(MENAFN- GlobeNewsWire - Nasdaq) The global butter market is projected to surge from USD 27.84 billion in 2024 to USD 40.81 billion by 2033, driven by a 4.34% CAGR. Increasing consumer preference for natural dairy products and the boom in bakery and foodservice sectors are key growth drivers. Demand is also fueled by a shift toward artisanal options like grass-fed butter. Despite health concerns about saturated fats, butter's popularity persists due to its natural profile, suitable for cooking and baking across global cuisines. Key market players include Lactalis, Fonterra, and Amul, highlighting diverse growth opportunities worldwide.Dublin, Sept. 26, 2025 (GLOBE NEWSWIRE) -- The "Butter Market Report by Product Type, Source, Salt Content, Packaging Type, Distribution Channel, States and Company Analysis, 2025-2033" report has been added to ResearchAndMarkets's offering.
Global Butter Market is anticipated to reach US$ 40.81 Billion in 2033 from US$ 27.84 Billion in 2024, depicting a strong demand for butter across various food applications. This growth will register a Compound Annual Growth Rate (CAGR) of 4.34% during 2025-2033. The growth will be fostered by increasing consumer demand for natural dairy products, health attributes, and growth in the bakery and food services industries.
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Aside from being used in cooking, butter is a spread for bread, biscuits, and crackers, offering a tasty addition to many foods. Its popularity has withstood centuries, with European, Asian, and American cultures adopting it in their traditional dishes.
There has been a revival in the popularity of butter over recent years, especially due to the emergence of artisanal and high-quality forms, such as grass-fed butter. Debates over dietary fats and health have also played a part in the increased popularity of butter, with many viewing it as a natural substitute for processed spreads.
Growth Drivers in the Global Butter Market
Increased Demand for Natural and Traditional Dairy Products
Consumers globally are increasingly turning to natural, less-processed foods, and this has picked up the consumption of butter. In contrast to margarine and other alternatives, butter is seen as a wholesome, traditional food with fewer additives. The "clean-label" trend sees through authenticity and transparency, and this appeals to the image of butter as a natural dairy fat. Home baking and cooking have also picked up post-pandemic, further fueling demand for butter.
As consumers and restaurants keep favoring natural dairy over the artificial kind, the consumption of butter is likely to grow steadily in both developed and emerging markets. August 2023, Telangana-based premium D2C dairy brand Sid's Farm has brought out a fresh portfolio of salted butter such as Cow Butter and Buffalo Butter. The offerings will reach Hyderabad and Bengaluru through direct-to-consumer channels.
Growing Popularity of Bakery and Confectionery Products
The worldwide bakery and confectionery sector is a major growth impetus for the market of butter. The rich taste and texture of butter render it a must-have product in cakes, pastries, cookies, and chocolates. Due to increased urbanization and hectic lifestyles, customers opt for packaged desserts and baked items more and more.
Moreover, premium and artisanal bakery markets are thriving, especially in Europe and North America, as they use butter instead of alternatives to ensure quality. The growing foodservice market globally further increases demand for butter, providing steady growth prospects for producers. Aug 2025, Kerrygold, Irish grass-fed dairy producer, introduced its Cinnamon & Sugar Butter Sticks in the United States. The new item combines all-natural Irish butter with cinnamon, brown sugar, and nutmeg for a rich, sweet snack.
Emerging Markets and Changing Dietary Preferences
Demand for butter is increasing in developing nations like India, China, and the Middle East due to growing incomes and Western dietary patterns. New cooking techniques, such as baking, and spread and cooking uses of butter, are being embraced by consumers. Domestic production and distribution are also supported by governments and dairy cooperatives in these countries, and butter is thus made increasingly available. At the same time, high-end butter alternatives such as organic or grass-fed butter are becoming increasingly popular among health-oriented consumers worldwide.
These trends reflect the extent to which the growth of emerging markets and changing dietary patterns are central drivers of butter industry growth. March 2025, Savor, a leading food firm that makes sustainable fats from carbon without conventional agriculture, has rolled out its animal-and-plant-free butter. This cutting-edge product has captivated chefs and food companies across the country, with top spots such as Michelin-starred SingleThread and fast-growing bakery Jane the Bakery among its initial customers this year.
Challenge in the Global Butter Market
Health Issues Regarding Saturated Fats
One of the biggest challenges for the butter market is the general linkage of butter to high saturated fat, which has become a target of concern for cardiovascular health issues. While attitudes are changing with some research reassessing the health effects of butter, most consumers continue to view plant alternatives such as margarine or vegan spreads as healthier. Increasing health awareness, especially among youth, may curb butter consumption growth. Producers are fighting back with organic, grass-fed, or fortified types, but health is still a major obstacle to market growth in an age of increasing nutrition awareness.
Volatility in Dairy Production and Pricing
Butter manufacturing relies significantly on dairy supply chains, which are susceptible to variations in the availability of milk, feed costs, and weather conditions. Volatility in butter prices can result from seasonal production cycles and increasing cost of inputs. Trade agreements and tariffs also affect international butter exports and imports, particularly in major markets such as Europe, the U.S., and Asia. This unpredictability keeps producers as well as consumers in doubt, and it becomes difficult to ensure growth in a stable way. Proper supply chain management and diversification are essential to neutralizing these risks for the butter market.
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