Global Butter Market Report and Forecast 2024-2032

Global Butter Market Size

The global butter market value reached approximately USD 49.43 billion in 2023. The market is projected to grow at a CAGR of 3.20% between 2024 and 2032, reaching a value of around USD 65.67 billion by 2032.

Global Butter Market Growth

Butter, a widely enjoyed dairy product, is created by churning cream or milk.  Available in salted or unsalted varieties, butter market demand is driven by its composition, which includes primarily butterfat, water, and milk proteins, typically with 80% butterfat content. Butter is rich in saturated fats, vitamins A, E, and D, and contains cholesterol, along with traces of proteins and carbohydrates.

Global Butter Market Analysis

Butter has been a dietary staple, holding cultural significance in regions like Europe and South Asia. As a key commodity in the dairy sector, its market is shaped by dietary trends, agricultural practices, and international trade, driving the growth of the butter industry.

Additionally, there is an increasing preference for organic and grass-fed butter, seen as healthier due to natural production methods and higher nutritional content, including elevated Omega-3 fatty acids. Diets like Keto, which emphasize high fat and low carbohydrate intake, also drive butter demand as a primary fat source, stimulating butter industry revenue growth.

Global Butter Industry Outlook

According to the USDA, Wisconsin saw a substantial increase of 4,658 million lbs of milk, growing from 27,224 million lbs in 2012 to 31,882 million lbs in 2022. Idaho's production rose by 3,070 million lbs, reaching 16,628 million lbs in 2022 from 13,558 million lbs in 2012. Texas exhibited the highest growth, with an increase of 7,028 million lbs, taking its production from 9,596 million lbs in 2012 to 16,624 million lbs in 2022. New York's output increased by 2,470 million lbs, totalling 15,660 million lbs in 2022 compared to 13,190 million lbs in 2012. Michigan's milk production grew by 2,749 million lbs, rising from 8,991 million lbs in 2012 to 11,740 million lbs in 2022. Minnesota's production increased by 1,404 million lbs, achieving 10,477 million lbs in 2022, up from 9,073 million lbs in 2012.

According to the Ministry of Commerce and Industry/Office of the Economic Adviser, India's Wholesale Price Index (WPI) for milk showed a consistent upward trend, rising from just over 110 in 2019 to approximately 125 by 2022. Butter's WPI experienced more significant fluctuations; it started around 120 in 2019 and increased steadily, peaking near 140 in early 2022 and maintaining this level throughout the year, indicating stable butter market opportunities. Ghee's WPI, beginning at about 125 in 2019, surged to nearly 180 by early 2022 and stayed elevated through September 2022.

According to EUROSTAT NewCronos, Germany topped the EU in milk collection in 2022 with 33,669.15 thousand tons, slightly up from 33,251.38 thousand tons in 2021. France came next, collecting 25,808.03 thousand tons in 2022, a small increase from 25,417.09 thousand tons in 2021. Italy gathered 13,850.62 thousand tons in 2022, slightly more than 13,902.71 thousand tons in 2021. Ireland’s milk collection rose to 9,552 thousand tons in 2022, up from 9,316.30 thousand tons in 2021, showing continued growth. Spain’s collection increased to 8,028.79 thousand tons in 2022, compared to 7,987.49 thousand tons in 2021. Denmark also saw an increase, collecting 5,664.92 thousand tons in 2022, up from 5,648.60 thousand tons in 2021.

Butter is a staple in many cuisines with significant cultural relevance, ensuring a steady demand of the butter market.

• Packed with vitamins A, D, and E, and essential fats, making it attractive to health-conscious individuals.

• Widely used in various culinary applications, from baking to cooking, ensuring market stability.

High levels of saturated fat and cholesterol may discourage some health-focused consumers.

• Variable dairy prices can affect butter production costs and market pricing.

• Shorter shelf life compared to other dairy products, leading to storage and distribution challenges.

Rising interest in organic and grass-fed butter offers new butter market opportunities.

• Increasing dairy consumption in developing countries can drive butter sales and boost market revenue.

• Introducing flavoured and functional butter variants can attract specialized markets.

The growing trend of plant-based butter and margarine alternatives could impact butter market growth.

• Tighter regulations on dairy farming and health standards could impact production.

• Increasing awareness of the environmental effects of dairy farming may change consumer preferences.

Key Players in the Global Butter Market and their Strategic Initiatives

Arla Foods Amba

• Launched organic butter products to meet growing consumer demand.

• The rising demand in the butter market is leading to company investing in sustainable dairy farming practices.

Fonterra Co-operative Group Limited

• Introduced value-added butter products with health benefits.

• Formed strategic partnerships with food service companies to expand distribution channels. 

Lactalis International

• Acquired key dairy brands to diversify product offerings and expand market reach. 

• Promoted sustainable practices across its supply chain.

Kerry Group plc

• Expanded its global footprint through acquisitions and partnerships in emerging markets. 

• Invested in marketing campaigns focused on clean-label and natural ingredient trends.

Global Butter Industry Segmentation

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

Market Breakup by Type

• Salted Butter

• Unsalted Butter

Market Breakup by Usage

• Spreadable

• Non-spreadable

Market Breakup by End Use

• Food Processing

• Food Service

• Food Retail

Market Breakup by Distribution Channel

• Supermarkets/Hypermarkets

• Convenience Stores

• Online

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Butter Market Share

Culinary globalisation has led to the fusion of flavours and ingredients from around the world. Butter has become a canvas for these global inspirations, with manufacturers and chefs experimenting with flavours that reflect diverse cuisines. Hence, one of the major global butter market trends is the growing addition of spices, herbs, and even unconventional ingredients like seaweed and truffles in dairy products.

According to the global butter market analysis, the food retail sector is experiencing rapid growth, due to its wide presence. These channels serve as a solid foundation for the sale of packaged butter. The segment has witnessed substantial expansion in recent times due to the surge in home-based cooking and baking endeavours.

Leading Companies in the Butter Market

The companies are renowned for its diverse selection of cheeses, milk, and other dairy products, operating globally across multiple countries. Their primary commitment is to offer consumers around the world superior-quality dairy items.

• Lactalis International

• Land O’Lakes, Inc. 

• Fonterra Co-operative Group Limited 

• Royal FrieslandCampina N.V. 

• Arla Foods amba

• Gujarat Co-operative Milk Marketing Federation Ltd (AMUL) 

• Dairy Farmers of America, Inc. 

• Müller Group

• Ornua Co-operative Limited 

• Organic Valley

• Meadow Foods Limited

Key Highlights of the Report

Butter Market Report Snapshots

Butter Market Size

Butter Market Growth

Butter Market Analysis

Butter Market Share

Butter Companies