Butter Market Forecast and CAGR
According to the latest research by Fact.MR., the butter market is set to witness steady growth during the forecast period 2021-2031. The growing world population and mainly the emerging of the new middle-class population in the Asia Pacific, Latin America, and Africa will offer high growth opportunities for the market.
What is Driving Demand for Butter?
Increasing demand for cooking ingredients from the foodservice industry and household consumers is the key driver of the global butter market. Besides, the increasing population across the globe is also fueling the demand for milk and butter products in both developed and developing economies.
According to the United Nations Department of Economic and Social Affairs, the world population is expected to reach 9.7 billion in 2050 and could peak at nearly 11 billion around 2100. This growing population offers huge opportunities for the key players in the global butter market. The spread of retail chains in the developing regions of the world will secure the cooling chain and pave the way for the distribution of chilled products like butter. It will also lead to the spread of food and dairy brands to new markets.
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Rising Demand for Organic and Flavored Butters
Organic products are highly demanded due to increasing health consciousness among consumers despite high prices and lack of easy availability. Health-conscious consumers opt for private-label goods which are high quality, healthy, and sustainable. These changes in preference have created new opportunities for organic product manufacturers. Hence, in response to consumer demands, many manufacturers have started offering organic butter. For instance, Graham’s Family Dairy and GroupeLactalis S.A., are offering organic salted butter and organic unsalted butter. Manufacturing companies have started offering organic butter mostly in the European and American regions, where the organic products trend is gaining rapid traction.
Butter is a widely used dairy product with industrial as well as household uses. Demand for butter by food industries as well as by households is growing. Consumers are demanding more varieties in butter. This influences manufacturers to focus on developing offerings with unique flavors. Various companies are launching butter products in different flavors. In 2015, Tesco, a U.K.-based company, launched flavored butter. These included garlic & herb, red chili, chocolate chip, and maple syrup, and peppercorn butter.
Amid growing concern over pandemic diseases, there is a spike in sales of healthy food products. Consumers are shifting their food purchases toward shelf-stable categories such as milk, butter, milk-based ingredients, bakery cookies, snacks, muffins, crackers, and others. Also, the increasing demand for the packaged food has propelled the demand for butter products. There is a jump in sales of bakery and packaged products, as consumers are seeking convenient food options. The increase in sales of packaged and shelf-stable products during the pandemic has left a positive impact on the growth of the global butter market.
Health-centric Innovations in Butter Offerings
Manufacturers are offering butter with the addition of healthy ingredients to differentiate their products as well as boost sales. These ingredients include garlic, curcumin, and other herbs that are perceived to provide health benefits. Growing per-capita income boosts spending power. Consumers prefer premium products such as organic butter and free-from dairy products. Moreover, consumers are aware of the benefits of healthy products and choose to purchase them despite high prices. This factor is expected to have a significant impact on the growth of the butter market. Many manufacturers offer premium class butter such as gluten-free butter, organic butter, clean label butter, less sodium butter, less saturated fat butter, and others.
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The US and Canada Butter Market Outlook
North America is the second-largest market for premium quality butter market. The high health-aware consumer and high spending power of consumers on food and beverage products make it one of the prominent regions for the global butter market. Consumers in U.S. and Canada are the traditional consumer of cream butter, salted butter, clarified butter, and many others. However, in recent years, the demand for organic, plant-based, whipped is increasing dramatically in U.S. and Canada. The demand for healthy, organic, natural ingredients is increasing in both countries as consumers becoming more aware of the food ingredients. Besides, the new flavored butter products offered by manufacturers are gaining popularity among consumers in U.S., and Canada.
Europe Demand Outlook for Butter
Europe has one of the largest markets for dairy and dairy-based products around the world. Besides, it is one of the largest exporters of dairy and dairy products. Consumers in Europe are always seeking new and innovative food products. Also, Europe-based food and beverage manufacturers are always at the forefront of new product innovation and launch of the new products. The consumer in Europe appreciates and adopts new food trends compared to any other region. Besides, the high consumption of bakery products in the region is expected to fuel the demand for butter products in foreseeable future. Also, Europe has the largest food service and travel retail industry in the world. Which is expected to contribute to the growth of the global butter market in the forecast period.
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Who are the Key Manufacturers and Suppliers of Butter?
Some of the leading manufacturers and suppliers operating in the butter market are
- Dairy Farmers of America
- Arla Foods
- Yili Group
- Saputo Inc.
- Mengniu Dairy
- Dean Foods
- Kraft Heinz
- Meiji Holdings
- SavenciaFromage& Dairy
- Schreiber Foods
Key manufacturers like Saputo Inc, Lactalis, Danone, and others are focusing on the expansion of their production facilities as well as strategic alliances/partnerships with regional food manufacturers, and foodservice providers in Western Europe, Asia Pacific, and the Middle East, to increase their market presence and product offerings in the global market.
Additionally, leading manufacturers are focused on increasing the production of organic, low-fat, and natural butter. Also focused on investing research & development to innovate new and healthy butter products with different flavors and ingredients. The companies are inclining towards an increasing portfolio of plant-based butter products.
Butter Market Report Highlights:
- Detailed overview of the parent market
- Changing market dynamics in the industry
- In-depth market segmentation
- Historical, current, and projected market size in terms of volume and value
- Recent industry trends and developments
- Competitive landscape
- Strategies of key players and products offered
- Potential and niche segments, geographical regions exhibiting promising growth
- A neutral perspective on market performance
- Must-have information for market players to sustain and enhance their market footprint
NOTE - All statements of fact, opinion, or analysis expressed in reports are those of the respective analysts. They do not necessarily reflect formal positions or views of the company
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By End Use
- Food Processing
By Distribution Channel
- Business to Business
- Business to Consumer
- Specialty Stores
- Convenience Stores
- Online Retail
- North America
- US & Canada
- Latin America
- Brazil, Mexico, Others
- Western Europe
- Eastern Europe
- Asia Pacific
- Australia and New Zealand (ANZ)
- Greater China
- Rest of Asia Pacific
- Middle East and Africa
- GCC Countries
- Other Middle East
- North Africa
- South Africa
- Other Africa
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides an in-depth analysis of parent market trends, macro-economic indicators, and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
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