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 South Africa

    ... This is the second year that the prices of margarine and spreads have seen double-digit growth, driven by global and local rises in edible oils. While South Africa produces edible oils locally, it also imports ... Read More

  • Butter and Spreads in Indonesia

    ... spreads are commonly used in preparing quick breakfasts before school and work. Furthermore, despite foodservice establishments having fully reopened, many local consumers who took up baking and cooking during the pandemic continue to engage in ... Read More

  • Butter and Spreads in the Czech Republic

    ... in prices impacting sales, but in 2023, we expect the consumption to stabilise, with a small decrease in volume. Butter sales will benefit as it is one of the basic ingredients in the Czech kitchen; ... Read More

  • Butter and Spreads in New Zealand

    ... behind, expected to reach NZD33 million. This discrepancy shows a clear preference amongst consumers for the more “natural” product. While margarine is positioned as a healthier alternative than butter in terms of maintaining heart health, ... Read More

  • Butter and Spreads in Australia

    ... Australia, as margarine was the more popular spread amongst consumers. However, recent consumer trends point to butter being the more suitable product for modern consumers. People are becoming more wary about what they put into ... Read More

  • Butter and Spreads in Italy

    ... strongly as consumers stocked up on butter, not least for home cooking/baking purposes during lockdown. Following a fast increase in 2020, retail volume sales of butter declined in 2021, but remained higher than the 2019 ... Read More

  • Dairy Products and Alternatives in Bosnia and Herzegovina

    ... which began back in 2022 continued throughout 2023, leading to muted retail volume sales. Dairy manufacturers have remained focused on innovation and new product development, with the entrance of new international, regional and domestic brands ... Read More

  • Dairy Products and Alternatives in China

    ... was predominantly due to disruptions caused by the COVID-19 pandemic, including the implementation of the Chinese government’s zero-COVID policy, which had significant repercussions on product supply in major cities, including Shanghai. With pandemic-related measures having ... Read More

  • Dairy Products and Alternatives in France

    ... is being driven by notable price rises, due to the combination of increased costs in energy, raw materials, packaging and distribution. Inflation has not been as high in France compared to many other EU countries, ... Read More

  • Dairy Products and Alternatives in Chile

    ... value growth is offsetting the strong reduction in volumes. In an economic environment where production costs continue to increase, and producers (including both large and small farmers) experience significant levels of uncertainty, demand for dairy ... Read More

  • Dairy Products and Alternatives in Hong Kong, China

    ... in 2023, benefiting from the restoration of local consumption and the return of tourists. Amongst these products, baby food is set to experience a particularly remarkable rebound in 2023, following substantial declines observed over a ... Read More

  • Dairy Products and Alternatives in Austria

    ... trend rising, dairy products benefit from generally being considered healthy. In 2023, dairy is set to sees stagnant retail volume sales with demand returning to pre-pandemic level. Euromonitor International's Dairy Products and Alternatives in Austria ... Read More

  • Dairy Products and Alternatives in Denmark

    ... retail prices remain high, with global and European stock exchange prices pushing up costs of commodities. Consequently, retail volume sales of dairy products and alternatives remain in decline. In this inflationary climate, consumers continue to ... Read More

  • Butter and Spreads in Argentina

    ... 2020 during the pandemic, with many people preparing home-made meals. Despite this, sales of butter and spreads in 2023 will exceed the volume seen in 2019 as the habit of cooking home-made meals continues, and ... Read More

  • Butter and Spreads in Austria

    ... 2023. The amount of special offers for branded butter products continues to be high, with consumers welcoming special offers during a time of economic hardship. As the average unit price declines, overall value sales of ... Read More

  • Butter and Spreads in Bulgaria

    ... faced soaring costs. Retail prices continued to increase in the first half of 2023 due to insufficient raw materials, together with higher production and import costs. Nevertheless, current value growth is considerably lower than in ... Read More

  • Butter and Spreads in Croatia

    ... as a less healthy option than butter, and has been unable to overcome this negativity. Consumers are becoming more health conscious in Croatia and follow the mainstream media for health advice. Butter, on the other ... Read More

  • Butter and Spreads in Hong Kong, China

    ... has been consistently influenced by a variety of lifestyle trends, with two prominent trends being health and wellness, and coffee culture. The health and wellness trend has gained significant traction, as an increasing number of ... Read More

  • Indian Dairy Market Report and Forecast 2023-2028

    ... population of dairy herd and rising use of dairy products in the ever-growing food and beverage industry, the market is projected to further grow at a CAGR of 8.62% between 2023 and 2028 to reach ... Read More

  • Butter and Spreads in Azerbaijan

    ... rate slowed in Azerbaijan and logistical supply chains were adjusted to support an increase in retail volume sales. Butter, in particular is reliant on imports of raw materials, with only about 50% of local butter ... Read More

  • Butter and Spreads in Colombia

    ... amid a shortage in milk, especially during the first trimester of the year. Margarine has a healthier perception and is considered more versatile than butter, encouraging consumers to switch in the face of butter shortages. ... Read More

  • Dairy Products and Alternatives in Thailand

    ... margins from their own higher costs – especially so in drinking milk, cheese, and butter, all of which have been aggressively affected by inflation. That said, the majority of players have stated they will not ... Read More

  • Dairy Products and Alternatives in Azerbaijan

    ... sensitivity remains strong with a high proportion of people cautious about how they allocate their household budget. Nevertheless, inflation has fallen slightly in 2023 and some categories, such as butter, are even seeing price reductions. ... Read More

  • Dairy Products and Alternatives in Colombia

    ... in the price of raw materials and worker shortages have caused significant increases in dairy prices. Even though the economy is showing notable signs of recovery in 2023, price increases remain an issue alongside currency ... Read More

  • Dairy Products and Alternatives in Singapore

    ... year in which several categories, such as fresh milk, saw a spike in retail volume sales as consumers spent more time at home. Since the gradual reopening from 2021, pent-up demand for dining out has ... Read More

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