Butter Market Research Reports & Industry Analysis

Butter, like all food products, is at the mercy of supply and demand. Butter supply is dependent on milk production. Extremes in temperature or drought brings the supply down; cows simply aren’t producing milk. This scarcity is passed on to the consumer via higher prices. When external conditions are good, the cows are happy and they produce more than enough milk. There is a surplus of butter and prices go down. Prices have risen in the recent era due to the reduction of government price support programs.

All butter comes from dairy cows. It is a yellowish white mixture of fat, water, and the inorganic salts created when cow’s milk or cream is churned into butter. Butter contains largely Vitamin A, plus small amounts of calcium and phosphorus. Carotene gives it the yellowish-white pigment. (In the United States, manufacturers are allowed to add vegetable color to make butter more yellow.)

Butter in the United States is made under strict FDA regulations. Fresh milk is first inspected for weight, quality, and milkfat levels. The cream is then separated and pasteurized with at least 161◦ heat for about 15 seconds. Ultra-pasteurized milk is heated to at least 280 for 2 seconds. This extreme heat kills bacteria and gives the butter more shelf life. After pasteurization is complete, the cream is churned until it is solid: butter. The butter is then packaged and ready to be shipped to market.

All butter is considered food; it must contain at least 80% milkfat to be considered butter. There are three different types:

  • Lightly salted butter is used primarily for basic cooking. It usually comes in pre-measured sticks.
  • Unsalted butter is preferred for baking and for people on salt-restricted diets. It too usually comes in pre-measured sticks.
  • Whipped butter, made by whipping air or nitrogen into soft butter, makes spreading more convenient. It usually comes in tubs.
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Butter Industry Research & Market Reports

  • Dairy Products and Alternatives in Malaysia

    ... replaced by home-cooked food, while rising unit prices force parents to look for cheaper milk formulae or complement with breast milk for economy reasons. Euromonitor International's Dairy Products and Alternatives in Malaysia report offers in-depth ... Read More

  • Butter and Spreads in Nigeria

    ... inflationary conditions throughout 2023 hinders a more substantial growth rate. Although unit prices for various categories witness a slower increase than in 2022, the inflationary pressures still exert a significant influence. The challenging economic climate, ... Read More

  • Butter and Spreads in the United Kingdom

    ... fertiliser prices that plateaued in September 2022 remain extremely high, milk prices struggle to come down, boosting production costs along with heightened energy and logistical prices. Similarly, margarine and spreads has suffered from supply chain ... Read More

  • Dairy Products and Alternatives in Estonia

    ... Ukraine, the meteoric rise in inflation and tightening monetary policy. Also, a significant number of recent migrants from Ukraine is also expected to increase volume sales. However, inflation is expected to still be an issue, ... Read More

  • Dairy Products and Alternatives in Australia

    ... for dairy products. According to the ABS Consumer Price Index, which measures the changes in the prices of goods in Australia, dairy products has seen the second highest increase in price amongst food products, second ... Read More

  • Dairy Products and Alternatives in Canada

    ... this trend has carried over into 2023. These fluctuations have had a multifaceted impact on dairy products and alternatives. The prices of nearly all products experienced substantial surges, with butter and spreads, as well as ... Read More

  • Butter and Spreads in Israel

    ... without the customs tax attached. In 2019, the country started to see shortages of butter. Stores limited the amount of butter customers could purchase and completely ran out of the product. Additionally, the price-controlled status ... Read More

  • Butter and Spreads in Finland

    ... unit prices increased in 2022 and continued to do so at the beginning of 2023, leading to high levels of competition on the landscape, with more competitively priced private label offerings managing to capture sales ... Read More

  • Dairy Products and Alternatives in Indonesia

    ... is good for gut health and generally improves the immune system. The COVID-19 pandemic played a significant role in raising this consciousness, and the focus on personal wellbeing persists. The health and wellness trend has ... Read More

  • Dairy Products and Alternatives in Honduras

    ... and subsequent boost in impulse purchases. While the market benefits from growth of modern grocery retailers and urbanisation, considerable poverty means many struggle to afford these products. This alongside inflation hampers per capita spending, which ... Read More

  • Butter and Spreads in Poland

    ... maintaining consumer affordability. One approach involved altering the product composition. Producers, reluctant to lose customers or reduce prices, chose to decrease the fat content in their butter products. For instance, the market saw an influx ... Read More

  • Butter and Spreads in Hungary

    ... increasing retail volume sales of margarine and the moderate retail volume decrease of butter. The hybrid workstyle increases this trend because employees are more at home and open to cooking in parallel with working. Euromonitor ... Read More

  • Butter and Spreads in the United Arab Emirates

    ... due to rising health awareness, some consumers are also veering towards the consumption of foods that are low in fat and considered healthy. The increasing focus on health and fitness amongst the population has led ... Read More

  • Butter and Spreads in Portugal

    ... home. Butter and spreads are particularly likely to be used at breakfast (usually as an accompaniment to bread or toast) and in the preparation of cakes and desserts. From 2022 onwards, however, volume growth slowed, ... Read More

  • Dairy Products and Alternatives in Cameroon

    ... in the double digits by the end of the 2023 fiscal year. This increase is primarily due to the rising prices of milk, as well as, to a lesser extent, dairy products and eggs. The ... Read More

  • Butter and Spreads in France

    ... to decline in 2023 following a notable drop the previous year, demand remains only marginally below pre-pandemic levels, while foodservice sales continue to climb as local consumers spend greater time outside of the home due ... Read More

  • Butter and Spreads in China

    ... with an enhanced consumer awareness of Western cuisine. The product also continued on its positive growth trajectory in the foodservice channel, where the popularity of baking has been instrumental in boosting consumption of butter in ... Read More

  • Dairy Products and Alternatives in Bosnia and Herzegovina

    ... which began back in 2022 continued throughout 2023, leading to muted retail volume sales. Dairy manufacturers have remained focused on innovation and new product development, with the entrance of new international, regional and domestic brands ... Read More

  • Dairy Products and Alternatives in China

    ... was predominantly due to disruptions caused by the COVID-19 pandemic, including the implementation of the Chinese government’s zero-COVID policy, which had significant repercussions on product supply in major cities, including Shanghai. With pandemic-related measures having ... Read More

  • Dairy Products and Alternatives in France

    ... is being driven by notable price rises, due to the combination of increased costs in energy, raw materials, packaging and distribution. Inflation has not been as high in France compared to many other EU countries, ... Read More

  • Butter and Spreads in Italy

    ... strongly as consumers stocked up on butter, not least for home cooking/baking purposes during lockdown. Following a fast increase in 2020, retail volume sales of butter declined in 2021, but remained higher than the 2019 ... Read More

  • Butter and Spreads in Australia

    ... Australia, as margarine was the more popular spread amongst consumers. However, recent consumer trends point to butter being the more suitable product for modern consumers. People are becoming more wary about what they put into ... Read More

  • Butter and Spreads in South Africa

    ... This is the second year that the prices of margarine and spreads have seen double-digit growth, driven by global and local rises in edible oils. While South Africa produces edible oils locally, it also imports ... Read More

  • Dairy Products and Alternatives in Morocco

    ... the agricultural sector due to a rainfall deficit. Geopolitical factors, such as the European context shaped by the Ukraine conflict, continued to drive commodity prices upward on the global stage. These same tensions reverberated domestically, ... Read More

  • Butter and Spreads in Indonesia

    ... spreads are commonly used in preparing quick breakfasts before school and work. Furthermore, despite foodservice establishments having fully reopened, many local consumers who took up baking and cooking during the pandemic continue to engage in ... Read More

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