Butter market review 2024 [Global Report]

In recent years, the butter market has been experiencing growing demand and changes that are shaping its global landscape. In 2024, these changes are particularly prominent, piquing the interest of both producers and consumers. From environmental trends to technological innovations, the butter market is dynamic and challenging. In this article, we look at how different regions around the world are coping with these changes and what forecasts can be set for the future of the global butter market.

Market dynamics

The year 2024 has brought dynamic changes to the global butter market, raising the value of this segment to around $49.91 billion. This growth is driven by changing eating habits, growing interest in natural and organic products, and innovations in production, particularly in Europe, Oceania and North America. Key events such as extreme weather conditions are affecting milk supply, leading to fluctuating butter prices, and producers are investing in sustainable production practices to meet consumer expectations and changing market conditions.

Regional analysis of the butter market

Europe

In 2024, Europe continues to play a key role in the global butter market, generating significant revenues and remaining one of the largest regions in terms of consumption. The leading countries in butter production and consumption are Germany, France and Ireland, which continue the tradition of high-quality production. However, changing climatic conditions, such as droughts in southern Europe, have affected milk supply, which has translated into higher butter prices. At the same time, growing consumer health consciousness is prompting producers to invest in innovations such as organic and sustainable production methods.

Oceania (Australia and New Zealand)

Oceania, and New Zealand in particular, has maintained its position as one of the world’s largest butter exporters. In 2024, New Zealand’s butter production was stable, but rising demand from Asian countries such as China and Japan contributed to higher prices on international markets. In Australia, despite challenging climatic conditions, butter production also remained strong, allowing exports to increase.

North America

In North America, the United States and Canada experienced an increase in demand for butter, particularly in the organic and specialty segments. In the U.S., consumers are increasingly choosing organic butter, contributing to higher prices and increased production. Canada has also seen growing demand for dairy products, which has affected the local butter market and increased production.

Asia

In 2024, Asian markets, particularly China and Japan, saw significant growth in butter imports, mainly from Oceania and Europe. This growth was driven by a growing middle class and changing food preferences. In China, consumers are increasingly choosing dairy products, including butter, both in traditional cuisine and in Western-inspired dishes. Japan, known for its high quality products, has increased imports to meet growing domestic demand.

Latin America

Latin America, with countries such as Argentina and Brazil, saw an increase in butter production in 2024, driven by both increased domestic and export demand. Argentina, benefiting from favorable climatic conditions, increased its production, while Brazil, although traditionally focused on other dairy products, also saw growth in butter.

Trends and forecasts

In 2024, the global butter market faces a number of challenges that will affect future prices and product availability. One of the most important trends is the increase in production costs, mainly due to rising prices for raw materials such as animal feed and energy. In Europe and Oceania, where butter production is significant, these rising costs have a direct impact on final prices. It is expected that they could rise by about 5-7% annually, especially during busy shopping periods such as holidays.

In addition, climate change and related adverse weather conditions, such as droughts and extreme rainfall, are reducing milk production, which is affecting the supply of butter. In southern Europe, for example, droughts have reduced forage availability, which has reduced milk production and increased the cost of butter production. As a result, prices are forecast to rise further in regions particularly affected by these conditions. In Asia, on the other hand, rising butter consumption, particularly in China and India, is driving demand for the product.

In response, butter-exporting countries such as New Zealand and Australia are increasing production, which could stabilize prices in some markets, although local shortages of raw materials could lead to price increases in domestic markets.

Experts predict a moderate increase in butter prices on the global market in 2024, with the largest increases in regions affected by changing climatic conditions and in countries with growing demand for organic and specialty products. This trend may be tempered by production growth in exporting regions, although pressure for sustainable production may further increase costs.

Global Reports from Foodcom S.A.

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