The US Butter Industry size is valued at USD 3.71 billion in 2023, driven by market forecast, opportunities, and industry trends. Explore insights on segmentation, challenges, and future outlook.

The U.S. butter market expanded slightly to $4.3B in 2024, picking up by 4.9% against the previous year. The market value increased at an average annual rate of +2.8% over the period from 2012 to 2024; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Butter consumption peaked in 2024 and is likely to continue growth in the immediate term.

In 2023, plant-based butter generated *** million U.S. dollars in sales in the United States. Sales in 2023 declined by about three million U.S. dollars compared to 2022.

The United States butter market is expected to see continued growth driven by increasing demand, with market volume projected to reach 997K tons and market value $6.9B by 2035.

In addition, food manufacturers are investing in research and development (R&D), with an aim of ​​​​developing functional, nutrient-dense variants of vegan butter, which fulfil the clean-label yet organic demand consumer preferences. In 2025, the vegan butter market was valued at approximately USD 3,164.17 million. By 2035, it is projected to reach USD 5,056.77 million, reflecting a compound annual growth rate (CAGR) of 4.8%.

Country-wise Outlook-Vegan butter market

Segmentation Outlook-Vegan butter market

Competitive Outlook

The demand for global Butter and Margarine market is expected to be valued at USD 5.12 Billion in 2025, forecasted at a CAGR of 6.2% to have an estimated value of USD 9.47 Billion from 2025 to 2035. From 2020 to 2025 a CAGR of 5.9% was registered for the market.

Country wise Insights

Category-wise Insights

Forecast: Butter and Ghee Market Size Volume in the US 2024 - 2028 Discover more data with ReportLinker!

Butter fell to 5,578 EUR/T on September 26, 2025, down 0.98% from the previous day. Over the past month, Butter's price has fallen 14.96%, and is down 28.21% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. This dataset includes a chart with historical data for Butter.

The butter market in the United States is expected to see continued growth over the next decade, driven by increasing demand. Market performance is forecast to slow down slightly, with a projected increase in market volume to 1M tons by 2035. In terms of value, the market is anticipated to reach $6.9B by the end of 2035.

The US Mango Butter Market size is expected to reach $62.8 Million by 2030, rising at a market growth of 10% CAGR during the forecast period. In the year 2022, the market attained a volume of 827.3 Tonnes, experiencing a growth of 10.4% (2019-2022). The mango butter market in the United S

Forecast: Butter and Ghee Market Size Volume Per Capita in the US 2024 - 2028 Discover more data with ReportLinker!

Snapshot img

Butter Market Size 2024-2028

The butter market size is forecast to increase by USD 10.3 million, at a CAGR of 4.4% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing consumer awareness of the health benefits associated with this dairy product. The natural and organic segment of the market is particularly thriving, as consumers prioritize healthier options. However, this market expansion is not without challenges. Increasing competition from alternative spreads, such as margarine and plant-based options, poses a significant threat. Companies must differentiate themselves by emphasizing the unique qualities of butter, such as its rich taste and versatility, to maintain market share.
Navigating this competitive landscape requires strategic planning and a deep understanding of consumer preferences. Companies that can effectively cater to the growing demand for natural and organic butter while differentiating themselves from competitors will thrive in this dynamic market.

What will be the Size of the Butter Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free Sample

The market continues to evolve, with dynamic market dynamics shaping its various applications across diverse sectors. Rancidity prevention remains a critical focus, as the sensitivity of butter to oxidation and microbial spoilage necessitates ongoing research and innovation. Butter's moisture content, aroma compounds, and cholesterol content are essential factors in maintaining its desirable flavor profile and extending its shelf life. Milk fat percentage, unsaturated fat content, and saturated fat content are key considerations for manufacturers, as consumer preferences shift towards healthier options. Homogenization techniques and sensory evaluation are employed to ensure consistent butter yield and desirable texture and spreadability. Butter packaging plays a crucial role in preserving butter's quality, with advancements in materials and design enhancing protection against moisture, light, and oxygen.

Processing technologies, such as pasteurization methods and churning efficiency, are continually refined to optimize shea butter production and meet evolving consumer demands. Quality control measures, including casein protein and trans fat content monitoring, ensure product integrity and safety. Unsaturated fat content reduction, shelf life extension, and rancidity prevention are ongoing priorities, with the integration of whey protein, milk solids-not-fat, and other additives offering potential solutions. Butter's fat globule size, diacetyl levels, and fatty acid composition are essential factors influencing its crystallization and texture. Butter adulteration is a persistent challenge, with ongoing efforts to develop effective detection methods and maintain product authenticity. The market's continuous evolution underscores the importance of staying informed and adaptable to meet the evolving needs of consumers and the industry.

How is this Butter Industry segmented?

The butter industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Distribution Channel

  Offline
  Supermarkets and Hypermarkets
  Online Retail
  Convenience Stores
  Specialty Stores


Product

  Cultured butter
  Uncultured butter
  Others


Application

  Food and Beverage (Bakery, Confectionery, Cooking)
  Retail
  Foodservice


Geography

  North America

    US
    Canada


  Europe

    France
    UK
    Spain


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period.

The offline retail segment holds a significant position in The market. This segment includes traditional brick-and-mortar stores where consumers physically purchase butter products. Supermarkets, grocery stores, and specialty food retailers are the primary outlets in this segment. Consumers prefer this segment due to the convenience of in-person shopping and the ability to examine and compare various butter brands and types. Supermarkets, as the leading retail channel for butter, offer a wide array of brands, flavors, and milk fat percentages to cater to diverse consumer preferences. Moisture content and microbial contamination are crucial factors in butter storage.

Proper storage conditions ensure the preservation of butter aroma compounds and prevent microbial spoilage. Cholesterol content and saturated fat percentage are essential considerations for health-conscious consumers. Pasteurization methods and quality control measures ensure the sa

The per capita consumption of butter in the United States has increased by almost 45 percent since 2000. As of 2023, butter consumption amounted to over six pounds per person, about a pound and a half more than in 2000.

North America Cocoa Butter Alternatives Market was valued at USD 801.07 Million in 2024 and is expected to reach USD 1478.17 Million by 2032 with a CAGR of 8.13% during the forecast period.

The global butter market is expected to be reach USD 71.8 billion by 2035, registering a CAGR of 3.6% during the forecast period. Global sales of butter are pegged at USD 50.4 billion in 2025.

Butter Market Analysis by Country

The United States butter and spreadable fats market was valued at USD 7297.85 Million in 2024. The industry is expected to grow at a CAGR of 6.90% during the forecast period of 2025-2034 to attain a valuation of USD 14222.37 Million by 2034.

US Butter Blocks Market growth is driven by the increasing consumer demand for premium dairy products, the growing popularity of home cooking and baking, and the rising preference for organic and grass-fed butter.

Snapshot img

Coconut Butter Market Size 2024-2028

The coconut butter market size is forecast to increase by USD 1.96 billion at a CAGR of 8.51% between 2023 and 2028.

The market is experiencing significant growth, driven by several key factors. The increasing popularity of private-label brands is one such trend, as consumers seek affordable alternatives to premium brands. Another trend is the growing demand for organic coconut butter, as health-conscious consumers opt for natural and additive-free products.
Strict regulations on the quality and packaging of coconut butter also contribute to market growth, ensuring that consumers receive high-quality, safe, and authentic products. These factors are expected to continue shaping the market in the coming years. Coconut butter, rich in Lauric acid, is widely used in various food applications such as soups, curries, cakes, chocolates, and sauces.

What will be the Coconut Butter Market Size During the Forecast Period?

Request Free Sample

The market is witnessing significant growth due to the increasing consumer preference for natural and organic food products. The millennial population's growing interest in gluten-free and vegan diets is also driving the market's growth. The organic and gluten-free coconut butter segment is expected to dominate the market due to the rising health consciousness among consumers. The food and beverage segment holds a major share in the market, followed by the cosmetics and personal care segment, where coconut butter is used in making candles, soaps, ointments, and DIY beauty products.
Moreover, the market is witnessing a shift towards eCommerce platforms for purchasing coconut butter due to the convenience they offer. However, the supply chain disruption caused by the Lethal Yellowing Disease in coconut plantations and the lockdown restrictions have affected the market's growth. Consumers' increasing interest in MCTs for their health benefits is also expected to boost the market's growth. People with Celiac disease or gluten intolerance also prefer coconut butter as a substitute for traditional dairy-based products. The market is expected to witness niche marketing strategies to cater to the specific needs of these consumers. The future of the market looks promising with its wide range of applications and growing consumer interest.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Food industry
  Personal care industry
  Commercial industry


Geography

  North America

    US


  Europe

    Germany
    France


  APAC



  South America



  Middle East and Africa

By End-user Insights

The food industry segment is estimated to witness significant growth during the forecast period.

Coconut butter, a spread derived from the meat of coconuts, is gaining popularity among top management and decision-makers in the food industry due to its growth potential. This product type is versatile and can be used as a spread or an ingredient in various food preparations, including baked goods and healthy dishes. Geopolitical conditions and economic factors significantly impact the supply chain and financial performance of businesses dealing with coconut butter. To stay competitive, winning strategies include focusing on product design, operational maintenance, and sales monitoring. Supply chain disruptions, regulations, inflation, and raw material prices are key challenges that require constant attention.

Product innovation is crucial, with trends leaning towards plant-based alternatives, sustainable packaging, functional foods, and healthy options. Consumers are increasingly concerned about environmental issues and demand organic, vegan, bio-based, RTE, clean label, and sustainable coconut butter. Technological advances, such as blockchain and the Internet of Things, can improve transparency and efficiency in the supply chain. As the market expands, capabilities and portfolios must adapt to meet the evolving needs of customers. Direct forces, such as inflation and raw material prices, require businesses to remain agile and responsive to maintain profitability.

Get a glance at the market report of share of various segments Request Free Sample

The food industry segment was valued at USD 2.31 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 36% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of various regions Request Free Sampl

Sunflower Butter Market Outlook

According to our latest research, the global sunflower butter market size reached USD 278.4 million in 2024, reflecting a robust expansion fueled by rising consumer demand for plant-based and allergen-free spreads. The market is expected to grow at a CAGR of 7.1% from 2025 to 2033, reaching a forecasted value of USD 518.8 million by 2033. This healthy growth trajectory is primarily driven by the increasing prevalence of nut allergies, a shift towards vegan diets, and the growing awareness of sunflower butter’s nutritional benefits. As per our latest research, the sunflower butter market is witnessing a dynamic transformation, with new product innovations and distribution strategies shaping its future landscape.

One of the central growth drivers for the sunflower butter market is the escalating prevalence of food allergies, particularly peanut and tree nut allergies, which have become a significant public health concern globally. Parents and caregivers are increasingly seeking safe and nutritious alternatives for children and adults with allergies, and sunflower butter has emerged as a preferred choice due to its allergen-free profile. Additionally, sunflower butter is rich in essential fatty acids, vitamins, and minerals, further enhancing its appeal among health-conscious consumers. As more consumers scrutinize ingredient labels and prioritize food safety, sunflower butter’s clean and simple ingredient list gives it a competitive edge in the spreads and nut butter segment. This trend is further amplified by advocacy from health organizations and increased awareness campaigns, which are educating consumers about the risks of food allergies and the benefits of allergen-free alternatives.

The market is also being propelled by the rapid adoption of plant-based diets and the broader movement towards veganism and vegetarianism. Sunflower butter, being entirely plant-based, aligns perfectly with the dietary preferences of a growing segment of the population that is either reducing or eliminating animal-derived products. The rising influence of social media and digital platforms has played a pivotal role in promoting sunflower butter as a versatile and nutritious addition to a variety of meals and snacks. Food manufacturers and brands are responding to this demand by launching innovative sunflower butter products, including flavored and fortified variants, to cater to diverse consumer tastes and nutritional needs. The expansion of sunflower butter into new application areas, such as bakery, confectionery, and nutritional supplements, is further broadening its consumer base and driving sustained market growth.

Another significant growth factor is the evolution of retail and distribution channels, which has made sunflower butter more accessible than ever before. The proliferation of online retail platforms and the increasing presence of sunflower butter in supermarkets, hypermarkets, and specialty stores have contributed to higher product visibility and availability. Strategic partnerships between manufacturers and retailers have enabled wider reach and better positioning of sunflower butter on store shelves. Additionally, the trend towards clean-label and organic foods has encouraged brands to highlight the natural and non-GMO attributes of sunflower butter, appealing to environmentally conscious and health-aware shoppers. As a result, the sunflower butter market is experiencing a steady influx of new entrants and product launches, intensifying competition and fostering innovation across the value chain.

From a regional perspective, North America stands out as the largest market for sunflower butter, accounting for a substantial share of global revenue in 2024, followed by Europe and the Asia Pacific. The United States, in particular, has witnessed a surge in demand due to high rates of food allergies and the popularity of plant-based diets. Europe is also experiencing strong growth, driven by increasing consumer awareness and the expansion of health food retail networks. Meanwhile, the Asia Pacific region is emerging as a promising market, supported by rising disposable incomes, urbanization, and changing dietary patterns. Latin America and the Middle East & Africa, while currently smaller markets, are expected to register impressive growth rates over the forecast period as awareness and distribution expand in these regions.

The butter market in the United States is expected to see continued growth over the next decade driven by increasing demand. Market performance is forecasted to expand at a modest rate with both volume and value expected to increase by 2035.