Butter Market Research Scope And Data Sources Till 2028

Butter Market Growth & Trends

The global butter market size is expected to reach USD 61.94 billion by 2028, registering a CAGR of 2.6% from 2022 to 2028, according to a new report by Grand View Research, Inc. The increasing demand and changing consumer preferences for milk products are major drivers of the global market growth. Moreover, the expansion of the fast-food industry is anticipated to propel the growth of the global butter market. Butter is increasingly being used as an ingredient in fast and junk food preparation and frying. Butter contributes significantly to the taste of the food, making it more flavorful. In the culinary world, the sensory characteristics of the butter are the main factor driving the consumption and fondness. Butter exhibits more desired and rich flavor to the food, as well as other flavors also enhance.

Butter Market Segmentation

Grand View Research has segmented the global butter market based on products, distribution channel, and region:

Based on the Product Insights, the market is segmented into Cultured Butter, Uncultured Butter and Others.

• By product, the cultured butter segment contributed to the largest share of around 60% of the global market revenue in 2021 and is expected to grow at a CAGR of 2.7% from 2022 to 2028. The increasing popularity of the cultured product is expected to propel the growth of the segment over the forecast period. Cultured butter has a more pronounced butter flavor. It is creamier with a slight tang. Moreover, the growing health concerns among the consumers have increased the demand for low calories and low-fat milk products to improve the immune system, which is stimulating the growth of the market.
• The uncultured butter segment is expected to grow with the fastest growth rate over the forecast period. In the global butter market, uncultured segment is anticipated to grow at a CAGR of 2.9% from 2022 to 2028. Uncultured butter is derived from fresh, pasteurized cream by a churning process. This uncultured butter has a neutral flavor and unsalted taste and is used widely in baking since it does not alter the end product taste. The increasing demand for uncultured butter from the bakery and confectionery industry is expected to propel segmental growth. Uncultured butter is widely used in North America. Owing to the increasing popularity of the products outside North America is likely to contribute to the segment’s growth over the forecast period.

Based on the Distribution Channel Insights, the market is segmented into Offline and Online.

• By distribution channel, the offline segment contributed the largest share of the global butter market. In 2021, market revenue shares of offline channels accounted for more than 80% of the global butter market. Consumers’ preference for the offline channel for purchasing consumer goods, groceries, as well as dairy products is higher, which is significantly attributable to a higher segmental share. Offline channels enable physical verification of quality and authenticity. Consumers perceive offline channels as more trusty. Moreover, easy access and searching for various milk products through stores is likely to affect consumer behavior and shopping attitude. Additionally, the majority of the retailers sell products via offline channels with widespread availability and a well-established distribution network.
• The online segment of the market is anticipated to register the fastest growth with a CAGR of 3.5% from 2022 to 2028. The rising smartphone penetration rate and improved internet connectivity across the globe have led to the significant growth of the e-commerce sector globally, which is propelling the growth of this segment. Manufacturers of these products are increasingly offering products via their own websites and/or on e-commerce platforms. For instance, India-based Amul delivers milk and dairy products via its mobile application which in turn will drive the segment demand.

Butter Regional Outlook

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East and Africa (MEA)

Market Share Insights

• February 2020: Land O’Lakes, Inc. introduced new packaging for its butter product.

Key Companies Profile & Market Share Insights

Various manufacturers and suppliers focus on the logistic development and strengthening of the distribution channel to enhance their business. Such initiatives are expected to boost the adoption rate of the product among consumers around the globe. Key players are also focusing on brand improvement, product innovation, and launches to increase revenue and market share.

Some of the prominent players operating in the global butter market include,

• Lactalis International
• Fonterra Co-operative Group
• Ornua Co-operative Limited
• Organic Valley
• Dairy Farmers of America, Inc.
• Amul Dairy
• Meadow Foods Ltd.
• Arla Foods amba
• MS Iceland Dairies
• Müller

Order a free sample PDF of the Butter Market Intelligence Study, published by Grand View Research.