Lactic Butter Market

Lactic Butter Market Outlook 2023 to 2033

Expected to total a valuation of US$ 4.1 billion in 2023, the lactic butter market is anticipated to reach US$ 6.5 billion by 2033, expanding at a CAGR of 4.7%. As the name suggests, lactic butter is made from whole milk that has been fermented with lactic acid. It has a characteristic low moisture content with a tangy flavor. Lactic butter has emerged as a favorite alternative to sweet cream butter and is readily available in Europe. Alternatively, lactic butter is also referred to as cultured butter, attributed to the cultures that the whole milk is inoculated with to mimic the conditions of sitting for several days to ferment.

The consumption of lactic butter is rising, thanks to the documented benefits lactic acid have for the human body. Lactic acid has the potential to eliminate dead skin cells, lightening of dark spots, and improve the looks of fine lines and wrinkles. In addition, lactic acid speeds up cell turnover and stimulates cell renewal. Besides direct consumption, lactic butter is being incorporated into a wide range of applications, including bakery products, confectionery, dairy products, sauces & soups, snacks, and ready-to-eat foods.

Regionally, as stated above, Europe is expected to emerge as a hotbed of investment when it comes to lactic butter. Overall, butter consumption across Europe surpasses all other continents, with France topping the list, with a per capita consumption rate of 8.2 kilograms. This is followed by Denmark, at 6.4 kilograms, and Iceland with a consumption rate of 8.2 kilograms. Hence, players are incorporating a host of expansion strategies to gain maximum benefits in terms of revenue and profitability.

One important expansion strategy involves the expansion of existing production capabilities. Estonian manufacturer Interfood B.V, for instance, announced in February 2023, has announced the construction of a new dairy facility in the country. The expansion involves a tripartite agreement between Interfood, SCE E-Piim, and Royal-A Ware. While the construction began 18 months ago, it is expected to be completed by the summer of 2023. The new facility will help attain the objective of achieving a sustainable and climate-neutral production line. It will, thus, be able to capitalize on its lactic butter offering with a more environmentally friendly approach to production.

Numidia BV is yet another prominent face in the lactic butter landscape. Situated in the Netherlands, it offers lactic as well as sweet cream butter, in salted as well as unsalted versions. The butter is designed for applications in bakery products, biscuits, and pastries. In addition, its lactic butter can also be used for making chocolate and confectionery, dairy products, meat, soups, and ready-made meals. The butter is packaged in 25 kg blocks per foil in cardboard boxes. Alternatively, it is also available in an unboxed form and is either fresh or frozen.

Likewise, NIZO is a prominent provider of a butter churning process known as the NIZO Butter Process. Developed in the 1960s, the process involves a churning of sweet cream in place of fermented sour cream, and acidification and flavor formation take place only post the churning process. A major advantage of the NIZO process is that the sweet buttermilk produced during this production process is a co-product and not a by-product. This means it can be consumed instead of wasted. This buttermilk can be easily used as an ingredient in a variety of applications in the dairy industry, or as a starting material for isolating functional ingredients.

Lactic butter is butter made by fermenting milk with lactic acid and then churning it to give a tangy flavour and a low moisture content. Lactic butter is also called cultured butter or European-style butter. The minimum fat content in the lactic acid butter is 82%, which is preferred in the Europe for producing flakier pastries and fluffy cakes.Lactic butter is available in two variants - salted and unsalted.

Preference for unsalted lactic butter is higher than the salted variant as the demand for lactic butter is specifically in the foodservice industry except for Europe, where lactic butter is also used in household. The main application for lactic butter is in the bakery and confectionery products globally.

Emergent Foodservice Operators Specializing in Bakery Products, is Increasing Demand for Lactic Butter

Lactic butter has been popular in the European countries and is the preferred type of butter along with sweet cream butter for European pastries. Thus, the lactic butter sales has been dominating in Europe. However, a rise in foodservice operators specializing in bakery products has been observed in the past few years owing to the surging demand for European-style bakery products.

There has also been an increase in café culture in South Asia, East Asia and in the Middle East. This in turn has increased demand for lactic butter in these regions. USA and Canada prefer low fat butters in their products, which is less than 82%. Thus, foodservice operators in the North America region use less lactic butter in the recipe than the recommended amount.

Global Lactic Butter: Key Players

Some of the key market players in the lactic butter market are

• Interfood BV
• Numidia BV
• Milky Holland
• Foodcom S.A.
• Dale Farm Ltd.
• Lactalis American Group Inc.
• Fonterra Group
• Glanbia Ireland
• California Dairies Inc.
• Lakeland Dairies Co-op Society Ltd.
• Hoogwegt Group
• Société FIT

NIZO Butter Process developed by NIZO Food Research BV, is the process for manufacturing lactic butter which has been patented. This process is used by Société FIT and sells the lactic butter as NIZO butter.

Nandini Roy Choudhury

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Global Lactic Butter Market: Opportunities

The demand for lactic butter is increasing in South Asia and in Middle East where the café culture is rising at a high rate. Its availability is very less in these regions, which has pushed the consumer to find alternatives for lactic butter in their recipes.

The manufacturers are also concentrated in the European region with a few manufacturers based in North America. This offers the existing as well as emerging players white spaces in the lactic butter market.

The manufacturers should focus on reducing the fat content when launching the lactic butter in the retail market in North America region as high fat content could dissuade them buying lactic butter and prefer other butter available in low fat version. Also, spreads of lactic butter will be more preferred in the region for its retail consumers as topping will be the more preferable use.

The research report presents a comprehensive assessment of the lactic butter market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to market segments such as product type, form, application and sales channel.

The report covers exhaustive analysis on

• Lactic Butter Market Segment
• Lactic Butter Market Dynamics
• Lactic Butter Market Size
• Lactic Butter Supply and Demand
• Current Trends/Issues/Challenges pertaining to Lactic Butter Market
• Competition Landscape and Emerging Market Participants in Lactic Butter Market
• Technology related to Production/Processing of Lactic Butter
• Value Chain Analysis of the Lactic Butter Market

Become a MarketNgage Insider

A unified Market Research Subscription Platform, built for today's disparate research needs.

Sign-Up

Regional analysis includes

• North America (USA, Canada)
• Latin America (Mexico, Brazil)
• Europe (Germany, United Kingdom, France, Italy, Spain, Poland, Russia)
• East Asia (China, Japan, South Korea)
• South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
• Oceania (Australia, New Zealand)
• Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.

The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.

Global Lactic Butter Market: Segmentation

By Product Type:

• Salted Lactic Butter
• Unsalted Lactic Butter

By Form:

• Blocks
• Cubes
• Spreads

By Aapplication:

• Bakery Products
• Confectionery
• Dairy Products
• Sauces and Soups
• RTE Food
• Snacks
• Meat Products
• Others

By Sales Channel:

• B2B/Direct Sales
• B2C/Indirect Sales
• Hypermarkets/Supermarkets
• Warehouse Stores
• Convenience Stores
• Independent Grocery Retailers
• Online Retail
• Other Retail Formats