Europe Butter Market Segmentation By Product Type (Uncultured butter, Cultured butter, Salted, Whipped, and Others), By Processing (Processed and Non-Processed), By Usage (Spreadable and Non-Spreadable), By Distribution Channel (Convenience Stores, Supermarkets/Hypermarkets, Online Retail Stores, Specialty Stores, and others) - By Country (UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic and Rest of Europe) – Size, Share, Trends, Growth, Forecast (2024 to 2029)

Updated On: June, 2024
ID: 4238
Pages: 145

Europe Butter Market Growth and Forecast (2023 - 2028):

The Europe Butter Market was worth US$ XX million in 2022, and it is estimated to grow at US$ XX million by the end of 2028 at an increasing CAGR of XX% during 2023 - 2028.

Market Scenario:

Whipping cream or fresh/fermented milk separates the milk fat from the buttermilk to make butter. Butter is treated as one of the most popular dairy products, and it's also a common element in food. It's also one of the world's fastest-growing food industries. Butter, like all food products, is subject to supply and demand. The collection of butter is determined by the amount of milk produced. Consumers are informed of the shortfall by higher costs. Droughts or extreme temperatures restrict supply. Because of the simplicity and flexibility of packaging, the butter industry is growing in popularity. Butter is available in various formats, including boxes, cartons, and cups, for increased comfort and convenience. During the predicted period, demand for butter has increased due to rising urbanization and consumer eating habits. Additionally, additional product releases and developments from top table butter manufacturers are fuelling consumer demand for butter once again.

Recent Developments in Europe Butter Industry:

  • Arla Foods declared that its butter sale went on a hike due to the lockdown. In a lockdown, as people were to spend 24/7 in the homes, tried new varieties of dishes which include butter as a significant ingredient.

Europe Butter Market Drivers:

The worldwide butter market is primarily driven by the rising demand for butter in food processing. Furthermore, the hotel/restaurant/café industry is expanding at a faster rate than the market. As a result, butter is widely utilized in the food business, particularly in the bread and confectionery industries. Therefore, during the forecast period, the global butter market is expected to increase significantly. Cakes, biscuits, and cookies have a low melting point, allowing them to melt in your tongue for texture and flavor. Overall, it aids in adding taste, the balance of salt and moisture content, and the fermentation of flour to trap steam.

Moreover, as the demand for these products grows, the market for salt and unsalted butter increases. In addition, low pricing, increased urbanization, product diversity, and a busy lifestyle are driving up demand for pieces of bread, ready-to-eat items, cakes, muffins, cookies, donuts, breakfast cereals, and pastries. However, the worldwide dairy business is now in a state of flux. Due to various variables such as health concerns, regulatory scenarios, and changes in consumer diets and habits, demand for dairy products is expected to expand slowly over the projected period.

Despite the moderate expansion, the dairy industry's long-term prospects are bright. Butter is made from pure heavy cream and can be spread from cold to solid at room temperature and liquid at high temperatures. Butter is predicted to enjoy considerable growth and profitability in developing countries due to rising urbanization, rising per capita disposable income, rising breakfast habits, growing home baking culture, rising Western culinary influences, and the revitalization of hotel culture. Butter demand is increasing in developing countries as a result of changing consumer habits and increased breakfast patterns. Sensory enjoyment and the flavor associated with butter are driving consumer desire. Additionally, the expanding trend of home baking and the impact and popularity of western cuisines will inevitably increase the butter market. For players operating in global markets, increased investment in R&D to introduce innovative products is projected to provide profitable prospects.

Restraints:

The Europe butter market's expansion is being stifled by rising health consciousness. Health concerns are on the rise as a result of changes in lifestyle and dietary habits. Furthermore, consumers are more aware of the advantages and disadvantages of the components in their food. Growing awareness of the harmful consequences of excessive butter consumption on the body has caused consumers to limit their butter consumption in favor of low-calorie, low-saturated-fat products, which has hampered the global butter market's growth. In addition, the growing demand for vegan and veggie butter is stifling the market's expansion. Currently, there is a negative impact on market growth.

Europe Butter Market Segmentation Analysis:

By Product Type:

  • Uncultured butter
  • Cultured butter
  • Salted
  • Whipped
  • Others

Cultured butter held the largest Europe Butter Market share during 2023 - 2028. Cultured butter is creamier, has a more robust butter flavor, and has a higher melting point than regular butter. As a result, it stays on your heated toast for longer, and you get to savor the flavor by biting into the butter.

By Processing:

  • Processed
  • Non-Processed

Based on processing, the processed segment attributes the maximum Europe Butter Market share in the upcoming years. It's high in nutrients like calcium, which helps build bones, and it includes chemicals that can lower the risk of obesity. Butter can also be included in a low-carbohydrate diet, which can help people maintain their weight or lose weight more quickly than a low-fat diet.

By Usage:

  • Spreadable
  • Non-Spreadable

Based on usage, spreadable butter dominates the Europe Butter Market since, Spreadable butter, which is made up of two quality forms of fat, is a natural carrier for flavor.

By Distribution channel:

  • Convenience Stores
  • Supermarkets/Hypermarkets
  • Online Retail Stores
  • Specialty Stores
  • others

Supermarket/Hypermarket was the most dominant distribution channel in the Butter market in 2020, accounting for the maximum proportion. This can be ascribed to features such as the one-stop shopping experience offered by these retail formats, which has made it a prevalent shopping option for consumers. Furthermore, these retail formats provide customers with a diverse choice of products at a reasonable price and are typically placed in easily accessible regions. However, due to growing internet penetration and more significant usage of smartphones for online shopping, the online segment of the Europe Butter market is predicted to grow at the quickest rate, allowing consumers to compare items in real-time.

Regional Analysis:

  • United Kingdom
  • Spain
  • Germany
  • Italy
  • France

The European market now accounts for a considerable portion of the global butter market due to the industry's rise. Therefore, market participants are focusing on R&D operations to offer new healthy kinds of butter on the European market as consumer health awareness grows. Butter's popularity continues to rise in the United Kingdom, with volume sales increasing by 1%. British customers are increasingly opting for less processed and more natural products is the primary factor for the market's growth. This is in line with the UK's current health and wellness trend, in which consumer decisions are increasingly influenced by whether or not things are considered healthy. As health concerns turned away from fats and toward sugars, and margarine and other dairy spreads were increasingly perceived as manufactured and artificial, the butter sector benefited from this trend.

Impact of COVID-19 on Europe Butter Market:

Due to worker migrations and trade constraints, the global pandemic has substantially impacted butter production and supply chains. Butter is an "essential good item" that can be found in any store, which raises demand in the home. Because butter is a crucial ingredient in cuisine and sweets, the closure of all bakeries has had a significant impact on restaurants and cafes. The present outbreak has had an influence on marketing in many regions, including the butter sector. As a result, by 2020, butter sales were on the decline. As a result, the global market is forced to undertake a wide range of strategies and plans to recoup its previous needs and increase global growth. As a result, the food sector has boosted its efforts to improve practices and sales levels among targeted demographics in all regions. As a result, despite the downturn, market experts are confident that butter sales would rebound in the current fiscal year.

Key Players in the Market:

Major Key Players in the Europe Butter Market are

  • Groupe Lactalis
  • Unilever PLC
  • FrieslandCampina NV
  • Fonterra Co-operative Group Limited
  • Nestlé SA
  • Gujarat Co-operative Milk Marketing Federation Ltd
  • Land O'Lakes, Inc
  • Hatsun Agro Product Limited
  • Arla Foods
  • Glanbia plc

 

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