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

  • Butter and Spreads in New Zealand

    ... behind, expected to reach NZD33 million. This discrepancy shows a clear preference amongst consumers for the more “natural” product. While margarine is positioned as a healthier alternative than butter in terms of maintaining heart health, ... Read More

  • Butter and Spreads in the Czech Republic

    ... in prices impacting sales, but in 2023, we expect the consumption to stabilise, with a small decrease in volume. Butter sales will benefit as it is one of the basic ingredients in the Czech kitchen; ... Read More

  • Butter and Spreads in Costa Rica

    ... growth in inflation is expected to ease. That being said, consumers are expected to continue to be highly price sensitive and prioritise value for money and but at the same time players are also under ... Read More

  • Butter and Spreads in Canada

    ... Index (CPI) experienced a decline in the early months of 2023, food inflation remains at historically elevated levels. Consequently, there has been an overall decrease in the consumption of butter and spreads. However, butter consumption ... Read More

  • Butter and Spreads in Vietnam

    ... The popularity of margarine and spreads is underpinned by its versatility for baking and cooking, alongside affordability considerations. In general, Vietnamese consumers use margarine and spreads for sautéing and frying, such as to fry beef ... Read More

  • Dairy Products and Alternatives in Finland

    ... attention to price points, working on reduced disposable budgets. In addition, sales patterns continued to normalise after the heightened demand that took place during the outbreak of COVID-19, with this demand driven by home seclusion ... Read More

  • Dairy Products and Alternatives in Vietnam

    ... the end of the review period. The country has experienced tremendous challenges on numerous fronts from the start of 2023. For example, a drop in demand from key export markets has had a significant impact ... Read More

  • Dairy Products and Alternatives in Chile

    ... value growth is offsetting the strong reduction in volumes. In an economic environment where production costs continue to increase, and producers (including both large and small farmers) experience significant levels of uncertainty, demand for dairy ... Read More

  • Dairy Products and Alternatives in Austria

    ... trend rising, dairy products benefit from generally being considered healthy. In 2023, dairy is set to sees stagnant retail volume sales with demand returning to pre-pandemic level. Euromonitor International's Dairy Products and Alternatives in Austria ... Read More

  • Butter and Spreads in Bulgaria

    ... faced soaring costs. Retail prices continued to increase in the first half of 2023 due to insufficient raw materials, together with higher production and import costs. Nevertheless, current value growth is considerably lower than in ... Read More

  • Butter and Spreads in Argentina

    ... 2020 during the pandemic, with many people preparing home-made meals. Despite this, sales of butter and spreads in 2023 will exceed the volume seen in 2019 as the habit of cooking home-made meals continues, and ... Read More

  • Butter and Spreads in Croatia

    ... as a less healthy option than butter, and has been unable to overcome this negativity. Consumers are becoming more health conscious in Croatia and follow the mainstream media for health advice. Butter, on the other ... Read More

  • Butter and Spreads in Austria

    ... 2023. The amount of special offers for branded butter products continues to be high, with consumers welcoming special offers during a time of economic hardship. As the average unit price declines, overall value sales of ... Read More

  • Dairy Products and Alternatives in Denmark

    ... retail prices remain high, with global and European stock exchange prices pushing up costs of commodities. Consequently, retail volume sales of dairy products and alternatives remain in decline. In this inflationary climate, consumers continue to ... Read More

  • Dairy Products and Alternatives in Hong Kong, China

    ... in 2023, benefiting from the restoration of local consumption and the return of tourists. Amongst these products, baby food is set to experience a particularly remarkable rebound in 2023, following substantial declines observed over a ... Read More

  • Dairy Products and Alternatives in Thailand

    ... margins from their own higher costs – especially so in drinking milk, cheese, and butter, all of which have been aggressively affected by inflation. That said, the majority of players have stated they will not ... Read More

  • Dairy Products and Alternatives in Azerbaijan

    ... sensitivity remains strong with a high proportion of people cautious about how they allocate their household budget. Nevertheless, inflation has fallen slightly in 2023 and some categories, such as butter, are even seeing price reductions. ... Read More

  • Butter and Spreads in Azerbaijan

    ... rate slowed in Azerbaijan and logistical supply chains were adjusted to support an increase in retail volume sales. Butter, in particular is reliant on imports of raw materials, with only about 50% of local butter ... Read More

  • Butter and Spreads in Hong Kong, China

    ... has been consistently influenced by a variety of lifestyle trends, with two prominent trends being health and wellness, and coffee culture. The health and wellness trend has gained significant traction, as an increasing number of ... Read More

  • Dairy Products and Alternatives in Colombia

    ... in the price of raw materials and worker shortages have caused significant increases in dairy prices. Even though the economy is showing notable signs of recovery in 2023, price increases remain an issue alongside currency ... Read More

  • Butter and Spreads in Colombia

    ... amid a shortage in milk, especially during the first trimester of the year. Margarine has a healthier perception and is considered more versatile than butter, encouraging consumers to switch in the face of butter shortages. ... Read More

  • Butter and Spreads in Japan

    ... stable over the last few years, as many products, such as Meiji Hokkaido Butter, are locally sourced, and had not been affected by supply issues. However, the unit price of butter finally saw a rise ... Read More

  • Dairy Products and Alternatives in Japan

    ... in production costs. Most of the categories within dairy products and alternatives, except for cheese, which heavily relies on imports, had not experienced high unit price increases until 2022, as there had been no supply ... Read More

  • Butter and Spreads in Denmark

    ... in order to absorb some of these costs. Moving into 2023, there has been some roll back in retail prices of butter and spreads, although overall prices are still high and unlikely to return to ... Read More

  • Butter and Spreads in Thailand

    ... via foodservice channels. Many sales of butter are from foodservice outlets, especially bakeries and cafés, as Thai people enjoy a culture of café-hopping to spend time with friend in such environments, eating and drinking dairy ... Read More

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