Global Ghee Market Bolstered by Increasing Health Benefits and Penetration in the Emerging Markets

Ghee is a highly-preferred source of nutrition in many regions, particularly in India. Owing to its nutrition value, it helps in preventing a number of diseases, thereby, improving immunity system, offering better eye-sight, strengthening digestive system, etc. As a result of this, the global ghee market has witnessed a steady growth in recent years.

A report by IMARC Group titled, “Ghee Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2017-2022”, finds that the global ghee market has grown at a CAGR of 3.8% during 2009-2016, reaching a volume of 5.4 Million Tons in 2016. Ghee, also known as clarified butter, is used as a staple food in most of the Indian households. It is made through a simple process of boiling butter and then discarding the butterfat. The product thus collected from this process contains casein, whey and the milk solids.

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The market is currently being driven by several factors which have influenced the demand for ghee. One of the major factors is the nutritional content present in the ghee which helps in keeping various diseases at bay. Some of the nutritional elements contained in ghee include vitamin A, D, E and K, fatty acids, butyric acids, etc. These nutrients help in preventing cancer and inflammation, boosting immunity, healing digestive system, balancing cholesterol levels, improving eye-health and maintaining overall well-being. Other factors which have increased the popularity of ghee among the consumers are increasing population, rising disposable incomes, a growing demand from emerging markets, etc. Findings from the report further suggest that the global market for ghee is expected to reach a volume of 6.7 Million Tons by 2022.

The report has provided an in-depth analysis of the ghee market along with a regional focus on the major markets. Currently, South Asia is the largest producer and consumer of ghee with India being the biggest market. Though the growth of the market is mostly limited to Asian markets, the gradual rise in the popularity of ghee for its nutritional value would prove to be favourable for its penetration in American and European countries, in the coming years. The report has covered the manufacturing process of ghee in both the organized and unorganized dairy segments. Currently, 90% of ghee is manufactured by the unorganized dairy segment using the indigenous method, while the remaining 10% is manufactured by the organized dairy segment where unsalted butter is used as the raw material. The report has also evaluated some of the key players operating in the market. As the majority of ghee is manufactured in India, most of the players are concentrated in this region. The top manufacturers include SMC Group - Madhusudan, Amul, KMF, VRS Foods, Nestle and RSD Group (Gopaljee).

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The study, which has been done by one of the world’s leading research and advisory firms, covers all the requisite aspects of the ghee industry. This ranges from macro overview of the market to micro details of the industry performance, manufacturing requirements, project cost, project funding, project economics, expected returns on investment, profit margins, etc. It also offers SWOT, Value Chain and Porter’s Five Forces analysis and regional segmentation followed by an analysis of the competitive landscape. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who are planning to foray into the ghee industry in any manner.

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