The global clarified butter market size is expected to reach USD 3.34 billion by 2027, expanding at a CAGR of 9.9% over the forecast period, according to a new report by Grand View Research, Inc. Demand for clarified butter, also known as ghee, is expected to be driven by phenomenal globalization of food systems across the world. Additionally, easy access of diversified food is propelling the adoption of clarified butters in different cuisines, which is a major driver of the ghee market. For instance, Ethiopian cuisine has emerged as a major global food, and thus clarified butter in the form of Niter kibbeh finds usage as an important ingredient in the gastronomy.

Growing popularity of the product is compelling the companies to launch new products to sustain and enhance their market share. For instance, in February 2020, Gourmet Ghee Company launched Holi Ghee in U.S. The clarified butter is inspired from the Indian festival Holi as it comprises colorful crunchy sprinkles. These colorful sprinkles are made of organic-based dyes and the sweetness is induced using some hand-selected ingredients. It has a subtle sweetness with a rich taste and texture. The product is suitable for making traditional Indian sweets, including Gujiya and Matthi.

Similarly, in March 2019, the Rumiano Cheese Company launched Grass-Fed Ghee. The ingredients for the product are claimed to be completely organic and non-GMO and are sourced from family farms and foragers in the Pacific Northwest. The clarified butter has a high content of omega-3 fatty acids and beta-carotene. It is available in three flavors including plain, turmeric black pepper, and honey. The product has a rich golden color and a nutty aroma and is available in 10 oz. glass jars. The company entered this segment due to emerging high performance lifestyle and upcoming demand for healthy, high-fat diets among the millennials. It also plans to expand its portfolio of organic products.

Rising adoption of clarified butter indicates the vast potential of the market. Startups and venture capitals can be seen grooving towards this. For instance, in July 2019, 4th & Heart, a startup producing flavored ghee, received series C funding of USD 7.6 million from Harbinger Ventures. The company is known to offer 21 products and is available in over 10,000 stores in U.S.

Further Key findings from the study suggest:

  • Based on application, the B2C segment generated a revenue of USD 1035.9 million in 2019. Growing popularity of clarified butter across the globe for its caliber to add a distinctive flavor to food is expected to drive the market among household consumers
  • The B2B application segment is expected to exhibit the fastest CAGR of 10.2% from 2020 to 2027 owing to the use of the product as an essential ingredient in some of the most coveted gourmet foods, including biryani, in restaurants and hotels across the globe
  • Online channel is expected to expand at the fastest CAGR of 12.1% from 2020 to 2025. The growth is attributed to increased importance of e-commerce channels among millennials as convenience friendly shopping options
  • India emerged as the largest consumer of clarified butter and generated a revenue of more than USD 400 million in 2019. The product is considered an essential staple ingredient to the Indian cuisine in household and commercial spaces.