Expanded Butter Powder Market Projections: Anticipated to Reach USD 3.6 Billion by 2034 at a Notable 6.5% Annual Growth Rate
The global butter powder market is set to witness a robust compound annual growth rate (CAGR) of 6.5% from 2025 to 2034, with a market value projected to reach USD 3.6 billion by 2034 [1]. This growth is driven by several key factors, as outlined below.
Rising Demand in Food Manufacturing
Butter powder's wide industrial usage in processed and packaged food products, commercial bakeries, and ready-to-eat meals supports strong, consistent demand, especially in large-scale food production [1]. Its versatility and convenience make it an ideal choice for the food processing industry.
Preference for Shelf-Stable and Convenient Ingredients
Butter powder's longer shelf life and ease of storage compared to butter make it highly favoured in the food processing industry [1]. This attribute, coupled with its ability to maintain quality during transportation and storage, is a significant factor driving its demand.
Regional Consumption Dominance and Infrastructure
North America, with a significant market share of 46.2% in 2024, is a major player in the global butter powder market [1]. The region's well-developed food processing infrastructure, consumer preference for processed dairy ingredients, and status as both a major consumer and producer contribute to its dominance.
Expansion in Emerging Markets
Increasing participation from regions such as Europe, Asia Pacific, Latin America, and the Middle East & Africa are fuelling market expansion [1]. Growing food processing sectors and rising demand for dairy-based ingredients in these regions are key drivers of this growth.
Technological Advancements and Supply Chain Development
Improvements in processing technologies and supply chains enhance the availability and efficiency of butter powder production and distribution, supporting market scalability [1]. These advancements help meet the growing demand for butter powder while maintaining quality and consistency.
Key Players and Innovations
Several key players are shaping the butter powder market, with innovations in product offerings and production methods. For instance, Agropur has expanded its butter powder offerings to meet rising demand in the bakery and convenience food sectors, focusing on improved solubility and extended shelf life [1]. Arla Foods amba has introduced a new organic butter powder under its "Arla Foods Ingredients" line, targeting health-conscious consumers and investing in lactose-free variants [1].
Other notable developments include Fonterra Co-operative Group Limited's introduction of a heat-stable butter powder variant for processed foods and confectionery, focusing on sustainable production and reduced carbon emissions [1]. Garden of Life, primarily known for plant-based products, has introduced a grass-fed organic butter powder as part of its "Raw Organic" line, designed for keto and paleo diets [1].
Market Segmentation
In 2024, conventional butter powder captured a 78.1% share of the market [1]. However, innovations such as plant-based and zero-waste butter alternatives are shaping future market opportunities [1].
Baked goods accounted for 32.8% of butter powder use in 2024 [1]. Butter powder's popularity is surging in bakery and confectionery applications due to its ability to offer a rich flavor without refrigeration [1]. In convenience foods like pasta, soups, and instant mashed potatoes, butter powder offers the taste and fat content of butter while simplifying storage and transportation [1].
Regional Overview
North America is a central hub for butter powder in the global market, due to advanced production infrastructure, strong supply chain networks, and a preference for convenient, long-lasting products [1]. In 2024, North America recorded a market value of USD 0.8 billion [1].
In conclusion, the global butter powder market is poised for significant growth, driven by factors such as rising demand in food manufacturing, preference for shelf-stable and convenient ingredients, regional consumption dominance and infrastructure, expansion in emerging markets, technological advancements and supply chain development, key players and innovations, market segmentation, and regional overview. As the market evolves, it is expected to see continued growth and innovation, particularly in areas such as plant-based and sustainable alternatives.
References: [1] Mordor Intelligence (2021). Butter Powder Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026). Retrieved from https://www.mordorintelligence.com/industry-reports/butter-powder-market
- A strategic investor seeking opportunities in the food and beverage sector might consider the growing butter powder market given its strong growth prospects and expanding market share in regions like Europe, Asia Pacific, Latin America, and the Middle East & Africa.
- As personal-finance management becomes increasingly important, understanding the role of butter powder in the broader food-and-drink industry could provide valuable insights for analysts assessing long-term investment opportunities.
- Businesses focusing on the lifestyle segment, such as those offering ready-to-eat meals or catering to health-conscious consumers, may find it beneficial to explore partnerships with key players like Arla Foods amba, given their innovations in organic and lactose-free butter powder offerings.
