The butter market size was USD 35.61 billion in 2020. The market is projected to grow from USD 37.01 billion 2021 to USD 49.07 billion in 2028 at a CAGR of 4.11% during the 2021-2028 period. This vital information is presented by Fortune Business Insights™, in its report titled, “Butter Market, 2021-2028.” Rising demand for processed food products such as bakery, confectionery, desserts, and ready-to-eat meals among consumers is expected to increase the footprint of the market during the forecast period. Additionally, increased demand for packaged butter across physical retail and foodservice channels will boost the market growth.
Increased Retail Presence to Accelerate Market Growth During Forecast
The COVID-19 pandemic affected the butter industry in its initial phases by slowing down growth. However, as the pandemic rallied on, a positive effect on sales in terms of growth and volume was observed. Baking was considered as a top hobby for many consumers who were forced to implement from work-from-home solutions. Additionally, reopening of hotels, restaurants, and cafes is expected to drive the market growth.
Browse In-depth Summary of This Research Insight:
List of Key Players Present in the Market
- Fonterra Co-operative Group (New Zealand)
- Arla Foods (Denmark)
- Dairy Farmers of America (U.S.)
- Gujarat Co-operative Milk Marketing Federation (India)
- Ornua Co-operative Ltd. (Ireland)
- Land O’Lakes, Inc. (U.S.)
- Nestle India Ltd. (India)
- Organic Valley Family of Farms (U.S.)
- Royal FrieslandCampina NV (Netherlands)
- The Kraft Heinz Company (U.S.)
Type, End-Use, and Region are Studied
On the basis of type, the market is divided into salted and unsalted.
By end-use, the market is segmented into industrial processing, retail channels, and foodservice.
In terms of geography, the market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
The study focuses on providing a comprehensive analysis for our readers by presenting critical factors such as leading companies, product types, and top end uses of the product. Additionally, the study offers insights in the sector by presenting ongoing market trends along with prominent industry developments. The study also noted various factors that will be responsible for the positive and negative outlook on the market during the forecast period.
Drivers & Restraints
Increasing Demand for Processed Food Products to Augment Growth
Rising demand for dairy products such as dairy fats & butter and increasing perception of positive health attributes are expected to boost the butter market growth during the forecast period. Also, increasing disposable income among consumers along with increasing demand for bakery products such as cakes, bread, cookies, and biscuits will increase the footprint of the market. Additionally, increasing innovations and developments across the dairy beverages coupled with increasing retail presence will fuel the market growth.
However, rising popularity of lactose-free and vegan foods will limit the market growth during the forecast period.
Asia Pacific to Lead Market due to Rising Disposable Income Among Consumers
Asia Pacific is expected to witness the largest butter market share during the forecast period, owing to rising sale of packaged butter along with growing demand for dairy products. Additionally, increasing expenditure among consumers and rising integration of the product for cooking and baking will increase the footprint of the market. Increasing presence of prominent players in the market along with rising processing capabilities will fuel the growth of the market.
Europe will contribute a significant market share during the forecast period, owing to increasing demand for clean-label and sustainable milk and dairy products along with rising demand for bakery and other similar products. Rising consumer inclination toward healthier and safer products will fuel the market growth.
Novel Product Launches to Bolster Market Growth
The major players are Arla Foods, Dairy Farmers of America, and Land O’Lakes. Dominant players are often focusing on capturing maximized revenue by launching novel products and increasing product offerings. For example, in September 2020, Minerva dairy launched a new small size package of premium butter containing sea salt. This launch is aimed at increasing the company’s retail distribution capabilities. Increased arrival of smaller players in the market will fragment the market, further consolidating he market share. Other players are contributing by instituting various strategies such as mergers & acquisitions with like-minded organizations to increase their product portfolio.
- October 2020: Grahams partnered with Isle of Skye Sea Salt Co. and launched a new artisan Scottish sea salt butter. It is a mixture of top quality, natural, and unrefined sea salt from the Isle of Skye.