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Developing Nations to Push Growth of Butter and Margarine Market; Products with Low Trans Fats to Fare Well

Health Foods

Updated on Feb 8, 2016

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High sales of margarine in developing countries will act as a high-impact driver for the global butter and margarine market, says Transparency Market Research in a new report. In the report, titled, ‘Butter and Margarine Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015–2023,’ the report also credits the growing trend of home baking as a factor impelling the consumption of these two products. Moreover, the growth in the food service industry in emerging economies will lead to a rise in the demand for butter and margarine. As compared to butter, the demand for margarine is lower as the latter comprises additives.

Margarine is often used as a substitute for butter but its flavor and properties are not the same as the latter. This difference in their properties stems from the difference in the ingredients that go into the preparation of butter and margarine. While butter primarily consists of protein, butterfat, and water, margarine comprises refined vegetable oil and in some instances, animal fat. Both margarine and butter are used as cooking ingredients or simply as a spread over baked items.

Although changing food habits will augur well for the growth of the global butter and margarine market, companies will face impediments with health-conscious consumers cutting back on the consumption of fatty food products. Companies have been countering this threat with the launch of low-fat butter and margarine variants. Nevertheless, the popular association between butter and obesity will pose a challenge that can only be overcome by clever marketing and novel product launches. Consumers are especially averse to consuming trans fats, and companies that launch products sans trans fats have a better chance at improving sales.

The report segments the global margarine and butter market on the basis of usage into two broad segments: spreadable and non-spreadable. Likewise, based on the product type, the market for butter and margarine is segmented into the following segments: cultured butter, uncultured butter, whipped and cream butter, butter margarine, liquid margarine, and others.

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According to the report, the future of the global butter and margarine market is promising. Moreover, the launch of innovative products that combine the benefits of butter and margarine (e.g.: baking fats for use in cake and pastries) will help the market acquire new customers.

The report identifies North America as the largest market for butter and margarine in revenue terms. From the standpoint of growth rate, the Asia Pacific market is expected to report the highest rate of growth. China is an extremely attractive market, followed only by India.

Besides the small local companies that constitute an appreciable portion of the butter and margarine market, there are a few leading companies with a wide geographical presence. These include: Arla Foods, Farmers Cooperative Creamery, OJSC Creative Group, Kraft Foods, Deam Foods Company, AMUL India, and Friesland Campina.
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