The low-fat butter market is estimated to secure a valuation of US$ 2.1 Billion in 2023 and is estimated to rise to US$ 3.3 Billion by 2033. The market is anticipated to grow at a CAGR of 4.6% during the forecast period. The factors accelerating the demand for low-fat butter are as follows-
The increasing application of low-fat butter in bakery products as well as an increased number of health-conscious people is estimated to propel the market growth. The low-fat butter is anticipated to witness a steady increase in demand due to the need for functional ingredients from the health-conscious population.
The changing consumer preferences across the globe regarding healthy tasty and low-calorie food products are expected to drive the low-fat butter market. Low-fat butter is a good option for all who want to enjoy butter with less fat content. Also, the advancement in technology and increased automation in processing is likely to boost the low-fat butter market growth.
North America is leading in the low-fat butter market and is expected to continue its leading position during the forecast period. the increasing consumer spending on low-fat and low-calorie food products for healthy living elevates the market demand in the region. The market in the region is driven by the increased intake of low-fat dairy products in the United States.
Europe is expected to offer lucrative growth opportunities to the manufacturer owing to the increasing adoption of a healthy life, and product launches by companies.
Asia Pacific is estimated to see fast growth in the low-fat butter market during the forecast period owing to the increasing demand for low-calorie and healthy food products. Also, the increasing demand from developing nations like India, China, and Japan spurs market growth.
The key players operating in the low-fat butter market include Procter & Gamble, Adams, Jif, Barney, Great Value, Skippy, Peter Pan, Kraft Canada Inc, The JM Smucker Company, Boulder Brands, Land O Lacke’s Inc, Dairy Farmers of America Inc., Schreiber Foods, Dairy Farmers of America, among others.
The market players are investing in promotional activities, advertising campaigns, and social media marketing and also focusing on capacity expansion. Also, the manufacturers are introducing new products with improved taste and texture that suits the need of the health-conscious consumer.
For instance, in July 2020- land O Lacke’s and Microsoft Corp announced a multilayer strategic alliance to pioneer innovations in agriculture and enhance the supply chain, expanding sustainability practices for farmers and the food system.
The low-fat butter market is expected to grow in coming years as the increasing application of low-fat butter in food & beverage and confectionary products is expected to drive market growth during the forecast period.
Also, the rapid growth of e-commerce and numerous malls, convenience stores, and departmental stores are contributing to the expansion of the low-fat butter market. The start-ups operating in the low-fat butter market are coming up with very innovative product launches.
For instance, founded in 2016, Wild Butter Co is an online retailer of peanut butter, it offers products in three variants namely, cinnamon maple almond butter, cream peanut butter, and crunchy cocoa peanut butter. All these products do not contain trans/saturated fat, artificial preservatives, excessive sugar, and flavourings.
| Data Point | Key statistics |
|---|---|
| Expected Market value in 2023 | US$ 2.1 Billion |
| Projected Market Value in 2033 | US$ 3.3 Billion |
| Growth Rate (2023 to 2033) | CAGR of 4.6% |
Low fat butter contains stanols and plant sterols which actively block the absorption of cholesterol, making low fat butter much healthier alternative to regular butter. Low fat butter manufacturers claims kosher-certified butter to guarantee transparency in tracing and comfort ethical disquiets.
Consumer’s inclination towards plant-based eco-relevant options due to lower levels of saturated fats and no trans-fat is escalating the demand for low fat butter across the globe.
Moreover, there is an increasing demand for low fat butter as it is widely produced by food manufacturers as an ingredient owing to high preference from both kids and adult consumers. To sustain the position in market, companies are manufacturing high-quality low fat butter in various flavors such as almond butter, peanut butter and cocoa butter with moderate amount of proteins.
Producers are focusing on launching new and innovative products of low fat butter. For instance- Bunge Loders Croklaan a Europe based company in 2018 had launched its clean label and healthier version of cocoa butter for confectionary industry.
The market is attributed to the widespread application of plant-based alternatives for producing low fat butter. The factors facilitating the growth of the market is the consumer’s inclination towards gluten-free diets and plant-based alternatives.
Due to increasing awareness about wholesome food and healthy lifestyle consumers are preferring low cholesterol, fat free and sugar free products. Consumers are concentrating more on exercising and weight management and following a proper diet after consulting dieticians and doctors. The increasing health-conscious consumers are escalating the demand for low fat butter.
Moreover, the health-conscious consumers prefer products with high nutritional content. Low fat butter is useful in making dietary food much tastier which helps consumers to enjoy their food without affecting the diet. Low fat butter is used in combination with a variety of food products such as breakfast foods, smoothies, savory, sauces and in innumerable bakery products.
Some General Mills, Inc.; of the key players of low fat butter are as follows-
The market for low fat butter is expected to witness strong growth rate during the forecast period fueled by investments done by market players for promotional activities, advertising campaigns, and social media marketing.
In terms of volume, Europe accounts for the dominating share in the global low fat butter market in 2019 due to increasing consumer focus on healthy nutrition and increasing vegan trend. The region is likely to experience the significant growth in the next few years. Thus, it is anticipated to maintain its dominance during the forecast period.
North America is predicted to offer fast-growing markets for low fat butter during the forecast period. Increasing trend of “non-GMO” and gluten free supplements from the food industry is projected to drive the demand for low fat butter market in this region.
The low fat butter market report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions.
By doing so, the research report serves as a repository of analysis and information for every facet of the low fat butter market, including but not limited to: regional markets, product type, application, nature, packaging, distribution channel.
The low fat butter market report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases).
The report also features a complete qualitative and quantitative assessment by analysing data gathered from industry analysts and market participants across key points in the industry’s value chain.
A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the low fat butter market report projects the attractiveness of each major segment over the forecast period.
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