Anhydrous Milk Fat (Butter Oil) Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028

Anhydrous Milk Fat (Butter Oil) Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028

Report Overview:

The global anhydrous milk fat market size reached US$ 2.7 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 4.1 Billion by 2028, exhibiting a growth rate (CAGR) of 7.2% during 2023-2028. The growing trend of consuming dairy-based diets, increasing number of fast-food chains, restaurants, cafes, and hotels serving flavorful dishes, and the rising popularity of fusion food among the masses represent some of the key factors driving the market.

Increasing Consumption of Fast-Food Stimulating Market Growth

At present, the thriving fast-food industry is propelling the demand for anhydrous milk fat (butter oil). In addition, the increasing utilization of anhydrous milk fat in manufacturing recombined dairy products, such as condensed milk, is contributing to the growth of the market. Moreover, the rising number of fast-food joints around the world selling flavorful dishes at affordable prices is supporting the growth of the anhydrous milk fat (butter oil) market. Besides this, fast food joints are adopting effective marketing strategies and collaborating with food bloggers and vloggers to connect with their targeted audience and increase their sales. They are also providing extra discounts, home delivery, and takeaway services to cater to a greater number of customers, which is catalyzing the demand for anhydrous milk fat (butter oil). Additionally, the rising trend of working from cafes, conducting business meetings, or arranging get-togethers in restaurants or cafes is supporting the growth of the anhydrous milk fat (butter oil) market. Apart from this, the increasing popularity of various fried foods, such as French fries, falafel, egg rolls, spring rolls, tempura, fritters, and chicken nuggets and wings, is strengthening the growth of the market. Furthermore, the growing consumption of various fried foods and ready-to-eat (RTE) food products among working individuals to save time and suppress appetite is creating a substantial demand for the global anhydrous milk fat (butter oil) industry.


Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The structure of the anhydrous milk fat (butter oil) market is fragmented, with a large number of global and regional key players operating and engaging in various mergers and acquisitions (M&A). The product differentiation rate is low, and the volume of new entrants in the market is also low due to the requirement of high capital investment and sophisticated machinery, difficult procurement process of raw materials, and stringent government regulations.

What is Anhydrous Milk Fat (Butter Oil)?

Anhydrous milk fat (AMF) refers to a compound extracted by separating oil fat from the cream or milk through the process of centrifugation. It involves removing the water content from milk to procure the fat concentrate, which contains pure milk fat. It is yellow in color and possesses a buttery and cream-like texture. It is manufactured by chilling raw milk, standardizing it by adding fat, protein, and other nutrients, pasteurizing, aging, churning, vacuum treating, and finally refining to achieve accurate flavor and texture. It stays liquid at temperatures above 36 degrees and solidifies at temperatures below 16-17 degrees and does not contain any additives, preservatives, or fatty acids. It has a longer shelf life, which facilitates easy transportation and storage. It does not require refrigeration during transportation and the quality depends primarily on free fatty acid levels, contamination by other oils and fats, and measurement of oxidative deterioration, such as peroxide value and anisidine value. It offers numerous nutritional benefits and contains high quantities of vitamins A, D, E, and K2 and calcium which are essential for maintaining proper bone health, preventing the occurrence of arthritis, and boosting immunity. It is incorporated in a wide range of recombined dairy products, such as whole milk, cheese, spreads, and ice creams. It is added to soups and sauces for providing a smooth and creamy texture and is utilized in frying, deep frying, roasting, grilling, and sauce-making purposes. It is also employed in the production of shortbread, butter cookies, pound cakes, and pastries and incorporated into praline fillings, chocolate, and chocolate bars, as it forms less fat bloom on the surface of chocolates.

Anhydrous Milk Fat Market (Butter Oil) Trends:

At present, the increasing demand for AMF due to the shifting trend of consuming dairy-based diets represents one of the primary factors influencing the market positively. Besides this, the rising demand for AMF in the food and beverage (F&B) industry to produce various processed food products is propelling the growth of the market. In addition, the growing demand for organic AMF produced from the processing of organic milk due to increasing health consciousness among the masses is offering a favorable market outlook. In line with this, the wide availability of input suppliers providing fodder, animal feed products, and veterinary products to maintain the proper health of cattle is impelling the growth of the market. Apart from this, the rising utilization of AMF as an alternative to butter, as it possesses a longer shelf life and does not require costly storage requirements, is contributing to the growth of the market. Additionally, the increasing popularity of various fusion food products among the masses is bolstering the growth of the market. Moreover, governing agencies of various countries are investing in the dairy sector to increase the production of milk and other dairy products. They are also encouraging manufacturers to strengthen the distribution network to increase their geographical presence, diversify the market, and maintain inventory. Furthermore, key market players are adopting advanced machinery to speed up the process of AMF production. They are also focusing on collaborating with raw material suppliers to get milk at fixed prices and minimize the issue of fluctuating supply costs and hire skilled and unskilled manpower to manage various labor-intensive processes in AMF production.

Key Market Segmentation:
IMARC Group provides an analysis of the key trends in each sub-segment of the global anhydrous milk fat (butter oil) market report, along with forecasts at the global and regional level from 2023-2028. Our report has categorized the market based on end-use.

End Use Insights:

Dairy
Bakery
Confectionary
Others

The report has provided a detailed breakup and analysis of the anhydrous milk fat (butter oil) market based on the end use. This includes dairy, bakery, confectionary, and others. According to the report, dairy represented the largest segment as it is a key ingredient in a wide range of recombined diary items, such as whole milk, cheese, spreads, ice cream, and condensed milk. Additionally, anhydrous milk fat provides a smooth, rich, and cream-like texture to various dairy products and enhances the overall flavor, which is propelling the growth of the respective segment.

Regional Insights:

Oceania
Europe
North America
Asia
Latin America
Middle East and Africa

The report has also provided a comprehensive analysis of all the major regional markets, which include Oceania, Europe, North America, Asia, Latin America, and the Middle East and Africa. According to the report, Oceania was the largest market for anhydrous milk fat (butter oil). Some of the factors driving the Oceania anhydrous milk fat (butter oil) market included the rising consumption of dairy-based diets to prevent the occurrence of various chronic diseases and the growing utilization of anhydrous milk in various local cuisines. In addition, the increasing adoption of effective methods and investments in the dairy sector to increase milk production and manufacturing of anhydrous milk fat is bolstering the growth of the market.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global anhydrous milk fat market. Some of the companies covered in the report include:

Fonterra
Dairy Farmers of America
Hilmar Cheese Company
Murray Goulburn
Westland Milk Products
Synlait Milk Limited

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Key Questions Answered in This Report

1. What was the size of the global anhydrous milk fat (butter oil) market in 2022?
2. What is the expected growth rate of the global anhydrous milk fat (butter oil) market during 2023-2028?
3. What are the key factors driving the global anhydrous milk fat (butter oil) market?
4. What has been the impact of COVID-19 on the global anhydrous milk fat (butter oil) market?
5. What is the breakup of the global anhydrous milk fat (butter oil) market based on the end-use?
6. What are the key regions in the global anhydrous milk fat (butter oil) market?
7. Who are the key companies/players in the global anhydrous milk fat (butter oil) market?