Global Clarified Butter Market - 2023-2030

Market Overview

Global Clarified Butter Market reached US$ 2.5 billion in 2022 and is expected to reach US$ 5.0 billion by 2030 growing with a CAGR of 9.2% during the forecast period 2023-2030.

Certain brands are promoting their ghee as made from grass-fed or organic milk, ensuring a higher quality and more sustainable product. An instance of this trend can be seen in the development and marketing of premium ghee products. These premium ghee products are positioned as healthier alternatives to conventional clarified butter, appealing to health-conscious consumers seeking natural and ethically sourced options.

Ghee production involves a specific butter processing method. First, butter is heated and melted to separate the milk fat from the water content and milk solids. This process typically includes the removal of casein, a milk protein, to produce a lactose-free product suitable for individuals with lactose intolerance. Various clarification techniques, such as centrifugation, gravity settling, or skimming, are employed to eliminate impurities and milk solids, resulting in a clear, golden liquid known as clarified butter or ghee.

The dehydration of clarified butter leads to the production of butter oil, which has an even higher concentration of milk fat. Butter oil finds applications in food manufacturing, especially in the production of confectionery, baked goods, and snack foods. Its high smoke point makes it suitable for frying and sauteing purposes. The market trend of emphasizing the removal of milk solids and casein from clarified butter aligns with consumer preferences for lactose-free and allergen-friendly products. This trend caters to individuals with dietary restrictions and health-conscious consumers seeking natural, minimally processed dairy products.

Market Dynamics

Increasing Consumer Preference for Natural and Minimally Processed Food Products is Expected to Foster the Clarified Butter Industry

Consumers are becoming more conscious of the potential health benefits associated with natural and minimally processed food products. They are seeking alternatives to heavily processed fats and oils, which may contain additives, preservatives, or trans fats. Clarified butter, being a natural product made by separating milk fat from impurities, aligns with this preference for natural and unadulterated ingredients.

Natural and minimally processed products are often associated with notions of authenticity, purity, and traditional culinary practices. Clarified butter, particularly in its traditional forms like ghee, has a long history and cultural significance in various cuisines. This perception of naturalness and authenticity enhances the appeal of clarified butter to consumers seeking a connection to traditional food practices.

The Growing Popularity of Specialized Diets is Expected to Fuel the Clarified Butter Market Growth

The ketogenic diet, which emphasizes high-fat and low-carbohydrate intake, has gained popularity in recent years. Clarified butter, with its high-fat content and minimal carbohydrates, fits well within the framework of this diet. As more individuals adopt ketogenic and low-carb diets, there is a growing demand for suitable cooking fats, including clarified butter.

The paleo and primal diets focus on consuming foods that are believed to be similar to those consumed by early humans, emphasizing whole, unprocessed foods. Clarified butter aligns with these diets as a natural and minimally processed fat source. Its traditional roots and simple production process resonates with individuals following these dietary approaches.

Health Concerns of Consumers and Cholesterol Content is Hampering the Clarified Butter Market Growth

Clarified butter, like other animal-based fats, contains cholesterol and saturated fats. High intake of saturated fats has been associated with increased levels of LDL (low-density lipoprotein) cholesterol, which is considered a risk factor for cardiovascular diseases. This concern has led to recommendations for limiting saturated fat consumption, including the consumption of clarified butter, especially among individuals with specific cardiovascular health concerns.

Many national and international dietary guidelines advise limiting the intake of saturated fats, including those found in animal-based fats like clarified butter. For instance, the American Heart Association (AHA) recommends limiting saturated fat intake to less than 5-6% of total daily calories. Such recommendations may deter some consumers from regularly using clarified butter as a cooking fat.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The global clarified butter market is segmented based on packaging type, nature, and region.

By Nature, the Organic Clarified Butter Segment is Estimated to have Significant Growth During the Forecast Period

The organic food market has been experiencing steady growth over the years. According to data from FiBL and IFOAM Organics International, the global organic food market reached $105 billion in 2019, showing a 6.9% growth compared to the previous year. This overall growth in the organic food market creates opportunities for organic clarified butter to cater to the increasing demand for organic products.

Regulatory bodies in different countries have established standards and certification programs for organic products. These certifications assure consumers that the product meets specific organic criteria, further enhancing consumer trust and driving the demand for organic clarified butter. For example, in the United States, the USDA Organic certification guarantees that the product meets the strict standards set for organic production.

Geographical Analysis

North America is the Fastest Growing Market in the Clarified Butter Market

Consumers in North America have shown a growing preference for natural, minimally processed, and high-quality food products. Clarified butter, with its traditional production process and perceived authenticity, aligns with this preference. The demand for natural and premium ingredients in cooking and baking applications has contributed to the growth of the clarified butter market in North America.

The North American market has witnessed a rise in specialty and gourmet food trends, with consumers seeking unique and high-quality food products. Clarified butter, with its distinct flavor, aroma, and versatility, fits well within this trend. Its use in gourmet recipes, artisanal food products, and high-end restaurants has driven the demand for clarified butter in North America.

Competitive Landscape

The major global players in the market include: Saputo Corporate, Arla Foods amba, Almarai, Heritage Foods Limited, Verka USA, Roil Foods Ltd., Jhandewalas Foods Limited, Parmalat Canada, GCMMF, and Organic Valley.

The global clarified butter market report would provide approximately 61 tables, 57 figures, and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies