Butter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Butter Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global butter market is expected to grow at a CAGR of 3.6% during the forecast period (2021-2026).

Due to Covid-19 restrictions, the butter market experienced an increasing demand trend as a result of panic buying and hoarding several food items by the consumers, there was also a significant supply shock as a result of disruptions in export markets due to government regulations. Also, the advent of lockdown around the globe and the increasing inclination of people to prepare home-cooked food further increased the demand for butter sold in retail stores by the consumers.

Butter is regarded as one of the staple food which is applied in many of the food products cooked in the household globally, thus its demand is driving in the market studied. Also, the availability of different flavoured butter is further expected to increase the demand of the market studied.

Geographically, Europe and North America dominate the butter market. However, Asia-Pacific is expected to be the fastest-growing market for butter, during the forecast period, with India being the major market. As per the data provided by the USDA Foreign Agricultural Service, the average Canadian consumed 3.68 kilograms of butter per capita in the year 2020. New Zealand came in first place at 6.22 kilograms of butter per capita in 2020.

Availability of healthy alternatives to butter, such as margarine, along with government regulations in the production and distribution of butter is one factor that is restraining the market growth.

Key Market TrendsIncrease in Demand For Low Fat/Calorie/Cholesterol Butter

Awareness of excessive butter fat intake which can lead to cardiovascular diseases has led to a shift in the category of low fat, low cholesterol, and low-calorie butter. Therefore owing to such factors, butter brands such as Fonterra, Arla Foods, etc. have introduced butter of low fat and cholesterol to meet the consumer's needs in the market. For instance, in 2017 Finlandia launched a spreadable butter with canola oil and a 25% reduced-fat spreadable butter with canola oil. The butter is made with non-GMO canola oil.

Also, with the increasing inclination towards healthy butter, countries around the world have started to increase the production of low-fat butter. For instance, as per the data analysed by the Office for National Statistics (UK), there is a significant increase in sales volume of low-fat butter (not exceeding 85% by weight) from the year 2016 to 2019 in the United Kingdom thus, further leading to the overall sales in the market studied.

Asia-Pacific Region is the Fastest Growing Market for Butter

As per the US Department of Agriculture and Economic Research Service, India was one of the leading butter-producing countries in 2018, producing 5.6 million metric tons of butter. The Asia-Pacific butter supply has always been highly influenced, in increasing quantities, by the domestic market. Butter processing plants in the Asia-Pacific region have been significantly expanding to meet the consumer's demand, and therefore fueling the market growth. Also, while butter is primarily associated with Western cuisines, its potential use in Chinese cuisine has been heavily promoted by major producers such as Fonterra, thus further increasing application in Asian cuisine and subsequently in the Asian market.

Competitive Landscape

The global butter market is considered competitive in nature having a large number of domestic and multinational players competing for market share and with innovation in products being a major strategic approach adopted by leading players. Additionally, mergers, expansions, acquisitions and partnerships with other companies are common strategies to enhance the company's presence and boost the market. Some of the major companies operating in the market studied are Fonterra Co-operative Group, Arla Foods, Dairy Farmers of America, Ornua, and others. Companies are competing based on price, quality, innovation and promotions. Therefore, they are focused on strategic initiatives to achieve prominent market shares.​

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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