Flavoured Butter Market Research Report Information By Nature (Organic and Conventional), Product Type (Salted and Unsalted), Format (Spreadable and Non-Spreadable), Form (Powder, Liquid and Paste), Applications (Milk & Dairy Products, Bakery Products, Value Added Food and Beverages, Dips & Sauces and Blends & Seasonings), Distribution Channel (Store-Based Retailing and Online Retailing), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

Global Flavoured Butter Market Overview

Flavoured Butter Market Size was valued at USD 1.7 Billion in 2023. The Flavoured Butter industry is projected to grow from USD 2.04 Billion in 2024 to USD 8.77 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.00% during the forecast period (2024 - 2032). Growth of consumer preferences, culinary trends, health considerations, and effective marketing strategies, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Flavoured Butter Market Trends

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  Rising Health and Wellness Consciousness is driving market growth

  
  

The Flavored Butter market is experiencing a surge in demand, buoyed by the prevailing wave of health and wellness consciousness among consumers. As individuals increasingly prioritize wholesome and natural food choices, flavored butter has emerged as a sought-after option that aligns with these evolving dietary preferences. Health-conscious consumers are drawn to flavored butter products that offer not only a burst of enticing flavors but also the promise of high-quality and nutritious ingredients.

In response to the demand for healthier alternatives, manufacturers are incorporating premium ingredients, such as organic herbs and spices, into flavored butter formulations. The perception of flavored butter as a more natural option compared to some processed spreads has fueled its popularity among those seeking a balance between indulgence and nutritional mindfulness. Furthermore, the market has witnessed the introduction of specialty and functional variants, such as probiotic-infused or omega-3 enriched flavored butters, appealing to consumers looking to integrate health benefits into their daily culinary choices.

The rising awareness of the impact of diet on overall well-being has positioned flavored butter as a versatile and flavorful companion for health-conscious consumers, contributing significantly to the market's continued growth. As consumers increasingly view food as a key component of their wellness regimen, flavored butter stands out as a flavorful yet health-conscious choice in the evolving landscape of dietary preferences.

Flavoured Butter Market Segment Insights

By Nature (Organic and Conventional)

The Flavoured Butter Market segmentation, based on nature includes organic and conventional. The organic segment dominated the market, accounting for more than half of market revenue. This is due to the increasing emphasis on health-conscious choices propels the demand for organic flavored butter, as consumers associate organic products with fewer pesticides and a more natural production process. Consumers concerned about the environment often opt for organic products, as organic farming practices are typically perceived as more sustainable and eco-friendly.

The conventional segment is expected to grow at a highest CAGR. This due to the conventional flavored butter often appeals to cost-conscious consumers as it tends to be more competitively priced than organic alternatives. Conventional flavored butter products are more widely available in mainstream retail outlets, contributing to their accessibility for a broad consumer base. Some consumers prefer the familiar taste and consistency of conventional flavored butter, which may be perceived as closer to traditional butter flavors.

Flavoured Butter Market Product Type Insights

The Flavoured Butter Market segmentation, based on product type includes salted and unsalted. The salted segment dominated the market, accounting for more than a quarter of market revenue. Salted flavored butter is characterized by its savory and slightly tangy taste, making it a preferred choice for consumers seeking a more robust and flavorful option. The addition of salt enhances the versatility of this product, making it suitable for both sweet and savory dishes.           

The unsalted segment anticipated to grow at a fastest CAGR during the forecast period. Unsalted flavored butter provides a neutral base, allowing consumers to customize the level of salt in their dishes according to personal taste preferences and dietary restrictions. Bakers often prefer unsalted flavored butter as it allows them precise control over the salt content in recipes, especially in delicate and sweet baked goods. Health-conscious consumers who are mindful of their sodium intake often opt for unsalted flavored butter to have better control over the overall salt content in their diet.

Flavoured Butter Market Format Insights

The Flavoured Butter Market segmentation, based on format includes spreadable and non-Spreadable. The Spreadable segment dominated the market, accounting for more than a quarter of market revenue. Spreadable flavored butter is designed for easy spreading on various food items, such as bread, crackers, or other baked goods. Its smooth consistency makes it convenient for use as a spread. It is versatile and can be used as a condiment, a topping, or an ingredient in cooking. Its spreadable nature enhances its applicability in both sweet and savory culinary creations.             

The Non-Spreadable segment anticipated to grow at a fastest CAGR during the forecast period. Non-spreadable flavored butter is formulated for cooking and baking purposes. Its thicker consistency makes it suitable for melting, sautéing, or incorporating into recipes where a more solid form is desired. It is chosen for its ability to impart concentrated and nuanced flavors to cooked dishes. It is often used for finishing touches in recipes to enhance the overall taste. Some non-spreadable flavored butters are positioned as specialty or gourmet products, appealing to consumers looking for premium options with distinctive flavors.

Flavoured Butter Market Form Insights

The Flavoured Butter Market segmentation, based on form includes Powder, Liquid and Paste. Powdered flavored butter offers advantages in terms of storage and transportation efficiency. It has a longer shelf life and is often more convenient for handling and logistics. It is versatile and can be used in various culinary applications, such as seasoning, flavoring, or as a component in dry mixes for convenience foods.

The Powder segment anticipated to grow at a fastest CAGR during the forecast period. Liquid flavored butter is well-suited for drizzling over dishes or for use in cooking, providing a convenient and ready-to-use format. It often feature infused flavors such as herbs, spices, or other aromatic ingredients, offering a convenient way to enhance the taste of various dishes. Liquid flavored butter is versatile and can be used as a finishing touch, marinade, or ingredient in both sweet and savory dishes.

Flavoured Butter Market Application Insights

The Flavoured Butter Market segmentation, based on application includes milk & dairy products, bakery products, value added food and beverages, dips & sauces and blends & seasonings. The milk and dairy products segment dominated the market, accounting for more than a quarter of market revenue. Flavored butter is used to enhance the taste of milk and various dairy products. It may be incorporated into products such as yogurt, cheese, and ice cream to add unique and complementary flavors.            

The value added food and beverages segment anticipated to grow at a fastest CAGR during the forecast period. Flavored butter contributes to value-added food products by providing a convenient and flavorful ingredient for ready-to-eat meals, snacks, and convenience foods. Its premium positioning enhances the perceived value of food and beverage products, appealing to consumers seeking elevated taste experiences.

Flavoured Butter Market Distribution Channel Insights

The Flavoured Butter Market segmentation, based on distribution channel includes store-based retailing and online retailing. The store-based retailing segment dominated the market, accounting for more than a quarter of market revenue .This is due to flavored butter is prominently featured in supermarkets and hypermarkets, where consumers can explore a wide range of options and brands.

The online retailing segment anticipated to grow at a fastest CAGR during the forecast period. This is due to the rise of online shopping has made flavored butter readily available on various e-commerce platforms. Consumers can browse and purchase products from the comfort of their homes, benefiting from a vast selection.

Figure 1: Flavoured Butter Market, by Distribution Channel, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Flavoured Butter Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Flavoured Butter Market area will dominate this market. This is driven by the North American consumers are known for their diverse culinary preferences and openness to trying new and innovative food products. Flavored butter, with its variety of tastes and applications, aligns well with this trend.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FLAVOURED BUTTER MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Flavoured Butter Market accounts for the second-largest market share. This is due to the Europe is known for its rich culinary traditions and diverse food cultures. The demand for flavored butter in Europe is influenced by the wide range of tastes and preferences across countries, regions, and local cuisines.

The Asia-Pacific Flavoured Butter Market is expected to grow at the fastest CAGR from 2023 to 2032. This is driven by the The Asia-Pacific region is known for its diverse culinary cultures, which include a wide array of flavors and ingredients. This diversity creates opportunities for flavored butter manufacturers to cater to specific taste preferences in different countries. Moreover, China’s Flavoured Butter Market held the largest market share, and the Indian Flavoured Butter Market was the fastest growing market in the Asia-Pacific region.

Flavoured Butter Market Key Market Players & Competitive Insights

Leading market players invest heavily in research and development to advance and innovate Flavoured Butter Market technologies and techniques. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, clinical integration, customer support and service contracts, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Flavoured Butter Market industry must offer customized solutions.

Companies are forming partnerships with academic and research institutions to gain access to their expertise and share resources for joint research projects in the Flavoured Butter Market industry to develop novel applications and technologies. In recent years, the Flavoured Butter Market industry has offered some of the most significant advantages to consumers. Major players in the Flavoured Butter Market, including Nestlé, The J.M. Smucker Company., Unilever, Butter Buds Inc., Mainland, Arla Foods amba, Dairy Farmers of America, Inc., GCMMF, Ornua Co-operative Limited, Kerry, DAIRYCHEM, International Flavors & Fragrances Inc., Tatua, H.B. Taylor Co., The Edlong Corporation., abelei inc., Beck Flavors Inc., Biospringer, JENEIL, Blue Pacific Flavors, Inc., Flavor Solutions Inc., Comax MFG Corp. & CORMAN, and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.

Nestlé, founded is a Swiss multinational food and beverage company headquartered in Vevey, Switzerland. As one of the largest food companies globally, Nestlé operates in various segments, including beverages, dairy, health science, skin health, and infant nutrition. The company is renowned for its extensive product portfolio, featuring well-known brands such as Nescafé, Nestea, Nestle Purina, and KitKat. Nestlé's commitment to nutrition, health, and wellness is reflected in its continuous innovation and emphasis on sustainable practices. In October 2023, Kellogg launched a new line-up of flavored milks. The all-new NESTLÉ Sensations Frosted Flakes Cereal Flavored Milk and NESTLÉ Sensations Eggo Maple Waffle Flavored Milk are the breakfast and beverage.

Butter Buds Inc. is a Wisconsin-based company specializing in the development and production of concentrated dairy flavors and flavor ingredients. The company has established itself as a leading innovator in the food industry, particularly in the creation of butter-flavored products. It utilizes advanced technology to produce concentrated butter flavor solutions that offer the rich taste of butter without the full fat content. These products find applications in various food and beverage sectors, including dairy, bakery, sauces, and snacks. In December 2023, Butter Buds Inc. launched Non-Dairy 32X, an ingredient solution proposing food formulators the same texture and taste of butter but without the dairy allergen. It provide medium-strong salted butter middle notes as Butter Buds 32X with same butter flavor and is ideal for a various foods.

Key Companies in the Flavoured Butter Market include

• Nestlé


• The J.M. Smucker Company.


• Unilever


• Butter Buds Inc.


• Mainland


• Arla Foods amba


• Dairy Farmers of America, Inc.


• GCMMF


• Ornua Co-operative Limited


• Kerry, DAIRYCHEM


• International Flavors & Fragrances Inc.


• Tatua


• B. Taylor Co.


• The Edlong Corporation.


• abelei inc.


• Beck Flavors Inc.


• Biospringer


• JENEIL


• Blue Pacific Flavors, Inc.


• Flavor Solutions Inc.


• Comax MFG Corp. & CORMAN

Flavoured Butter Market Industry Developments

June 2023:  Kerrygold launched a new savory range of flavored butters, Kerrygold Butter Blends, for tasty snacking or the impeccable finish to dish.

July 2022: Danish Creamery launched two new European Style butter products, specialty salt sticks and spreadable with extra virgin oils, to expand its portfolio. It is launched in 2 flavors Extra Virgin Olive Oil and Extra Virgin Avocado Oil.

July 2022: Challenge Butter launched new spreads make a variety of favorite sweet and savory flavor profiles, Challenge Butter Snack Spreads. It is ranging from Chocolate and Salted Caramel to Everything and Buffalo.

Flavoured Butter Market Segmentation

Flavoured Butter Market Nature Outlook

• Organic


• Conventional

Flavoured Butter Market Product Type Outlook

• Salted


• Unsalted

Flavoured Butter Market Format Outlook

• Spreadable


• Non-Spreadable

Flavoured Butter Market Form Outlook

• Powder


• Liquid


• Paste

Flavoured Butter Market Application Outlook

• Milk and Dairy Products


• Bakery Products


• Value Added Food and Beverages


• Dips & Sauces


• Blends & Seasonings

Flavoured Butter Market Distribution Channel Outlook

• Store-Based Retailing


• Online Retailing

Flavoured Butter Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America