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Reduced Fat Butter Market

Reduced Fat Butter Market by Form, Fat Content, End Use, Packaging, Sales Channel & Region - Forecast 2022-2032

Market Insights on Reduced Fat Butter covering sales outlook, demand forecast & up-to-date key trends

Reduced Fat Butter Market

The global demand for reduced fat butter is anticipated to increase at a CAGR of around 5.2% to 6.7% during the forecast period from 2022 and 2032. Growth in the market is driven by the increasing demand for healthy foods and growing health awareness among people.

Report Attribute


Reduced Fat Butter Market Projected Growth Rate (2022-2032)

5.2% - 6.7% CAGR

Butter is no doubt one of the most commonly utilized dairy products across the world. However, increasing consumption of butter often leads to various health issues including weight gain, obesity and several heart related diseases due to high amounts of cholesterol, trans fats, and saturated fats. This has brought reduced fat butter market into the spotlight.

Reduced fat butter is a type of butter prepared by lowering its fat content to the desired levels, usually 40% or lower. It has become an ideal substitute for regular butter due to low fat content and presence of plant sterols and stanols that reduce the absorption of bad cholesterol in the gut.

Growing consumer awareness about the benefits of consuming reduced fat butter over normal butter coupled with growing demand for low calorie foods is emerging as a major factor boosting the growth of reduced fat butter market and the trend is likely to continue during the assessment period.

Reduced fat butter fat has a similar flavor and texture of regular butter but has fewer fat grams. It is generally available in two forms i.e., spreadable reduced fat butter and non-spreadable reduced fat butter. Moreover, reduced fat butter is often modified with reduced sodium content to make it suitable for consumers suffering from bone disorders.

Which Factors are Pushing the Sales of Reduced Fat Butter

The swift growth of reduced fat butter market is attributable to the rising number of health-conscious consumers, surging demand for low fat and low calorie foods, increasing prevalence of lifestyle diseases like obesity and diabetes, and growing trend of “burn fats” among consumers.

In recent years, reduced fat butter has gained immense traction as an ideal alternative for regular butter due to its low-fat content. Majority of the health-conscious people are preferring to consume reduced fat butter for regulating the bad cholesterol in the diet, thereby eliminating the threat of developing cardiovascular diseases.

Growing prevalence of  obesity and other lifestyle diseases across the globe is anticipated to create lucrative growth prospects for reduced fat butter during the forecast period.

Similarly, flavor and texture of reduce fat butter plays a key role in fueling its adoption as many health-conscious people do not compromise on the taste and flavour of food products.

In addition to this, rapid expansion of end use verticals along with rising sales of reduced fat butter through online shopping platforms is expected to further boost the growth of reduced fat butter market during the forthcoming years. Various fast-food providers and hotels are adding reduced fat butter on their menus to attract more and more customers.

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What are the Challenges Faced by the Reduced Fat Butter Industry

Despite a positive outlook, the global reduced fat butter market is facing various challenges that are limiting its growth to some extent. Some of these factors are the high costs of reduced fat butter products and lack of product availability across various low developing and underdeveloped regions of the world.

Reduced fat butter is usually more expensive than normal butter. As a result, people belonging to the lower strata of society or people having low incomes cannot afford this reduced fat butter.

How Will Growth Unfold in the North America Market

The reduced fat butter market in North America is forecast to grow at a relatively higher CAGR over the forecast period, owing to the high consumer purchasing power, increasing incidence of lifestyle diseases, heavy presence of leading market players, and growing demand for healthy food products.

Countries like the United States are becoming ideal destinations for reduced fat butter due to growing consumer inclinations towards utilizing low calorie foods and easy availability of products through various sales channels.

Nandini Roy Choudhury
Principal Consultant
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What Makes Europe a Promising Market for Reduced Fat Butter

According to Future Market Insights, the Europe reduced fat butter market is slated to grow at a significant pace during the forecast period from 2022 to 2032, owing to the high levels of consumer awareness, growing trend towards consuming healthy foods, and presence of some leading market players.

Demand is especially rising across nations like Germany, France, and the U.K. as a result of increasing usage of reduced fat butter across various end verticals.

Market Competition

Some of the key participants present in the global reduced fat butter market include a Palsgaard, Upfield, Finlandia Cheese, Inc., Agral S.A., Ornua Co-operative Limited, and Saputo Dairy Australia Pty Ltd. among others.

These leading players are constantly upgrading their product portfolios by launching new products with innovative packaging. Besides this, they have adopted various growth strategies such as aggressive advertisements and campaigns, partnerships, acquisitions, collaborations, and move towards online sales channels to expand their presence and gain a competitive edge in the market.

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Scope of Report

Report Attribute


Growth Rate

CAGR of 5.2% - 6.7% from 2022 to 2032

Base Year for Estimation


Historical Data


Forecast Period


Quantitative Units

Revenue in USD Billion, Volume in Kilotons and CAGR from 2022-2032

Report Coverage

Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis

Segments Covered

  • Product Type
  • Application
  • Region

Regions Covered

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • Middle East and Africa

Key Countries Profiled

  • U.S
  • Canada
  • Brazil
  • Argentina
  • Germany
  • U.K
  • France
  • Spain
  • Italy
  • Nordics
  • Australia & New Zealand
  • China
  • India
  • GCC
  • South Africa

Key Companies Profiled

  • Palsgaard
  • Upfield
  • Finlandia Cheese, Inc.
  • Agral S.A.
  • Ornua Co-operative Limited
  • Saputo Dairy Australia Pty Ltd.
  • Others


Available Upon Request

Key Segments Profiled in the Reduced Fat Butter Industry Survey

By Form:

  • Spreadable
  • Non-spreadable

By Fat Content:

  • 15-40% fat content
  • 41-60% fat content

By End Use:

  • Household
  • Foodservice
  • Food Industry

By Packaging:

  • Plastic Tubs
  • Carton Packs
  • Bulk

By Sales Channel:

  • Direct Sales (B2B)
  • Indirect Sales (B2C)
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Discount Stores
  • Food & Drink Specialty Stores
  • Online Retail
  • Others

By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • Middle East & Africa

Frequently Asked Questions

FMI projects the global reduced fat butter market to expand at around 5.2% to 6.7% CAGR over the forecast period.

North America and Europe together hold a significant share of the global reduced fast butter market and the trend is likely to follow during the assessment period.

Palsgaard, Upfield, Finlandia Cheese, Inc., and Agral S.A. are some prominent reduced fat butter manufacturers

Table of Content


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Nandini Roy Choudhury
Principal Consultant
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Reduced Fat Butter Market