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Butter Fat Fraction Market Estimated to Grow at 8.2% CAGR by 2033 - Persistence Market Research

04-02-2025 11:41 AM CET | Food & Beverage

Press release from: Persistence Market Research

Butter Fat Fraction Market

Butter Fat Fraction Market

The global butter fat fraction market has shown robust growth, especially during the historical period between 2018 and 2022, with a steady increase in sales at a growth rate of 7.9%. As of 2023, the market reached a notable valuation of approximately US$ 148 million, reflecting a growing interest in butter fat fractions among consumers and industrial players alike. Butter fat fraction, also known as stearin and olein milk fat fraction, has gained traction due to its diverse applications across various industries, from food and beverages to pharmaceuticals and cosmetics.

The key drivers of growth in the butter fat fraction market include rising demand for healthier and more functional fats, particularly in the food and dairy sectors. As consumers become more conscious of their health, there is an increased preference for fats that offer health benefits, such as the high levels of phospholipids and milk fat globule membranes (MFGM) found in butter fat fractions. Additionally, the ability to control the melting point and solid fat index (SFI) of these fractions makes them versatile for a wide range of applications, driving demand in both industrial and consumer goods markets. The leading segment in the market is the value-added fraction, due to its higher nutritional content and increasing use in premium products. Geographically, Europe dominates the butter fat fraction market, owing to the strong presence of major dairy producers and consumers of high-quality dairy products.

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Key Highlights from the Report

• The global butter fat fraction market grew at a rate of 7.9% from 2018 to 2022.
• In 2023, the market value reached US$ 148.0 million, with continued growth projections.
• The leading market segment is the value-added fraction, driven by increasing demand for premium food products.
• Europe holds the largest share of the market, attributed to a strong dairy industry and consumer base.
• The primary manufacturing process for butter fat fraction involves slow cooling of melted fat.
• The market is projected to expand as the demand for healthier fats increases, especially in the food and beverage sector.

Market Segmentation

The butter fat fraction market can be segmented based on product type, end-user industries, and geographical regions. One of the primary categories is the product type, which includes industrial fat fractions and value-added fat fractions. Industrial fat fractions are often used in large-scale food production processes, where their properties, such as solid fat index (SFI) and melting points, are carefully controlled to achieve specific textures and consistencies in products like margarine and baked goods. In contrast, value-added fat fractions, such as MFGM (Milk Fat Globule Membrane), phospholipids, and gangliosides, are used in more specialized applications, especially in the health and wellness sectors. These value-added fractions are increasingly sought after in premium dairy products, infant formulas, and functional foods due to their health benefits.

End-users of butter fat fractions are primarily in the food and beverage sector, with dairy products being the most significant application. This includes butter, cheese, and ice cream manufacturers who require butter fat fractions to enhance texture and improve nutritional profiles. Additionally, the cosmetics industry is increasingly adopting butter fat fractions in skincare products, as their high levels of phospholipids offer moisturizing benefits. Pharmaceutical companies also use butter fat fractions in drug formulations, particularly in the production of encapsulated vitamins and supplements.

Regional Insights

Europe remains the dominant region for the butter fat fraction market, accounting for the largest market share. This dominance can be attributed to the region's well-established dairy industry, which has a long history of butter production and innovation. Countries like Germany, France, and the Netherlands are major producers and exporters of dairy products, contributing to the growth of butter fat fractions in Europe. Additionally, the high consumer demand for premium and functional dairy products in the region has further fueled the market's expansion.

In contrast, North America is seeing a rise in demand for butter fat fractions, driven by growing awareness of health benefits associated with dairy fats. The U.S., in particular, has experienced a surge in interest in natural and functional ingredients, which supports the increased use of butter fat fractions in both food and cosmetic formulations. The region's focus on clean-label and healthier alternatives to traditional fats in processed foods is likely to sustain the demand for butter fat fractions in the future.

Market Drivers

One of the major drivers of growth in the butter fat fraction market is the increasing consumer preference for healthier fats. As people become more aware of the health implications of trans fats and processed oils, there is a marked shift toward natural, functional fats like butter fat fractions. These fats offer a healthier alternative, containing beneficial components such as MFGM and phospholipids, which are known to support cognitive function and heart health. Additionally, the growing demand for premium, high-quality dairy products in developed markets is pushing the demand for value-added butter fat fractions, which are seen as a superior ingredient for both their nutritional benefits and functional properties.

The growing trend of clean-label and natural ingredients in the food industry is another driver propelling market growth. Consumers are increasingly seeking products that contain simple, recognizable ingredients, which has led to a rise in the popularity of butter fat fractions. These ingredients, which are derived from milk fat, fit perfectly into the clean-label movement and are seen as a more natural alternative to synthetic fats or emulsifiers in food products.

Market Restraints

Despite its growth, the butter fat fraction market faces several challenges. One of the key restraints is the high cost of production, particularly for value-added fractions. The process of fractionating milk fat requires specialized equipment and technology, which can be expensive. Additionally, the raw materials, such as high-quality milk, are also costly, especially in regions where dairy farming is not as prevalent. This makes butter fat fractions more expensive than other fats, which may limit their adoption in cost-sensitive markets.

Another restraint is the limited availability of high-quality milk fat in some regions. While Europe and North America are well-established dairy hubs, other regions like Asia and parts of Africa may struggle to meet the demand for milk fat, limiting the growth potential of the butter fat fraction market in these areas. Additionally, the growing concerns about the environmental impact of dairy farming, particularly in terms of carbon emissions and land use, may pose long-term challenges to the market's sustainability.

Market Opportunities

The butter fat fraction market presents several exciting opportunities, particularly in the health and wellness sector. As consumers continue to seek out functional foods and beverages that offer health benefits, the demand for butter fat fractions enriched with bioactive compounds like MFGM, phospholipids, and gangliosides is expected to rise. These ingredients are not only used in dairy products but also in a growing number of functional foods, such as protein bars, smoothies, and nutritional supplements.

Additionally, the cosmetics and personal care industries offer significant growth opportunities for butter fat fractions. The rich moisturizing properties of butter fat fractions make them ideal ingredients in skincare products, such as lotions, creams, and soaps. The rising demand for natural and organic beauty products, particularly in emerging markets, presents a substantial opportunity for butter fat fraction producers to expand their customer base.

Reasons to Buy the Report

✔ Comprehensive analysis of the butter fat fraction market, including key growth drivers, restraints, and opportunities.
✔ In-depth segmentation analysis by product type, end-user industry, and geographical region.
✔ Detailed insights into regional market trends, including the dominance of Europe and North America.
✔ Identification of leading market players and recent developments in the industry.
✔ Future market projections and forecasts to guide strategic business decisions.

Company Insights

Key Players Operating in the Market

• Arla Foods Ingredients Group P/S
• Corman SA
• Murray Goulburn Co-Operative Co. Limited
• Groupe Lactalis S.A
• FrieslandCampina N.V.
• Royal VIV Buisman
• Land O'Lakes, Inc.
• Dairy Crest Group Plc
• Glanbia Plc
• Fonterra Co-operative Group Limited
• Agropur Ingredients, LLC
• The Tatua Co-operative

Recent Developments

1. Arla Foods has launched a new range of value-added butter fat fractions designed for use in premium dairy products.
2. Groupe Lactalis has expanded its research into the health benefits of MFGM in infant formula, aiming to improve cognitive health.

Contact Us:

Persistence Market Research
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Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

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