Australia Clarified Butter Market Report and Forecast 2024-2032

Australia Clarified Butter Market Outlook

The Australia clarified butter market size reached USD 167.78 million in 2023. The market is expected to grow at a CAGR of 2.78% between 2024 and 2032, reaching almost USD 213.71 million by 2032.

Key Takeaways

• Dairy stands as Australia's third-largest rural industry, following beef and wheat production. According to Dairy Australia Limited approximately 4,618 dairy farms operate across the nation.

• Australia's commercial butter production in 2020-2021 reached close to 82,000 tonnes, expressed in commercial butter equivalent (CBE) terms. This metric encompasses both traditional butter and anhydrous milkfat (AMF), a dehydrated butter product similar to clarified butter.

• Supermarkets remained the dominant sales channel for domestic dairy spreads in Australia during 2020-2021, accounting for approximately 65% of total sales. Conversely, export volumes for butter and ammonium milk fat (AMF) witnessed a significant surge of roughly 110%, reaching nearly 25,000 tonnes over the same period. This growth highlights Australia's expanding presence in the global dairy market. Notably, Greater China, Thailand, Singapore, and Malaysia emerged as Australia's key export destinations for these products.

The Australian clarified butter market is experiencing a surge in demand, driven by the continued rise of e-commerce and the introduction of organic clarified butter products

Online marketplaces have expanded the availability of clarified butter for Australian consumers. These platforms offer a wider selection, encompassing niche offerings such as organic and artisanal varieties, which may not be readily available in traditional retail settings. Additionally, the convenience of home delivery and potentially more competitive pricing have significantly driven online clarified butter purchases.

The organic food movement has witnessed a significant surge in recent years, and organic clarified butter is no exception. Driven by a desire for perceived health benefits and environmentally responsible practices, consumers are increasingly seeking out this product. Organic clarified butter offers the advantage of being free from pesticides and other potentially harmful chemicals, while its production aligns with sustainable farming principles.

In February 2022, South Australian startup, OMGhee, launched organic, lactose-free ghee. This innovative offering caters to a growing market seeking dairy-free alternatives. OMGhee unique properties, including its high-fat, low-carb profile, lactose-free status, and superior smoke point compared to traditional cooking oils, have propelled it to rapid popularity within the dairy-free, paleo, keto, and general cooking communities.

Market Segmentation

Australia Clarified Butter Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Source

• Cow

• Buffalo

• Mixed

• Others

Market Breakup by End Use

• Retail

• Institutional

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Speciality Stores

• Online

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

The Australia clarified butter market key players are Sharma’s Kitchen Pty Ltd., Nzac Foods, OMGhee, Golden Farm Australia Pty Ltd., and GOLD42, among others.

Key Highlights of the Report