The global butter products market was valued at USD 17.9 billion in 2022 and is projected to expand at a CAGR of 5.3% from 2023 to 2030. Butter is a dairy product made by churning fresh or fermented cream or milk, which is a source of saturated fatty acids, vitamins, and minerals. It is widely used in baking, cooking, and as a spread. The butter market has grown significantly in recent years due to its low-cost and easy availability. In addition, the rising health consciousness among consumers and the growing demand for organic butter products are further driving the market growth.

The increasing demand for butter products from the bakery, confectionery, and dairy industries is expected to drive the market growth. Butter is widely used in the bakery industry for making cakes, pastries, and other bakery products. It is also used as a flavoring agent in confectionery products. Additionally, butter is a major ingredient in the dairy industry for making processed cheese, ice cream, and other dairy products. The growing demand for butter products from foodservice outlets and restaurants is expected to spur the market growth.

The rising demand for low-fat butter products is also driving the market growth. Many consumers are switching to low-fat butter products due to health concerns. Low-fat butter products contain less than 80% milk fat and are a healthier option than traditional butter. Manufacturers are launching low-fat butter products with different flavors, such as garlic, herbs, and spices. In addition, the increasing demand for organic butter products is also fueling the market growth. Organic butter products are made from milk obtained from cows that are not given any antibiotics or hormones and are fed only organic feed.

The rising demand for butter substitutes is likely to hinder the growth of the market. Butter substitutes are plant-based products that are made from ingredients such as vegetable oil, coconut oil, and canola oil. These substitutes are considered healthier options than butter and are gaining popularity among health-conscious consumers. Furthermore, the increasing prices of butter due to the rising cost of raw materials is expected to further challenge the market growth.

The spreadable butter segment accounted for the largest share in the market in 2022. The growing demand for butter products that are easy to spread on toast and other food items has been driving the segment’s growth. According to the American Butter Institute, in 2020, spreadable butter products are gaining popularity due to their convenience. Furthermore, the increasing health consciousness among consumers has been fueling the demand for butter products, as they are considered to be healthier than margarine and other vegetable-based spreads.

The cultured butter segment is projected to expand at the fastest CAGR of 5.2% over the forecast period. The increasing demand for flavorful and quality butter products is driving the growth of the segment. Moreover, the growing popularity of organic and natural butter products is propelling the growth of the market. In addition, the increasing consumption of butter in the bakery and confectionery industry is also promoting the growth of the segment.

The supermarkets and hypermarkets segment held the major market share of over 44.2% in 2022. These establishments provide a wide range of butter products, including spreadable butter and butter substitutes, to consumers. Moreover, supermarkets and hypermarkets offer a wide selection of products, along with promotional offers, discounts, and loyalty programs. This has increased the preference among consumers for purchasing butter products from these outlets.

The online segment is expected to register the highest CAGR of 12.4% over the forecast period. This can be attributed to the rising penetration of e-commerce platforms and the increasing number of online retailers selling butter products. Furthermore, online retailers offer discounts, promotional offers, and loyalty programs to attract more customers. In addition, they provide consumers with convenience and ease of purchase, as they can purchase butter products from the comfort of their homes.

Salted butter products held the largest revenue share in the year 2022, due to its broad usage in the food industry for baking, cooking, and as a spread. The growing preference for salted butter among consumers as a healthier alternative to margarine and other butter substitutes is driving the segment. Furthermore, the global demand for salted butter is expected to increase due to its increasing demand from the processed food industry.

Unsalted butter products are estimated to register the fastest growth during the forecast period. Unsalted butter is used in the food industry due to its flavor and texture. Additionally, its usage in various bakery products such as croissants, cakes, and pastries, is supporting the growth of the unsalted butter segment. Furthermore, the increasing demand for unsalted butter in the health-conscious population is anticipated to propel the segment.

Europe is expected to dominate the market for butter products, owing to the high consumption of butter in the region. In countries such as France, Norway, Finland, and Denmark, butter consumption is higher than in other regions, owing to the presence of a large number of dairy farms and the wide availability of butter in stores. In addition, the high demand for innovative products such as flavored butters and spreadable butters has also propelled the growth of the market in the region. For instance, in April 2021, Lurpak, a leading butter brand in the UK, launched a new range of spreadable butters in a variety of flavors, such as garlic, smoked, and herb.

The Asia Pacific is expected to witness the highest growth in the coming years. The increasing demand for butter products in countries such as India, China, South Korea, and Japan is a major factor driving the growth of the market in the region. In addition, the presence of key players, such as Amul, Nestlé, and Fonterra, has further propelled the growth of the market in the region. For instance, in April 2021, Amul launched a new range of flavored butters, such as garlic and herbs, in India.

In this part of the Butter Products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your butter products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a Butter Products business comes from product sales, online orders, and wholesale orders. Here you will find a list with a description of each of them and other possible sources of profit such as subscription services, donations, and other promotional activities.

Projecting Expenses
In this section, all the regular expenses related to keeping the Butter Products business running will be described. The list of operating expenses includes marketing and advertising expenses, production costs, packaging, shipping, labor and employee wages, storage, and utilities.

Some of the prominent players in the butter market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In May 2022, Upfield launched the vegan butter spread, which was the world’s first vegan butter spread.

– In June 2022, Kerry Group launched the Kerrygold Unsalted Butter range in the U.S.

– In August 2022, Land O’Lakes launched a grass-fed butter in the U.S.

Some of the prominent players in the butter market include:

– Upfield
– Kerry Group
– Land O’Lakes
– Arla Foods
– FIT Foods
– Dairy Farmers of America
– FrieslandCampina
– Lactalis Group
– Saputo Dairy Products Canada
– Amul

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global butter products market based on product type, application, distribution channel, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Salted Butter
– Unsalted Butter
– Cultured Butter
– Clarified Butter
– Compound Butter
– Others

2. Application Outlook (Revenue, USD Million, 2017 – 2030)

– Bakery Products
– Sauces & Spreads
– Dairy Products
– Confectionery
– Others

3. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online Retail
– Convenience Stores
– Others

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Factors Driving the Butter Products Market?
[A]: Factors such as an increasing preference for butter products, a growing demand for healthy and nutritious food products, rising disposable incomes, and the development of innovative products are expected to drive the growth of the butter products market.

[Q]: Who are the Key Players in the Butter Products Market?
[A]: The key players in the butter products market are Unilever, Amul, Kerry Group, Arla Foods, and Fonterra Co-operative Group.

[Q]: What are the Major Trends in the Butter Products Market?
[A]: The major trends in the butter products market include the introduction of flavored and functional butter, the use of natural ingredients in butter products, the emergence of non-dairy butter, and the development of low-fat butter products.

[Q]: What is the Potential of Product Innovation?
[A]: Product innovation is essential to capture the attention of consumers. Companies are introducing flavored, functional, and non-dairy butter products to cater to the changing consumer preferences. Additionally, companies are focusing on developing products with natural ingredients and low-fat content to meet the needs of health-conscious consumers.

[Q]: Which Region Offers the Largest Opportunity for Sales of Butter Products?
[A]: Asia Pacific is expected to be the most lucrative region for the butter products market, with an absolute dollar opportunity of $6.69 B (USD). This growth can be attributed to the increasing demand for healthy and nutritious food products, rising disposable incomes, and the improving economic conditions in the region.