The global clarified butter products market was valued at USD 8.1 billion in 2022 and is projected to expand at a CAGR of 5.2% from 2023 to 2030. The rising demand for clarified butter products is attributable to its various health benefits, such as promoting weight loss, improving digestion, and reducing the risk of various health issues. Furthermore, the growing popularity of clarified butter products as a natural product with numerous health benefits is driving the market growth. Additionally, clarified butter products are now used as a substitute for traditional butter and other fats and oils, due to its high smoke point, which is an important factor for cooking and baking.

The growing demand for clarified butter products in the food and beverage industry is also driving market growth. Clarified butter products are used as an ingredient in various products, such as pastries and snacks, due to its high smoke point, low-fat content, and excellent flavor. Furthermore, clarified butter products are also used in various processed food products, such as soups, sauces, and dips. Additionally, clarified butter products are increasingly being used as a healthier alternative to traditional butter and other fats and oils, due to its high smoke point and low-fat content.

The rising demand for clarified butter products in the cosmetics and personal care industry is also driving market growth. Clarified butter products are increasingly being used as a natural ingredient in various skin care and hair care products, due to its moisturizing and healing properties. Additionally, clarified butter products are also used in the manufacture of various natural cosmetics and personal care products, such as lip balms, soaps, and creams, due to its moisturizing and healing properties.

The increasing demand for organic clarified butter products is driving the market growth. Consumers are increasingly opting for organic clarified butter products due to its various health benefits, such as promoting weight loss, improving digestion, and reducing the risk of various health issues. Additionally, organic clarified butter products are increasingly being used as a substitute for traditional butter and other fats and oils, due to its high smoke point, low-fat content, and excellent flavor. Furthermore, the increasing availability of organic clarified butter products in the market is also driving market growth.

The clarified butter segment led the market and accounted for a share of around 47.3% in 2022. The rising demand for clarified butter products is primarily attributed to its numerous health benefits. Clarified butter is cholesterol-free and contains vital nutrients such as conjugated linoleic acid and vitamins A, D, & K2. According to an article published by Eat This, Not That!, in October 2019, clarified butter is a healthier option compared to regular butter, as it is a rich source of healthy fats and has fewer calories. Furthermore, the increasing use of clarified butter in the food industry is aiding the growth of the market.

The desi ghee segment is estimated to expand at a CAGR of 8.3% over the forecast period. The rising demand for desi ghee among health-conscious consumers is driving the growth of the market. Desi ghee is said to have various health benefits, such as aiding in digestion, providing essential fatty acids, and acting as a natural moisturizer. Additionally, due to its medicinal properties, desi ghee is used for the treatment of various skin, hair, and nail problems. Moreover, the increasing adoption of ayurvedic medicines and therapies is further bolstering the growth of the market.

The supermarkets & hypermarkets segment held the largest share of the clarified butter market in 2020. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase food products. According to a study by Statista in 2020, supermarkets & hypermarkets are the most preferred channel for grocery shopping among people in the United States. In addition, these establishments also provide a wide variety of products and assist customers in making rapid purchasing decisions for the required product.

The online segment is anticipated to expand at the highest CAGR of 8.2% over the forecast period. E-commerce development in the food and beverage industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in December 2020, Clarified Butter USA launched an online store to provide consumers with easy access to their products. The store offers various clarified butter products including Ghee, clarified butter, and cooking oils. The site offers attractive discounts on the products along with free shipping on orders over $50.

The clarified butter segment accounted for the largest share of the global clarified butter products market in 2021 and is expected to maintain its dominance during the forecast period. Clarified butter is an essential ingredient in several Indian and Middle Eastern dishes. The increasing demand for clarified butter in the preparation of various dishes is anticipated to drive the growth of the clarified butter segment. Furthermore, the growing awareness regarding benefits of clarified butter such as its higher smoke point and nutritional content are expected to propel the demand for clarified butter during the forecast period.

The ghee segment is expected to expand at the highest CAGR of 7.2% over the forecast period. Ghee is a type of clarified butter that is used in the preparation of several dishes in Indian and Middle Eastern cuisines. The increasing demand for ghee in several cuisines is expected to drive the growth of the ghee segment. Furthermore, the increasing awareness regarding the health benefits of ghee is expected to propel the demand for ghee during the forecast period.

North America dominated the market and accounted for the largest revenue share of over 42.5% in 2022. An increase in the usage of clarified butter in various food items, such as cakes and cookies, is expected to drive the growth in the region. The growing health-conscious population in the region is shifting from processed food items to natural food items, which is further driving the growth of the market in North America.

Europe is expected to witness the second-fastest growth in the coming years. The presence of several leading players, such as Lurpak and KTC, is fueling the growth of the market in the region. Furthermore, the growing demand for organic clarified butter is expected to contribute to the market growth in Europe. For instance, in May 2021, Danish dairy giant Arla Foods launched its organic clarified butter in the UK.

In this part of the clarified 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 clarified butter products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a clarified butter products business comes from retail sales and wholesale distribution. Here you will find a list with a description of each of them and other possible sources of profit such as online sales, subscription-based delivery services, and catering.

Projecting Expenses

In this section, all the regular expenses related to keeping the clarified butter products business running will be described. The list of operating expenses includes ingredients and supplies, equipment and machinery, wages, marketing and advertising, rent and utilities, insurance policies, and others.

Some of the key companies operating in the clarified 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 July 2022, Amul launched clarified butter in sachets.

– In August 2022, Patanjali launched ghee in various flavors such as almond, pistachio, and saffron.

– In October 2022, Milkio Foods launched a range of clarified butter products with added health benefits.

Some of the prominent players in the clarified butter market include:

– Amul
– Milkio Foods
– Patanjali
– Markfed
– Mahananda Foods
– Nestle SA
– Arla Foods
– Mother Dairy
– Gopaljee Dairy
– VITA Milk Products

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 clarified butter products market based on product type, distribution channel, and region:

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

– Ghee
– Desi Ghee
– Organic Ghee
– Others

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

– Supermarkets & Hypermarkets
– Online
– Others

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

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

[Q]: What is Clarified Butter?
[A]: Clarified butter is butter that has been melted and cooked until the milk solids separate from the butterfat. The milk solids are then strained off, leaving behind a yellowish liquid with a high smoke point and a nutty flavor that is used in many different cuisines.

[Q]: What are the Benefits of Clarified Butter?
[A]: Clarified butter has a higher smoke point than regular butter, making it ideal for cooking at high temperatures. It is also lower in lactose and cholesterol, making it a healthier choice for those who are lactose intolerant or who are looking to reduce their cholesterol intake. Additionally, clarified butter has a richer flavor and texture than regular butter, making it a great choice for adding flavor to dishes.

[Q]: What Regions Offer the Largest Opportunity for Sales of Clarified Butter Products?
[A]: North America is expected to be the largest contributor to the global clarified butter products market, followed by Europe. The Asia Pacific is expected to be the fastest growing market, owing to increasing consumption of clarified butter products in countries such as India, China, and Japan.

[Q]: Who are the Key Players in the Clarified Butter Products Market?
[A]: Key players in the clarified butter products market include Amul, Arla Foods, Nestle, Fonterra, Danone, and Unilever.

[Q]: What are the Factors Driving the Clarified Butter Products Market?
[A]: Factors such as increasing demand for dairy-based products, health benefits associated with clarified butter, changing lifestyle, and growing demand for clarified butter in food service industry are expected to drive the market growth over the forecast period.