The plant-based butter market (Markt für pflanzliche Butter) has experienced substantial growth in recent years, driven by rising consumer demand for dairy-free and vegan alternatives. This growth is fueled by increasing awareness of the health and environmental benefits associated with plant-based diets, as well as dietary restrictions and preferences.
The growing popularity of plant-based butter has led to specialty brands experimenting with new flavors and sources. A new study by Future Market Insights concurs with positive consumer sentiment on plant-based butter, estimating market to grow nearly 7% y-o-y in 2021. Sales of vegan foods and beverages have gone up significantly owing to increased health awareness among consumers, especially in terms of effects from the consumption of animal-based products. The broader gains in the plant-based food category have rubbed off on varied categories, with plant-based butter sales gaining significant traction.
As per the Food Industry Association, around 30% of households are home to vegan, vegetarian, flexitarian, or pescatarian consumers. This trend is creating opportunities for growth for plant-based butter manufacturers. Demand for plant-based butter can also be attributed to the growing consumer preference for clean-label, natural foods, which is pushing dairy producers to develop and launch vegan alternatives.
Global plant-based butter market to exhibit CAGR exceeding 7.5% through 2030 Soy-milk based butter held nearly 40% share in 2020 Online retail distribution to register relatively faster growth, aided by benefits in terms of consumer engagement US to remain the largest market, pegging North America to surpass US$ 200 Mn in 2020.
“The plant-based butter market is a nascent phase and is being increasingly viewed as a high-potential product in the dairy alternative industry, as a healthy alternative to conventional fatty food products, which will aid growth in the market for the foreseeable future,” says a FMI analyst.
Covid-19 Impact Analysis
The covid-19 pandemic has resulted in substantial changes in the dietary preferences of consumers around the world. Concerns over transmission of the virus through animal based products has aided the adoption of plant-based alternatives.
Also, plant-based butter can be sourced from oat milk, rice milk, corn milk, soy milk, pea milk, almond milk, coconut milk, cashew milk, flax milk, and hemp milk among others, allowing for a wider flavor range. While demand from the food service sector is likely to drop owing to lockdown restrictions, home consumption with sales through online sales is expected to rise.
The prospects of the plant-based butter market has widened since early 2020. As per the Good Food Institute, sales of plant-based foods surpassed that of animal based alternatives since the advent of the crisis, and will continue through the forecast period.
Who is Winning?
The plant-based butter market is competitive and characterized by the presence of small and mid-scale players. Leading manufacturers are effectively leveraging demand for natural, clean label products, with the aim of geographic expansion and widening product portfolios for long term growth.
Some of the leading players in the plant-based butter market include Conagra Brands Inc., Upfield Foods, Miyoko’s Creamery, Wayfare Food, Prosperity Organic Food Inc., Lyrical Foods Inc., Califia Farms, Premier Organics, Naturli Foods, Ekogram-the real food, Wildfriend Foods, The J.M. Smuker Co., The Leaviet Corp., Milkadamia, among others.
Exhaustive Market Report: A Complete Study
Market Drivers:
- Health Consciousness: Many consumers are shifting towards plant-based diets to avoid saturated fats and cholesterol found in animal-based products. Plant-based butter is often perceived as a healthier alternative due to its lower levels of these components.
- Environmental Concerns: The environmental impact of dairy farming, including greenhouse gas emissions and water usage, is prompting many to seek more sustainable alternatives. Plant-based butter typically has a smaller carbon footprint.
- Dietary Restrictions and Allergies: Plant-based butter is a suitable option for those with lactose intolerance, dairy allergies, or other dietary restrictions. Its versatility makes it a popular choice in various recipes and applications.
- Innovation and Product Development: Continuous innovation in the formulation and production of plant-based butters has improved taste, texture, and cooking performance, making these products more appealing to a broader audience.
Challenges:
- Cost: Plant-based butters can be more expensive than traditional dairy butters, which may affect consumer adoption.
- Taste and Texture: Despite advancements, some consumers may still find plant-based butters lacking compared to traditional options.
Future Outlook:
The plant-based butter market is expected to continue growing as more consumers seek healthier, environmentally friendly alternatives. Innovations in product development and increasing availability through various distribution channels will likely further drive market expansion.
More Valuable Insights on Plant-based Butter Market
Source
Oat Milk Rice Milk Corn Milk Soy Milk Pea Milk Almond Milk Coconut Milk Cashew Milk Flax Milk Hemp Milk Others
Distribution Channel
B2B Hotels Restaurants Cafes B2C Hypermarket/Supermarket Convenience Stores Specialty Stores Mom and Pop Stores Discount Stores Food & Drink Specialty Stores Independent Small Groceries Online Retail Others
Region
North America (U.S. & Canada) Latin America (Mexico & Rest of LATAM) Europe, Middle East & Africa Asia Pacific (Greater China, South East Asia, Japan, India, South Korea, Australia, New Zealand)
Plant-based Butter Market- Report Scope
| Attribute | Details |
| Forecast Period | 2020 to 2030 |
| Historical Data Available for | 2015 to 2019 |
| Market Analysis | USD Million for Value, Million Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; Middle East & Africa; and Asia Pacific |
| Key Countries Covered | USA, Canada, Mexico, Greater China, Japan, India, South Korea, Australia, and New Zealand |
| Key Segments Covered | Source, Distribution Channel, and Region |
| Key Companies Profiled | Conagra Brands Inc.; Upfield Foods; Miyoko’s Creamery; Wayfare Food; Prosperity Organic Food Inc.; Lyrical Foods Inc.; Califia Farms; Premier Organics; Naturli Foods; Ekogram-the real food; Wildfriend Foods; The J.M. Smuker Co.; The Leaviet Corp.; Milkadamia; Chobani LLC; Carley’s Organic; Pintola; Alpino Health Foods; Vegan Way; Dhatu Organics; Kitchen Garden; Naturally Organic; Daisya Fine Food; and Ceres Organics |
| Report Coverage | Market Overview, Key Market Trends, COVID-19’s Impact, Demand Analysis, Market Background, Segmental Analysis, Regional Profiling, Market Structure Analysis and Competition Analysis |
| Customization & Pricing | Available upon Request |
Frequently Asked Questions
- How will the plant-based butter market expand through 2030?
- Which is the largest plant-based butter market?
- How is COVID-19 impacting the plant-based butter growth projections?
- Which are some of the prominent market players?
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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