The global lactic butter market was estimated to be US$ 3.98 Billion in 2022 and is expected grow at a CAGR of 4.9% between 2023 to 2032.
Lactic butter is a type of butter that is made from cultured or sour cream. It is produced by fermenting fresh cream with lactic acid bacteria, which gives the butter a tangy, slightly sour flavor. The process of culturing the cream also results in a higher content of healthy fatty acids and a lower pH, which helps to extend the shelf life of the butter.
Lactic butter is commonly used in cooking and baking, and is a popular ingredient in European cuisine. It is also used in cosmetics, pharmaceuticals, and other applications due to its rich and creamy texture.
The growth of the global lactic butter market is driven by several factors, including the growth of the global dairy industry, the expansion of the retail sector, and the increasing availability of lactic butter through online channels.
The food, confectionary, and cosmetics industries are significant end-use industries for lactic butter, and the increasing demand for natural and organic products has led to an increase in demand for lactic butter as an ingredient.
In addition to the above factors, rising consumer awareness about the health benefits of lactic butter is also driving the growth of the lactic butter market. Lactic butter, made from cultured cream, is considered a natural and organic product and is seen as a healthier alternative to regular butter. With increasing consumer awareness about the health benefits of lactic butter, there has been a growing demand for the product.
The growing demand for lactic butter has created an opportunity for the production of lactic butter, leading to the growth of the lactic butter market.
Based on the type of product the market is segmented into Salted Lactic Butter, and Unsalted Lactic Butter. Among these, the salted lactic butter segment is the largest segment in the market, accounting for a significant share of the market.
The demand for salted lactic butter is higher due to its widespread usage in a variety of applications, such as cooking and baking. The salt in salted lactic butter helps to enhance the flavor and taste of the product, making it more appealing to consumers. The high demand for salted lactic butter has led to an increase in production, driving the growth of the salted lactic butter segment.
While, the unsalted lactic butter segment is the fastest-growing segment growing rapidly due to the increasing demand for healthier and natural products. Unsalted lactic butter is considered a healthier alternative to regular salted butter, and its popularity has been growing among health-conscious consumers.
The increasing demand for unsalted lactic butter has led to an increase in production, driving the growth of the unsalted lactic butter segment.
Based on the form the market is segmented into Blocks, Cubes, and Spreads. Among these, the largest segment is blocks. It is the most commonly used form in the food industry due to its versatility and ease of use. Blocks of lactic butter are used in cooking, baking, and as spreads, making them a popular choice in households and commercial kitchens.
The availability of lactic butter in block form in various sizes and packaging options has made it the preferred choice for consumers and has contributed to its market dominance.
The cubes and spreads segments are also growing, but they are smaller compared to the blocks segment. The increasing demand for convenient and ready-to-use products has driven the growth of the cubes segment, while the growth of the spreads segment is driven by the increasing demand for healthier alternatives to regular spreads. Both the cubes and spreads segments are expected to grow in the future, but the blocks segment is expected to remain the largest segment in the global lactic butter market.
Based on the application, the market is segmented into Bakery Products, Confectionary, Dairy Products, Sauces and Soups, RTE Food, Snacks, Meat Products, and other applications. Among these segments, the largest segment is the bakery products. Lactic butter is widely used in bakery products as it provides a rich and creamy flavour and enhances the texture of baked goods.
The increasing demand for natural and organic products has led to an increase in the use of lactic butter in bakery products as an alternative to regular butter. This has made the bakery products segment the largest segment in the global lactic butter market.
While, the fastest-growing segment of the global lactic butter market based on application is sauces and soups. Lactic butter is used in sauces and soups as a thickener and to add richness and flavor.
The growing demand for natural and organic products has led to an increase in the use of lactic butter in sauces and soups, making it a popular ingredient in the food industry. This trend has driven the growth of the sauces and soups segment and is expected to continue to grow in the future.
Based on sales channel, the market is segmented into Direct sales, Supermarkets/hypermarkets, Online retail, Convenience stores, and Others. Among these, the largest segment is supermarkets/hypermarkets. Supermarkets and hypermarkets offer a wide range of products, including lactic butter, under one roof, making them a popular choice for consumers.
The presence of multiple brands and the availability of various forms and packaging options of lactic butter in supermarkets and hypermarkets has made them the preferred choice for consumers.
While, the fastest-growing segment of the market is online retail. The growth of e-commerce and the increasing availability of products through online channels has driven the growth of the online retail segment.
The convenience and ease of purchasing products online, as well as the ability to compare prices and products, have made online retail a popular choice for consumers. Additionally, the growth of online grocery shopping has also contributed to the growth of the online retail segment in the lactic butter market.
Geographically, the global lactic butter market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. Among these, the largest segment is Europe, a leading producer and consumer of dairy products, including lactic butter.
The region has a well-established dairy industry, and the consumption of dairy products is part of the traditional diet in many European countries. Additionally, the presence of major dairy producing countries, such as France, Germany, and the Netherlands, has contributed to the growth of the lactic butter market in Europe.
The fastest-growing segment of the global lactic butter market by geography is Asia-Pacific. The region is experiencing rapid growth in the dairy industry, driven by increasing consumer demand for dairy products and the growth of the food and confectionery industries.
The increasing urbanization and rising disposable income levels in the region have also led to an increase in the demand for dairy products, including lactic butter. Additionally, the growth of the online retail sector has made lactic butter more accessible to consumers in the region, contributing to its growth.
While Europe remains the largest market for lactic butter, the Asia-Pacific region is expected to continue to experience significant growth in the future, driven by increasing consumer demand and the growth of the dairy industry in the region.
Some of the biggest companies operating in the global lactic butter market are Amul, Bongrain S.A., California Dairies Inc., Dale Farm Ltd., Dairy Farmers of America, Emmi AG, Fonterra Co-operative Group, Fonterra Group, Foodcom S.A., Glanbia Ireland, Hoogwegt Group, Interfood BV, Kerry Group, Lakeland Dairies Co-op Society Ltd., Lactalis American Group Inc., Lactalis Group, Land O'Lakes, Milky Holland, Numidia BV, Saputo Inc., Société FIT, and many more.
By Product Type
By Form
By Application
By Sales Channel
By Region
The lactic butter market was estimated to be US$ 3.98 Billion in 2022.
The global lactic butter market is expected grow at a CAGR of 4.9% between 2023 to 2032.
Europe region will lead the global lactic butter market. The presence of major dairy producing countries, such as France, Germany, and the Netherlands, has contributed to the growth of the lactic butter market in Europe.
The growth of the global lactic butter market is driven by several factors, including the growth of the global dairy industry, the expansion of the retail sector, and the increasing availability of lactic butter through online channels.
The salted lactic butter segment holds a significant share in the lactic butter market.
The block is the fastest-growing form type in the lactic butter market. It is the most commonly used form in the food industry due to its versatility and ease of use.
The sales channels in lactic butter market are Direct sales, Supermarkets/hypermarkets, Online retail, Convenience stores, and Others.
The fastest-growing segment of the global lactic butter market based on application is sauces and soups. The growing demand for natural and organic products has led to an increase in the use of lactic butter in sauces and soups, making it a popular ingredient in the food industry.
The leading manufacturers in the global lactic butter market are Amul, Bongrain S.A., California Dairies Inc., Dale Farm Ltd., Dairy Farmers of America, Emmi AG, Fonterra Co-operative Group, Fonterra Group, Foodcom S.A., Glanbia Ireland, Hoogwegt Group, Interfood BV, Kerry Group, Lakeland Dairies Co-op Society Ltd., Lactalis American Group Inc., Lactalis Group, Land O'Lakes, Milky Holland, Numidia BV, Saputo Inc., Société FIT, and many more.
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