The Global Butter Powder Market size is expected to reach $3.3 billion by 2030, rising at a market growth of 5.2% CAGR during the forecast period. In the year 2022, the market attained a volume of 222.2 Kilo Tonnes, experiencing a growth of 4.6% (2019-2022).
Online retail channels provide consumers with the convenience of shopping for butter powder from the comfort of their homes or on-the-go using smartphones or computers. Therefore, the online retail segment generated $325.8 million revenue in the market in 2022. This eliminates the requirement for visiting physical stores, thus saving time and effort. Online retailers offer a vast selection of butter powder products, including various brands, flavors, sizes, and packaging options. Consumers have the freedom to choose products that meet their specific preferences and dietary needs. For producers and manufacturers, selling butter powder through online retail channels can expand their market reach, increase brand visibility, and provide a direct connection to consumers. It allows them to tap into a global customer base and gain valuable insights into consumer preferences and behavior through data analytics. Some of the factors impacting the market are growing demand for products with longer shelf lives, increasing demand in food processing industry, and significant health concerns associated with butter powder.
The long shelf life of butter powder is one of its standout features. It offers several advantages over regular butter, particularly in terms of storage, transportation, and versatility in diverse applications. The fundamental reason for its extended shelf life is moisture removal during production. Most spoilage bacteria, molds, and yeasts require moisture to grow. Due to the lack of need for refrigeration and its longer shelf life, it is a valuable addition to emergency food supplies and survival kits. Therefore, the provision of longer shelf life for this product is a prominent factor that will drive the growth of the market in the coming years. Moreover, the demand in food processing has increased due to several factors that make it a preferred ingredient for manufacturers. Butter powder has a longer shelf life than regular butter, making it an attractive choice for manufacturers who wish to maintain the freshness and quality of their products over time without adding preservatives. It can be part of seasonings for snacks like popcorn or chips, providing a buttery taste without moisture. Such varied advantages of butter powder have contributed to its growing demand in food processing. As the food industry continues to innovate and expand, the role of ingredients like butter powder is expected to grow correspondingly.
However, it is essentially dehydrated butter, but its processing and any added ingredients can lead to some health concerns among consumers. Like regular butter, butter powder is a source of saturated fats, which, when consumed in high proportions, may raise LDL (bad cholesterol) levels in the blood, increasing the chances of heart disease and stroke. While it has a longer shelf life than regular butter, once opened, it might be susceptible to rancidity if not stored properly. Hence, all of these factors may hamper the growth of the market in the coming years.
Source Outlook
Based on source, the market is segmented into milk, peanut, almond, cocoa, and others. In 2022, the peanut segment procured a significant revenue share in the market. It contains between 85 and 90 percent less fat than regular peanut butter, which has proven to be an excellent substitute. In addition, it is a nutritious option because it is a great source of fiber, protein, vitamins, and minerals. When looking for a healthier option, consumers frequently select peanut butter powder. In addition, it is an excellent option for customers who desire the enticing flavor of peanut butter while restricting their cholesterol intake. Additionally, the prevalence of vegan and plant-based diets has increased the segment’s sales.
Distribution Channel Outlook
On the basis of distribution channel, the market is classified into supermarket/hypermarket, convenience stores, B2B, specialty stores, and online retail. In 2022, the supermarket/hypermarket segment dominated the market with the largest revenue share. Most cooking and culinary products are purchased from large retailers such as supermarkets. Due to their extensive selection of butter powder products, supermarkets are the most common places to buy butter powder. The consequences for sale come from a variety of brands and have distinct flavors. In addition to pastry and cookery, the health and wellness section carries butter powder. As a result, the market is alluring to consumers because it allows them to complete their purchase in a single location, sparing them time.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed the maximum revenue share in the market in 2022. Due to the continued expansion of the North American market, sales have increased significantly. In the region, there has been a substantial shift in consumer behavior regarding pastry and culinary products. In addition, an increase in North American consumers who use culinary creations is generating a considerable demand. Butter powder’s health benefits are becoming more widely known, increasing demand for baking and culinary supplies.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Nutrient Survival, Betty Lou’s Inc., Garden of Life, LLC (Nestle S.A), Kanegrade Ltd., PB2 Foods, Inc. (Bell Plantation Inc.), Z Natural Foods LLC, Powbab, Inc., Nutricost (ESUPPLEMENTS, LLC), and BetterBody Foods, and Hoosier Hill Farm LLC (Saco Foods)
Scope of the Study
Market Segments covered in the Report:
By Source (Volume, Kilo Tonnes, USD Million, 2019-2030)

  • Milk
  • Peanut
  • Almond
  • Cocoa
  • Others

By Distribution Channel (Volume, Kilo Tonnes, USD Million, 2019-2030)

  • Supermarket/Hypermarket
  • B2B
  • Convenience Stores
  • Online Retail
  • Others

By Geography (Volume, Kilo Tonnes, USD Million, 2019-2030)

  • North America

o US
o Canada
o Mexico
o Rest of North America

  • Europe

o Germany
o UK
o France
o Russia
o Spain
o Italy
o Rest of Europe

  • Asia Pacific

o China
o Japan
o India
o South Korea
o Singapore
o Malaysia
o Rest of Asia Pacific


o Brazil
o Argentina
o Saudi Arabia
o South Africa
o Nigeria
o Rest of LAMEA
Companies Profiled

  • Nutrient Survival
  • Betty Lou’s Inc.
  • Garden of Life, LLC (Nestle S.A)
  • Kanegrade Ltd.
  • PB2 Foods, Inc. (Bell Plantation Inc.)
  • Z Natural Foods LLC
  • Powbab, Inc.
  • Nutricost (ESUPPLEMENTS, LLC)
  • BetterBody Foods
  • Hoosier Hill Farm LLC (Saco Foods)

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