A study, recently conducted by the strategic consulting and market research firm BlueWeave Consulting, revealed that Global Butter Market was worth USD 22.1 Billion in the year 2020. The market is estimated to grow at the CAGR of 4.8%, earning revenue of around USD 30.3 Billion by the end of 2027. A semi-solid food produced by refining the fat and protein portion of milk is butter. There is a daily increase in the demand for butter in the food-processing industry, which in turn is driving the growth of the global butter market. A large part of butter's demand has been driven by the bakery and confectionery industries since butter has become the main ingredient in these industries.
Growing demand in the food processing industry
The major driving force behind the growth of the global butter market is the increasing demand for butter from the food processing industry. Butter is widely used in the food processing industry, especially in bakeries and confectionery. The low melting point of butter cakes allows biscuits to melt in the mouth to give texture and flavor. Due to lower prices, urbanization, product diversification, and a hectic lifestyle, ready-to-eat processing foods are in high demand, which is driving the usage of butter in the food industry.
Opportunities for the global market
The global market has brought many opportunities for increased butter demand all over the world. Many countries have increased research and development in order to provide consumers with pure and high-quality butter and butter products. Moreover, market players have been able to tap into the global market through development in bread-and-butter products. Additionally, the growth in urban populations and in per capita incomes of consumers are providing new opportunities for the key players in the butter industry.
Growing health awareness is one of the factors affecting the growth of the global butter market. Nowadays, people suffer from many health problems due to their hectic lifestyles and unhealthy dietary habits. A growing number of consumers are increasingly becoming aware of the ingredients in the product they purchase or consume. Butter consumption has decreased to a great extent as consumers are now becoming more knowledgeable about the health hazards of butter and therefore, opting for less calorie-dense and low saturated fat products. This is the primary factor impeding the growth of the global butter market.
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Impact of COVID-19 in the industry
Like every other industry, COVID-19 did not spare the global butter market either. The global butter market has suffered severe impacts from this pandemic due to the lockdowns imposed in many countries to check the spread of the deadly corona virus. There has been a disruption in the trade of essential and non-essential goods due to the lockdown imposed by the governments of different countries. Also, due to the tight government regulations imposed during the lockdown, exports to major dairy markets dried up, affecting the global butter market as well.
Spreadable butter, by usage, holds the largest share of the Global Butter Market
Based on usage, the global butter market is grouped into Spreadable and Non-Spreadable. The spreadable butter segment dominated the market in 2020 and is likely to maintain its dominance even during the forecast period. Spreadable butter consists of butter and oil. As a result of the combination, spreadable butter has all of the flavors of butter and can be easily spread on bread straight from the refrigerator. Several factors are making spreadable butter popular among consumers in every distribution channel, including its ability to remain soft in cold temperatures, its ability to be consumed directly from the refrigerator, and the availability of multiple flavors and options.
North America is expected to witness significant growth during the forecast period
Based on region, the global butter market is categorized into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. Among all these continents, North America is the dominating region in terms of market revenue. Because of the increasing per capita income in North America, consumers have better purchasing power, which contributes to the rising market share. Furthermore, consumers are becoming more aware of the health benefits of organic products, which has contributed to the demand for low-fat butter in North America. The Asia-Pacific region, on the other hand, is the fastest-growing segment due to the increase in the food-processing industry and the preference of the population for products with healthy ingredients.
The key players in the global butter market are Ornua Co-operative Limited (Ireland), Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF/Amul) (India), Arla Foods amba (Denmark),Dairy Farmers of America, Inc. (the US),Fonterra Co-operative Group (New Zealand),Organic Valley (US),Land O'Lakes, Inc. (the US), Lactalis Group (France), Royal FrieslandCampina N.V. (Netherlands), Delta Nutritives (India), and other key manufacturers.
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