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Butter Powder Market

Butter Powder Market Size, Share, Competitive Landscape and Trend Analysis Report by Nature, by Flavour, by Distribution Channel : Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: Sugandha Srivastava | Roshan Deshmukh
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Butter Powder Market Research, 2032

The global Butter Powder Market Size was valued at $376.7 million in 2022, and is projected to reach $643.8 million by 2032, growing at a CAGR of 5.5% from 2023 to 2032.

Butter powder is also known as dehydrated butter or powdered butter, made by removing the moisture from the regular butter. It is produced by spray drying or freeze-drying butter to create a fine powder. It is rehydrated with water to create spreadable consistency or can also be sprinkled in the raw form. It can be used as an alternative to butter in almost any recipe. It is used as a convenient substitute for regular butter. It is mainly utilized in conditions where fresh butter is not available, or is required for long-term storage purposes. Moreover, butter powder is available in different types of flavors such as Cocoa, almond, peanut, cashew, salted, unsalted, and sweetened along with others. It carries properties like longer shelf-life, no-perishability, and heat-stability. It is majorly used while camping, hiking, and as emergency food supplies. 


The need for butter powder has increased in many countries of North America and Europe due to its longer shelf-life, non- perishability, and heat stability. Moreover, the powder form of butter offers a rich and creamy flavor to variety of food items, that improves the taste and aroma of a dish. It is used to improve the flavor of sauces, seasonings, and snacks. In addition, butter powder has a longer shelf life than fresh butter, making it appealing to consumers who like to stock up on food with long shelf lives. It is used in products to satisfy consumer expectations for components that are ready to use, whether as a flavoring agent, a source of fat, or a substitute for butter. Many companies use butter powder in their product lineups because it can fit with the convenience food trend and provide customers with scrumptious, simple-to-use alternatives that deliver the comforting taste of butter while having a longer shelf life.

Globally, there has been an increase in various food industry applications, as they provide several advantages for businesses in the food industry. Butter powder is simple to include in a variety of food applications. In addition, butter powder is added to bread, cakes, cookies, muffins, and other baked goods by bakeries to improve their goods. It enhances texture and moisture content, provides a rich buttery flavor, and is used in making bakery items that are tempting and of the highest standard. It has extensive application in confectioneries where it enhances flavor and aids in creating a smooth, creamy texture in chocolates, candies, and caramels as well as in ready-to-eat meals, snacks, sauces, and soups. 


The fluctuation in raw material prices has influenced the Butter Powder Market Growth.  The dehydrated butter, formed from milk fat, is used to make butter powder. Consequently, changes in the price and availability of raw materials, especially milk, have a negative impact on the sector. Manufacturers of butter powder are directly impacted by changes in the cost of raw materials. Moreover, an increase in the price of milk or milk fat increases the overall costs associated with the making of butter powder.  

Although the Butter Powder Market Share has increased, it still falls behind due to the presence of alternative products in the market. The development of alternative products for butter powder possesses intense competition. Moreover, spreads made from vegetable oils and fats, like margarine, offer consumers a lower fat content and provide them with a healthier substitute for butter powder. It is critical for manufacturers of butter powder to properly differentiate their products as the market for these substitutes is influenced by dietary trends and consumer tastes. 

The demand for healthy substitutes has increased in recent years, which has led to an increase in product innovation and differentiation in the butter powder industry. Manufacturers have developed butter powders with decreased fat content, no cholesterol, and no chemical ingredients to appeal to consumers who are health-conscious. In addition, the accessibility of flavors like garlic, herb, cinnamon, and truffle has enabled consumers to experiment with and customize their experience using butter powder. Organizations have also added extra nutrients such as vitamins, minerals, and omega-3 fatty acids to butter powder to fulfill different consumer tastes. 

There has been an increase in the  export potential in the past years as butter powder is suited for exportation because it has a longer shelf life than ordinary butter. A major benefit for makers is that it is said to be able to tolerate extended transit times and different weather conditions without losing any of its quality or flavor. In addition, consumers choose butter powder for its practicality and adaptability. It is a handy ingredient for many food products including baked dishes, sauces, soups, and snacks because it is simply reconstituted with water or added straight to dry mixes. 


Butter Powder Market


The butter powder market is analyzed on the basis of nature, flavor, distribution channel, and region. By nature, the market is divided into conventional and organic. By flavor, the market is segregated into cocoa, almond, peanuts, and others. By distribution channel, the market is categorized into supermarket/hypermarket, convenience store, B2B, specialty store, and online store. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.  


Butter Powder Market by Nature

As per nature, the conventional segment was dominating the butter powder market in 2022 and is anticipated to maintain its dominance throughout the forecast period. Conventional butter powder is a dehydrated version of actual butter that has had the liquid removed. It is perfect for a variety of applications in the food industry since it provides a practical and durable substitute for fresh butter. The increase in demand for ingredients that can be used for quick preparation of food is driving the growth of the segment. Moreover, owing to the hectic lifestyles of individuals, consumers seek options that are simple to use, store, and transport. Butter powder satisfies consumer demand completely because it is convenient to store and can be used in a variety of ways, thus increasing the Butter Powder Market Demand. In addition, people are becoming aware of their dietary choices and actively looking for healthier food options owing to growing awareness of health and well-being. 


Butter Powder Market by Flavour

As per flavor, the peanut segment was dominating  butter powder market in 2022 and is anticipated to maintain its dominance throughout the Butter Powder Market Forecast period. Dried products like peanut butter powder are created by roasting peanuts and draining the oil associated with them. It is proven to be a great alternative to regular peanut butter as it has  around 85% to 90% less than conventional butter. Moreover, it is regarded as a healthy option, as it is an excellent source of protein, fiber, vitamins, and minerals. Consumers who desire a healthier option frequently choose peanut butter powder. In addition, it is an excellent choice for customers who wish to indulge in the fascinating flavor of peanut butter while limiting their intake of fat. Furthermore, the popularity of vegan and plant-based diets has improved the sales of the segment. 


Butter Powder Market by Distribution Channel

As per distribution channel, the supermarket/hypermarket segment was dominating the butter powder market in 2022 and is anticipated to maintain its dominance throughout the forecast period. Cooking and baking products are majorly purchased in large retail formats such as supermarkets. Supermarkets are the main retail outlets for butter powder owing to their wide selection of butter powder products. The products being sold come from various brands and have various flavors. Moreover, along with baking and cooking, the health and wellness section also have butter powder. In addition, the staff in supermarkets offers pertinent information about the goods, boosting sales through this distribution route. As a result, consumers find the market to be quite appealing because it gives them a way to complete their shopping at one location, saving them time.   


Butter Powder Market by Region

Region-wise, North America is predicted to dominate the market with the largest share during the forecast period (2023-2032). Butter powder sales have significantly increased owing to the continual expansion of the North America market. There has been a significant change in consumer behavior regarding the use of baking and cooking products in the region. In addition, a rise in North American customers who use baking items is driving a considerable increase in demand for products containing butter powder. Customers are becoming aware of the health advantages of utilizing butter powder, which has contributed to the rise in demand for baking and cooking supplies. Moreover, the market in this region is also growing as a result of the increased penetration of retail and online retailers as well as social media marketing tactics. 


The major players analyzed for the butter powder industry include Garden of Life, BetterBody Foods, PB2 Foods, Inc., Nutricost, powbab, Betty Lou's Inc., Z Natural Food, LLC, Nutrient Survival, Hoosier Hill Farm, and Laita (EPI Ingredients). 

Manufacturers of butter powder are always creating new products and formulae to satisfy the changing requirements of their customers. They make investments in R&D to create novel combinations of flavors with enhanced functionality, stability, and selectivity and create new applications for existing butter powder. While developing new products, enhancing production methods, and navigating regulatory requirements, manufacturers of butter powder frequently work with baking product producers, regulatory organizations, and other industry players. Manufacturers can increase their capacities, pool their knowledge, and create novel solutions through these collaborations. 

Manufacturers are improving their production capacity and cutting costs, which can involve both investing in new production facilities and renovating current ones to keep up with the rising demand for butter powder. Manufacturers of butter powder may also merge with or buy other businesses to broaden their product lines, get access to new markets or technologies, or do both at the same time. Manufacturers can benefit from merging and acquiring businesses by expanding their product lines, gaining a larger market share, and enhancing their economies of scale.  

The market for butter powder is anticipated to expand due to rise in cooking and baking products demand, public knowledge of the advantages of dehydrated products, and development of new and effective butter powder. In addition, factors such as innovation, collaboration, launching, and expansion are opportunistic for market growth. 

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the butter powder market analysis from 2022 to 2032 to identify the prevailing butter powder market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the butter powder market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global butter powder market trends, key players, market segments, application areas, and market growth strategies.

Butter Powder Market Report Highlights

Aspects Details
Market Size By 2032

USD 643.8 million

Growth Rate

CAGR of 5.5%

Forecast period

2022 - 2032

Report Pages


By Distribution Channel
  • Supermarket/Hypermarket
  • Convenience Store
  • B2B
  • Specialty Store
  • Online Store
By Nature
  • Conventional
  • Organic
By Flavour
  • Others
  • Cocoa
  • Almond
  • Peanut
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Italy, Spain, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Brazil, United Arab Emirates, South Africa, Saudi Arabia, Rest of LAMEA)
Key Market Players

Hoosier Hill Farm, PB2 Foods,Inc, Laita, Nutrient Survival, Garden of Life, Betty Lou's Inc, Nutricost., powbab, Z Natural Food,LLC, BetterBody Foods

Analyst Review

The perspectives of the leading CXOs in the butter powder industry are presented in this section. The butter powder market is a dynamic and expanding segment of the global food ingredient industry. Cooking and baking applications for butter powder include ready-to-eat meals, snacks, sauces, and soups. Moreover, bakery businesses enhance their products by using butter powder in cakes, cookies, muffins, and bread.? ? 

The CXOs further added that increased demand for cooking and baking products, popularity of diet-based products, and increase in need for high shelf life and clean-labeled ingredients are propelling the market for butter powder. The demand for butter powder is further driven by shifting customer preferences and market dynamics, such as the effect of the COVID-19 pandemic on the food ingredient sector.?? 

A number of well-known players are active in the butter powder market, which is very competitive. Thus, companies must differentiate their products, cut prices, uphold high quality, and keep their consumers secure to succeed in this market. They need to focus on shifting customer tastes, shifting market dynamics, and  changing regulatory frameworks related to  sales and distribution of food items around the globe.?? 

Author Name(s) : Sugandha Srivastava | Roshan Deshmukh
Frequently Asked Questions?

The global butter powder market was valued at $376.7 million in 2022, and is projected to reach $643.8 million by 2032, registering a CAGR of 5.5% from 2023 to 2032.

The base year calculated in the Butter Powder market report is 2022.

The forecast period in the Butter Powder market report is 2023 to 2032.

The organic segment is the most influential segment in the Butter Powder market report.

The major players analyzed for the butter powder industry include Garden of Life, BetterBody Foods, PB2 Foods, Inc., Nutricost, powbab, Betty Lou's Inc., Z Natural Food, LLC, Nutrient Survival, Hoosier Hill Farm, and Laita .

North America holds the maximum market share of the Butter Powder market.

The market value of the Butter Powder market in 2022 was $376.7 million.

The company profile has been selected on the basis of revenue, product offerings, and market penetration.

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Butter Powder Market

Global Opportunity Analysis and Industry Forecast, 2023-2032