The butter market has witnessed significant growth in the past few years, and this growth will continue throughout the forecast period (2019-2029). The global butter market is forecasted to grow at a steady CAGR (compound annual growth rate), and the value will roughly equate to about $39 billion by the end of 2029, with the rising demand for butter flavouring.
These were among the findings of the report on the butter market by Persistence Market Research.
In addition to its use for flavouring in various ready-to-eat foods and drinks, butter continues to be an essential ingredients of cakes, cookies, wafers, and biscuits. Processed food manufacturers, bakery chefs, and other snack food manufacturers are experimenting with flavour profiles by infusing the inherent flavour of butter into a variety of products.
Organic butter is projected to gain more traction during the forecast period 2019-2029 due to the rise in health-conscious consumers. Among all regions, the growth of organic butter is anticipated to be high in Europe and North America due to the large health-conscious demographic. This has led butter manufacturers to launch their products in these regions to gain high revenue.
Lactalis S A, a leading dairy company of Europe, is offering salted organic butter and unsalted organic butter. Big companies are acquiring organic products offering firms to add organic butter in their product portfolio.
In 2018, Arla Foods?? Amba (a leading company in the global dairy industry) acquired Yeo Valley, one of the largest organic butter and cheese brands in the UK.
The demand for white or unsalted butter is growing in the food processing industry due to the high demand for buttery-flavoured snacks and cookies. As salted or table butter cannot be used in the food processing industry due to its high salt content, food processing companies are incorporating unsalted butter in their food products to add buttery flavours, thus boosting sales of unsalted butter.
The butter market in East Asia is witnessing steady growth driven by demand from an increasingly urbanised population with higher incomes.
In 2018, China was the largest importer of butter in East Asia as well as in the global market. China??s import grew by 16 per cent to about 1,47,500 tonne in 2018.
Manufacturers must identify opportunities for profits in European and North American markets, as the demand for organic butter has been observed to be on a higher side in these regions.
Global manufacturers are keen on expanding their presence in the global market, whereas regional and small manufacturers are focussing on product diversification and improving their brand awareness.
Manufacturers of butter are developing market strategies in response to current trends in the market.
Prominent manufacturers are emphasising on using technological advancements to produce and market their innovative butter offerings, such as flavoured butter, with garlic, curcumin, and other herbs. Strengthening their supply chain and increasing production capacity is another strategy used by leading market players.
In February 2019, Graham??s Family Dairy entered a five-year partnership with Aldi (a German brand of discount supermarket chains). This partnership is expected to help the company in sales of consumer products such as butter, cheese, and milk in Scotland.
In December 2015, FrieslandCampina invested $32.7 million to expand its production in its three operating companies, FrieslandCampina Cheese, FrieslandCampina Butter and Ecomel (organic dairy) in the Netherlands.
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