Butter Market Research Reports & Industry Analysis

Butter, like all food products, is at the mercy of supply and demand. Butter supply is dependent on milk production. Extremes in temperature or drought brings the supply down; cows simply aren’t producing milk. This scarcity is passed on to the consumer via higher prices. When external conditions are good, the cows are happy and they produce more than enough milk. There is a surplus of butter and prices go down. Prices have risen in the recent era due to the reduction of government price support programs.

All butter comes from dairy cows. It is a yellowish white mixture of fat, water, and the inorganic salts created when cow’s milk or cream is churned into butter. Butter contains largely Vitamin A, plus small amounts of calcium and phosphorus. Carotene gives it the yellowish-white pigment. (In the United States, manufacturers are allowed to add vegetable color to make butter more yellow.)

Butter in the United States is made under strict FDA regulations. Fresh milk is first inspected for weight, quality, and milkfat levels. The cream is then separated and pasteurized with at least 161◦ heat for about 15 seconds. Ultra-pasteurized milk is heated to at least 280 for 2 seconds. This extreme heat kills bacteria and gives the butter more shelf life. After pasteurization is complete, the cream is churned until it is solid: butter. The butter is then packaged and ready to be shipped to market.

All butter is considered food; it must contain at least 80% milkfat to be considered butter. There are three different types:

  • Lightly salted butter is used primarily for basic cooking. It usually comes in pre-measured sticks.
  • Unsalted butter is preferred for baking and for people on salt-restricted diets. It too usually comes in pre-measured sticks.
  • Whipped butter, made by whipping air or nitrogen into soft butter, makes spreading more convenient. It usually comes in tubs.
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Butter Industry Research & Market Reports

  • Dairy Products and Alternatives in Ireland

    ... lower rate. This led to volume sales declines across most categories of dairy and baby food as consumers limited spending to the absolute essentials, purchasing products less often and favouring less expensive options. Nonetheless, as ... Read More

  • Dairy Products and Alternatives in Belgium

    ... available income. As a result, total volume sales returned to pre-pandemic levels after peaking in 2020 when Belgium went into lockdown. In 2023, the effects of the inflation crisis continue to be felt, although at ... Read More

  • Butter and Spreads in Ireland

    ... with rising production and distribution costs at a time of high inflation and pressure on demand due to significant increases in the cost of living. Rising prices affected virtually all butter brands throughout 2022 and ... Read More

  • Butter and Spreads in Turkey

    ... be a drop in retail volume sales of butter, as well as a further decrease in cooking fats. The anticipated decrease in butter demand coincides with a notable reduction in butter production. The downturn in ... Read More

  • Butter and Spreads in Belgium

    ... sales of butter have continued to decline, albeit at a slightly more modest pace. This decline is due to two major factors. Firstly is the competition from edible oils and secondly are the negative health ... Read More

  • Butter and Spreads in Uzbekistan

    ... more affordable margarine and spreads rather than butter. The situation is further complicated by an unstable supply of milk in Uzbekistan. As a result of the poor development of agriculture and, in particular, dairy farms, ... Read More

  • Butter and Spreads in Slovenia

    ... Health experts identified butter as one of the key culprits in increasing the prevalence of cardiovascular disease and obesity in the country. In response, manufacturers are looking for ways to produce healthier butter and spreads, ... Read More

  • Butter and Spreads in Pakistan

    ... and ghee formats, with many opting for packaged alternatives. Packaged options have a comparably longer shelf life and are UHT treated to ensure better product safety. Nevertheless, unpackaged butter and ghee remains untaxed in Pakistan ... Read More

  • Dairy Products and Alternatives in Kenya

    ... experienced high inflation caused by commodity price volatility and tightening global financing conditions that has put major pressure on the exchange rate and foreign exchange reserves. The government has been striking a balance through a ... Read More

  • Butter and Spreads in Norway

    ... behaviour. As Norwegians embrace outdoor activities anew and reduce their domestic culinary pursuits, there has been a definite decrease in home-cooking and baking – especially from scratch. In addition, rising health consciousness and prevailing health ... Read More

  • Butter and Spreads in North Macedonia

    ... volume terms, butter is growing moderately despite the shrinking consumer base. As the price advantage of margarine and spreads has been eroded in recent years due to rising manufacturing costs, consumers have turned to butter, ... Read More

  • Butter and Spreads in Kenya

    ... is expected to dampen volume sales. In addition, the Kenyan shilling is depreciating against the dollar and this is making imports more expensive. Cooking fat remains the largest product in terms of volume sales, as ... Read More

  • Butter and Spreads in Switzerland

    ... dampening sales. Swiss consumers are increasingly limiting their butter consumption or choosing more premium products, eating butter only on specific occasions, such as breakfast and brunch. Euromonitor International's Butter and Spreads in Switzerland report offers ... Read More

  • Butter and Spreads in Uruguay

    ... growth in butter and spreads. However, the category experienced high demand during the COVID-19 pandemic with many consumers preparing home-made foods. Growth is now being restricted by employees working back in the office, which means ... Read More

  • Dairy Products and Alternatives in Jordan

    ... of chained supermarkets and hypermarkets will continue to drive growth. However, in 2023, dairy products face a new set of challenges due to inflated prices as oil and fuel prices increase across the globe. This ... Read More

  • Dairy Products and Alternatives in Lithuania

    ... price increases at a time of significant increases being seen in the cost of living. However, the essential status of many dairy products and general improvements in the socioeconomic situation in Lithuania meant that the ... Read More

  • Butter and Spreads in Slovakia

    ... which had an impact on production costs, and ultimately, unit prices With high inflation driving up the general cost of living, many households chose to reduce their consumption of butter, either by purchasing the product ... Read More

  • Dairy Products and Alternatives in Kazakhstan

    ... gas prices boosted the local economy, its usual outflow to the global market through Russia was disrupted and its energy sector had to look for other alternatives. As a result, the economy did not reap ... Read More

  • Dairy Products and Alternatives in Iraq

    ... local production as foreign brands tend to offer basic products made from powder milk. The result of government intervention is a wider range of high-quality local products at affordable prices. Baby food meanwhile continues to ... Read More

  • Dairy Products and Alternatives in El Salvador

    ... as milk formula, a category that is solely dependent on imports to meet local demand. Moreover, one-third of milk demand is supplied by imports from neighbouring countries. The resumption of society in the wake of ... Read More

  • Butter and Spreads in Serbia

    ... slight volume growth is driven mainly by butter, which is outperforming margarine and spreads in 2023. Euromonitor International's Butter and Spreads in Serbia report offers in-depth knowledge of the market at a national level, providing ... Read More

  • Butter and Spreads in Tunisia

    ... production by farmers. Low levels of milk production was caused by a range of factors, including poor weather conditions and the high cost of animal feed. This shortage resulted in price hikes and product scarcity ... Read More

  • Butter and Spreads in Romania

    ... by inflationary pressures and increases in costs, mean price-sensitive consumers are purchasing lower volumes. The factors which are determining the high price growth of butter and spreads, are the costs related to the prices of ... Read More

  • Dairy Products and Alternatives in Kuwait

    ... due to the industry’s essential nature, it continues to perform well and will see ongoing growth. Generally, dairy is benefiting from its healthy image, while price subsidies on milk formula and other essential categories remain ... Read More

  • Dairy Products and Alternatives in Laos

    ... households with babies and infants. However, the industry is facing some challenges in terms of local production, with imported dairy products being far more common. Due to the added importation costs, such products are a ... Read More

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