Global Butter and Ghee Market Size
The global butter and ghee market is expected to be worth USD 48.2 million in 2024 and is anticipated to reach USD 151.60 billion by 2032 with a CAGR of 15.47% during the forecast period.
Market Drivers
The rising health consciousness among the people and the increased knowledge regarding the health benefits of ghee and butter are significant factors contributing to global market growth. The growing demand for organic and natural products, as most consumers are aware of the impact of synthetic additives on health, is augmenting global market growth. For Instance, in August 2024, Amul introduced a new line of organic ghee products to meet the increased demand for healthier food—the presence of culinary trends, growing innovations, and continuous product launches creating market growth opportunities. The expanding distribution channels, especially the e-commerce sector, will provide growth opportunities to the butter and ghee market in the coming years. Ghee is a carrier of fat-soluble vitamins, which include A, D, E, and K, which are extensively utilized by the human body.
Market Restraints
The high costs of premium, high-quality, and efficient products are the significant factors restraining the market growth. The rise in consumer shift towards veganism is limiting the adoption of dairy-related products, another prominent factor restricting the global butter and ghee market growth. The presence of intense competition for ghee from alternative oils such as cooking oils and fats like olive oil, coconut oil, and others is estimated to hamper the market expansion. The stringent regulations and quality control issues are significant challenges that market players face in expanding market revenue due to the high complexity of the process. The variations in the regulations for different countries in labeling and quality control may impede the market growth rate.
Market Segmentation
Global Butter and Ghee Market Analysis – By Volume
The imports segment dominated the global butter and ghee market revenue with a prominent share and is expected to dominate during the forecast period. Reducing milk production in most regions for various reasons, such as an unfavorable environment, is a significant factor propelling the segment's growth. The decline of limited resources in the dairy industry across certain regions is influencing them to seek imports, leading to segment revenue growth.
The export segment is projected to record substantial growth during the forecast period. The rise in imports influences the export business of other countries, leading to segment growth. Certain countries, such as New Zealand, Germany, and the Netherlands, export high milk volumes, contributing to segment growth. For Instance, New Zealand is the world's top exporter of milk, with an export value of USD 6.8 billion in 2023.
Global Butter and Ghee Market Analysis – By Distribution Channel
The supermarket segment held the most dominant share in the global butter and ghee market revenue and is expected to record prominent growth during the forecast period. The extensive reach to the consumers, which acts as a one-stop for all consumer needs, drives the segment growth rate. The availability of various brands, collaborations with the brands, and the ease of accessibility are escalating the segment revenue growth.
The e-retailers segment is anticipated to record significant growth with a rapid CAGR during the forecast period. The expanding e-commerce sector worldwide, the availability of branded and premium products, and ease of delivery are a few factors gaining traction among the people, leading to prominent growth of the segment.
Regional Analysis
The Asia Pacific region accounted for a significant share of the global ghee market with a notable CAGR and is anticipated to remain dominant during the forecast period. The abundant milk production in the regional countries is the primary factor contributing to the regional market share growth. For Instance, according to data provided by the Department of Animal Husbandry and Dairying in India, stated that milk production in India during the period of 1950-51 to 2017-2018 has increased from 17 million tonnes to 176.4 million tonnes. The presence of significant market players, the ease of product availability, and rising product launches with specifications proliferates the regional market growth rate.
The North American region is expected to experience robust growth during the forecast period. The escalation in demand for healthy food products and regional culinary products, including butter and ghee, propels the regional market growth rate. The ease of availability, growing health consciousness among the people, expanding the e-commerce sector in the region, and enlarging import and export businesses are driving the regional market with growth opportunities.
Recent Market Developments
- In May 2024, A2 Milk Company announced the launch of a premium range of desi cow ghee. The primary aim of the product line is to gain traction among health-conscious people seeking traditional and high-quality ghee products, which is estimated to escalate the company's position.
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