Big Data Analytics In Energy Sector - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Butter - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Butter Market size is estimated at USD 27.94 billion in 2024, and is expected to reach USD 34.12 billion by 2029, growing at a CAGR of 4.08% during the forecast period (2024-2029).

In some cultures, butter holds significant culinary and cultural importance, leading to sustained or increased demand for butter worldwide. Moreover, there has been a substantial shift in consumer preferences toward minimally processed food products. For instance, according to the Federal Ministry of Food and Agriculture, in 2022/23, around 90% of German consumers bought organic products due to animal husbandry considerations, and about 90% of consumers across Germany preferred buying natural/untreated groceries due to their concerns regarding health and wellbeing. As a result, manufacturers focus on the innovation of different butter forms with lesser fat content, spreadable format, and convenient packaging. For instance, in March 2023, Lactalis UK & Ireland launched light and spreadable butter under the President brand. This product was claimed to have 50% less fat compared to standard butter products. Furthermore, the market studied is characterized by the large number of brands catering to the B2C market by offering quality products at different price points. Therefore, new product offerings by emerging companies in the market are anticipated to play a significant role in propelling the demand for butter during the study period.

Butter Market Trends

Consumer Inclination Toward Natural/Organic Food Products

Many consumers are concerned about the environmental impact of food production and, therefore, seek products that align with their sustainability values. Organic and grass-fed butter production methods typically involve environmentally sustainable practices, such as pasture-based grazing systems and limited or zero-use of synthetic chemicals. As a result, environmental-conscious consumers prioritize food labels and products with simple, recognizable ingredients. Therefore, players are launching organic and natural varieties to stay in tune with the latest consumer trends and increase their overall sales. For instance, in November 2023, Dutch company Willicroft, which achieved B-Corp certification, announced the launch of a crowdfunding campaign to support the release of its latest development, Willicroft Original Better, a vegan butter made using beans and fermentation, at retail and food service.

Europe Dominates the Market

Spain has a longstanding tradition of using butter in pastries, sauces, and classic desserts like Roscones and Magdalena. According to Eurostat, the industry revenue for manufacturing bread, fresh pastry goods, and cakes in Spain was USD 7,327.04 million in 2023. Therefore, the prevailing societal inclination toward butter in baking and cooking contributes to the consistent market demand.

In the United Kingdom, butter is used in home bakery products, such as cakes and bread. According to the Agriculture and Horticulture Development Board (AHDB) data from 2022, the annual volume of butter produced in the United Kingdom was 209 thousand metric tons. As a result, the market players focus on increasing the production of butter in the country. For instance, in March 2023, Wyke Farms invested EUR 10 million in a new butter dairy facility in the United Kingdom. This expansion aimed to provide a wide range of premium butter products in the market.

Moreover, consumer demand for vegan, organic, and plant-based products is increasing in Germany due to growing consumer consciousness about the negative health impacts of synthetic ingredients in standard butter. According to data from the United States Department of Agriculture, in 2023, 1.58 million people in Germany were vegan. Due to this, the market players are launching vegan and plant-based butter in the country. For instance, in July 2023, Willicroft, a plant-based dairy startup, launched plant-based fermented butter. This butter is created using European soybeans.

Butter Industry Overview

The global butter market is fragmented, with many domestic and multinational players competing for market shares. Some major companies operating in the market studied are Fonterra Co-operative Group, Arla Foods Amba, Dairy Farmers of America, and Land O' Lakes Inc. Companies are competing based on price, quality, innovation, and promotions. Additionally, mergers, expansions, acquisitions, and partnerships are other common strategies adopted by players to enhance the brand presence and boost the market share.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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