Butter Powder Market Report 2025 – Market Size and Share by 2034

 What is the current size and annual growth rate of the butter powder market?

The butter powder market size has grown strongly in recent years. It will grow from $2.25 billion in 2024 to $2.39 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to longer shelf life compared to regular butter, convenience of using butter powder, increase in demand for processed and convenience foods, increasing production capabilities, and rising disposable income of consumers.

The butter powder market size is expected to see strong growth in the next few years. It will grow to $3.03 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to rising health consciousness among consumers, rise in cooking and baking products demand, expanding foodservice industry, growing consumer awareness and preference, and increases prevalence of vegan and plant-based diets. Major trends in the forecast period include eco-friendly packaging, innovations in the production of butter powder, and product innovations.



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Which major factors have contributed to the expansion of the butter powder market?

The increasing demand for bakery products is expected to propel the growth of the butter powder market going forward. Bakery products refer to a diverse range of food items produced and sold by bakeries. The demand for bakery products is due to enhancing customer experience, growing demand for healthier options, and diversifying product portfolios. Butter powder is a convenient ingredient in bakery products, offering a way to incorporate buttery flavor and texture without the need for fresh butter. For instance, in February 2024, according to the Agriculture and Horticulture Development Board, a UK-based government organization, demand for baking increased by 1% to 13 million occasions in 2023 compared to the previous year, driven by a rise in sweet home baking, which saw an increase of 29 million occasions. Therefore, the increasing number of bakery products drives the butter powder market.

How is the butter powder market segmented?
The butter powder market covered in this report is segmented –

1) By Type: Salted Butter Powder, Unsalted Butter Powder
2) By Source: Milk, Peanut, Almond, Cocoa, Other Sources
3) By Nature: Organic, Conventional
4) By Distribution Channel: Supermarket And Hypermarket, Business To Business, Convenience Stores, Online Retail, Other Distribution Channels
5) By Application: Bakery And Confectionery, Sweet And Savory Snacks, Sauces And Condiments, Other Applications

Subsegments:
1) By Salted Butter Powder: Standard Salted Butter Powder, Low-Sodium Salted Butter Powder
2) By Unsalted Butter Powder: Full-Fat Unsalted


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Who are the top competitors in the butter powder market?

Major companies operating in the butter powder market are Olam International, United Natural Foods Inc., Fonterra International, Hoosier Hill Farm, Arla Foods Group, Valio Ltd., Goodman Fielder, Westland Milk Products, California Dairies Inc., Grassland Dairy Products Inc., Murray Goulbam Co-operative Co. Limited, Nutricost, BetterBody Foods, Betty Lou's Inc., PB2 Foods Inc., Kanegrade Limited, LAITA PGC, Meggle Group, EPI Ingredients, Packit Gourmet, Nutrient Survival, Powbab Inc.

Which key trends are expected to influence the butter powder market in the coming years?

Major companies operating in the butter powder market focus on developing innovative products, such as additive-free butter powder, to meet consumer demand for natural and clean-label ingredients. Additives-free butter powder is a dairy-based powder that retains the natural properties of butter while omitting any artificial ingredients, resulting in a clean-label, all-natural product. For instance, in May 2024, Epi Ingredients, a France-based company that manufactures butter powder, launched additive-free butter powder. The additive-free butter powder is made from natural milk fat, providing a clean label option for manufacturers, as stated by the company. It can be utilized in various applications, including pastries, baked goods, premixes, sauces, ready meals, and dairy products. This butter powder is noted for its ability to integrate well into matrices, excellent dispersion and hydration properties, and ease of storage.

Which regional trends are influencing the butter powder market, and which area dominates the industry?

North America was the largest region in the butter powder market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the butter powder market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Does The Butter Powder Market Report 2025 Offer?

The butter powder market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.

Butter powder is a dry, shelf-stable product made from real butter that has been processed into a powdered form. It is typically produced by removing the water and milk solids from butter, leaving behind the butterfat. The resulting powder retains the flavor and richness of butter, making it a convenient alternative to fresh butter in various culinary applications.

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