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

  • Butter and Spreads in Poland

    ... maintaining consumer affordability. One approach involved altering the product composition. Producers, reluctant to lose customers or reduce prices, chose to decrease the fat content in their butter products. For instance, the market saw an influx ... Read More

  • Butter and Spreads in Nigeria

    ... inflationary conditions throughout 2023 hinders a more substantial growth rate. Although unit prices for various categories witness a slower increase than in 2022, the inflationary pressures still exert a significant influence. The challenging economic climate, ... Read More

  • Dairy Products and Alternatives in Indonesia

    ... is good for gut health and generally improves the immune system. The COVID-19 pandemic played a significant role in raising this consciousness, and the focus on personal wellbeing persists. The health and wellness trend has ... Read More

  • Dairy Products and Alternatives in Dominican Republic

    ... high, pressure is expected to ease. In addition, the appreciation of the Dominican peso against the US dollar is expected to make imports slightly less expensive. That being said, there are continuing price pressures on ... Read More

  • Dairy Products and Alternatives in Costa Rica

    ... volume sales. While there is still economic uncertainty, as a result of rising inflation, the growth in inflation is expected to ease. That being said, consumers are expected to continue to be highly price sensitive ... Read More

  • Dairy Products and Alternatives in Nigeria

    ... the local currency, increasing fuel costs, and a demonetisation policy of the government mean that consumers have to focus spending on the most essential products. Dairy products and alternatives remain fairly inessential for many consumers ... Read More

  • Dairy Products and Alternatives in Hungary

    ... alternatives was bolstered by the international price increase of raw milk, the devaluation of the forint and the related increased exporting activities. As a consequence, in November 2022, the government implemented a price cap on ... Read More

  • Dairy Products and Alternatives in Honduras

    ... and subsequent boost in impulse purchases. While the market benefits from growth of modern grocery retailers and urbanisation, considerable poverty means many struggle to afford these products. This alongside inflation hampers per capita spending, which ... Read More

  • Dairy Products and Alternatives in Estonia

    ... Ukraine, the meteoric rise in inflation and tightening monetary policy. Also, a significant number of recent migrants from Ukraine is also expected to increase volume sales. However, inflation is expected to still be an issue, ... Read More

  • Butter and Spreads in Germany

    ... butter as cooking and baking were adopted as pleasurable activities, demand continues to fall in 2023 due to various factors, such as German consumers changing their dietary preferences, health concerns and inflation. Euromonitor International's Butter ... Read More

  • Butter and Spreads in Finland

    ... unit prices increased in 2022 and continued to do so at the beginning of 2023, leading to high levels of competition on the landscape, with more competitively priced private label offerings managing to capture sales ... Read More

  • Butter and Spreads in Greece

    ... cheaper varieties or simply remove the product from their shopping baskets. Euromonitor International's Butter and Spreads in Greece report offers in-depth knowledge of the market at a national level, providing local insight and understanding unavailable ... Read More

  • Butter and Spreads in Bolivia

    ... being said, value sales are still low, with margarine and spreads and cooking fats accounting for significantly more volume sales. Local brand Pil Mantequilla from Pil Andina continues to dominate value sales in butter, holding ... Read More

  • Butter and Spreads in Israel

    ... without the customs tax attached. In 2019, the country started to see shortages of butter. Stores limited the amount of butter customers could purchase and completely ran out of the product. Additionally, the price-controlled status ... Read More

  • Butter and Spreads in Guatemala

    ... consumers are expected to trade down – for instance trading down from butter to margarine and spreads or opting for cheaper brands within margarine and spreads. Consumer also buy larger tubs, which are cheaper per ... Read More

  • Dairy Products and Alternatives in Canada

    ... this trend has carried over into 2023. These fluctuations have had a multifaceted impact on dairy products and alternatives. The prices of nearly all products experienced substantial surges, with butter and spreads, as well as ... Read More

  • Dairy Products and Alternatives in Australia

    ... for dairy products. According to the ABS Consumer Price Index, which measures the changes in the prices of goods in Australia, dairy products has seen the second highest increase in price amongst food products, second ... Read More

  • Butter and Spreads in China

    ... with an enhanced consumer awareness of Western cuisine. The product also continued on its positive growth trajectory in the foodservice channel, where the popularity of baking has been instrumental in boosting consumption of butter in ... Read More

  • Dairy Products and Alternatives in Vietnam

    ... the end of the review period. The country has experienced tremendous challenges on numerous fronts from the start of 2023. For example, a drop in demand from key export markets has had a significant impact ... Read More

  • Dairy Products and Alternatives in Finland

    ... attention to price points, working on reduced disposable budgets. In addition, sales patterns continued to normalise after the heightened demand that took place during the outbreak of COVID-19, with this demand driven by home seclusion ... Read More

  • Dairy Products and Alternatives in Morocco

    ... the agricultural sector due to a rainfall deficit. Geopolitical factors, such as the European context shaped by the Ukraine conflict, continued to drive commodity prices upward on the global stage. These same tensions reverberated domestically, ... Read More

  • Butter and Spreads in Vietnam

    ... The popularity of margarine and spreads is underpinned by its versatility for baking and cooking, alongside affordability considerations. In general, Vietnamese consumers use margarine and spreads for sautéing and frying, such as to fry beef ... Read More

  • Butter and Spreads in Canada

    ... Index (CPI) experienced a decline in the early months of 2023, food inflation remains at historically elevated levels. Consequently, there has been an overall decrease in the consumption of butter and spreads. However, butter consumption ... Read More

  • Butter and Spreads in France

    ... to decline in 2023 following a notable drop the previous year, demand remains only marginally below pre-pandemic levels, while foodservice sales continue to climb as local consumers spend greater time outside of the home due ... Read More

  • Butter and Spreads in Costa Rica

    ... growth in inflation is expected to ease. That being said, consumers are expected to continue to be highly price sensitive and prioritise value for money and but at the same time players are also under ... Read More

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