Reduced Fat Butter Market Size, Share & Trends Analysis Report By Distribution Channel (Store-based, Online), By Region (North America, Europe, APAC, MEA), And Segment Forecasts, 2019 - 2025

Industry Insights 

The global reduced fat butter market size was value at USD 884.7 million in 2018 and is expected to register a CAGR of 4.0% from 2019 to 2025. Growing awareness regarding the health benefits of the product, such as the reduced risk of heart diseases and better weight management and digestion, is expected to drive the demand over the forecast period.

Rising health consciousness and demand for healthy food products are also among the key factors expected to boost market growth in the next few years. The growing incidence of obesity and cardiac arrests is also driving product demand. Also, companies are introducing different product forms, such as spreads and non-spreads, which is likely to contribute to the reduced-fat butter market growth.

For instance, Kerrygold USA introduced reduced-fat Irish natural butter, specifically for grilled vegetables. It has 25% less fat and 50% less sodium than regular butter and is rich in vitamin A and C. Land O’lakes launched Light Butter with Canola Oil with cream taste. It has 50% less fat and calories than regular butter.

The store-based distribution channel segment held the largest of the global market in 2018. Based on the region, Europe was the dominant regional market in 2018. It is projected to continue to grow over the next few years. However, North America is estimated to register the fastest CAGR from 2019 to 2025.

Distributional Insights

The store-based distribution channel segment led the market in 2018. The rapid development of the organized retail sector has provided new growth opportunities in this segment. Easy availability of a wide range of products offered by premium and local brands along with attractive discounts and offers is estimated to boost product sales through a store-based distribution channel. Some of the major distributors include Walmart Inc., Tesco PLC, Reliance fresh, and Amul Milk Union Ltd.

The online distribution channel is expected to register the maximum CAGR of 4.3% from 2019 to 2025. Major companies are collaborating with online retailers, such as Amazon and Big Basket, to increase their consumer base. They are also establishing their online portals and websites to boost product sales. These factors are estimated to drive the online segment.

Regional Insights

Europe was the largest regional market in 2018 and accounted for a share of more than 31%. High demand in countries, such as U.K., France, Germany, Switzerland, and Denmark drives the regional market. Moreover, the strong presence of key companies, such as Agra S.A., Ornua Co-operative Ltd., and Palsgaard, in the region will have a positive impact on market growth. On the other hand, North America will emerge as the fastest-growing market at a CAGR of 4.7% from 2019 to 2025.

High consumer purchasing power and rising awareness about maintaining a healthy lifestyle are projected to augment the region’s growth. The Asia Pacific is projected to be the second-largest market due to rising demand and population along with improved standards of living. Moreover, constant product innovation by regional companies will spur market growth. For instance, Amul Milk Union Ltd. introduced Amul Lite, which has no preservatives and low saturated fat content.

Reduced-Fat Butter Market Share Insights

Key companies in the global market include Palsgaard; Ornua Co-operative Ltd.; Upfield; Amul Milk Union Ltd.; Finlandia Cheese, Inc.; Kerrygold USA; Saputo Dairy Australia Pvt. Ltd.; Land O’Lakes, Inc.; and Devondale. These companies focus on new product development and capacity expansion to estimate existing and future demand patterns from upcoming product segments.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Grand View Research has segmented the global reduced fat butter market report based on distribution channel and region:

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Store-based

  • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • U.K.

    • France

  • Asia Pacific

    • India

    • China

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE