Buttermilk Market By Type (Liquid buttermilk, Buttermilk powder) , By Application (Confectionary, Ice cream, Bakery, Dairy-based sauces) : Global Opportunity Analysis and Industry Forecast, 2024-2033

Buttermilk Market By Type (Liquid buttermilk, Buttermilk powder) , By Application (Confectionary, Ice cream, Bakery, Dairy-based sauces) : Global Opportunity Analysis and Industry Forecast, 2024-2033

The buttermilk market was valued at $34.1 billion in 2023, and is projected to reach $47.4 billion by 2033, growing at a CAGR of 3.4% from 2024 to 2033.

Buttermilk is a tangy, fermented dairy product traditionally made by churning fresh cream to extract butter, with the liquid left behind being the buttermilk. Modern buttermilk, however, is typically made by adding lactic acid bacteria to low-fat or whole milk, which ferments the lactose and gives it a slightly tangy flavor and thicker consistency. Traditionally, buttermilk was a by-product of homemade butter-making, but commercial buttermilk is now produced through controlled fermentation processes. It is commonly used in baking, cooking, and beverages, adding flavor, moisture, and tenderness to recipes.

The growth of the global buttermilk market is driven by increase in consumer preference toward natural and traditional dairy products. In addition, multiple health and nutritional benefits associated with buttermilk significantly contribute toward the market growth. For instance, buttermilk is rich in probiotics, essential nutrients like calcium, and vitamins, which appeal to health-conscious consumers. Its digestive and immune-boosting properties also contribute to its rising popularity. Rise in trend of convenience and ready-to-drink options has led to the development of flavored buttermilk drinks, further expanding the product’s market reach. According to a consumer behavior study published by Food Research International in 2021, the global consumption of ready-to-drink fermented beverages, including buttermilk, grew by 15% annually, driven by convenience and health trends. While buttermilk contains lactose, it is often more easily digestible than regular milk due to the fermentation process. This has positioned buttermilk as a viable option for some lactose-sensitive consumers, further driving the market growth. Moreover, increased use of buttermilk in bakery and culinary applications significantly boosts the market growth. Despite buttermilk being easier to digest than regular milk, it still contains lactose. With a significant portion of the global population suffering from lactose intolerance, the demand for dairy-free alternatives has surged, limiting buttermilk's market potential. In addition, rise in popularity of plant-based alternatives and increase in trend of veganism and demand for plant-based beverages restrain the market growth. On the contrary, introduction of new flavors and packaging to meet changing consumer preferences, such as low-fat and flavored buttermilk varieties, is expected to offer lucrative opportunities for the market growth during the forecast period.

The global buttermilk market is segmented into type, application, and region. On the basis of type, the market is divided into liquid buttermilk and buttermilk powder. Depending on application, it is segregated into confectionary, ice cream, bakery, and dairy-based sauces. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key Findings

By type, the liquid buttermilk segment dominated the market with the highest share in 2023.

On the basis of application, the confectionery segment was the major shareholder in 2023.

Region wise, North America emerged as the most lucrative market for buttermilk; however, Asia-Pacific is expected to lead the market from 2024 to 2033.

Competition Analysis

Competitive analysis and profiles of the major players in the global buttermilk market include Amul, Arla Foods, DairyAmerica, Sodiaal Group, Fonterra, Dairy Farmers of America, Inc., Glanbia, Valley Milk, Associated Milk Producers, Arion Dairy Products B.V., Innova Food Ingredients, Sterling Agro Industries, Grain Millers, Inc., Agri-Mark, Inc., and Land O'lakes, Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to sustain the intense competition and gain a strong foothold in the global market.

Key Market Segments

By Type

Liquid buttermilk
Buttermilk powder

By Application

Confectionary
Ice cream
Bakery
Dairy-based sauces

By Region

North America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Thailand
Malaysia
Indonesia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Argentina
Rest of LAMEA

Key Market Players

Amul
Arla Foods
DairyAmerica
Sodiaal Group
Fonterra
Dairy Farmers of America, Inc.
Glanbia
Valley Milk
Associated Milk Producers
Arion Dairy Products B.V.
Innova Food Ingredients
Sterling Agro Industries
Grain Millers, Inc.
Agri-Mark, Inc.
land o'lakes, inc.