Plant-based Butter Market Size To Reach $3.72 Billion By 2030

Plant-based Butter Market Growth & Trends

The global plant-based butter market is expected to reach USD 3.72 billion by 2030, exhibiting a CAGR of 6.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. Rising awareness about the health risks associated with excessive consumption of animal fats has led many consumers to seek healthier alternatives, with plant-based butter seen as a more heart-friendly option. Environmental consciousness plays a significant role, as consumers increasingly recognize the lower carbon footprint and reduced resource consumption of plant-based products compared to their dairy counterparts. The growing prevalence of lactose intolerance and dairy allergies worldwide has expanded the market for dairy alternatives, including plant-based butter. Technological innovations in food science have dramatically improved the taste, texture, and functionality of plant-based butter, making it more appealing to a broader consumer base.

There's a growing demand for clean-label products, with consumers seeking options made from simple, recognizable ingredients. Manufacturers are responding by developing products with shorter ingredient lists and avoiding artificial additives. Another trend is the focus on functional ingredients, with plant-based butter incorporating nutrients like omega-3 fatty acids, vitamins, and minerals to appeal to health-conscious consumers. The market is also seeing a rise in premium and artisanal plant-based butter offerings, catering to consumers looking for gourmet experiences. Additionally, there's an increasing emphasis on sustainable packaging, with brands exploring eco-friendly alternatives to traditional plastic containers.

Recent developments in the market include significant product innovations and strategic moves by key players. Major food companies have been entering the market through acquisitions or launching their own plant-based lines, bringing substantial resources for research, development, and marketing. There's been a surge in new product launches featuring unique ingredient combinations, such as blends of different plant oils to achieve optimal taste and texture profiles. Some brands have introduced cultured plant-based butter, using fermentation processes to replicate the tangy flavor of traditional dairy butter.

For instance, in February 2022, Miyoko's Creamery, known for its plant-based dairy products, introduced its Organic Cultured Oat Milk Butter to Walmart stores across the U.S. This 12 oz. butter is crafted from whole-grain oat milk, sunflower oil, and coconut oil, providing an allergen-friendly spread. It is free from soy, cashews, gluten, lactose, and palm oil, meeting the needs of consumers with diverse dietary preferences. Moreover, it holds USDA Certified Organic status and is made without artificial colors or preservatives, emphasizing its commitment to natural ingredients.

On the technological front, advancements in food processing techniques have led to improved mouthfeel and meltability of plant-based butter, making them more comparable to dairy butter in cooking and baking applications. Some companies have also been exploring novel ingredients like algae or fermented oils to create more sustainable and nutritionally enhanced products.

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Plant-based Butter Market Report Highlights

• Coconut butter represented 35.50% of revenue in 2023, favored for its creamy texture and mild flavor similar to traditional butter. Health benefits like medium-chain triglycerides (MCTs) enhance its appeal among health-conscious consumers, contributing to its market dominance.

• Non-flavored plant-based butter held a 64.96% revenue share in 2023, prized for its versatility and ability to replicate the neutral, creamy taste of dairy butter. Its appeal lies in simplicity and authenticity, making it a preferred choice for cooking, baking, and spreading without altering dish flavors.

• B2C sales accounted for 67.62% of revenue in 2023, driven by widespread availability in retail outlets like supermarkets and online platforms. Direct consumer access aligns with growing health consciousness, ethical considerations, and dietary preferences such as veganism, cementing B2C channels as the primary distribution choice.

• North America dominated the market with over 34.58% revenue share in 2023, fueled by strong consumer demand for health-conscious and vegan options. Early adoption of food trends, established manufacturers, extensive retail networks, and supportive regulatory frameworks contribute to the region's market leadership.

Plant-based Butter Market Segmentation

Grand View Research has segmented the global plant-based butter market based on source, nature, distribution channel, flavor, and region.

Plant-based Butter Source Outlook (Revenue, USD Million, 2018 - 2030)

• Almond

• Oat

• Soy

• Coconut

• Others

Plant-based Butter Nature Outlook (Revenue, USD Million, 2018 - 2030)

• Organic

• Conventional

Plant-based Butter Flavor Outlook (Revenue, USD Million, 2018 - 2030)

• Flavored Butter

• Non-Flavored Butter

Plant-based Butter Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

• B2B

• B2C

  • Hypermarkets & Supermarkets

  • Specialty Stores

  • Online

  • Others

Plant-based Butter Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • U.K.

  • Germany

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • Japan

  • India

  • Australia & New Zealand

  • South Korea

• Central & South America

  • Brazil

• Middle East & Africa

  • South Africa

List of Key Players in the Plant-based Butter Market

• Upfield

• Miyoko’s Creamery

• Conagra, Inc.

• Califia Farms, LLC

• Kite Hill

• Ripple Foods, PBC

• Elmhurst Buttered Direct, LLC

• Milkadamia

• Fora Foods

• Naturli’ Foods A/S