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Global butter market is growing at a CAGR of 3.9% during the forecast period (2019-2024).
- The marekt is driven by the increasing demand for bakery and confectionery as it is one of the vital ingredient in these industries. Also, with the dropping prices of butter, the competition between substitute products has intensified and consumers looking for foods with less artificial ingredients are switching to butter. The promotional campaigns that promote the usage of natural products have helped the companies to increase their sales.
- Geographically, Europe and North America dominates the market. However, Asia-Pacific is expected to be the fastest-growing market for butter, during the forecast period, with India being the major markets. As per the data given by StatCan, Canadian Dairy Information Centre, International Dairy Federation and Agriculture and Agri-Food Canada, the butter consumption was highest in Cyprus (12.9 per capita consumption in kilograms) in 2016 and the lowest was in China (with 0.1 per capita consumption in kilograms).
- Availability of healthy alternatives to butter, such as margarine, along with government regulations in the production and distribution of butter is one factor that is restraining the market growth.
Key Market Trends
Increase In Demand For Low Fat/Calorie/Cholesterol Butter
Awareness of excessive butter fat intake which can lead to cardiovascular diseases, have led to a shift in the category of low fat, low cholesterol and low-calorie butter. Brands such as Amul, Fonterra and Arla Foods have introduced butter of low fat and cholesterol to meet the consumers need in the market. As per th data given by the Office for National Statistics (UK), there is a significant increase in sales volume of low-fat butter (not exceeding 85% by weight) in the year 2017.
Asia-Pacific Region Is The Fastest Growing Market
As per the US Department of Agriculture and Economic Research Service, India is the leading butter producing country in 2018, producing 5.6 million metric tons of butter. The Asia-Pacific butter supply has always been highly influenced, in increasing quantities, by the domestic market, mainly by the confectionery and bakery industry. Butter processing plants in the Asia-Pacific region have been significantly expanding to meet the consumers demand, and therefore fueling the market growth.
The global butter market is considerably competitive in nature having large number of domestic and multinational player competing for market share and with innovation in products being a major strategic approach adopted by leading players. Additionally, merger, expansion, acquisition and partnership with other companies are the common strategies to enhance the company presence and boost the market.
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