Butter Market Strategies And Key Opportunities | 2023
The Global Butter Market is growing in tandem with the global dairy industry and is expected to showcase noteworthy growth over the forecast period. Butter is generally used as a condiment and used in a myriad of applications in the food industry and new use cases are being increasingly added every day which is the prime driver of the Global Butter Market.
The growth of the fast food industry is also a key growth influencer. Changing lifestyle and growing consumption of fast food and convenience food has generated additional demand for butter. Moreover, developing economy and the growing trend of cross-region cuisines foster market growth.
The Global Butter Market is anticipated to observe a compound annual growth rate of 4.2% over the forecast period of 2017-2023, predicts Market Research Future (MRFR) in an in-depth study. Butter is a chief ingredient in the food industry and is invariably used for cooking and baking.
Expanding bakery & confectionery industry is a key growth influencer. Butter is widely used in a variety of confectionery and bakery products which induces high demand for butter.
Availability of butter in different flavors and also low-fat content butter to cater to the varying needs of consumers has contributed significantly to the global butter market. Other factors contributing to the growth of the market include the rise in disposable income, especially in emerging economies and an increase in the trend of home baking which provides growth opportunities to the global butter market.
On the other hand, butter has a high content of saturated fat and dietary cholesterol which is linked to various health problems, especially cardiac diseases. Growing health consciousness among the disadvantages of butter consumption might affect the growth of the market. Availability of alternatives such as margarine which has high unsaturated fat content and little or no cholesterol might also limit the growth of the global butter market.
The key players in the global butter market include-
- Organic Valley (U.S.)
- Dean Foods (U.S.)
- FrieslandCampina (Netherlands)
- Amul (India)
- Arla Foods (Denmark)
- Kraft Foods Inc. (U.S.)
- Land O’Lakes, Inc. (U.S.)
February 2019- Starbucks, an American coffee company and coffeehouse chain, is launching two new vegan cakes in its UK stores. For the same, the coffee chain is utilizing plant-based butter.
The global butter market has been segmented based on processing, product type, and distribution channel.
By processing, the global butter market has been segmented into processed and unprocessed. The processed segment accounts for the majority share of the global market. Extensive industrial application in bakery and confectionery industries drives the growth of the segment.
By product type, the global butter market has been segmented into cultured butter, uncultured butter, raw cream butter, salted butter, others. The cultured butter segment leads the market owing to the advantage of high production capacity in a shorter duration.
By distribution channel, the global butter market has been segmented into store-based and non-store based. The store-based segment has been further segmented into supermarkets/hypermarkets, specialty retailers, convenience stores, others. The non-store based segment comprises of e-commerce. The store-based segment is the leading segment as consumers prefer store-based purchase due to the convenience of shopping.
By region, the Global Butter Market has been segmented into Asia Pacific (APAC), Europe, North America, and the Rest of the World (RoW).
Europe is at the forefront of the global butter market. Burgeoning food industry paired with the high consumption of convenience food in the region spurs the demand for butter in the region. In addition, expanding bakery & confectionery industry also generates considerable demand within the butter market. France, Germany, Belgium, the Netherlands, and Russia are among the major exporters of butter.
North America market is driven by towering demand from the bakery & confectionery industry and food service industry.
Asia Pacific market is spurred by the expanding dairy industry and the growing consumption of butter due to increased affordability. Consumption of fast food and other delicacies are likely to provide opportunities for market growth.