With rising popularity of premium, organic, and plant-based butter, the global butter market is witnessing a dynamic shift in both production and consumption.
Food & Beverages
With rising popularity of premium, organic, and plant-based butter, the global butter market is witnessing a dynamic shift in both production and consumption.
The butter industry has long been a cornerstone of the global dairy sector, representing both a staple ingredient in kitchens worldwide and a significant component of the agricultural economy. Butter, a dairy product derived from churning cream to separate butterfat from buttermilk, has evolved from a traditional, artisanal product into a mass-produced commodity with a diverse range of varieties. Its rich, creamy texture and distinct flavor make it an essential ingredient in cooking, baking, and spreading, appealing to both home cooks and professional chefs alike. While butter has been a dietary staple for centuries, its popularity has fluctuated due to changing consumer perceptions and health trends. In the 20th century, as margarine and other vegetable-based spreads rose to prominence, butter faced criticism due to its high saturated fat content. However, recent studies and a shift in consumer attitudes toward natural, whole foods have fueled a resurgence in butter's popularity, especially in markets like North America and Europe. The global butter market has experienced steady growth in recent years, driven by several factors. One of the key drivers has been the rising demand for natural and minimally processed foods, as consumers become more conscious of the ingredients in their diets.
According to the research report “Global Butter Market Outlook, 2030” published by Bonafide Research, the global market is projected to reach market size of USD 60.76 Billion by 2030 increasing from USD 46.71 in 2024, growing with 4.58% CAGR by 2025-30. Butter, perceived as a less-processed alternative to margarine and other spreads, has seen a resurgence in favor. This shift is particularly evident in markets where health-conscious consumers are seeking products that are natural, authentic, and free from additives and preservatives. Furthermore, the growing trend toward high-fat, low-carb diets such as the ketogenic diet has also contributed to butter's renewed popularity, as it is seen as a beneficial source of healthy fats. As more consumers embrace butter as a part of their regular diet, the industry has seen an expansion in product offerings, including organic, grass-fed, and specialty butter varieties, catering to the increasing demand for premium and ethically sourced products. In addition to shifting health perceptions, the butter market is benefiting from changes in dietary habits, particularly in emerging markets. The Asia-Pacific region, for example, has seen significant growth in butter consumption, driven by rising disposable incomes and a growing middle class. As consumers in countries like China and India adopt Western-style eating habits, which often include butter in cooking and baking, the demand for this dairy product has surged. The convenience of butter, coupled with its versatility in both savory and sweet applications, makes it an appealing choice for modern consumers. Supermarkets, hypermarkets, and online retailers have further facilitated the accessibility of butter, allowing consumers from diverse demographics to incorporate it into their diets easily.
Salted butter remains the dominant segment globally, owing to its longer shelf life, enhanced flavor, and versatility in both cooking and baking. The inclusion of salt not only acts as a preservative but also complements the natural richness of the butter, making it a popular choice for spreading, cooking, and incorporating into recipes like pastries and savory dishes. Unsalted butter, on the other hand, has carved out a significant niche, particularly among consumers who require precise control over the salt content in their cooking and baking. Bakers, in particular, prefer unsalted butter to ensure the exact amount of salt can be added to recipes, offering more flexibility in flavor. Unsalted butter is also favored by those with specific dietary preferences or health concerns, such as reducing sodium intake. The rising demand for plant-based butter is a notable trend in the market, driven by an increasing number of consumers adopting vegan, dairy-free, or lactose-intolerant diets. Plant-based butters, made from ingredients like coconut oil, almond oil, or avocado, are perceived as healthier alternatives to traditional dairy butter, providing the same rich taste and texture without the animal-derived components. The plant-based segment is expected to continue expanding as consumer awareness of environmental and ethical concerns around dairy farming increases. This shift is particularly strong in North America and Europe, where plant-based and vegan products are increasingly integrated into mainstream diets.
Clarified butter (or ghee) holds a significant position in many regions, particularly in South Asia and increasingly in Western markets. Ghee, a form of clarified butter that has been heated to remove the milk solids and water, is prized for its nutty flavor, high smoke point, and potential health benefits, such as being rich in vitamins A, D, and E. It is often used in traditional cooking, especially in Indian and Middle Eastern cuisines, and is gaining popularity in health-conscious communities, especially among those following ketogenic or paleo diets due to its purported benefits for digestion and metabolism. The others category in the butter market includes various specialty butters, such as whipped butter, honey butter, and herb-infused butters, which cater to niche tastes and culinary applications. Whipped butter, with its lighter texture, is favored for spreading on bread or crackers, while honey butter has gained popularity as a sweet topping or accompaniment for baked goods like biscuits and rolls. Herb-infused butters, typically used as finishing touches for grilled meats or vegetables, appeal to consumers looking for gourmet or artisanal products.
Blocks of butter remain the traditional and most popular format, particularly in markets like North America and Europe. Block butter offers a pure, unprocessed form that can be easily cut and measured for a variety of cooking, baking, and spreading applications. It’s favored for its versatility, as it can be used in recipes that require precise control over quantities, especially in baking, where texture and consistency are key. Additionally, block butter has a longer shelf life and is generally considered more cost-effective than other forms, making it a staple in both households and commercial kitchens. Spreadable butter is a growing category in the butter market, driven by consumer demand for convenience. Spreadable butter is typically made by blending butter with oils or emulsifiers to create a softer, more easily spreadable texture that doesn’t require softening before use. This format is particularly popular in households, where consumers seek the ease of spreading butter directly from the refrigerator, especially for use on bread, crackers, and other baked goods. Spreadable butter is marketed as a convenient, no-mess option that caters to busy lifestyles, making it a preferred choice for individuals and families who prioritize quick meal preparation and ease of use. Additionally, spreadable butters often come in various flavors, such as garlic or herb-infused varieties, which can add culinary flair to everyday meals.
The liquid/oil butter segment has gained traction in recent years, catering to consumers who prefer a butter alternative that offers a liquid form, similar to oils, for cooking purposes. Liquid butter is made by blending butter with vegetable oils, resulting in a product that has the rich flavor of butter but in a form that is more versatile for saut?ing, frying, and other high-heat cooking methods. This format is particularly appealing to health-conscious consumers who are looking for products that provide the benefits of butter with the lighter, more fluid texture of oils, often marketed as being easier to pour and use. Liquid butter is also seen as a more cost-effective option, as it can be produced in larger quantities and often contains a mix of vegetable oils, which can make it more affordable than pure butter. The others category in the butter market includes a range of specialized butter products designed for niche markets and specific culinary needs. These include whipped butters, ghee, butter blends, and flavored butters. Whipped butters are lighter and airier than traditional butter, making them easy to spread and often used for topping breads or crackers. Ghee, a form of clarified butter, is popular in South Asia and increasingly in Western countries for its rich flavor, high smoke point, and supposed health benefits. Butter blends, which mix butter with ingredients like olive oil or canola oil, offer a healthier alternative with the benefits of both butter and vegetable oils. Flavored butters, such as herb, garlic, or honey butter, cater to consumers seeking gourmet options or those looking to elevate their dishes with unique tastes.
The food processing industry is one of the largest consumers of butter, using it as a core ingredient in the production of a wide variety of products such as baked goods, margarine, snack foods, sauces, and confectionery items. Butter’s unique properties, including its flavor, texture, and ability to enhance product consistency, make it indispensable in the formulation of many processed foods. As demand for convenience foods and packaged snacks continues to rise globally, the food processing industry remains a key driver for butter consumption, with both traditional and emerging markets contributing to its growth. The food service industry, which includes restaurants, hotels, catering services, and quick-service outlets, is another significant segment driving the butter market. In this sector, butter is used extensively for cooking, saut?ing, spreading, and as a finishing ingredient in a wide range of dishes, from baked goods and sauces to side dishes and gourmet spreads. The growing trend of dining out, increased demand for premium and authentic food experiences, and the rising popularity of high-end culinary establishments that emphasize natural ingredients all contribute to butter’s widespread use in the food service industry. Furthermore, many establishments are opting for high-quality or artisanal butters, such as grass-fed and organic varieties, to cater to the rising consumer demand for more sustainable and ethically sourced ingredients.
Household/retail consumption represents one of the most prominent segments of the global butter market, driven by daily consumer demand in homes. In retail settings such as supermarkets, hypermarkets, and convenience stores, butter is a staple item in household kitchens, used for everything from baking and cooking to spreading on bread and toast. The ease of availability, versatility, and flavor profile of butter have made it a go-to choice for consumers. With the increasing popularity of home-cooking, fueled by social media cooking trends and the pandemic’s effect on dining habits, retail sales of butter have surged. In addition, product innovations such as spreadable butter, organic butter, and specialty flavored butters have catered to more diverse consumer preferences, further propelling the segment’s growth. The others category in the butter market encompasses niche sectors that contribute to the overall market, including the dairy-free and plant-based butter market, as well as butter used in cosmetics and health products. In recent years, the rise of plant-based diets and the growing number of consumers with lactose intolerance or dairy sensitivities have led to a significant increase in the demand for plant-based butter alternatives. These products cater to a specific consumer base but are rapidly growing, particularly in North America and Europe. Additionally, some industries use butter as an ingredient in non-food applications, such as in the production of lotions, lip balms, and other skincare products, due to butter’s moisturizing and emulsifying properties.
Supermarkets and hypermarkets remain the dominant retail channels for butter, accounting for a substantial portion of global butter sales. These large-scale retailers offer a wide variety of butter products, from traditional salted and unsalted varieties to premium options such as organic, grass-fed, and specialty butters. The expansive reach of supermarkets and hypermarkets allows consumers to access butter easily, whether they are shopping for weekly groceries or looking for specific types of butter for gourmet cooking. Additionally, these retail outlets often offer competitive pricing and promotions, making butter an affordable staple for households worldwide. Convenience stores also contribute significantly to the butter market, particularly in regions where on-the-go consumption and convenience are key factors in consumer purchasing behavior. While convenience stores may not carry as wide a selection of butter as supermarkets or hypermarkets, they serve an important role by providing smaller packaging options, which appeal to consumers who require butter in smaller quantities or who need it quickly for immediate use. These stores cater to consumers who value convenience, often located in urban areas or near transportation hubs, where they serve as a quick stop for essential items, including butter. The demand for single-serve butter packets and portioned cups in convenience stores also supports the growth of this channel, particularly in fast-food chains, travel-related establishments, and office environments.
The rise of online retail has been one of the most transformative trends in the global butter market in recent years. E-commerce platforms such as Amazon, Walmart, and specialized grocery delivery services like Instacart have made butter more accessible to a growing segment of tech-savvy consumers who prefer the convenience of shopping from home. Online retail offers the advantage of an extensive range of butter products, including niche varieties, specialty butters, and international brands that may not be easily found in physical stores. Consumers can compare prices, read reviews, and even have butter delivered directly to their doorsteps, which has greatly contributed to the growth of this segment. As online grocery shopping continues to gain traction, particularly with younger and more digitally engaged populations, the online retail channel is expected to play an increasingly important role in the butter market. The others category in the butter distribution channel includes specialized retailers such as farmers' markets, specialty food stores, and direct-to-consumer sales models. These channels cater to niche markets, such as those seeking artisanal, organic, or locally produced butter. Farmers’ markets and specialty food stores often offer unique, small-batch butters with distinct flavors or production methods, catering to consumers with specific dietary preferences or those interested in supporting local producers. Direct-to-consumer brands that offer subscription services or delivery models are also gaining popularity, as they allow consumers to access fresh, high-quality butter products regularly without needing to visit a physical store.
According to the research report “Global Butter Market Outlook, 2030” published by Bonafide Research, the global market is projected to reach market size of USD 60.76 Billion by 2030 increasing from USD 46.71 in 2024, growing with 4.58% CAGR by 2025-30. Butter, perceived as a less-processed alternative to margarine and other spreads, has seen a resurgence in favor. This shift is particularly evident in markets where health-conscious consumers are seeking products that are natural, authentic, and free from additives and preservatives. Furthermore, the growing trend toward high-fat, low-carb diets such as the ketogenic diet has also contributed to butter's renewed popularity, as it is seen as a beneficial source of healthy fats. As more consumers embrace butter as a part of their regular diet, the industry has seen an expansion in product offerings, including organic, grass-fed, and specialty butter varieties, catering to the increasing demand for premium and ethically sourced products. In addition to shifting health perceptions, the butter market is benefiting from changes in dietary habits, particularly in emerging markets. The Asia-Pacific region, for example, has seen significant growth in butter consumption, driven by rising disposable incomes and a growing middle class. As consumers in countries like China and India adopt Western-style eating habits, which often include butter in cooking and baking, the demand for this dairy product has surged. The convenience of butter, coupled with its versatility in both savory and sweet applications, makes it an appealing choice for modern consumers. Supermarkets, hypermarkets, and online retailers have further facilitated the accessibility of butter, allowing consumers from diverse demographics to incorporate it into their diets easily.
Salted butter remains the dominant segment globally, owing to its longer shelf life, enhanced flavor, and versatility in both cooking and baking. The inclusion of salt not only acts as a preservative but also complements the natural richness of the butter, making it a popular choice for spreading, cooking, and incorporating into recipes like pastries and savory dishes. Unsalted butter, on the other hand, has carved out a significant niche, particularly among consumers who require precise control over the salt content in their cooking and baking. Bakers, in particular, prefer unsalted butter to ensure the exact amount of salt can be added to recipes, offering more flexibility in flavor. Unsalted butter is also favored by those with specific dietary preferences or health concerns, such as reducing sodium intake. The rising demand for plant-based butter is a notable trend in the market, driven by an increasing number of consumers adopting vegan, dairy-free, or lactose-intolerant diets. Plant-based butters, made from ingredients like coconut oil, almond oil, or avocado, are perceived as healthier alternatives to traditional dairy butter, providing the same rich taste and texture without the animal-derived components. The plant-based segment is expected to continue expanding as consumer awareness of environmental and ethical concerns around dairy farming increases. This shift is particularly strong in North America and Europe, where plant-based and vegan products are increasingly integrated into mainstream diets.
Clarified butter (or ghee) holds a significant position in many regions, particularly in South Asia and increasingly in Western markets. Ghee, a form of clarified butter that has been heated to remove the milk solids and water, is prized for its nutty flavor, high smoke point, and potential health benefits, such as being rich in vitamins A, D, and E. It is often used in traditional cooking, especially in Indian and Middle Eastern cuisines, and is gaining popularity in health-conscious communities, especially among those following ketogenic or paleo diets due to its purported benefits for digestion and metabolism. The others category in the butter market includes various specialty butters, such as whipped butter, honey butter, and herb-infused butters, which cater to niche tastes and culinary applications. Whipped butter, with its lighter texture, is favored for spreading on bread or crackers, while honey butter has gained popularity as a sweet topping or accompaniment for baked goods like biscuits and rolls. Herb-infused butters, typically used as finishing touches for grilled meats or vegetables, appeal to consumers looking for gourmet or artisanal products.
Blocks of butter remain the traditional and most popular format, particularly in markets like North America and Europe. Block butter offers a pure, unprocessed form that can be easily cut and measured for a variety of cooking, baking, and spreading applications. It’s favored for its versatility, as it can be used in recipes that require precise control over quantities, especially in baking, where texture and consistency are key. Additionally, block butter has a longer shelf life and is generally considered more cost-effective than other forms, making it a staple in both households and commercial kitchens. Spreadable butter is a growing category in the butter market, driven by consumer demand for convenience. Spreadable butter is typically made by blending butter with oils or emulsifiers to create a softer, more easily spreadable texture that doesn’t require softening before use. This format is particularly popular in households, where consumers seek the ease of spreading butter directly from the refrigerator, especially for use on bread, crackers, and other baked goods. Spreadable butter is marketed as a convenient, no-mess option that caters to busy lifestyles, making it a preferred choice for individuals and families who prioritize quick meal preparation and ease of use. Additionally, spreadable butters often come in various flavors, such as garlic or herb-infused varieties, which can add culinary flair to everyday meals.
The liquid/oil butter segment has gained traction in recent years, catering to consumers who prefer a butter alternative that offers a liquid form, similar to oils, for cooking purposes. Liquid butter is made by blending butter with vegetable oils, resulting in a product that has the rich flavor of butter but in a form that is more versatile for saut?ing, frying, and other high-heat cooking methods. This format is particularly appealing to health-conscious consumers who are looking for products that provide the benefits of butter with the lighter, more fluid texture of oils, often marketed as being easier to pour and use. Liquid butter is also seen as a more cost-effective option, as it can be produced in larger quantities and often contains a mix of vegetable oils, which can make it more affordable than pure butter. The others category in the butter market includes a range of specialized butter products designed for niche markets and specific culinary needs. These include whipped butters, ghee, butter blends, and flavored butters. Whipped butters are lighter and airier than traditional butter, making them easy to spread and often used for topping breads or crackers. Ghee, a form of clarified butter, is popular in South Asia and increasingly in Western countries for its rich flavor, high smoke point, and supposed health benefits. Butter blends, which mix butter with ingredients like olive oil or canola oil, offer a healthier alternative with the benefits of both butter and vegetable oils. Flavored butters, such as herb, garlic, or honey butter, cater to consumers seeking gourmet options or those looking to elevate their dishes with unique tastes.
The food processing industry is one of the largest consumers of butter, using it as a core ingredient in the production of a wide variety of products such as baked goods, margarine, snack foods, sauces, and confectionery items. Butter’s unique properties, including its flavor, texture, and ability to enhance product consistency, make it indispensable in the formulation of many processed foods. As demand for convenience foods and packaged snacks continues to rise globally, the food processing industry remains a key driver for butter consumption, with both traditional and emerging markets contributing to its growth. The food service industry, which includes restaurants, hotels, catering services, and quick-service outlets, is another significant segment driving the butter market. In this sector, butter is used extensively for cooking, saut?ing, spreading, and as a finishing ingredient in a wide range of dishes, from baked goods and sauces to side dishes and gourmet spreads. The growing trend of dining out, increased demand for premium and authentic food experiences, and the rising popularity of high-end culinary establishments that emphasize natural ingredients all contribute to butter’s widespread use in the food service industry. Furthermore, many establishments are opting for high-quality or artisanal butters, such as grass-fed and organic varieties, to cater to the rising consumer demand for more sustainable and ethically sourced ingredients.
Household/retail consumption represents one of the most prominent segments of the global butter market, driven by daily consumer demand in homes. In retail settings such as supermarkets, hypermarkets, and convenience stores, butter is a staple item in household kitchens, used for everything from baking and cooking to spreading on bread and toast. The ease of availability, versatility, and flavor profile of butter have made it a go-to choice for consumers. With the increasing popularity of home-cooking, fueled by social media cooking trends and the pandemic’s effect on dining habits, retail sales of butter have surged. In addition, product innovations such as spreadable butter, organic butter, and specialty flavored butters have catered to more diverse consumer preferences, further propelling the segment’s growth. The others category in the butter market encompasses niche sectors that contribute to the overall market, including the dairy-free and plant-based butter market, as well as butter used in cosmetics and health products. In recent years, the rise of plant-based diets and the growing number of consumers with lactose intolerance or dairy sensitivities have led to a significant increase in the demand for plant-based butter alternatives. These products cater to a specific consumer base but are rapidly growing, particularly in North America and Europe. Additionally, some industries use butter as an ingredient in non-food applications, such as in the production of lotions, lip balms, and other skincare products, due to butter’s moisturizing and emulsifying properties.
Supermarkets and hypermarkets remain the dominant retail channels for butter, accounting for a substantial portion of global butter sales. These large-scale retailers offer a wide variety of butter products, from traditional salted and unsalted varieties to premium options such as organic, grass-fed, and specialty butters. The expansive reach of supermarkets and hypermarkets allows consumers to access butter easily, whether they are shopping for weekly groceries or looking for specific types of butter for gourmet cooking. Additionally, these retail outlets often offer competitive pricing and promotions, making butter an affordable staple for households worldwide. Convenience stores also contribute significantly to the butter market, particularly in regions where on-the-go consumption and convenience are key factors in consumer purchasing behavior. While convenience stores may not carry as wide a selection of butter as supermarkets or hypermarkets, they serve an important role by providing smaller packaging options, which appeal to consumers who require butter in smaller quantities or who need it quickly for immediate use. These stores cater to consumers who value convenience, often located in urban areas or near transportation hubs, where they serve as a quick stop for essential items, including butter. The demand for single-serve butter packets and portioned cups in convenience stores also supports the growth of this channel, particularly in fast-food chains, travel-related establishments, and office environments.
The rise of online retail has been one of the most transformative trends in the global butter market in recent years. E-commerce platforms such as Amazon, Walmart, and specialized grocery delivery services like Instacart have made butter more accessible to a growing segment of tech-savvy consumers who prefer the convenience of shopping from home. Online retail offers the advantage of an extensive range of butter products, including niche varieties, specialty butters, and international brands that may not be easily found in physical stores. Consumers can compare prices, read reviews, and even have butter delivered directly to their doorsteps, which has greatly contributed to the growth of this segment. As online grocery shopping continues to gain traction, particularly with younger and more digitally engaged populations, the online retail channel is expected to play an increasingly important role in the butter market. The others category in the butter distribution channel includes specialized retailers such as farmers' markets, specialty food stores, and direct-to-consumer sales models. These channels cater to niche markets, such as those seeking artisanal, organic, or locally produced butter. Farmers’ markets and specialty food stores often offer unique, small-batch butters with distinct flavors or production methods, catering to consumers with specific dietary preferences or those interested in supporting local producers. Direct-to-consumer brands that offer subscription services or delivery models are also gaining popularity, as they allow consumers to access fresh, high-quality butter products regularly without needing to visit a physical store.
Related Press Releases
Quick Contacts
.png "Nikita Jabrela")
Trusted Partners
Latest Press Release
We are friendly and approachable, give us a call.