Butter Powder Market to Reach $2.86 Billion by 2028
The global butter powder market is set to experience substantial growth, with a projected increase from $2.12 billion in 2023 to $2.25 billion in 2024, driven by a compound annual growth rate (CAGR) of 6.1%. According to the newly released Butter Powder Market Report 2024, the market is expected to reach $2.86 billion by 2028, underpinned by a 6.2% CAGR. Key growth factors include extended shelf life, rising demand in the convenience food sector, and increasing disposable incomes among consumers.
Rising Health Awareness and Bakery Trends Fuel Demand
The growing health consciousness of consumers, coupled with a sustained demand for baking and cooking products, has significantly boosted the butter powder market. Demand from the foodservice industry is expanding, with consumers gravitating towards vegan, plant-based options. Innovations in production and eco-friendly packaging further support the market’s upward trend.
The burgeoning interest in home baking, particularly sweet baked goods, directly correlates with the rising demand for butter powder. Renowned for its flavor and convenience, butter powder has become a staple in the baking industry. A report from the Agriculture and Horticulture Development Board notes a rise in baking occasions, which continues to positively impact butter powder sales.
Product Innovation and Strategic Acquisitions
Leading players are focusing on innovation, introducing additive-free and clean-label variants to cater to the demand for natural ingredients. Notably, Epi Ingredients recently introduced an additive-free butter powder, reflecting a shift towards clean-label consumer preferences. Strategic acquisitions, such as Lakeland Dairies’ acquisition of De Brandt Dairy International NV, underscore the industry’s intent to strengthen market positions and capitalize on niche segments, including premium texturized butter powder.
Market Dynamics by Region and Distribution Channel
In 2023, North America maintained its lead as the largest contributor to the butter powder market, though Asia-Pacific is anticipated to witness rapid growth, spurred by evolving consumer habits and regional economic development. The market offers a variety of butter powder types, from salted to unsalted and across conventional and organic varieties, serving diverse culinary uses. Key distribution channels include supermarkets, hypermarkets, and online retail, ensuring broad access across the bakery, confectionery, and condiment sectors.
