Market Size of Butter Industry
| 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 |
| Market Concentration | Low |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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 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 | |||||||||
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Butter Market Size Summary
The butter market is experiencing a notable expansion, driven by evolving consumer preferences and cultural significance. As consumers increasingly favor minimally processed food products, there is a growing demand for innovative butter forms, such as those with reduced fat content and convenient packaging. This trend is evident in the actions of companies like Lactalis UK & Ireland, which introduced a light and spreadable butter product. The market is characterized by a diverse range of brands offering quality products at various price points, with emerging companies playing a crucial role in driving demand. Additionally, the focus on sustainability and environmental consciousness is influencing consumer choices, leading to a rise in organic and natural butter varieties. Companies are responding by launching products that align with these values, such as Willicroft's vegan butter made from beans and fermentation.
In regions like Spain and the United Kingdom, butter remains a staple in culinary traditions, contributing to consistent market demand. The UK has seen investments in butter production facilities, such as Wyke Farms' EUR 10 million expansion, to meet this demand. Meanwhile, in Germany, there is a growing interest in vegan and plant-based butter due to health concerns over synthetic ingredients. This has prompted companies like Willicroft to introduce plant-based fermented butter. The global butter market is highly competitive, with major players like Fonterra Co-operative Group and Arla Foods Amba vying for market share through strategies like mergers and product expansions. Recent developments include Bregott's new package sizes and Ornua Co-operative's investment in its Kerrygold Park facility, highlighting the dynamic nature of the market.
Butter Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Consumer Inclination Toward Natural/Organic Food Products
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1.1.2 Flavor Diversification Driving the Market
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1.2 Market Restraints
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1.2.1 Adverse Health Impacts of High-Fat Content in Butter
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Cultured Butter
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2.1.2 Uncultured Butter
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2.2 Distribution Channel
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2.2.1 Supermarkets/Hypermarkets
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2.2.2 Convenience/Grocery Stores
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2.2.3 Online Retail Stores
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2.2.4 Other Distribution Channels
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Spain
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2.3.2.2 United Kingdom
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2.3.2.3 Germany
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Netherlands
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 South Africa
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2.3.5.2 United Arab Emirates
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2.3.5.3 Rest of Middle East and Africa
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Butter Market Size 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.
