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 Guatemala

    ... Dairy Products and Alternatives in Guatemala report offers in-depth knowledge of the market at a national level, providing local insight and understanding unavailable elsewhere. In addition to the latest retail sales data 2018-2022, it identifies ... Read More

  • Dairy Products and Alternatives in Greece

    ... in line with reduced disposable incomes. There has been an increase in sales made during discount periods, while consumers have also shifted to private label offerings to save costs. Private label momentum was the strongest ... Read More

  • Dairy Products and Alternatives in Israel

    ... amid high inflation and the rising cost of living in Israel, while driving up retail current value sales. Meanwhile, baby food continues to benefit from a strong, if gradually falling, birth rate. Moreover, more women ... Read More

  • Butter and Spreads in Malaysia

    ... to take up cooking and baking as a hobby. This trend had a particularly positive impact on retail volume sales of butter, which is used as an ingredient in a wide range of recipes. However, ... Read More

  • Butter and Spreads in the Philippines

    ... and which showed no signs of abating, despite that fact that consumers spent more time outside the home. As butter and margarine are among the most common ingredients in the preparation of meals and baked ... Read More

  • Butter and Spreads in Georgia

    ... an effect and consumers are expected to be highly price sensitive and prioritise value for money. As a result, players support volume sales by offering promotions and discounts. Conversely, geopolitical tensions in the region has ... Read More

  • Dairy Products and Alternatives in the Philippines

    ... inflationary pressures, as energy and food prices posted lower increases, combined with improvements in distribution in modern and traditional retailers. Demand was further buoyed by the trend towards consuming breakfast at home more often, as ... Read More

  • Butter and Spreads in Cameroon

    ... remarkable transformation takes place. The dominance of these two oils has effectively marginalised the use of butter in Cameroonian cuisine, leaving little opportunity for its expansion. Furthermore, affordability plays a pivotal role. A litre of ... Read More

  • Butter and Spreads in Dominican Republic

    ... sensitive and prioritise value for money, but at the same time players are also under pressure to increase prices, due to rising costs in particular for feed. This price sensitivity is also expected to see ... Read More

  • Butter and Spreads in Latvia

    ... price, retail volume sales of the largest category, butter, recorded a slight decline in 2023 as its price is still higher than more affordable options including margarine and spreads. Cooking fats, meanwhile, remained a small ... Read More

  • Butter and Spreads in Spain

    ... volume terms in 2022, even more significantly than in the previous year when the market saw a logical setback after the surge caused by the pandemic. In 2023 sales of butter and spreads has seen ... Read More

  • Butter and Spreads in Egypt

    ... growth. These price increases were due to butter being imported from countries such as New Zealand, with the devaluation of the Egyptian pound by more than 70% impacting its prices. For margarine and artificial ghee ... Read More

  • Butter and Spreads in Bosnia and Herzegovina

    ... where it is seen as a healthier alternative to margarine. Consequently, it has achieved moderate retail volume growth despite the more challenging economic environment. By comparison, margarine and spreads remains under pressure and continues to ... Read More

  • Butter and Spreads in Saudi Arabia

    ... shortage of supplies and labour, and logistics challenges. All these factors impacted the manufacturing costs of many products, including butter. In 2023, the category’s struggles have continued due to the high rate of inflation and ... Read More

  • Dairy Products and Alternatives in Germany

    ... the local market, there has been a notable rise in the popularity of plant-based dairy, driven by remarkable expansion and a wider range of products now available. Plant-based milk made from soy, almond, oat, rice ... Read More

  • Dairy Products and Alternatives in Italy

    ... butter and spreads. This situation was aggravated by lower milk production in Italy, which negatively affected cheese production, leading to further price increases. This climate of uncertainty has made it difficult for companies manage their ... Read More

  • Dairy Products and Alternatives in Malaysia

    ... replaced by home-cooked food, while rising unit prices force parents to look for cheaper milk formulae or complement with breast milk for economy reasons. Euromonitor International's Dairy Products and Alternatives in Malaysia report offers in-depth ... Read More

  • Dairy Products and Alternatives in Cameroon

    ... in the double digits by the end of the 2023 fiscal year. This increase is primarily due to the rising prices of milk, as well as, to a lesser extent, dairy products and eggs. The ... Read More

  • Dairy Products and Alternatives in Latvia

    ... ingredients in 2022, which translated into significant price increases for dairy and alternatives. After peaking in 2022, price increases are slowing in 2023; however, volume sales in the year are impacted by economic uncertainty in ... Read More

  • Butter and Spreads in the United Kingdom

    ... fertiliser prices that plateaued in September 2022 remain extremely high, milk prices struggle to come down, boosting production costs along with heightened energy and logistical prices. Similarly, margarine and spreads has suffered from supply chain ... Read More

  • Butter and Spreads in Portugal

    ... home. Butter and spreads are particularly likely to be used at breakfast (usually as an accompaniment to bread or toast) and in the preparation of cakes and desserts. From 2022 onwards, however, volume growth slowed, ... Read More

  • Butter and Spreads in Hungary

    ... increasing retail volume sales of margarine and the moderate retail volume decrease of butter. The hybrid workstyle increases this trend because employees are more at home and open to cooking in parallel with working. Euromonitor ... Read More

  • Butter and Spreads in the United Arab Emirates

    ... due to rising health awareness, some consumers are also veering towards the consumption of foods that are low in fat and considered healthy. The increasing focus on health and fitness amongst the population has led ... Read More

  • Butter and Spreads in Morocco

    ... consumers. The burgeoning embrace of Western food items such as sandwiches, cakes, and cookies further bolsters its relevance. Although retail butter sales experienced a slight deceleration due to rising prices, a formidable competition emerges from ... Read More

  • Butter and Spreads in Estonia

    ... and tightening monetary policy continue to have an effect, though inflation is expected to ease. Euromonitor International's Butter and Spreads in Estonia report offers in-depth knowledge of the market at a national level, providing local ... Read More

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