The global reduced fat butter market is projected to achieve a valuation of USD 1.3 billion by 2022, with a robust growth rate of 6.2% CAGR expected through 2032, potentially reaching USD 2.37 billion by the end of the forecast period.

In 2022, reduced fat butter represented 10% of the total global butter market. This segment is anticipated to grow further, driven by increasing consumer demand for healthier lifestyle choices and the availability of nutritious alternatives.

People have now understood the advantages of consuming a low-fat diet and avoiding the excess energy that gets converted to fat depositions in the body. These factors are expected to positively impact the sales of reduced fat butter during the assessment period.

Consumers are more aware of what goes into producing food products, and carefully choose products that provide health benefits in addition to good taste. Companies are investing in developing butter substitutes that have low-fat content, due to which organic reduced fat butter is in high demand.

Owing to this reason, demand for reduced fat butter, which does not contain dietary cholesterol and can be used in wide end-use applications like baking cakes, crusts, deserts and vegetables for daily consumption, is expected to surge. This enhances the demand for reduced fat butter in hotels, restaurants and caterings.

Changes in dietary habits, like reduction in consumption of unhealthy fats to boost the immunity against infections, are expected to increase the sales of reduced fat butter in the North America market.

Asia Pacific is expected to generate many opportunities for the reduced fat butter market during the assessment year, due to rising awareness of healthy food alternatives among people.

Key Takeaways from Market Study

● The reduced fat butter market is expected to reach US$ 2.37 billion by 2032, with the projected CAGR of 6.2%.

● Through 2032, the reduced fat butter market in North America and Europe is predicted to grow at CAGRs of 5.7% and 6.2%, respectively.

● Reduced fat butter market share in Latin America and Oceania is 5.4% and 6.2%, respectively, in 2022.

● The European reduced fat butter market is expected to reach US$ 286 Mn.

● Growing customer preference for healthy and nourishing food products is driving sales of the reduced fat butter market across global markets.

● By application, the food industry holds the highest reduced fat butter market share and is expected to increase at a CAGR of 6.5%.

Competitive Landscape

Manufacturers of reduced fat butter are actively exploring new technologies to meet the growing consumer demand for healthier food options. Leading companies are focusing on developing innovative butter varieties with different fat content levels to cater to diverse dietary preferences.

Some of the major key players in the reduced fat butter market are Palsgaard Agral S.A., Ornua Co-operative Limited, Upfield, Finlandia Cheese, Inc., Saputo Dairy Australia Pty Ltd., Kerry Gold, Land O'Lakes, Arla Foods, Lam Soon Group, Aurivo Co-operative Society Ltd., Rockview Farms.

• Danish firm Palsgaard launched an emulsifier that will help manufacturers to produce low-fat spreads and kinds of butter with fat content ranging between 10-15%.

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Reduced Fat Butter Market By Category

By Form:

• Spreadable
• Non-spreadable

By Fat Content:

• 15-40% fat content
• 41-60% fat content

By End-Use Application:

• Household
• Foodservice
• Food Industry

By Packaging:

• Plastic Tubs
• Carton Packs
• Bulk

By Sales Channel:

• Offline Sales Channel
• Supermarkets/Hypermarkets
• Departmental Stores
• Convenience Store
• Other Sales Channel
• Online Sales Channel
• Company Website
• E-commerce Platform

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East & Africa