Plant-Based Butter Market Research Report By Source (Soy, Almond, Coconut, Cashew, Macadamia, Others), By Product Type (Margarine, Spread, Butter Sticks, Others), By Distribution Channel (Supermarkets and Hypermarkets, Online Retailers, Convenience Stores, Others), By Application (Cooking and Baking, Spreading, Others), By End Use (Household, Food Industry, Others) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032.

Global Plant-Based Butter Market Overview

Plant-Based Butter Market Size was estimated at 6.93 (USD Billion) in 2022. The Plant-Based Butter Market Industry is expected to grow from 7.63(USD Billion) in 2023 to 18.1 (USD Billion) by 2032. The Plant-Based Butter Market CAGR (growth rate) is expected to be around 10.07% during the forecast period (2024 - 2032).

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

Key Plant-Based Butter Market Trends Highlighted

Plant-based butter is gaining traction, especially in countries where there is a rise in the number of vegans. Increased plant-based butter production, availability, and taste, which are set to compete with the dairy versions, will enhance market penetration. With the technology and capital resources, makers of climate friendly butter should be able to satisfy growing concerns around the environment.

Growth in online and retail stores is widening the gap between existing and new players in the plant-based space, further consequentially boosting penetration. Traditional brands and entrepreneurs venturing into the plant-based space are now being able to reach customers through pre-established collaborations, which adds credibility.

To ease into the widely popular vegan alternatives, a growing trend of buttering and eco-friendly packaging is seeing a boost within the nut butter market. Growing awareness among individuals on health consciousness and deficiency disorders has allowed functional butter to see a growth in demand slow but promising.

Plant-Based Butter Market Drivers

Rising Demand for Plant-Based Alternatives

Both the growing awareness of the environmental impact of animal agriculture and the increasing concern for animal welfare have been driving a significant shift towards plant-based alternatives. It is logical to assume that in the future, an increasing share of consumers will be seeking to replace some of the traditionally used animal products with plant-based ones, such as butter. This growth is a great factor for entering the  Plant-Based Butter Market Industry, which is on track to grow in the coming years.

Increasing Prevalence of Lactose Intolerance

Lactose intolerance is a widespread digestive disorder that affects many millions of individuals worldwide; it generates a variety of symptoms, such as gas, bloating, and diarrhea. This  forces people suffering from this condition to avoid dairy products, including butter. Nowadays, the prevalence of lactose intolerance is increasing, and it may result in a rise in demand for plant-based alternatives to butter.

Expansion of Vegan and Vegetarian Population

Vegans and vegetarians are increasing in numbers rapidly across the globe because there are certain ethical issues regarding the rights of animals. There are several environmental concerns about the sustainability of animal agriculture. Additionally, the health issues of vegans and vegetarians are also some other factors that are increasing their numbers at an increasing rate throughout the globe. Due to the increasing population of vegans and vegetarians around the globe, there is a high demand for plant-based butter alternatives.

Plant-Based Butter Market Segment Insights

Plant-Based Butter Market Source Insights   

The Plant-Based Butter Market based on Source is segmented into Soy, Almond, Coconut, Cashew, Macadamia, and Others. Soy leads the segment due to the economical price and expansion in sourcing and supply of soy products. The Soy segment is estimated to grow at a CAGR of 9.5% over the forecast period and attain a value of USD 10.6 billion by 2032. Almond-based plant butter is the second most popular in the Source category. It is known for its rich nutty taste and high nutritional benefits. The Almond segment is projected to grow at a CAGR of 10.2% during the forecast period, primarily from increasing awareness about the product.

Coconut-based plant butter is in demand because of its tropical sweetness and its high lauric acid content, which has numerous health benefits. The Coconut segment is estimated to attain a CAGR of 11.0% over the forecast period due to the increased preference for vegan and dairy-free diets. Cashew-based plant butter is valued for its buttery taste and smooth, creamy texture. The Cashew segment is expected to grow at a CAGR of 9.8% during the forecast period from the increased usage of plant-based butter, as the butter alternatives mimic the taste and texture of dairy butter.

Macadamia-based butter is a premium segment and is popular for its butter-like texture and its flavor. The Macadamia segment is estimated to grow at a CAGR of 10.5% over the forecast period. The Others segment of the Source category is expected to grow at a considerable pace over the forecast period from the increased demand for innovative plant-based butter alternatives.

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

Plant-Based Butter Market Product Type Insights   

The  Plant-Based Butter Market segmentation by Product Type includes Margarine, Spread, Butter Sticks, and Others. Among these, Margarine held the largest market share in 2023, accounting for over 40% of the  Plant-Based Butter Market revenue. This is primarily due to its versatility and wide range of applications in cooking and baking. Spreads are expected to witness the fastest growth during the forecast period, owing to the increasing demand for convenient and healthy food options. Butter Sticks are expected to maintain a steady market share due to their resemblance to traditional butter in terms of texture and functionality.

Other product types, such as Vegan Ghee and Whipped Plant-Based Butter, are gaining popularity due to their unique taste profiles and nutritional benefits.

Plant-Based Butter Market Distribution Channel Insights   

The distribution channel segment plays a crucial role in the  Plant-Based Butter Market. Supermarkets and hypermarkets dominate the market, accounting for over 55% of the revenue in 2023. Their extensive reach, wide product variety, and established customer base contribute to their strong position. Online retailers are rapidly gaining traction, capturing a significant market share of over 25% and growing at a CAGR of 12%. Convenience stores hold a modest share of around 15%, primarily driven by their convenient locations and impulse purchases.

Other distribution channels, such as specialty stores and direct-to-consumer sales, account for the remaining market share. The growth of online retailers is attributed to increasing internet penetration, the ease of shopping from home, and the availability of a wider product range. Direct-to-consumer sales are expected to witness significant growth in the coming years due to the rise of e-commerce platforms and the growing consumer preference for personalized products.

Plant-Based Butter Market Application Insights   

The  Plant-Based Butter Market is segmented into Cooking and Baking, Spreading, and Others based on application. Cooking and Baking segment is expected to hold the largest market share of over 45% in 2023, owing to the rising demand for plant-based alternatives in culinary applications. The Spreading segment is projected to witness significant growth over the forecast period, due to the increasing popularity of plant-based butter as a healthier and more sustainable option for spreading on bread, sandwiches, and other foods. The Others segment, which includes applications such as in sauces, soups, and confectionery, is also expected to contribute to the overall growth of the  Plant-Based Butter Market.

Plant-Based Butter Market End Use Insights   

The Plant-Based Butter Market is segmented based on end use into the household, food industry, and others. The household segment is expected to hold the largest market share during the forecast period due to the increasing popularity of plant-based diets and the growing awareness of the health benefits of plant-based foods. The food industry segment is also expected to grow significantly, driven by the rising demand for plant-based ingredients in processed foods and beverages. The  Plant-Based Butter Market revenue is projected to reach $10.23 billion by 2026, growing at a CAGR of 9.7% from 2023 to 2026.

The increasing adoption of plant-based diets, coupled with the growing availability of plant-based butter products in retail and food service channels, is expected to drive the market growth.

Plant-Based Butter Market Regional Insights   

The  Plant-Based Butter Market is segmented regionally into North America, Europe, APAC, South America, and MEA. In 2023, North America dominated the market with a share of nearly 40%, owing to the growing vegan population and increasing consumer awareness about plant-based alternatives. Europe held the second-largest share due to the rising demand for dairy-free products and government initiatives promoting plant-based diets. APAC is projected to witness significant growth over the forecast period, driven by the increasing disposable income and the expanding retail sector.

South America and MEA are expected to contribute a smaller share to the  Plant-Based Butter Market but are anticipated to experience steady growth in the coming years. The growing consumer preference for healthy and sustainable food products is expected to drive the market growth across all regions.

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

Plant-Based Butter Market Key Players And Competitive Insights

Players in Plant-Based Butter Market industry are constantly innovating and launching new products to cater to the evolving consumer demand for plant-based alternatives. Leading Plant-Based Butter Market players are focusing on expanding their distribution channels and increasing their production capacities to meet the growing demand. The Plant-Based Butter Market development is driven by the rising popularity of vegan and flexitarian diets, as well as the increasing awareness about the environmental and health benefits of plant-based products. The Plant-Based Butter Market Competitive Landscape is characterized by intense competition. In this report, we provide a concise summary of leading Players who have an impact on Plant-Based Butter Market.

Upfield

Upfield is one of the leading players in the Plant-Based Butter Market. The company has a strong  presence and offers a wide range of plant-based butter alternatives under the Flora Plant and ProActiv brands. Upfield is committed to sustainability and innovation and has invested in research and development to create new and improved plant-based butter products. The company is also extensively active in Sustainable Supply Chain Footprint and ensures to procure the raw materials sustainably as well to comply with the rising perception of the consumers. Upfield’s strong brand recognition, distribution network, and commitment to innovation have helped it retain its leading position in the plant-based butter market.

Melt Organic

Melt Organic is another major player in the Plant-Based Butter Market. The company focuses on organic, plant-based butter alternatives made from coconut oil. Melt Organic products are known for their rich, creamy texture and clean ingredient list. The company has a strong online presence and a growing distribution network in the United States and Canada. It is committed to sustainability and the quality of its products.

Key Companies in the Plant-Based Butter Market Include

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  Follow Your Heart

  
  


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  Califia Farms

  
  


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  Flora Plant

  
  


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  Nuttelex

  
  


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  Melt Organic

  
  


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  WayFare

  
  


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  Earth Balance

  
  


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  Kerrygold

  
  


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  Vitasoy

  
  


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  Alpro

  
  


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  Ripple

  
  


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  Becel

  
  


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  Miyoko's Creamery

  
  


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  Tofutti

  
  


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  Kite Hill

  
  

Plant-Based Butter Market Industry Developments

The  plant-based butter market is projected to reach USD 18.1 billion by 2032, exhibiting a CAGR of 10.07% during the forecast period (2024-2032). The growing vegan population, rising health consciousness, and increasing demand for plant-based alternatives are the key factors driving market growth. Asia-Pacific is expected to be the fastest-growing regional market, owing to the rising disposable income and growing awareness of veganism in the region. Recent news developments include the launch of new plant-based butter products by major food companies, such as Unilever and Danone, and the increasing availability of plant-based butter in retail stores and restaurants. These developments indicate a bright future for the  plant-based butter market.

• Plant-Based Butter Market Segmentation Insights


• Plant-Based Butter Market Source Outlook
  
  
  
  • Soy 
  
  
  • Almond 
  
  
  • Coconut 
  
  
  • Cashew 
  
  
  • Macadamia 
  
  
  • Others 
  
  
  
  


• Plant-Based Butter Market Product Type Outlook
  
  
  
  • Margarine 
  
  
  • Spread 
  
  
  • Butter Sticks 
  
  
  • Others 
  
  
  
  


• Plant-Based Butter Market Distribution Channel Outlook
  
  
  
  • Supermarkets and Hypermarkets 
  
  
  • Online Retailers 
  
  
  • Convenience Stores 
  
  
  • Others 
  
  
  
  


• Plant-Based Butter Market Application Outlook
  
  
  
  • Cooking and Baking 
  
  
  • Spreading 
  
  
  • Others 
  
  
  
  


• Plant-Based Butter Market End Use Outlook
  
  
  
  • Household 
  
  
  • Food Industry 
  
  
  • Others 
  
  
  
  


• Plant-Based Butter Market Regional Outlook
  
  
  
  • North America 
  
  
  • Europe 
  
  
  • South America 
  
  
  • Asia Pacific 
  
  
  • Middle East and Africa