The global reduced fat butter products market was valued at USD 32.2 billion in 2022 and is projected to expand at a CAGR of 4.1% from 2023 to 2030. Reduced fat butter products are gaining popularity among health-conscious consumers due to their low fat content. Furthermore, a growing number of foodservice operators have started offering reduced fat butter products to meet the growing demand for healthier alternatives.

Rising health consciousness among consumers is stimulating the demand for reduced fat butter products. Consumers are becoming more aware of the health benefits of reduced fat butter products as compared to full-fat butter products. To capitalize on this trend, key market players are launching products with reduced fat content. For instance, in October 2021, Unilever launched a new range of reduced fat spreads, Flora ProActiv Spreads, made with plant-based fats and oils.

In addition, the increasing demand for vegan butter products is expected to drive the market growth. Manufacturers are launching new vegan butter products to meet the growing demand. For instance, in February 2022, Miyoko’s Kitchen Inc. launched a new vegan butter line made from plant-based ingredients, including coconut, sunflower, and olive oils. Furthermore, the presence of numerous online stores selling vegan butter products is expected to propel the demand for vegan butter products in the near future.

The growing demand for convenience foods is also driving the market growth. Consumers are increasingly preferring convenience foods due to their ease of preparation and convenience. As a result, foodservice operators are using reduced fat butter products as an ingredient to make their convenience foods healthier. For instance, in August 2021, Domino’s Pizza launched a new range of pizza products with reduced fat butter.

Moreover, the availability of reduced fat butter products in various forms such as spreadable, liquid, and cream is also driving the market growth. Companies are focusing on introducing innovative products to cater to the changing consumer preferences. For instance, in May 2021, Land O’ Lakes launched a new product, Land O Lakes Half Stick, which is a spreadable reduced fat butter. Furthermore, the growing popularity of butter-flavored cooking oils is also expected to fuel the market growth.

The reduced fat butter segment dominated the market and accounted for a share of around 34.3% in 2022. The growing concern among consumers regarding their health has led to increased demand for reduced fat butter products. According to an article published by Statista, in April 2020, the number of people in the U.S. who are trying to cut down on their fat intake has increased from 23.6 million in 2019 to 24.4 million in 2020. Furthermore, the rising demand for low-fat food products due to the increasing awareness about health benefits associated with reduced fat butter is driving the growth of the market.

The regular butter segment is expected to expand at the highest CAGR of 8.7% over the forecast period. The increasing consumption of butter products as an ingredient in food and bakery products is driving the growth of the market. According to an article published by NPD group, in April 2020, the consumption of butter-based products in the U.S. has increased by 25% in the last five years. In addition, the increasing preference for butter over margarine and other spreadable products is further driving the growth of the market.

The supermarkets and hypermarkets segment is estimated to account for the largest share of the reduced fat butter products market in 2022. The increasing number of supermarkets & hypermarkets and their ability to provide a wide range of products to customers is the key factor driving the growth of the segment. For example, in December 2020, Walmart Inc. revealed its plans to open more than 550 new stores in the U.S. in 2021. This expansion is expected to create more opportunities for the sale of reduced fat butter products through supermarkets and hypermarkets.

Online sales of reduced fat butter products are anticipated to register the highest CAGR of 11.2% during the forecast period. This can be attributed to the convenience offered by online stores and the increasing penetration of internet-enabled devices. Moreover, the emerging trend of cashless payments and e-commerce is further driving the demand for reduced fat butter products through online channels. For example, in January 2021, Amazon.com, Inc. announced its plans to introduce Amazon Pay in Germany. The move is expected to increase the adoption of online payments and drive the sales of reduced fat butter products through e-commerce platforms.

The reduced fat spread segment accounted for the largest revenue share of 73.6% in the year 2022. This is primarily attributed to the increasing health consciousness among consumers and the wide availability of reduced fat butter products in the market. The reduced fat spread segment is estimated to grow at a CAGR of 8.5% during the forecast period, owing to the increasing demand for low-fat butter products, the rising awareness of health and wellness, and the wide range of product offerings available in the market.

The reduced fat margarine segment is estimated to expand at the highest CAGR of 9.2% over the forecast period. This growth is attributed to the increasing demand for reduced fat butter substitutes, especially among health-conscious consumers. Furthermore, the growing trend of veganism is expected to propel the market growth in the forecast period, as reduced fat margarines are considered a healthier alternative to regular butter.

Europe is expected to hold the largest share of the market in 2022. Favorable regulations by European Food Safety Authority (EFSA) regarding the use of reduced fat butter products is a major factor driving the regional market growth. Moreover, the presence of a large number of reduced fat butter product manufacturers in the region is expected to further boost the market growth. For instance, in April 2021, Unilever launched the brand Flora Freedom, a vegan spread made with a blend of plant-based oils, in the UK.

The Asia Pacific is expected to witness the fastest growth in the coming years. This can be attributed to the increasing demand for healthier alternatives to dairy products in the region. Moreover, the presence of a large population and rising disposable income of consumers are expected to drive the market growth in the region. For instance, in June 2021, Amul launched a new product, Amul Lite, a low-fat butter in India.

In this part of the reduced fat 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 business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a reduced fat butter products business comes from sales of the product, subscriptions, and advertising. Here you will find a list with a description of each of them and other possible sources of profit such as promotional discounts, bulk orders, and online sales.

Projecting Expenses

In this section, all the regular expenses related to keeping the reduced fat butter products business running will be described. The list of operating expenses includes raw material purchases, packaging costs, wages, marketing, utilities, insurance policies, advertising, and others.

Some of the key companies operating in the reduced fat 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 June 2022, Upfield launched Flora pro.activ reduced fat butter, a spreadable product with 35% less fat than regular butter.

– In August 2022, Kerry Group launched a reduced fat butter spread, with 40% less fat than regular butter.

– In October 2022, Dairygold launched a reduced fat butter spread with 50% less fat than regular butter.

Some of the prominent players in the reduced fat butter market include:

– Upfield
– Kerry Group
– Dairygold
– Unilever
– Nestlé
– Lactalis Group
– Arla Foods
– Land O’Lakes, Inc.
– Dairy Farmers of America, Inc.
– Fonterra Co-operative Group Limited

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 reduced fat butter products market based on product, distribution channel, and region:

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

– Spreadable Butter
– Salted Butter
– Unsalted Butter
– 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 are the Factors Driving the Reduced Fat Butter Products Market?
[A]: The rising demand for healthy and low-fat food products, the increased awareness about the health benefits of low-fat butter products, the growing demand for convenience food products, and the changing food habits are the key factors driving the global reduced fat butter products market.

[Q]: What is the Potential of Product Innovation?
[A]: Companies in this market are focusing on product innovation to gain a competitive edge in the market. Product innovation is being used to introduce products with improved taste, texture, fortified nutrition, and longer shelf-life. These innovations are expected to open up new opportunities for the reduced fat butter products market.

[Q]: Who are the Key Players in the Reduced Fat Butter Products Market?
[A]: Some of the key players in the global reduced fat butter products market are Unilever, Kraft Heinz, Nestle SA, General Mills, and Fonterra.

[Q]: Which Region Offers the Largest Opportunity for Sales of Reduced Fat Butter Products?
[A]: Europe is expected to be the largest regional market, followed by North America. The growth in the region is mainly driven by the increasing health consciousness among consumers.

[Q]: What are the Key Trends in the Reduced Fat Butter Products Market?
[A]: The key trends in the global reduced fat butter products market include the introduction of vegan and plant-based butter products, the increasing demand for organic and natural reduced fat butter products, and the use of advanced technologies for product innovation.