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.
...Show More ...Show Less


Butter Industry Research & Market Reports

  • Switzerland Butter and Spreads

    ... volume sales with positive current value growth being largely due to inflation rather than an increase in demand. Swiss consumers are increasingly limiting their butter consumption or choosing more premium products, eating butter only on ... Read More

  • New Zealand Butter and Spreads

    ... New Zealand no exception to this trend. Butter is a household staple ingredient for many local consumers, not only as a spread, but also as a cooking and baking ingredient. However, New Zealanders continue to ... Read More

  • Norway Butter and Spreads

    ... trend, this residual practice continues to offer consumption opportunities for butter and spreads. Moreover, the resumption of on-the-go lifestyles and travel has created opportunities for use in sandwiches, for example. In addition, consumers are increasingly ... Read More

  • Hungary Butter and Spreads

    ... to lower consumption and a shift towards alternatives at a lower price point. The replacement of butter and cooking fat with margarine, oil or other plant-based alternatives is significant as well. Euromonitor International's Butter and ... Read More

  • Portugal Butter and Spreads

    ... rise in the cost of living, many consumers are eating at home more frequently as it is the cheapest option. Additionally, some consumers see butter as a healthier option due to its natural image, while ... Read More

  • Dominican Republic Butter and Spreads

    ... to grow in both volume and value terms in 2024. Whether due to the affordability of margarine and spreads or the perceived health benefits of butter, consumers have maintained their consumption habits. Instead of cutting ... Read More

  • Costa Rica Butter and Spreads

    ... expected to register higher value growth, though volume growth is expected to be higher for butter. Plastic jar presentations are becoming more common for butter and spreads, particularly when used as a spread, rather than ... Read More

  • Ecuador Butter and Spreads

    ... price of margarine is closely tied to the cost of edible oil, which experienced a significant surge due to global shortages and rising production costs. However, both 2023 and 2024 have witnessed a steady decline ... Read More

  • Greece Butter and Spreads

    ... a trend that is being observed across many dairy categories. The primary driver behind these price hikes is the increased cost of raw materials, which has directly impacted production costs. As a result consumers are ... Read More

  • Croatia Butter and Spreads

    ... minimal and volume sales unchanged. With prices continuing to rise, consumers are still price sensitive and private label benefits and in particular Lidl. Consumers scour for promotions, including on social media forums, to find where ... Read More

  • Romania Butter and Spreads

    ... to help consumers affected by the high cost of living to purchase basic products at affordable prices. The legislation stipulates that a number of food products must have a limited 20% mark-up made by manufacturers ... Read More

  • Estonia Butter and Spreads

    ... of Ukraine, the meteoric rise in inflation, and a constrained monetary policy continued to impact the category, although the rate of inflation is easing. However, butter and spreads are considered staple products in Estonia and, ... Read More

  • Egypt Butter and Spreads

    ... extremely high, as was the case in 2023, due to the significant increase in prices. Butter and spreads in Egypt is heavily reliant on imports from countries like New Zealand, leaving it vulnerable to any ... Read More

  • Saudi Arabia Butter and Spreads

    ... significantly impacted by substantial price increases, brought about by the war in Ukraine and associated supply and labour shortages, as well as logistical disruptions. This geopolitical conflict, coupled with high inflation and the escalating cost ... Read More

  • Global Lactose-free Butter Market 2024-2028

    ... on the lactose-free butter market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors. The report offers an up-to-date analysis regarding the ... Read More

  • Vietnam Butter and Spreads

    ... affordability considerations. In general, Vietnamese consumers use margarine and spreads for sautéing and frying, such as to fry beef or chicken or to sauté prawns, instead of using such products as a spread on bread. ... Read More

  • The US Butter and Spreads

    ... continued to climb strongly in 2023. The fallout from these trends saw butter grow solidly in retail volume and current value terms in the US in 2023, while margarine and spreads experienced a significant volume ... Read More

  • The US Dairy Products and Alternatives

    ... while retail volumes are expected to decline or stagnate in most categories. Milk is set to see one of the starkest declines in retail volume terms out of all dairy categories, a trend that has ... Read More

  • Mexico Butter and Spreads

    ... overall demand remained fairly stable. However, 2024 is emerging as a positive year for margarine and spreads. This is related to several factors. Margarine and spreads used to suffer more from the impact of the ... Read More

  • Brazil Organic Food Market Report by Product Type (Fruits and Vegetables, Food Grains and Cereals, Processed Food, Meat, Poultry and Dairy Products, Spices and Pulses, Beverages, and Others), Distribution Channel (Supermarkets and Hypermarkets, Specialty Stores, Direct/Institutional Sales, Online Stores, and Others), and Region 2024-2032

    ... Direct/Institutional Sales, Online Stores, and Others), and Region 2024-2032 The Brazil organic food market size reached US$ 3.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 13.8 Billion by 2032, ... Read More

  • Chile Butter and Spreads

    ... consumption in the local market has been growing due to its perceived benefits and versatility. This clarified butter, which is obtained through a process whereby the impurities of saturated fats and milk solids are removed, ... Read More

  • Thailand Butter and Spreads

    ... Western countries, butter is not traditionally a staple in Thai cuisine, where coconut milk, fish sauce, and other local ingredients are more commonly used. However, butter's popularity has been increasing, particularly among younger generations, who ... Read More

  • Finland Butter and Spreads

    ... to margarine and spreads. Innovation is expected to concentrate on creating plant-based products that can successfully imitate the flavour, texture, and performance of butter in baking and frying. This approach aims to attract health-conscious consumers ... Read More

  • Colombia Butter and Spreads

    ... than butter. The strong volume performance compared to butter is driven by price reductions and the expansion of private label such as Cuisine & Co, which helped to fuel growth over the review period. Leading ... Read More

  • The United Arab Emirates Butter and Spreads

    ... that had previously surged during periods of remote working. However, following a more positive performance in 2023, retail demand for butter and spreads continues to grow in 2024 to remain above pre-pandemic levels. Euromonitor International's ... Read More

Research Assistance

Live help

Join Alert Me Now!

Sign Up

Find out more on our blog
Cookie Settings