low-cholesterol butter among consumers regarding health concerns is a key trend observed in the target market. Various brands such as Fonterra, Arla Foods, and others have introduced butter of low-fat and low-cholesterol to meet the consumer’s requirement in the target market.

Additionally, Celebrity endorsements have become common and are used as a marketing strategy of companies to build brand recall and communication. Celebrities act as representatives or spokespersons for a particular brand. They play a vital role in encouraging the purchase decision of consumers. Marketing and promotion using celebrities have been a thing of the past but have become widely used in all markets.

Competitive Landscape

The butter market landscape appears highly consolidated, with a significant chunk being dominated by US players.

• Organic Dairy LLC
• Lactalis Corporation
• Dairy Farmers of America Inc.
• Land O Lakes Inc.
• Fonterra Co-operative Group Limited
• Arla Foods amba
• Gujarat Co-operative Milk Marketing Federation Limited
• Organic Valley
• Ornua Co-Operative Limited
• Cabot Creamery Cooperative Inc.
• Other Players

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Segments Covered

Butter Market, By Butter Type

• Cultured Butter
• Uncultured Butter
• Other Butter Types

Butter Market, By Distribution Channel

• Hyper Market/Super Market
• Convenience Store
• Specialty Store
• Online Stores