Global Textured Butter Market

Market Overview:

The global Textured Butter market was valued at USD 1.87 billion in 2022 and expected to grow at a CAGR of 5.3% during the forecast period. Textured butter is a type of butter that has a distinct texture and flavor profile. It is made by blending butter with various ingredients, such as salt, herbs, spices, or other flavorings, to create a spreadable butter with a unique taste and texture.

The texture of textured butter is achieved through a process called "whipping," which involves beating air into the butter to create a light and fluffy consistency. This process also helps to incorporate the flavorings evenly throughout the butter, resulting in a smooth and consistent product.

Textured butter is often used as a condiment or flavoring agent for various dishes, such as bread, vegetables, meats, or seafood. It can also be used in baking recipes to add a unique flavor and texture to cakes, cookies, or pastries.

Textured butter is available in a wide range of flavors, such as garlic, herb, truffle, and spicy, and is often sold in small containers or jars. It is also possible to make textured butter at home by blending softened butter with desired flavorings using a food processor or mixer.

Covid-19 Impact:

The COVID-19 pandemic has had both positive and negative impacts on the textured butter market. Here are some of the key ways that the pandemic has affected the industry:

Positive Impacts:

Increased Demand for Home Cooking: With people spending more time at home due to lockdowns and social distancing measures, there has been a surge in home cooking and baking. This has led to increased demand for high-quality ingredients, including textured butter, which can add flavor and texture to homemade dishes.

Online Sales and Delivery: Many consumers have shifted their purchasing habits towards online channels due to safety concerns and restricted movement. This has resulted in increased sales of textured butter through e-commerce platforms, as well as delivery services provided by grocery stores and food retailers.

Negative Impacts:

Disruptions to Supply Chains: The COVID-19 pandemic has disrupted global supply chains, which has affected the availability of raw materials and packaging materials for the production of textured butter. This has led to shortages in some regions and increased costs for manufacturers.

Reduced Sales in Foodservice Sector: The foodservice industry has been hit hard by the pandemic, with many restaurants and catering services temporarily closed or operating at reduced capacity. This has led to a decline in sales of textured butter to the foodservice sector, which is a significant market for this product.

Increased Costs of Production: The COVID-19 pandemic has led to increased costs for manufacturers due to additional safety measures, increased sanitation requirements, and reduced workforce availability. This has resulted in higher production costs for textured butter, which may be passed on to consumers in the form of higher prices.

Market Dynamics:

Drivers:

Flavor and Texture Enhancer: Textured butter can enhance the flavor and texture of dishes, making them more enjoyable and appealing to consumers. This has contributed to the popularity of textured butter among food manufacturers, chefs, and home cooks.

Versatility: Textured butter is a versatile ingredient that can be used in a wide range of dishes, including baked goods, sauces, spreads, and dressings. Its versatility has made it a popular choice for food manufacturers and chefs.

Premiumization: Textured butter is often perceived as a premium product, and its use can elevate the quality and appeal of dishes. This has contributed to the demand for textured butter in high-end restaurants, hotels, and other foodservice establishments.

Convenience: Textured butter is easy to use and can be stored for long periods without spoiling, making it a convenient ingredient for home cooks and food manufacturers.

Growing Demand for Bakery Products: The demand for bakery products is on the rise, driven by factors such as changing consumer tastes, increasing disposable income, and busy lifestyles. Textured butter is a key ingredient in many bakery products, which has contributed to the growth of the textured butter market.

Increasing Consumer Awareness: As consumers become more aware of the quality and origin of their food, there is a growing demand for high-quality ingredients such as textured butter. Consumers are willing to pay a premium for products that are perceived as high-quality, which has contributed to the growth of the textured butter market.

Restraints:

Health and Nutrition Concerns: While textured butter can add flavor and texture to dishes, it is also high in fat and calories. As consumers become more health-conscious and look for healthier alternatives, there may be a decline in demand for textured butter.

Availability of Alternatives: There are several alternatives to textured butter that are available in the market, such as margarine, spreads, and other plant-based options. These products offer similar flavor and texture profiles as textured butter but are often perceived as healthier alternatives, which may impact the demand for textured butter.

Competition from Private Label Brands: Private label brands have become increasingly popular in recent years, and many grocery stores and supermarkets now offer their own versions of textured butter. These products are often cheaper than branded textured butter and may provide stiff competition for manufacturers.

Environmental Concerns: The production of textured butter, like any other food product, has an impact on the environment. Some consumers are becoming more aware of the environmental impact of their food choices and may choose to avoid products that have a high environmental footprint. This may affect the demand for textured butter, especially if the product is perceived as environmentally unsustainable.

Segment Analysis:

Unsalted Textured Butter: This type of textured butter is made from cream that is not salted. It has a creamy, smooth texture and is often used in baking and cooking.

Salted Textured Butter: Salted textured butter is made from cream that has been salted, giving it a savory flavor. It is often used as a spread on bread or toast and can also be used in cooking and baking.

Both unsalted and salted textured butter are widely used in the food industry and are available in various forms such as blocks, rolls, and tubs. The choice between unsalted and salted textured butter often depends on the recipe and personal preference. Some recipes may require unsalted butter to prevent excessive saltiness, while others may benefit from the added flavor of salted butter.

Regional Analysis:

Europe: Europe is one of the largest markets for textured butter, driven by the popularity of bakery products in the region. Countries such as France, Germany, and Italy are major consumers of textured butter, which is used in a wide range of baked goods.

North America: The North American market for textured butter is also significant, driven by the popularity of the product in the foodservice industry. Textured butter is used in a wide range of dishes in restaurants, hotels, and other foodservice establishments in the region.

Asia-Pacific: The Asia-Pacific region is an emerging market for textured butter, with increasing demand for bakery products and growing consumer awareness of premium ingredients. Countries such as China, Japan, and India are expected to drive the growth of the textured butter market in the region.

Middle East and Africa: The Middle East and Africa region is also an emerging market for textured butter, driven by the growing demand for bakery products and the increasing popularity of premium ingredients. Countries such as Saudi Arabia, UAE, and South Africa are expected to contribute to the growth of the market in the region.

Latin America: The Latin American market for textured butter is relatively small but is expected to grow in the coming years. The growing demand for bakery products and increasing consumer awareness of premium ingredients are expected to drive the growth of the market in the region.

Competitive Landscape:

The global Textured Butter market is highly competitive and fragmented with the presence of several players. These companies are constantly focusing on new product development, partnerships, collaborations, and mergers and acquisitions to maintain their market position and expand their geographical presence. Some of the key players operating in the market are:

·         Flechard

·         Uelzena Group

·         Royal VIV Buisman

·         LACTALIS Ingredient

·         Middledale Foods

·         PIERMEN

·         Michigan Milk Producers Association

·         Kriemhild Dairy Farms

·         Lakeland Dairies

·         Others

Segments

By Products

·         Unsalted textured butter

·         Salted textured butter

By Nature

·         Conventional butter

·         Organic butter

By End-use

·         Household

·         Hotels/restaurants/cafes (HoReCa)

·         Food and beverage industry

By Distribution Channel

·         Online retail

·         Direct

·         Indirect

By Geography

·         North America

o   U.S.

o   Canada

o   Mexico

·         Europe

o   U.K.

o   Germany

o   France

o   Italy

o   Spain

o   Russia

·         Asia-Pacific

o   Japan

o   China

o   India

o   Australia

o   South Korea

o   ASEAN

o   Rest of APAC

·         South America

o   Brazil

o   Argentina

o   Colombia

o   Rest of South America

·         MEA

o   South Africa

o   Saudi Arabia

o   UAE

o   Egypt

o   Rest of MEA