Butter Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 27.94 Billion |
| Market Size (2029) | USD 34.12 Billion |
| CAGR (2024 - 2029) | 4.08 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
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*Disclaimer: Major Players sorted in no particular order |
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Butter Market Analysis
The Butter Market size is estimated at USD 27.94 billion in 2024, and is expected to reach USD 34.12 billion by 2029, growing at a CAGR of 4.08% during the forecast period (2024-2029).
In some cultures, butter holds significant culinary and cultural importance, leading to sustained or increased demand for butter worldwide. Moreover, there has been a substantial shift in consumer preferences toward minimally processed food products. For instance, according to the Federal Ministry of Food and Agriculture, in 2022/23, around 90% of German consumers bought organic products due to animal husbandry considerations, and about 90% of consumers across Germany preferred buying natural/untreated groceries due to their concerns regarding health and wellbeing. As a result, manufacturers focus on the innovation of different butter forms with lesser fat content, spreadable format, and convenient packaging. For instance, in March 2023, Lactalis UK & Ireland launched light and spreadable butter under the President brand. This product was claimed to have 50% less fat compared to standard butter products. Furthermore, the market studied is characterized by the large number of brands catering to the B2C market by offering quality products at different price points. Therefore, new product offerings by emerging companies in the market are anticipated to play a significant role in propelling the demand for butter during the study period.
Butter Market Trends
Consumer Inclination Toward Natural/Organic Food Products
Many consumers are concerned about the environmental impact of food production and, therefore, seek products that align with their sustainability values. Organic and grass-fed butter production methods typically involve environmentally sustainable practices, such as pasture-based grazing systems and limited or zero-use of synthetic chemicals. As a result, environmental-conscious consumers prioritize food labels and products with simple, recognizable ingredients. Therefore, players are launching organic and natural varieties to stay in tune with the latest consumer trends and increase their overall sales. For instance, in November 2023, Dutch company Willicroft, which achieved B-Corp certification, announced the launch of a crowdfunding campaign to support the release of its latest development, Willicroft Original Better, a vegan butter made using beans and fermentation, at retail and food service.
Europe Dominates the Market
Spain has a longstanding tradition of using butter in pastries, sauces, and classic desserts like Roscones and Magdalena. According to Eurostat, the industry revenue for manufacturing bread, fresh pastry goods, and cakes in Spain was USD 7,327.04 million in 2023. Therefore, the prevailing societal inclination toward butter in baking and cooking contributes to the consistent market demand.
In the United Kingdom, butter is used in home bakery products, such as cakes and bread. According to the Agriculture and Horticulture Development Board (AHDB) data from 2022, the annual volume of butter produced in the United Kingdom was 209 thousand metric tons. As a result, the market players focus on increasing the production of butter in the country. For instance, in March 2023, Wyke Farms invested EUR 10 million in a new butter dairy facility in the United Kingdom. This expansion aimed to provide a wide range of premium butter products in the market.
Moreover, consumer demand for vegan, organic, and plant-based products is increasing in Germany due to growing consumer consciousness about the negative health impacts of synthetic ingredients in standard butter. According to data from the United States Department of Agriculture, in 2023, 1.58 million people in Germany were vegan. Due to this, the market players are launching vegan and plant-based butter in the country. For instance, in July 2023, Willicroft, a plant-based dairy startup, launched plant-based fermented butter. This butter is created using European soybeans.
Butter Industry Overview
The global butter market is fragmented, with many domestic and multinational players competing for market shares. Some major companies operating in the market studied are Fonterra Co-operative Group, Arla Foods Amba, Dairy Farmers of America, and Land O' Lakes Inc. Companies are competing based on price, quality, innovation, and promotions. Additionally, mergers, expansions, acquisitions, and partnerships are other common strategies adopted by players to enhance the brand presence and boost the market share.
Butter Market Leaders
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Dairy Farmers of America
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Ornua Co-operative Ltd.
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Land O' Lakes, Inc.
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Arla Foods Amba
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Fonterra Co-operative Group
*Disclaimer: Major Players sorted in no particular order
Butter Market News
- January 2024: Bregott expanded its product portfolio by launching three new package size formats: 250 g, 500 g, and 750 g. According to the company’s claim, the new packages would be available in grocery store refrigerators.
- January 2024: Arla Foods AMBA, the Danish dairy giant, increased its shareholding in Massby Facility and Service, a property management company that serviced a dairy in Sipoo, near Helsinki, from 60% to 100%.
- October 2023: Ornua Co-operative invested EUR 40 million at Kerrygold Park, its flagship butter production facility in Mitchelstown, Country Cork. The facility contains ten packing lines and 50 different product formats.
Butter Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Consumer Inclination Toward Natural/Organic Food Products
- 4.1.2 Flavor Diversification Driving the Market
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4.2 Market Restraints
- 4.2.1 Adverse Health Impacts of High-Fat Content in Butter
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Cultured Butter
- 5.1.2 Uncultured Butter
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5.2 Distribution Channel
- 5.2.1 Supermarkets/Hypermarkets
- 5.2.2 Convenience/Grocery Stores
- 5.2.3 Online Retail Stores
- 5.2.4 Other Distribution Channels
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Spain
- 5.3.2.2 United Kingdom
- 5.3.2.3 Germany
- 5.3.2.4 France
- 5.3.2.5 Italy
- 5.3.2.6 Netherlands
- 5.3.2.7 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Australia
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle East and Africa
- 5.3.5.1 South Africa
- 5.3.5.2 United Arab Emirates
- 5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Fonterra Co-operative Group
- 6.3.2 Arla Foods Amba
- 6.3.3 Ornua Co-operative Ltd
- 6.3.4 Land O' Lakes, Inc.
- 6.3.5 CROPP Cooperative (Organic Valley)
- 6.3.6 Dairy Farmers of America Inc.
- 6.3.7 Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF)
- 6.3.8 EATNUF
- 6.3.9 CavinKare
- 6.3.10 Upfield group B.V
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityButter Industry Segmentation
Butter is a solid dairy product made by separating butterfat from buttermilk by churning fresh or fermented cream or milk. The global butter market is segmented based on product type, distribution channel, and geography. The market is segmented by product type into cultured and uncultured butter. The market is segmented by distribution channel into supermarkets/hypermarkets, convenience/grocery stores, specialty stores, online retail stores, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. For each segment, the market sizing and forecasts have been provided on the basis of value (in USD).
| Product Type | Cultured Butter | |
| Uncultured Butter | ||
| Distribution Channel | Supermarkets/Hypermarkets | |
| Convenience/Grocery Stores | ||
| Online Retail Stores | ||
| Other Distribution Channels | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Spain |
| United Kingdom | ||
| Germany | ||
| France | ||
| Italy | ||
| Netherlands | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East and Africa | South Africa |
| United Arab Emirates | ||
| Rest of Middle East and Africa |
Butter Market Research FAQs
How big is the Butter Market?
The Butter Market size is expected to reach USD 27.94 billion in 2024 and grow at a CAGR of 4.08% to reach USD 34.12 billion by 2029.
What is the current Butter Market size?
In 2024, the Butter Market size is expected to reach USD 27.94 billion.
Who are the key players in Butter Market?
Dairy Farmers of America, Ornua Co-operative Ltd., Land O' Lakes, Inc., Arla Foods Amba and Fonterra Co-operative Group are the major companies operating in the Butter Market.
Which is the fastest growing region in Butter Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Butter Market?
In 2024, the Europe accounts for the largest market share in Butter Market.
What years does this Butter Market cover, and what was the market size in 2023?
In 2023, the Butter Market size was estimated at USD 26.80 billion. The report covers the Butter Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Butter Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in butter packaging and marketing?
The emerging trends in butter packaging and marketing are a) Eco-friendly packaging b) Premiumization trends
Butter Industry Report
The Global Butter Market Report is segmented by product type, distribution channel, and geography. The market is witnessing remarkable growth, fueled by a shift towards dairy-based fats and an increasing appetite for organic and natural products. This surge is supported by the global population rise and the expanding food and beverage sector's demand for ready-to-eat items. Butter's versatility in recipes and its essential role in the booming cafe and quick service restaurant sectors further propel demand. Amidst this, butter brands navigate a competitive landscape, offering premium products at diverse price points, leveraging aggressive marketing, and ensuring wide availability through both digital and physical channels.
However, challenges like counterfeit products and shifting dietary preferences persist. Yet, the market's trajectory remains upward, driven by health-conscious consumers seeking organic, lactose-free, and sustainable options. This dynamic market, segmented by type and end-use across key regions, offers growth opportunities in catering, quick service restaurants, and artisanal bakeries, promising for butter brands.
For detailed insights, Mordor Intelligence™ provides comprehensive analysis and forecasts, available as a free PDF download. The report provides essential market data and market forecast, offering an industry outlook that highlights market growth. The analysis pdf includes insights into market share and price trend. The market report also delves into market segmentation and market value, providing a market update that is crucial for industry research.
The report example and report pdf provide a thorough industry analysis, covering industry trends and industry statistics. The market leaders and market overview sections offer a comprehensive market review. Research companies can benefit from the in-depth industry information and industry reports. The market predictions and market outlook sections provide valuable insights for understanding the growth rate and market dynamics. This report is a vital resource for understanding the market size and market value in the global market.
