India Butter Market Size, Share, Trends, Growth and Forecast 2032

India Butter Industry Prospective:

India butter market size was worth around USD 6.44 billion in 2023 and is predicted to grow to around USD 15.32 billion by 2032 with a compound annual growth rate (CAGR) of roughly 10.10% between 2024 and 2032.

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India Butter Market: Overview

Butter is a dairy product made from the fat and protein in churned cream. It is an emulsion that is semi-solid and contains about 80% butterfat at room temperature. It can be melted & used as a condiment, spread at room temperature, and used as a culinary fat for pan frying, baking, and other methods. Although cow's milk is used to make butter the most frequently, milk from sheep, goats, buffalo, and yaks can also be used to make butter. Milk or cream needs to be churned to extract the fat globules from the buttermilk. Salt has been used to preserve butter since ancient times, particularly while it is being transported. Even while salt can be preserved to some extent today, its whole supply chain is often refrigerated.

Key Insights

• As per the analysis shared by our research analyst, the India butter market is estimated to grow annually at a CAGR of around 10.10% over the forecast period (2024-2032).
• In terms of revenue, the India butter market size was valued at around USD 6.44 billion in 2023 and is projected to reach USD 15.32 billion, by 2032.
• The rising disposable income is expected to propel the India butter market growth over the projected period.
• Based on the type, the standard butter segment is expected to dominate the market over the forecast period.
• Based on the usage, the food processing segment is expected to capture the largest market share over the forecast period.
• Based on the distribution channel, the online sales channel segment is expected to grow at the fastest rate over the forecast period.
• Based on the region, North India is expected to dominate the market over the projected period.

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India Butter Market: Growth Drivers

Escalating customer demand for processed foods drives market growth

Dairy fats have become more popular in India as a substitute for their vegetable oil-based counterparts in dairy products. A change in taste preferences and a more positive understanding of the health advantages of dairy fat may be responsible for this tendency. As consumers' discretionary expenditures rise and diets become more globally integrated, it is predicted that emerging countries will consume more dairy products due to an increase in processed food consumption. The rising demand for baked products including cakes, bread, cookies, and biscuits is largely responsible for the increased butter use in the bakery business. Without the use of this ingredient, confectionery production cannot continue. With a wider range of confectionery foods becoming more and more popular, it is expected that butter demand will rise. It is widely used in ready-to-eat and ready-to-cook meals, which are becoming more and more popular due to the surge in convenience food demand. It is projected that the number of innovations and advancements involving the usage of butter will continue to rise in the dairy beverage business in the upcoming years.

India Butter Market: Restraints

Growing popularity of lactose-free and plant-based foods impedes market growth

The rising awareness among customers regarding animal welfare practices is one factor driving up demand for plant-based foods. Furthermore, foods and drinks that are solely plant-based are quickly entering the mainstream retail goods market. The growing perception that plant-based products are safer and healthier is driving up demand for natural butter alternatives like butter made from soymilk and nut milk. Similarly, there is a growing market for butter made with nut milk. The need for dairy alternatives is increasing due to the growing number of people who are lactose intolerant. Due to their involvement in the development of obesity and other diseases linked to lifestyle choices, products containing lactose are considered unhealthy. The fast-growing dairy alternatives market is expected to hamper the growth of the India butter market with its new product developments, which include non-dairy ice creams, vegetable oil-based bakery, and confectionary goods.

India Butter Market: Opportunities

Growing innovative product launches offer an attractive opportunity for market growth

The growing innovative product launches offer an attractive opportunity for the India butter industry growth during the projected period. For instance, in October 2023, the largest and most creative fresh food company in India, iD Fresh Food, recently announced the release of the iD Twist and Spread Butterstick, a handy tool that makes spreading butter easier and less messy, easy to store, and convenient to use when traveling. Every major market has seen the launch of the product. The iD Twist and Spread Butterstick, which takes its cue from the glue stick design, comes with 50 grams of fresh, preservative-free butter packaged in a way that allows it to soften fast at room temperature. Toast spreading doesn't have to be a painful, time-consuming chore any longer! After that, the individual can restock the pack.

India Butter Market: Challenges

The volatile nature of butter poses a major challenge to market expansion

The price of butter is subject to swings as a result of variations in milk output, which is impacted by various factors including animal health, feed costs, and climate conditions. Price volatility can have an impact on consumer purchase decisions as well as production. Thus, the volatile nature of butter might be a major challenging factor for India butter market expansion.

India Butter Market: Segmentation

India butter industry is segmented based on type, usage, distribution channel, and region.

Based on the type, the India butter market is bifurcated into standard butter, clarified butter, whipped butter and others. The standard butter segment is expected to dominate the market over the forecast period. Butter consumption has increased as a result of the growing middle class and rising disposable incomes. Butter is becoming more and more commonplace in households' food shopping routines. Furthermore, the need for butter has grown dramatically as a result of the foodservice sector's explosive expansion, which includes fast-food franchises, cafes, and restaurants. In these industries, butter is widely used for spreading, baking, and cooking. In addition, home baking has become increasingly popular, particularly after the pandemic. Butter is a necessary component for consumers experimenting with baking at home, which increases retail sales. Thus, driving the segment growth.

Based on the usage, the India butter industry is segmented into food processing, food service, and food retail. The food processing segment is expected to capture the largest market share over the forecast period. The rising need for butter in the food processing sector is the main factor behind the segment's expansion. Butter is frequently used as the main ingredient in confections. The need for butter in this market has increased due to manufacturers' growing investments in the creation of novel confectionary products. A popular ingredient in many baked items, particularly bread and cakes, is butter. It is anticipated that the quickly growing bakery sector will drive market expansion in the near future.

Based on the distribution channel, the India butter market is segmented into supermarkets/hypermarkets, convenience stores, specialty stores, and online sales channels. The online sales channel segment is expected to grow at the fastest rate over the forecast period. Manufacturers of these products are increasingly offering products via their websites and/or on e-commerce platforms; for instance, India-based Amul delivers milk and dairy products via its mobile application, which in turn will drive the segment demand. The growing rate of smartphone penetration and improved internet connectivity worldwide have contributed to the significant growth of the e-commerce sector in India, which is driving the growth of this segment.

India Butter Market: Report Scope

India Butter Market: Region Analysis

North India is expected to dominate the market over the forecast period

North India is expected to dominate the India butter market over the forecast period. Butter is a staple in North Indian cooking, especially in curries, sweets, and parathas. One reason for the steady need for butter is the persistence of traditional recipes and culinary techniques. Furthermore, they have a long history of consuming dairy products; butter, yogurt, and milk are commonplace in many homes. Sales of butter are increased by this societal preference for dairy products. For instance, Across the seven cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai, the Indian Council of Medical Research (ICMR) report also showed that men consume more fat than women, with men consuming 34.1 grams per person daily instead of 31.1 grams. Furthermore, the growing need for butter for baking, frying, and spreading is fueled by the plethora of fast-food chains, cafes, and restaurants in North India's foodservice sector.

India Butter Market: Competitive Analysis

India butter market is dominated by players like:

• Amul
• Mother Dairy
• Britannia
• Verka
• Gowardhan
• Patanjali
• Nandini
• Kwality
• President
• Omfed
• Milma
• Aavin

India butter market is segmented as follows:

By Type

• Standard Butter
• Clarified Butter
• Whipped Butter
• Others

By Usage

• Food Processing
• Food Service
• Food Retail

By Distribution Channel

• Supermarket/Hypermarket
• Convenience Store
• Specialty Store
• Online Sale Channel

By Region

• North India
• West and Central India
• South India
• East India