The plant-based butter market has seen significant growth in recent years, driven by an increasing consumer preference for healthier and more sustainable food options. As people become more health-conscious and environmentally aware, the demand for plant-based alternatives has surged. These products are often perceived as healthier compared to traditional dairy butter, as they typically contain lower saturated fats and are free from cholesterol. Additionally, the rise of veganism and plant-based diets has further fueled interest in these alternatives, prompting brands to innovate and expand their offerings.
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.
Key Takeaways of Global plant-based butter market
- The global plant-based butter market is projected to grow at a CAGR of over 7.5% through 2030.
- In 2020, soy-milk-based butter accounted for nearly 40% of the market share.
- Online retail distribution is expected to experience relatively faster growth, driven by enhanced consumer engagement.
- The United States is anticipated to remain the largest market, with North America exceeding USD 200 million in 2020.
- The plant-based butter market is in its early stages and is increasingly recognized as a high-potential product within the dairy alternative industry, seen as a healthier alternative to traditional fatty foods, supporting future growth.
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.
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)
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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