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Reduced Fat Butter Market to Grow at a CAGR of 3.7% During the Forecast Period 2020-2025

reduced fat butter market to grow at a cagr of 3 7 during the forecast period 2020 2025

Reduced Fat Butter M

iCrowdNewswire   Feb 3, 2021  5:00 AM ET

Reduced Fat Butter Market size is estimated to be $892Mn in 2019, growing at a CAGR of 3.7% during the forecast period 2020-2025. Reduced fat butter is a dairy product which manufacturers make to separate the solid components from the liquid by churning cream or milk. It is widely used by people in cooking, baking and as a spread. By decreasing its fat content to 40 percent or below, reduced fat butter is prepared and has the same taste & feel as standard butter. Reduced fat butter contains sterols & stanols from plants that block bad cholesterol absorption and prevent cardiovascular disease. It is much better than standard butter as well. It is available in both distributed and non-spreadable ways. With decreased sodium content, it is also changed and is more palatable for consumers with bone disorders. Owing to changing customer lifestyles, the market for reduced butter fat has increased. The low fat butter is high in nutrients and has low fat and calorie content. It is also very useful for consumers who have little time to maintain their practice and are mindful of their well-being. In addition, the number of fast-food chains on the menu that advertise and add items made with fat butter has increased customer awareness of the reduced fat butter that enhances the reduced fat butter industry’s growth.

By Distribution Channel – Segment Analysis

In 2019, E-Commerce segment dominated the Reduced Fat Butter Market in terms of revenue is estimated to grow at a CAGR of 4.4% owing towards easy availability along with enticing discounts and deals of a wide range of products provided by premium and local brands. The main factor behind the growth of the segment is the growing number of smartphones and internet users. Furthermore, the segment is expected to drive as, cash back and other deals and home delivery services are offered by e-commerce businesses. In order to expand their customer base, major corporations are partnering with online retailers, like Big Basket, therefore, providing significant opportunity for market growth. In order to improve product sales, they are also building their online portals and websites abetting towards the growth of the market.

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By Geography – Segment Analysis

In 2019, the Europe region dominated Reduced Fat Butter Market in terms of revenue with a market share of more than 34% owing towards rising public & private funding for R&D in this region. The European Union positioned second in 2019, by producing about two and a half million metric tons of butter. In 2019, an estimated amount of 480 thousand metric tons of butter was consumed in Germany aids towards the market’s growth. Government has taken initiatives to promote technological advancements and initiatives to escalate the product development process are key factors in the growth of the Reduced Fat Butter market. Asia Pacific is expected to record the fastest growth rate during the forecast period 2020-2025 owing to the enhanced living standard of people in the region coupled with the continuous product development and innovation by the regional players.

Drivers – Reduced Fat Butter Market

Consumers Awareness and Consumption Of Healthier Food Products

The increasing health awareness and demand for healthier food items are among the main factors expected to fuel market growth. Also, the ingestion of reduced fat butter helps to regulate bad dietary cholesterol, which serves as a guide to cardiovascular diseases. Low-fat butter texture and flavour profiles play an important role as there is a certain class of health-conscious customers who do not compromise on food taste and flavor drives the growth. Companies are also launching various product types, such as spreads and non-spreads, which are expected to contribute to the growth of the reduced-fat butter market.

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Challenges – Reduced Fat Butter Market

Availability Of Alternatives For Reduced Fat Butter

It is anticipated that the available alternatives of reduced fat butter such as olive oil, coconut spread, and avocado spreads that have creamy texture & taste and provide more health benefits than reduced fat butter is anticipated to restrict the growth of the reduced fat butter market. Also, regulatory concerns regarding usage of Reduced Fat Butter and growing stringent government policy and regulation toward market growth is restraining growth of the market.

Reduced Fat Butter Industry Outlook

Product Launches, Merger & Acquisition, joint ventures and R&D activities are key strategies adopted by the players in the Reduced Fat Butter Industry. Reduced Fat Butter top 10 companies include Agral S.A., Arla Foods Ingredients, Aurivo Co-Operative Society Ltd., Finlandia Cheese Inc., Kerry Gold, Lam Soon Group, Land O’lakes, Rockview Farms, Saputo Dairy Australia Pty Ltd. and Upfield.

Acquisitions/Product Launches

In August 2020, Arla Foods Ingredients launched the first ever organic micellar casein isolate, to help manufacturers meet demand for organic, natural and functional protein products.

In July 2020, Land O’lakes entered into partnership with Microsoft Corp., to pioneer new innovations in agriculture and enhance the supply chain, expand sustainability practices for farmers and the food system, and close the rural broadband gap.

Key Takeaways

The rise in various wellness issues, such as obesity, cardiovascular diseases, diabetes and fatty butter’s safety benefits, contributes to the growth of the reduced fat butter industry.

The growing acceptance of low fat cooking ingredients from a variety of food service chains is likely to be the major driving factor for the market’s growth.

Improved health benefits, such as improved nutritional content with small quantities of fat, are expected to fuel market growth.

Asia-Pacific region is anticipated to record the fastest growth rate during the forecast period 2020-2025 owing to the enhanced living standard of people in the region coupled with the continuous product development and innovation by the regional players.

Related Reports :

A. Specialty Fats & Oils Market


B. Low-Fat Yogurt Market


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