Butter and Margarine Market Outlook

As per the FMI’s updated research market report, sales of butter and margarines garner a current valuation of USD 4,885.40 million in 2024. As the competitiveness of the market rises, butter and margarine manufacturers focus on product differentiation and diverse marketing strategies to secure a broader share among transitioning consumer demands.

Going by this pattern, the butter and margarine market amplifies and equates to a market valuation of USD 8,935.40 million, with a steady CAGR of 6.2% by 2034.

Attributes Details
Market Value for 2024 USD 4,885.40 million
Market Value for 2034 USD 8,935.40 million
Market CAGR from 2024 to 2034 6.2%

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Market Catalysts Amplifying the Adoption of Butter and Margarine

Consumers' busy lifestyles and evolving dietary habits generate a demand for convenience foods. People are on the lookout for food options that reduce the time for meal preparation. These spreads and other types save time on the hectic schedule of the consumers, which is why a spur in sales of butter and margarine is experienced.

The food industry is a major end-user of the butter and margarine market. Food manufacturers have a steady demand for butter and margarine because of their diverse applications in the dishes.

Potential of the Butter and Margarine Market

As there is a booming demand for organic food, this creates an opportunity for the dairy spreads market. Organic products free of chemicals and preservatives are surging in demand, as people are more aware of the food they put in their bodies. This intensifies the adoption of butter and margarine among health-conscious people.

With the emergence of online shopping platforms, novel distribution channels have opened up for butter and margarine products. The butter and margarine producers can reach and acquire a wider audience base. This thrives the sales of butter and margarine.

Attributes Details
Market Value for 2019 USD 3,879.50 million
Market CAGR from 2019 to 2023 5.79%
Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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Sticking Points of the butter and margarine Market

Though a significant demand has been witnessed for healthier alternatives, butter, and margarines see a roadblock ahead. This is due to the high fat content which is linked with chronic heart disease. The availability of substitute products and the consumers' inclination towards them hampers the butter and margarine market growth.

Another major obstacle to the growth path is the ever-fluctuating raw material costs for the production of butter and margarine. These fluctuations cannot be controlled and negatively impact the profit margin of the butter and margarine manufacturers. This inhibits butter and margarine market expansion.

Category-wise Outlook

The categorical butter and margarine market analysis is mentioned in the below subsection. Based on inclusive investigations, the spreadable sector is controlling the usage category. Followed by, the sales via the retail channel segment are ushering the distribution channel category upwards.

Busy-lifestyle Amplify the Adoption of Spreadable Butter and Margarine

Category Usage
Top Segment Spreadable
Share (2024) 89.8%

The versatility of spreadable products in the cooking process attracts a wider customer base, resulting in higher sales of butter and margarine. The convenience of using spreadable butter and margarine in the busy schedule of consumers surges butter and margarine adoption as it is easy to use for a quick meal prep. The diverse flavor available grabs the attention of consumers and accelerates butter and margarine sales.

Capitalize on Impulsive Buying to Boost Retail Sales of Butter and Margarine

Category Distribution Channel
Top Segment Sales via Retail Channel
Share (2024) 78.9%

The retail channels provide easy access to consumers as the products are visible on shelves for the consumers to buy, which increases the inclination towards sales via the retail channel segment.

When consumers tend to see something, there are high chances of impulse purchasing, which is very popular in retail. This serves as an opportunity to stimulate sales of butter and margarine. A sense of trust is created when shoppers see something displayed on the shelves of retail outlets.

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Country-wise Analysis

The butter substitutes market is extensively evaluated in the below subsection, which points out the leading economies in Germany, India, the United States, China, and Japan. An exhaustive analysis validates that Germany has substantial margarine product market opportunities, advancing at a moderate CAGR of 4.6% through 2034.

Growth Analysis of the Germany Butter and Margarine Market

Nation Germany
CAGR (2024 to 2034) 4.6%

The environmentally safe packaging and sustainability gained traction in the German dairy spreads industry. The German consumers are health-conscious, which catapults the demand for fat and plant-based alternatives in the butter and margarine sector. Widespread usage of convenience foods is flourishing in the German butter and margarine industry.

Insight into the India Market Growth of Butter and Margarine

Country India
CAGR (2024 to 2034) 4.4%

The developing trend of Western-style bakery products advances the market growth of butter and margarine in India. The inclination of Indian consumers towards ghee and clarified butter positively impacts the butter and margarine adoption.

Urbanization and the rising disposable income of the middle-class population accelerate the sales of premium butter and margarine in India. Changing lifestyles and evolving taste preferences according to regions in India prompt the butter and margarine demand across Indian states.

Market Dynamics of Dairy Spreads in the United States

Nation United States
CAGR (2024 to 2034) 2.2%

As people adopt vegan lifestyles and vegetarian dietary trends in the United States, a rising demand for plant-based butter alternatives is observed. The sales of butter and margarine have gained attention from online retail channels, traditional supermarkets, and hypermarkets in the United States.

Trends Impacting the China Butter and Margarine Industry

Nation China
CAGR (2024 to 2034) 1.1%

Awareness of Western cuisines and bakery items escalates the demand for butter and margarine in China, serving as a growth opportunity in the baking sector. Flavors and packaging suitable to Chinese taste preferences are major schemes adopted by butter and margarine producers in China.

A prominent distribution channel aiding in butter and margarine market growth in China in e-commerce helps to reach the products to the urban areas of China.

Demand Outlook of Japan's Butter and Margarine Sector

Nation Japan
CAGR (2024 to 2034) 0.9%

The Japanese adopt butter and margarine in creating fusion dishes that support product diversification in the margarine products market. Sustainable production and sourcing pick up steam in Japan, positively impacting the butter and margarine market and exhibiting ecological cognizance in the consumers.

Competitive Analysis

Diverse butter and margarine manufacturers strive for market share and consumer loyalty in the market's competitive landscape. Arla Foods, Farmers’ Cooperative Creamery, and Dean Foods Company are prominent butter and margarine producers that provide various products catering to different consumer choices.

OJSC Creative Group and Kraft Foods are the market innovators, whereas AMUL India and Friesland Campina deliver their expertise in dairy products.

BRF, NMGK Group, and NamChow add to the dynamics with their distinctive contribution to diversify the spreadable fats industry. These major butter and margarine vendors continue to innovate as per the shifting demands of the consumer, boosting growth, and carving the market landscape.

Each producer brings a different opportunity to the butter substitutes market, and the competition remains aggressive. The butter and margarine vendors compete to grab a significant market share and develop their global footprints. As customers are more health conscious, the butter and margarine manufacturers navigate the deterrents and opportunities and stay at the top of the market.

Noteworthy Advancements

Company Details
HEINZ A new array of HEINZ 57 was launched by HEINZ in July 2022. It is an assortment of sauces and spreads, specialized to add magic to the cooking experience. It is just a spoonful, drizzle, or spread anytime and anywhere.
Fuji Oil Group In September 2021, Fuji Oil Group and ITOCHU Group collaborated to expand their vegetable oil business sales channel to attain a broader consumer base. To solidify their market position in North America.
Wilmar International Wilmar International declared the launch of a new building to process cruder vegetable oil in March 2020. The business unit made margarine, mayo, and other cooking oils.
Arla Arla launched new plant-based products in March 2020. Arla was ready to launch three oat drinks under the brand Jörð, to meet European customer demand. The vendor has manipulated its apprehension and proficiency to create a new category of exciting flavors. Jörð aims to be an umbrella brand under which a complete range of plant-based products would be available.

Prominent Butter and Margarine Manufacturers

  • Arla Foods
  • Farmers’ Cooperative Creamery
  • Dean Foods Company
  • OJSC Creative Group
  • Kraft Foods
  • AMUL India
  • Friesland Campina
  • BRF
  • NMGK Group
  • NamChow
  • Groupo Lala

Key Coverage in Butter and Margarine Market Report

  • Adjacent Study on Butter and Margarine Market, Margarine Market, and Industrial Margarine Market
  • Impact of Spreadable Oils on The Market in Germany
  • Trends in the Butter and Margarine Market in India
  • Categorical Study of Spreadable, Non-spreadable Butter and Margarines
  • Emerging trends in margarine products in the United States
  • Competitive Landscape focusing on Wilmar International, Fuji Oil Group, and Other Butter and Margarine Manufacturers

Key Segments

By Type:

  • Traditional
  • Liquid
  • Other

By Usage:

  • Spreadable
  • Non-spreadable

By Distribution Channel:

  • Sales via Retail Channels
  • Sales via Industrial Channels
  • Sales via Food Service Channels

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

Frequently Asked Questions

What is the Butter and Margarine Market Valuation in 2024?

The butter and margarine industry to procure a valuation USD 4,885.40 million in 2024.

How Big Can the Butter and Margarine Market Be by 2034?

The butter and margarine industry has the proficiency to possess a worth USD 8,935.40 million by 2034.

What is the Growth Potential of the Butter and Margarine Market?

Through 2034, the butter and margarine industry indicate a steady CAGR of 6.2%.

What Was the Historical CAGR of The Butter and Margarine Market?

From 2019 to 2023, the butter and margarine industry thrived at a 5.79% HCAGR.

Which Usage Segment to Dominate in the Butter and Margarine Market?

The spreadable butter and margarine sector in the butter substitutes market to garner a share of 89.8% in 2024.

Which Distribution Channel Segment to Lead the Butter and Margarine Market?

The sales via the retail channel sector in the spreadable fats market to reap a segment share of 78.9% in 2024.

Table of Content
  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
  • 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type
    • 5.1. Solidified
    • 5.2. Liquidified
  • 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Format
    • 6.1. Spreadable
    • 6.2. Non-Spreadable
  • 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User
    • 7.1. Household Use
    • 7.2. HoReCa
    • 7.3. Institutional Use
  • 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel
    • 8.1. Hypermarket & Supermarket
    • 8.2. Convenience Store
    • 8.3. Online Retail
    • 8.4. Others Distribution Channel
  • 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
    • 9.1. North America
    • 9.2. Latin America
    • 9.3. Western Europe
    • 9.4. Eastern Europe
    • 9.5. South Asia and Pacific
    • 9.6. East Asia
    • 9.7. Middle East and Africa
  • 10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 12. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 13. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 14. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 16. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
  • 17. Key Countries Market Analysis
  • 18. Market Structure Analysis
  • 19. Competition Analysis
    • 19.1. Arla Foods
    • 19.2. Farmers’ Cooperative Creamery
    • 19.3. Dean Foods Company
    • 19.4. OJSC Creative Group
    • 19.5. Kraft Foods
    • 19.6. AMUL India
    • 19.7. Friesland Campina
    • 19.8. BRF
    • 19.9. NMGK Group
    • 19.10. NamChow
    • 19.11. Groupo Lala
  • 20. Assumptions & Acronyms Used
  • 21. Research Methodology
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