Reduced Fat Butter Market Size To Reach $1.44 Billion By 2030

Reduced Fat Butter Market Growth & Trends

The global reduced fat butter market size is estimated to reach USD 1.44 billion by 2030, expanding at a CAGR of 4.3% from 2025 to 2030, according to a new report by Grand View Research, Inc. Growing awareness regarding the health benefits of the product, such as weight management and better 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 the market growth in the next few years.

Rising usage of reduced fat butter as a substitute for traditional butter is also boosting the market growth. In addition, constant product innovation by key companies will contribute to the demand. For instance, Amul Milk Union Ltd. introduced Amul Lite. It does not have preservatives and is low in saturated fat content. It also contains vitamins and omega-6 and -3, which help maintain healthy cholesterol levels. Store-based distribution channel segment held the largest of the global market in 2018.

Easy availability of a wide range of products offered by premium and local brands along with attractive discounts and offers is estimated to boost the product sales through store-based distribution channel. Moreover, rapid development of organized retail sector has provided new growth opportunities. The online distribution channel is expected to register the fastest CAGR of 4.3% over the forecast period. Rising number of smartphone and internet users is the key reason behind the segment growth. In addition, cashbacks and other offers and home delivery services provided by e-commerce companies are expected to drive the segment.

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Reduced Fat Butter Market Report Highlights

• Europe was the dominant regional market in 2024. This trend is projected to continue over the next few years

• North America reduced fat butter market is expected to grow at the fastest CAGR of 4.9% over the forecast period on account of increased awareness about product benefits

• These companies focus on new product development and capacity expansion to estimate existing and future demand patterns from upcoming product segments

Reduced Fat Butter Market Segmentation

Grand View Research has segmented the global reduced fat butter market based on distribution channel, and region:

Reduced Fat Butter Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

• Stores

• Online

Reduced Fat Butter Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • Japan

  • India

  • Australia

• Latin America

  • Brazil

• Middle East and Africa (MEA)

  • UAE

List of Key Players in Reduced Fat Butter Market

• Palsgaard

• AMUL DAIRY

• Agral S.A.

• Ornua Co-operative Limited

• Finlandia Cheese, Inc.

• Saputo Dairy Australia Pty Ltd

• Kerrygold USA

• Land O'Lakes, Inc.

• Fonterra Co-operative Group