Overview:
Butter is a dairy product that is made from churning milk, cream or buttermilk to separate the fat globules. Sometimes, salt and food coloring may be added. Clarified butter or Ghee is made by melting butter and removing all milk solids. It’s almost completely butter fat.
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Over the next 10 years, the main factors expected to drive the revenue growth in the global butter market are the steady rise in butter usage in bakery and confectionery outlets as well as increased consumption of packaged foods such as cookies, cakes, macaroons and macarons.
Another factor that will have a positive effect on this market’s revenue growth is the growing number of Hotels, Restaurants and Cafes (HoReCa), in both emerging and developed economies around the globe. This is due to the high volume and consistent use of butter in their daily menus.
Global market growth is driven by the increasing demand for the product. The increased production of food products, and the expansion of the food service industry are expected to drive growth in this market. The growth of the product will be supported by an increase in worldwide bakery and confectionery product consumption. Butter is used for its tenderness, flavor shortening, and other purposes. Another factor contributing to market growth is the rising popularity of home baking. The popularity of home baking is expected to grow in the future.
After the COVID-19 pandemic, the butter market suffered a decline. Pandemics led to various governments imposing restrictions and lockdowns around the world. This affected the global supply chain, trade and production of butter. Also, the lockdown caused a decrease in raw materials to make plants, resulting in a reduction of production within a short period. Furthermore, the product was not sold in grocery stores or supermarkets. The market declined because of a lack of customers. Market activity will resume as usual and there will be an increase in online deliveries.
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Technological advancements and innovations like the IoT to transport butter and other dairy products are driving this market growth. Federal guidelines and regulations have been established by the U.S. Department of Agriculture (USDA), and Food and Drug Administration (FDA) for butter and related products. These rules and guidelines ensure that dairy products are in compliance with the highest hygiene standards.
Market growth will be driven by increasing health concerns and awareness about butter’s many benefits to consumers all over the globe. Butter can be consumed in moderation as part of a healthy diet and may offer several health benefits. There is a growing demand for low-fat, low calorie, and high-cholesterol butter products in the global market. This allows consumers to reach wider audiences. Health-conscious consumers can now purchase low-fat and low-calorie butter products. This will boost market growth over the forecast period.
The growing middle class population, the rise in disposable income and global urbanization will all contribute to market growth. Increasing consumer purchasing power will lead to an increase in bakery and confectionery product consumption. Due to the creation of new products and attractive packaging, there will be a greater demand for dairy products in emerging countries.
Driving Factors
There’s a growing need for processed foods
The demand for dairy products has changed from vegetable oil-based alternatives to dairy fats. This is due to a shift of taste preferences and better understanding of the health-benefits of milk fat. Due to rising disposable income and increased globalization, there will be more milk products consumed in emerging markets.
Due to rising demand for baked goods such as cookies, cakes and bread, butter consumption has increased within the bakery sector. This ingredient is crucial for confectionery production. Butter consumption is expected to rise due to the increased demand for confectionery products. Butter is used in many ready-to-cook and ready-to-eat meals, and as such, butter has seen an increase in popularity due to convenience food demand. Over the next few decades, there will be an increase of butter innovations and advancements.
Restraining Factors
The global butter market growth is being slowed by restraints. People are more conscious of their health and have made changes to their lifestyles and eating habits. Consumers are more conscious of the ingredients in their diet, as well as side effects and benefits. Consumers have been prompted to cut back on butter consumption and opt for products that are lower in calories and more saturated fat. This is a problem for the global butter industry’s growth. The market’s growth is impeded by the growing demand for vegan and veggie butter. The industry will be affected by strict government regulations, including licensing and labeling. A rise in obesity is a major problem in the industry.
Key Trends
Fonterra, Arla Foods and others have introduced low-fat and cholesterol butters to address consumer concerns. One of India’s most awaited new products is Oxie Nutrition White Chocolate Peanut Butter. It was delivered by Oxie Nutrition in India in January 2022. Since butter is the foundation of your diet, it does not impact your macronutrient intake. They are essential for your body’s ability to function properly and provide energy. Oxie Nutrition White Cocoa Peanut Butter makes a great food. It has both regular protein and many essential minerals.
Latest Developments
- Fonterra’s dairy NZMP; Fonterra launched carbon-zero organic butter in North American markets in March 2021. This will allow the company to reach its sustainability goals.
- Arla Foods announced that its Lurpak lighter range would be expanded in March 2021 with a light butter made with just two ingredients: butter and water.
- Country Crock introduced a dairy-free, plant-based butter in September 2019, to replace its buttery spread. It is made from plants and has a buttery flavor.
