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Flavored Butter And Oils Market Forecasted to Grow at Steady Pace During 2017-2027

03-09-2018 02:34 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Future Market Insights

Flavored Butter And Oils Market Forecasted to Grow at Steady Pace

The flavored butter and oils market is a result of the infusion of traditional butter and oils with one or more flavoring agents. The market encompasses a wide array of products, with flavoring agents ranging from herbs and spices to vegetables. The use of such flavors offers the consumer several benefits in the form of taste and flavor. The infusion of flavors into butter and oils is an age-old practice but the commercialization of these goods is a recent phenomenon. The market offers multiple opportunities due to the vast number of flavors and significant regional variations. Both the products are essentially final additions to the recipe and not primary cooking bases.

Market Dynamics of Flavored Butter and Oils Market:

These products are mainly driven by the demand for the underlying carrier substance, i.e. butter and oil. Despite certain fluctuations, the demand for both these products has been on a consistent path historically. The taste and visual appeal that these flavoring agents add to the products is the key influencer of the market.

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Apart from the sensory values, the market is also heavily driven by the demographic and income changes in the emerging nations, increasing health consciousness among consumers, and the consumer preference for the respective flavoring agent. The increased spending power clubbed with the rapid westernization of diets in nations such as India helps in increasing the acceptability of such products. The rapidly growing retail infrastructure in these regions has also been important in familiarizing the consumer with such products.

The market is constrained by the growing negative perception towards saturated fats, particularly with regard to high fat and cholesterol content. The use of flavored oils helps in this regard as these products help in enriching the dish without adding excess saturated fats. The market also presents multiple opportunities in the form of product innovation. The development of regionally and ethnically relevant flavors is expected to push the market in a positive direction. For instance, the Hispanic community represents a sizable community in the US with a wide range of food preferences.

Market Segmentation of Flavored Butter and Oils Market:

The market is segmented on the basis of flavoring type, application, distribution channel, and geography.

On the basis of flavoring type, the market is divided into herbs, spices, roots, citrus, vegetables and others. Herbs and spices represent the dominant categories due to their universal appeal. Some commonly used herbs include basil, rosemary, and thyme. The vegetable category also includes highly prevalent flavors such as hot pepper and garlic. Several other unique flavors such as olive oil- infused or pumpkin spiced butter are also gaining prominence.

On the basis of application, bakery segment occupies the dominant market share. The already high use of butter and oils in the segment and the emphasis on taste and flavor are cited as the major factors of the prominence of the bakery segments. Food categories such as salads are also increasingly using exotic flavored oils to enhance the appeal of the foods.

On the basis of distribution channels, hypermarkets and supermarkets remain the most popular category. These retail outlets are important not just as distribution outlets but also as the first points where consumers are introduced to the products. Their importance is further amplified in regions of low awareness. Given that the market is composed of several small players with limited reach, online sales represent an important distribution outlet.

The market presents a complex picture with regard to geography wise segmentation. The complexity is due to the fact that a high demand for the carrier substance (butter or oil) is not necessarily reflected in that of flavored substances. For instance, India is one of the major producers and consumers of butter, but the use of flavored butter is limited. Such variations are a result of a multitude of factors such as low awareness among consumers, widespread use of traditional cooking and flavoring methods or low market penetration.

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The EU occupies the leading market share, with North America and certain Asia- Pacific countries (New Zealand) playing an important role. Within Europe, the recent economic sanction on Russia and the subsequent Russian food ban on Western products has played a dampening effect on the region. The EU market is also expected to be broadly constrained by the oil-price slump in the Middle East, as this region is a major importer of EU butter and dairy products. In the Asia- Pacific, the weak demand from China has had a negative impact but is expected to turnaround during the forecast period.

Key Market Players in Flavored Butter and Oils Market:

Some of the key players in the market include Land O’ lakes, Lurpak, Kerrygold, Amul, Carrington farms, Golden Barrel, etc.

ABOUT US:
Future Market Insights (FMI) is a leading market intelligence and consulting firm. We deliver syndicated research reports, custom research reports and consulting services, which are personalized in nature. FMI delivers a complete packaged solution, which combines current market intelligence, statistical anecdotes, technology inputs, valuable growth insights, an aerial view of the competitive framework, and future market trends.

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