Butter Market

The article provides a comprehensive analysis of the global butter market, including consumption trends, production analysis, global imports, and exports from 2012 to 2022. Key highlights include the increase in market value and volume, with projections for continued growth in the future. The article also covers the major countries involved in butter production, consumption, imports, and exports, along with trends in per capita consumption and average prices. Overall, it offers valuable insights into the trends shaping the global butter market.

Market Forecast

Driven by increasing demand for butter worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.6% for the period from 2022 to 2030, which is projected to bring the market volume to 6.4M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.4% for the period from 2022 to 2030, which is projected to bring the market value to $36.5B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Butter

In 2022, consumption of butter decreased by -1.6% to 5.7M tons, falling for the second year in a row after five years of growth. The total consumption volume increased at an average annual rate of +1.1% over the period from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed throughout the analyzed period. Over the period under review, global consumption attained the peak volume at 5.9M tons in 2020; however, from 2021 to 2022, consumption stood at a somewhat lower figure.

The global butter market size reduced modestly to $27.8B in 2022, waning by -2.8% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.2% over the period from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being recorded in certain years. Global consumption peaked at $28.8B in 2018; however, from 2019 to 2022, consumption remained at a lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were the United States (940K tons), France (542K tons) and Germany (509K tons), together accounting for 35% of global consumption. Russia, the UK, New Zealand, China, Iran, Poland, Canada, Brazil, Italy and Turkey lagged somewhat behind, together comprising a further 31%.

From 2012 to 2022, the biggest increases were recorded for New Zealand (with a CAGR of +11.2%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest butter markets worldwide were the United States ($3.7B), France ($3.3B) and Germany ($2.3B), together comprising 33% of the global market. Russia, China, Iran, the UK, New Zealand, Poland, Italy, Canada, Brazil and Turkey lagged somewhat behind, together accounting for a further 29%.

New Zealand, with a CAGR of +13.2%, recorded the highest growth rate of market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of butter per capita consumption was registered in New Zealand (38 kg per person), followed by France (8 kg per person), Germany (6.1 kg per person) and Poland (4.9 kg per person), while the world average per capita consumption of butter was estimated at 0.7 kg per person.

From 2012 to 2022, the average annual growth rate of the butter per capita consumption in New Zealand totaled +9.4%. In the other countries, the average annual rates were as follows: France (+1.7% per year) and Germany (+0.6% per year).

Production

World Production of Butter

In 2022, approx. 5.8M tons of butter were produced worldwide; almost unchanged from the previous year's figure. The total output volume increased at an average annual rate of +1.3% from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2019 when the production volume increased by 4.1%. Global production peaked at 5.9M tons in 2020; however, from 2021 to 2022, production failed to regain momentum.

In value terms, butter production contracted to $28.1B in 2022 estimated in export price. The total output value increased at an average annual rate of +2.4% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2017 with an increase of 26%. Global production peaked at $29.8B in 2018; however, from 2019 to 2022, production remained at a lower figure.

Production By Country

The countries with the highest volumes of production in 2022 were the United States (954K tons), Germany (479K tons) and New Zealand (453K tons), with a combined 32% share of global production. France, Ireland, Russia, Poland, the UK, Iran, the Netherlands, Turkey, Belarus and Canada lagged somewhat behind, together comprising a further 36%.

From 2012 to 2022, the most notable rate of growth in terms of production, amongst the main producing countries, was attained by Ireland (with a CAGR of +6.7%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Butter

Global butter imports reduced to 1.4M tons in 2022, which is down by -10.5% on 2021 figures. The total import volume increased at an average annual rate of +1.6% from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2014 when imports increased by 8.8% against the previous year. Global imports peaked at 1.6M tons in 2021, and then declined in the following year.

In value terms, butter imports surged to $8.9B in 2022. In general, total imports indicated resilient growth from 2012 to 2022: its value increased at an average annual rate of +6.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +34.2% against 2020 indices. The growth pace was the most rapid in 2017 with an increase of 39%. Over the period under review, global imports hit record highs in 2022 and are likely to see steady growth in the near future.

Imports By Country

In 2022, France (208K tons), the Netherlands (155K tons), Germany (149K tons), China (101K tons) and Belgium (91K tons) was the major importer of butter in the world, comprising 50% of total import. The following importers - the United States (51K tons), the UK (45K tons), Italy (33K tons), Australia (31K tons), Canada (27K tons), Russia (27K tons) and Spain (24K tons) - together made up 17% of total imports.

From 2012 to 2022, the biggest increases were recorded for the United States (with a CAGR of +19.5%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the largest butter importing markets worldwide were France ($1.4B), Germany ($905M) and the Netherlands ($846M), with a combined 35% share of global imports. China, Belgium, the United States, the UK, Italy, Australia, Canada, Spain and Russia lagged somewhat behind, together accounting for a further 32%.

Among the main importing countries, the United States, with a CAGR of +27.3%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average butter import price stood at $6,349 per ton in 2022, picking up by 31% against the previous year. Over the period under review, import price indicated a noticeable expansion from 2012 to 2022: its price increased at an average annual rate of +4.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter import price increased by +46.6% against 2020 indices. The most prominent rate of growth was recorded in 2017 when the average import price increased by 43% against the previous year. Global import price peaked in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was the United States ($8,277 per ton), while Russia ($5,141 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Australia (+6.9%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Butter

Global butter exports totaled 1.6M tons in 2022, flattening at 2021. The total export volume increased at an average annual rate of +2.4% over the period from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2013 when exports increased by 5.5% against the previous year. The global exports peaked in 2022 and are likely to see gradual growth in the immediate term.

In value terms, butter exports soared to $9.9B in 2022. Overall, total exports indicated a strong increase from 2012 to 2022: its value increased at an average annual rate of +7.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +53.4% against 2020 indices. The growth pace was the most rapid in 2017 with an increase of 47%. Over the period under review, the global exports attained the maximum in 2022 and are likely to see gradual growth in years to come.

Exports By Country

In 2022, the Netherlands (258K tons), New Zealand (255K tons) and Ireland (228K tons) represented the key exporter of butter in the world, making up 47% of total export. Germany (119K tons) ranks next in terms of the total exports with a 7.5% share, followed by Belgium (7.5%), Belarus (5.1%), France (5.1%) and Poland (4.6%). The United States (65K tons), Denmark (53K tons), the UK (35K tons) and Finland (30K tons) held a little share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by Poland (with a CAGR of +9.3%), while the other global leaders experienced more modest paces of growth.

In value terms, the Netherlands ($1.6B), New Zealand ($1.6B) and Ireland ($1.5B) constituted the countries with the highest levels of exports in 2022, with a combined 48% share of global exports. Belgium, Germany, France, Poland, Belarus, Denmark, the United States, the UK and Finland lagged somewhat behind, together comprising a further 42%.

Poland, with a CAGR of +15.7%, saw the highest rates of growth with regard to the value of exports, among the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average butter export price amounted to $6,266 per ton, growing by 29% against the previous year. Overall, export price indicated a notable increase from 2012 to 2022: its price increased at an average annual rate of +4.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter export price increased by +47.9% against 2020 indices. The pace of growth was the most pronounced in 2017 when the average export price increased by 50% against the previous year. Over the period under review, the average export prices reached the peak figure in 2022 and is expected to retain growth in years to come.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was France ($7,542 per ton), while the United States ($3,675 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by France (+6.8%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform