Anhydrous Milk Fat Butter Oil Market Research Report By Type (Anhydrous Butter Oil, Butterfat, Ghee), By Application (Bakery & Confectionery, Dairy & Frozen Foods, Snacks & Savory Products, Other Applications), By Source (Cow Milk, Buffalo Milk, Goat Milk, Other sources), By Packaging (Pouches, Drums, Cans, Other packaging types), By Distribution Channel (Direct Sales, Retail Stores, Online Marketplaces, Food Service Distributors) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Anhydrous Milk Fat Butter Oil Market Overview

Anhydrous Milk Fat Butter Oil Market Size was estimated at 28.05 (USD Billion) in 2022. The Anhydrous Milk Fat Butter Oil Market Industry is expected to grow from 29.19(USD Billion) in 2023 to 41.7 (USD Billion) by 2032. The Anhydrous Milk Fat Butter Oil Market CAGR (growth rate) is expected to be around 4.05% during the forecast period (2024 - 2032).

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Anhydrous Milk Fat Butter Oil Market Trends Highlighted

Key Market DriversRising demand for dairy products in emerging economies, particularly in Asia-Pacific and Latin America, is driving the growth of the anhydrous milk fat (AMF) butter oil market. The increasing popularity of processed and packaged foods, along with the growing health consciousness among consumers who seek natural and nutrient-rich ingredients, are further fueling market growth.

Opportunities to be Explored or CapturedThe expansion of the food and beverage industry, especially in developing countries, presents opportunities for AMF butter oil manufacturers. The growing use of AMF in bakery products, confectioneries, and dairy blends creates additional market potential. Technological advancements, such as improved extraction and refining processes, can enhance the quality and shelf life of AMF butter oil, leading to increased adoption.Trends in Recent Times

Recent market trends include the growing demand for lactose-free dairy products, which AMF butter oil can provide. The increasing popularity of plant-based alternatives poses a potential challenge to the market but also creates opportunities for innovation and niche products. The rising cost of dairy production and supply chain disruptions due to geopolitical events have impacted the market in recent times. Overall, the AMF butter oil market is expected to continue its growth trajectory, driven by the aforementioned factors and the ongoing need for high-quality dairy ingredients in food manufacturing.

Anhydrous Milk Fat Butter Oil Market Drivers

Rising Demand for Processed and Packaged Food Products

One of the main drivers on which the Anhydrous Milk Fat Butter Oil Market Industry will be based is the growing demand for processed and packaged food products. Today, modern consumers have become more inclined to eat convenient, processed, and sometimes shelf-stable food. The processed and packaged food industry is multiple times broader in comparison to the dairy industry, and the constant rise in demand for processed food products is set to drive the use of AMF butter oil.This type of butter is actively used to produce different kinds of processed and packaged food products that are sold in almost every store in the world. These are confectionery, bakery products, dairy products, snacks, and canned milk. The industries that other processed foods are based on are developing exponentially, and so, as a derivative of these industries, the market for AMF butter oil will expand as well.

Increasing Health Consciousness Among Consumers

Another factor that stimulates the Anhydrous Milk Fat Butter Oil Market Industry is that consumers become more health-conscious. It becomes a tendency for more people to consider eating dairy products and learn about the health benefits of AMF butter oil. AMF butter oil is a rich source of such necessary elements as vitamins A, D, and E. AMF butter oil also contains CLA, which may have a number of health benefits such as decreasing the risks of such diseases as heart disease or cancer.It is another stimulus that contributes to the development of the general market.

Expansion of the Food Service Sector

One of the trends that drive the growth of the Anhydrous Milk Fat Butter Oil Market Industry is the expansion of the food service sector. The food service industry is one of the largest consumers of AMF butter oil. For example, it is used in most dishes that are served in restaurants and bakeries. The increasing number of food service establishments, as well as the growing popularity of eating out, will drive greater demand for AMF butter oil in the coming years.

Anhydrous Milk Fat Butter Oil Market Segment Insights

Anhydrous Milk Fat Butter Oil Market Type Insights

The Anhydrous Milk Fat or Butter Oil Market is segmented by type into anhydrous butter oil, butterfat, and ghee. It is clear that anhydrous butter oil was the chief product segment in 2023, and this product is likely to continue its market dominance in the foreseeable future. Being more stable to oxidation than other types of butter, anhydrous butter oil enjoys the longest life. The product is extensively used in confectionery, bakery, and other food applications; its high content and relatively neutral taste make it irreplaceable. Butterfat appears to be the second most important market segment, which enjoys its popularity as a kind of spread and for cooking applications, being made from cows’ cream or milk.

The interest in the product seems to have recently increased due to the consumption of more natural products; moreover, it has a much higher fat percentage than other dairy products. Finally, the segment of ghee as traditional Indian and Middle East butter is commonly used for frying as it is free from water and milk solids, though it is less used as spread. Besides, it has a high smoking point. The drop in this segment share may probably be the result of the so-called health consciousness hype in the modern Western world, so the segment is also likely to see an increase in popularity.

In so doing, the key factors determining the future growth of the Anhydrous Milk Fat or Butter Oil Market are the increasing consumption of dairy products in all of its product types and rising customer awareness of its benefits.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Anhydrous Milk Fat Butter Oil Market Application Insights

The application segment is expected to dominate the Anhydrous Milk Fat Butter Oil Market. With the growing demand for bakery and confectionery products, Bakery Confectionery application is a key driver in the market. The Dairy Frozen Foods segment is expected to show good growth driven by the increasing popularity of dairy-based products and frozen foods. Consumers are also inclined to convenient and flavorful snacks in the Snacks Savory Products segment thereby contributing to market growth. With the development in the dairy industry, other applications such as pharmaceuticals and personal use products have also shown high growth.The Anhydrous Milk Fat Butter Oil Market revenue will reach USD 32.42 billion by 2024, with a CAGR of 4.2%, during the forecast period.

Anhydrous Milk Fat Butter Oil Market Source Insights

The source segment of the Anhydrous Milk Fat Butter Oil Market plays a crucial role in shaping the market dynamics. Cow Milk dominates the market with a significant share, driven by its widespread availability and use in various dairy products. Buffalo Milk holds a notable position, particularly in regions with a high buffalo population, contributing to the overall market growth. Goat Milk, with its unique nutritional profile and increasing demand for specialty products, is gaining traction in the market. Other sources, such as sheep milk and camel milk, account for a smaller but growing share, catering to niche market segments.

The Anhydrous Milk Fat Butter Oil Market segmentation provides valuable insights into the market dynamics, enabling stakeholders to make informed decisions and capitalize on growth opportunities.

Anhydrous Milk Fat Butter Oil Market Packaging Insights

The packaging segment plays a crucial role in the Anhydrous Milk Fat Butter Oil Market. Various packaging types are utilized to preserve the quality and extend the shelf life of Anhydrous Milk Fat Butter Oil. Pouches, drums, cans, and other packaging types are commonly used. Pouches offer flexibility and cost-effectiveness, making them a popular choice for small-scale packaging. Drums are suitable for bulk storage and transportation, ensuring safe handling of large quantities. Cans provide durability and protection against external factors, maintaining the product's integrity.

Other packaging types include glass jars, which offer transparency and aesthetic appeal, and bag-in-box containers, which provide convenience and space efficiency. The choice of packaging type depends on factors such as the intended use, storage conditions, and target market. Market data suggests that the Anhydrous Milk Fat Butter Oil Market is projected to reach a revenue of USD 41.7 billion by 2032, exhibiting a steady growth rate. Insights into the packaging segment are essential for manufacturers and suppliers to optimize their packaging strategies and cater to evolving customer preferences.

Anhydrous Milk Fat Butter Oil Market Distribution Channel Insights

The distribution channel segment plays a crucial role in the Anhydrous Milk Fat Butter Oil Market revenue generation. The market is segmented into various distribution channels, including direct sales, retail stores, online marketplaces, and food service distributors. Each channel offers unique advantages and caters to different customer segments. Direct sales involve selling products directly to customers through company-owned or franchised stores. This channel provides greater control over product quality, pricing, and customer service.

Retail stores, both physical and online, offer a wide range of products and brands, allowing customers to compare and choose according to their preferences. Online marketplaces, such as Amazon and Alibaba, have gained significant traction in recent years, offering convenience, competitive pricing, and a vast selection. Food service distributors cater to the needs of restaurants, hotels, and other foodservice establishments, providing bulk supplies and specialized products. In 2023, the Anhydrous Milk Fat Butter Oil Market segmentation by distribution channel was led by retail stores, accounting for around 45% of the market share.

Direct sales followed closely, capturing approximately 30% of the market. Online marketplaces and food service distributors held smaller but growing shares of 15% and 10%, respectively. The market growth is expected to be driven by increasing consumer preference for convenience and online shopping, along with the expansion of the food service industry.

Anhydrous Milk Fat Butter Oil Market Regional Insights

The Anhydrous Milk Fat Butter Oil Market is segmented into regions such as North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in terms of revenue, owing to the increasing demand for Anhydrous Milk Fat Butter Oil in the food and beverage industry. Europe is projected to be the second-largest market, followed by APAC. The APAC region is expected to witness the highest growth rate during the forecast period due to the growing population and rising disposable income in countries such as China and India.

South America and MEA are also expected to contribute to the overall market growth. The Anhydrous Milk Fat Butter Oil Market is highly competitive, with the presence of both and regional players. Some of the key players in the market include Arla Foods, Fonterra, and Lactalis. These companies are investing in research and development to improve the quality and functionality of their products.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Anhydrous Milk Fat Butter Oil Market Key Players And Competitive Insights

Anhydrous Milk Fat Butter Oil Market is assembled with an assortment of big and mid-level and small-scale industries and many other institutions. Regular new product developments have increased the competition in the United States. With the new product development, the United States Anhydrous Milk Fat Butter Oil Market industry also increases country fragmentation. With the increased demand for dairy products and increasing health awareness of using anhydrous milk fat the United States Anhydrous Milk Fat Butter Oil Market is likely to experience a significant growth rate in the near future.

Leading United States Anhydrous Milk Fat Butter Oil Market players are adopting various growth strategies such as new product launches, acquisitions, mergers, and collaboration, as well as expanding their existing production facilities in manufacturing plants and investing in R to fulfill the needs of end-users in the coming years. Leading United States Anhydrous Milk Fat Butter Oil Market players have also included efficient strategies such as product launches, agreements, acquisitions, and mergers to solidify their position in the United States Anhydrous Milk Fat Butter Oil Market. Arla Foods is a Danish multinational dairy company. Arla Foods is one of the largest dairy companies across the globe. The Company operates in the production and sale of milk, cream, butter, buttermilk, cheese, and other dairy items. Arla Dairy Products has a branched range of products like Lurpak, Anchor Butter, and many more. The Company also manufactures and trades powdered milk products like whey, lactose, and fruit drinks. Arla Foods has a presence in 30 countries across Europe, the Middle East, Asia, Africa, and the United States. The company is headquartered in Viby, Aarhus, Denmark.

Fonterra Co-op is a multinational dairy Whole Company. It is one of the largest dairy products companies across the globe and has major production units in New Zealand. The company has its operation in the manufacturing of various dairy products like, milk powder, cheeses, casein, whey protein, lactose, and proteins. Fonterra Co-op also sells its vicarious ingredients used throughout the life spray. Hokitika Cheese, Picaray, Taraua Cheese, and Waitoa Cheese are the brands under which the company carries out its products. Fonterra is a multinational dairy company that serves its products in Asia, the Middle East, Europe, North America, South America, Africa, and Australia. The company has an employee capacity of more than 21,000 employees. The main Fonterra office is in Auckland, New Zealand. It is a dairy Co-op and leading a dairy nutrition company.

Key Companies in the Anhydrous Milk Fat Butter Oil Market Include

• Dairy Farmers of America


• Kerry Group plc


• Bel Group


• Lactalis Ingredients


• Archer Daniels Midland Company


• Arla Foods Amba


• FrieslandCampina


• Fonterra Cooperative Group Ltd.


• Ingredion Incorporated


• Unilever PLC


• Nestle S.A.


• Hochwald Foods


• Savencia Fromage Dairy


• Danone S.A.


• Cargill, Incorporated

Anhydrous Milk Fat Butter Oil Market Industry Developments

The Anhydrous Milk Fat Butter Oil Market is projected to grow from USD 29.19 billion in 2023 to USD 41.7 billion by 2032, exhibiting a CAGR of 4.05% during the forecast period. Increasing demand for butter oil in the food and beverage industry, rising disposable income, and growing health consciousness among consumers are the key factors driving market growth.

Recent developments in the market include the launch of new products, such as low-fat and organic butter oil, and the expansion of production capacities by major players. For instance, in 2023, Arla Foods Ingredients announced plans to invest USD 50 million in its butter oil production facility in Denmark.

Key market players include Fonterra Co-operative Group, Lactalis Group, Arla Foods Ingredients Group P/S, and Milk Specialties Global. These players are focusing on strategic collaborations, mergers and acquisitions, and product innovation to maintain their market positions.

Anhydrous Milk Fat Butter Oil Market Segmentation Insights

Anhydrous Milk Fat Butter Oil Market Type Outlook

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  • Anhydrous Butter Oil
  
  
  • Butterfat
  
  
  • Ghee
  
  
  
  

Anhydrous Milk Fat Butter Oil Market Application Outlook

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  • Bakery Confectionery
  
  
  • Dairy Frozen Foods
  
  
  • Snacks Savory Products
  
  
  • Other applications
  
  
  
  

Anhydrous Milk Fat Butter Oil Market Source Outlook

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  • Cow Milk
  
  
  • Buffalo Milk
  
  
  • Goat Milk
  
  
  • Other sources
  
  
  
  

Anhydrous Milk Fat Butter Oil Market Packaging Outlook

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  • Pouches
  
  
  • Drums
  
  
  • Cans
  
  
  • Other packaging types
  
  
  
  

Anhydrous Milk Fat Butter Oil Market Distribution Channel Outlook

• 
  
  
  
  • Direct Sales
  
  
  • Retail Stores
  
  
  • Online Marketplaces
  
  
  • Food Service Distributors
  
  
  
  

Anhydrous Milk Fat Butter Oil Market Regional Outlook

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  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa