Spreadable Butter Market – Overview of Vital Industry Drivers

Spreadable butter is a type of butter which remains softer even at colder temperatures and it can be used as a spreading agent which gives a significant advantage over conventional regular butter apart from the fact that their nutritional value remains same. Spreadable butter was first introduced in New Zealand by using fractionation technique, in which parts of the butterfat are selected and recombined. Since the first production of spreadable butter, various new technologies are constantly being implemented in its production globally. Spreadable butter contains blends of butter and vegetable oils which contains half of the saturated fat of butter having similar calorie and total fat count.

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Spreadable Butter Market Segmentation:

Spreadable butter market is segmented on basis of distribution channels which includes supermarket/hypermarket, speciality stores, online sales, retail stores and departmental stores. The ability to remain soft in cold temperatures, allowing to be used straight out of the fridge and its availability in various flavours and options is making it popular among consumers which is the reason for the increase in the sales of Spreadable Butter in every distribution channel.

Spreadable Butter Market is segmented on basis of contents as dairy (butterfat) content and non-dairy content. Dairy (butterfat) content is further sub segmented into high butterfat content and low butterfat content.

Key application of spreadable butter is in food process market which includes bakery, dairy, confectionary, beverages, convenience food and others. Moreover, as of the recent trends, the demand for the Spreadable Butter has increased as it is easily spread and also comes in different forms like salted and unsalted, with varying content of butterfat as per end user requirement. Hence, the global spreadable butter market is expected to significantly increase the revenue contribution over the forecast period.

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Spreadable Butter Regional Outlook:

The global market for spreadable butter is expected to show a healthy growth during the forecast period. Globally among all the regions, Europe is expected to account for the highest share followed by Asia-Pacific in the near future. Middle Eastern region is expected to grow at the highest growth rate. In terms of production, Asia-Pacific region notably New Zealand is the key producer for Spreadable Butter. Increasing demand for spreadable butter due to various nutritional benefits, has strengthened the growth of global spreadable butter market and hence is projected to significantly expand the revenue contribution of the market over the forecast period.

Spreadable Butter Market Drivers:

Nutritional studies show the benefits and advantages of natural ingredients in diet results in a preference for spreadable butter by consumers. Various new innovative ways in the production of spreadable butter through which 100% pure spreadable butter can be obtained and the addition of other ingredients while the production of spreadable butter, providing variety of options to consumers also fuel the demand for spreadable butter. Apart from these, varying butterfat content in spreadable butter attracts consumers to buy this product according to their needs.

Spreadable Butter Market Restraints:

However, there are some restraining factors which are expected to hinder the spreadable butter market growth of which includes the macroeconomic factors such as government regulation regarding the production, licensing, export and import traditions and tariffs hinders the market growth for spreadable butter. Moreover, the varied grading system of the butter based spread, which is a class of Spreadable Butter, in different markets on basis of butterfat content creating a hassle. Furthermore, the availability of other alternatives to spreadable butter such as margarine which provides an option to the consumer to choose among products.

Spreadable Butter Market Key Players:

Some of the major players operating in spreadable butter market are Fonterra Co-operative Group, Danish Dairy Board (Arla Foods), Dairy Crest, Ornua, Unilever. The companies in this market are expected to expand their business by the enhancement of portfolio for the product in global spreadable butter market.

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