Liquid Butter Alternatives Market: Global Industry Analysis and Opportunity Assessment by 2025

Liquid butter alternatives are used in many instances where the butter or margarine is substituted at a cost significantly lower than the butter and zero grams of trans-fat per servings. These products are extremely versatile as these will not burn, spatter, or scorch. The liquid butter alternatives are used as a butter alternative in the restaurant industry. Liquid butter alternatives are also known as phase oil. It is one of the common butter substitutes majorly used in restaurants and hotels. The primary use of the phase oil is frying, but these can be further used for baking and other recipes. Few of the benefits of the butter alternative driving the sales is the authentic buttery taste, the lightly salted formula, the high heat tolerance, convenience and the cost effectiveness.

Liquid butter alternatives are used to add buttery flavor without using actual butter, the market for liquid butter alternative is highly dependent on the demand for low cholesterol food, which has been in high demand over the last decade. Manufacturers are launching various products to enhance the tastes of the cuisines. Further, innovative products launched by the manufacturers are also enhancing the sales such as the zero grams trans-fat per serving is the new innovation for the health conscious consumers. For instance, the venture foods have launched Phase liquid butter alternative which has high heat stability and imparts rich, buttery flavor in the variety of cooking applications. The product contains no cholesterol and is also in saturated fats. The longer shelf life along with no refrigeration and twenty percent greater yield than butter and yield are also the primary reasons for the increased sales of the product.

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However, one of the major limitations is the number of unhealthy ingredients in the phase oil. However, the restaurant and food chains are using this hazardous ingredient just for cost cutting. Further, these highly processed vegetable oils are stable at the prices and also doesn’t require refrigeration and have indefinite shelf life. Few examples of the liquid butter alternatives are liquid and hydrogenated soybean oils, Tertiary butylhydroquinone, Soy Lecithin, and Dimethylpolysiloxane. Another major limitation is that these are extracted with hexane, which is petroleum based solvent and this may lead to contamination.

The global liquid butter alternatives market is segmented into sales channel and geography. Direct sales include HORECA and accounts for the largest share in the food industry. Hotels and restaurants are the major consumers for the liquid butter alternative. These are available through various raw materials such as canola, soybean, and others

Depending on a geographic region's global liquid butter alternatives market is segmented into seven broad regions: North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, Japan, and Middle East Africa. North America accounted for the largest owing to the eating habits of the consumers in the region.

Some of the players identified across the value chain of the global liquid butter alternatives market include Cargill, Inc., Bunge Limited, Venture Foods, AAK Foodservice, and Peerless Holdings Pty Ltd, amongst others. Few of the strategies adopted by the key players in the market are partnership and collaboration with other operators, expansion into the untapped market, and joint ventures with the organizations in emerging countries to gain the strong foothold in the market. To ensure product differentiation and to acquire a considerable share of the market, major vendors are adopting intensive strategies and are constantly developing innovative products.

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