Butter And Ghee Market

The global butter and ghee market is projected to see an increasing trend in consumption, production, imports, and exports due to rising demand worldwide. The market is forecasted to have a steady growth pattern with an anticipated CAGR of +2.5% in volume and +4.3% in value from 2022 to 2030. In 2022, consumption decreased slightly, but overall, the market has shown growth over the years. India leads in both consumption and production, with ghee being the most consumed and produced type. The largest importers and exporters include France, Germany, New Zealand, and Ireland. Average prices for imports and exports have been increasing, with ghee having the highest export price. Overall, the global butter and ghee market is expected to continue growing in the coming years.

Market Forecast

Driven by increasing demand for butter and ghee worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +2.5% for the period from 2022 to 2030, which is projected to bring the market volume to 7.6M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.3% for the period from 2022 to 2030, which is projected to bring the market value to $54.4B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Butter And Ghee

In 2022, consumption of butter and ghee decreased by -1.1% to 6.2M tons, falling for the second consecutive year after nine years of growth. The total consumption volume increased at an average annual rate of +2.5% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. Global consumption peaked at 6.3M tons in 2020; however, from 2021 to 2022, consumption failed to regain momentum.

The global butter and ghee market size was estimated at $39B in 2022, picking up by 5% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated prominent growth from 2012 to 2022: its value increased at an average annual rate of +5.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +63.3% against 2012 indices. Over the period under review, the global market reached the maximum level in 2022 and is expected to retain growth in the immediate term.

Consumption By Country

The country with the largest volume of butter and ghee consumption was India (3.8M tons), comprising approx. 62% of total volume. Moreover, butter and ghee consumption in India exceeded the figures recorded by the second-largest consumer, Pakistan (539K tons), sevenfold. The third position in this ranking was taken by New Zealand (163K tons), with a 2.6% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in India amounted to +2.9%. The remaining consuming countries recorded the following average annual rates of consumption growth: Pakistan (+4.6% per year) and New Zealand (+15.1% per year).

In value terms, India ($23.9B) led the market, alone. The second position in the ranking was held by Pakistan ($3.4B). It was followed by France.

From 2012 to 2022, the average annual growth rate of value in India totaled +4.8%. The remaining consuming countries recorded the following average annual rates of market growth: Pakistan (+8.9% per year) and France (+11.7% per year).

In 2022, the highest levels of butter and ghee per capita consumption was registered in New Zealand (32 kg per person), followed by India (2.7 kg per person), Pakistan (2.4 kg per person) and France (2.1 kg per person), while the world average per capita consumption of butter and ghee was estimated at less than 0.1 kg per person.

In New Zealand, butter and ghee per capita consumption increased at an average annual rate of +13.3% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: India (+1.9% per year) and Pakistan (+2.5% per year).

Consumption By Type

Ghee (4.9M tons) constituted the product with the largest volume of consumption, comprising approx. 80% of total volume. Moreover, ghee exceeded the figures recorded for the second-largest type, butter and dairy spreads (1.3M tons), fourfold.

For ghee, consumption increased at an average annual rate of +3.0% over the period from 2012-2022.

In value terms, ghee ($30.5B) led the market, alone. The second position in the ranking was held by butter and dairy spreads ($6.9B).

For ghee, market increased at an average annual rate of +5.3% over the period from 2012-2022.

Production

World Production of Butter And Ghee

In 2022, approx. 6.3M tons of butter and ghee were produced worldwide; therefore, remained relatively stable against the year before. The total output volume increased at an average annual rate of +2.5% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed in certain years. The growth pace was the most rapid in 2013 when the production volume increased by 5.1%. Over the period under review, global production attained the maximum volume in 2022 and is likely to see gradual growth in the near future.

In value terms, butter and ghee production rose slightly to $37.1B in 2022 estimated in export price. In general, the total production indicated prominent growth from 2012 to 2022: its value increased at an average annual rate of +5.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -2.7% against 2020 indices. The growth pace was the most rapid in 2017 with an increase of 19% against the previous year. Global production peaked at $38.2B in 2020; however, from 2021 to 2022, production remained at a lower figure.

Production By Country

The country with the largest volume of butter and ghee production was India (3.9M tons), accounting for 61% of total volume. Moreover, butter and ghee production in India exceeded the figures recorded by the second-largest producer, New Zealand (613K tons), sixfold. Pakistan (539K tons) ranked third in terms of total production with an 8.5% share.

From 2012 to 2022, the average annual growth rate of volume in India totaled +3.0%. In the other countries, the average annual rates were as follows: New Zealand (+1.5% per year) and Pakistan (+4.6% per year).

Production By Type

Ghee (4.9M tons) constituted the product with the largest volume of production, accounting for 79% of total volume. Moreover, ghee exceeded the figures recorded for the second-largest type, butter and dairy spreads (1.3M tons), fourfold.

For ghee, production expanded at an average annual rate of +2.9% over the period from 2012-2022.

In value terms, ghee ($31.7B) led the market, alone. The second position in the ranking was taken by butter and dairy spreads ($5.7B).

From 2012 to 2022, the average annual rate of growth in terms of the value of ghee production stood at +5.9%.

Imports

World Imports of Butter And Ghee

In 2022, global butter and ghee imports declined modestly to 2M tons, shrinking by -3.5% on 2021 figures. The total import volume increased at an average annual rate of +1.7% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2013 with an increase of 7.2%. Global imports peaked at 2M tons in 2019; afterwards, it flattened through to 2022.

In value terms, butter and ghee imports skyrocketed to $12.4B in 2022. Overall, total imports indicated a prominent increase from 2012 to 2022: its value increased at an average annual rate of +6.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +40.8% against 2020 indices. The most prominent rate of growth was recorded in 2017 with an increase of 34%. Global imports peaked in 2022 and are expected to retain growth in the immediate term.

Imports By Country

In 2022, France (241K tons), Germany (170K tons), the Netherlands (165K tons), China (143K tons) and Belgium (128K tons) was the major importer of butter and ghee in the world, comprising 43% of total import. The following importers - the United States (73K tons), Italy (68K tons), the UK (54K tons), Saudi Arabia (50K tons), Australia (39K tons), the United Arab Emirates (35K tons), Canada (34K tons) and Poland (33K tons) - together made up 20% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Canada (with a CAGR of +16.6%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, France ($1.6B), Germany ($1.1B) and China ($929M) constituted the countries with the highest levels of imports in 2022, with a combined 30% share of global imports. The Netherlands, Belgium, Italy, the United States, the UK, Australia, Saudi Arabia, Canada, the United Arab Emirates and Poland lagged somewhat behind, together accounting for a further 34%.

Canada, with a CAGR of +22.9%, recorded the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

In 2022, butter and dairy spreads (1.5M tons) was the largest type of butter and ghee, committing 79% of total imports. It was distantly followed by ghee (401K tons), creating a 21% share of total imports.

Butter and dairy spreads was also the fastest-growing in terms of imports, with a CAGR of +1.7% from 2012 to 2022. Ghee experienced a relatively flat trend pattern. While the share of butter and dairy spreads (+1.8 p.p.) increased significantly in terms of the global imports from 2012-2022, the share of ghee (-1.8 p.p.) displayed negative dynamics.

In value terms, butter and dairy spreads ($9.5B) constitutes the largest type of butter and ghee imported worldwide, comprising 77% of global imports. The second position in the ranking was taken by ghee ($2.8B), with a 23% share of global imports.

From 2012 to 2022, the average annual rate of growth in terms of the value of butter and dairy spreads imports amounted to +6.1%.

Import Prices By Type

The average butter and ghee import price stood at $6,334 per ton in 2022, picking up by 28% against the previous year. Over the period under review, import price indicated a perceptible increase from 2012 to 2022: its price increased at an average annual rate of +4.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter and ghee import price increased by +42.5% against 2020 indices. The pace of growth appeared the most rapid in 2017 when the average import price increased by 43% against the previous year. Over the period under review, average import prices attained the maximum in 2022 and is expected to retain growth in years to come.

Average prices varied noticeably amongst the major imported products. In 2022, the product with the highest price was ghee ($6,905 per ton), while the price for butter and dairy spreads stood at $6,235 per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by ghee (+5.2%).

Import Prices By Country

In 2022, the average butter and ghee import price amounted to $6,334 per ton, increasing by 28% against the previous year. Over the period under review, import price indicated a notable expansion from 2012 to 2022: its price increased at an average annual rate of +4.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter and ghee import price increased by +42.5% against 2020 indices. The pace of growth was the most pronounced in 2017 when the average import price increased by 43%. Over the period under review, average import prices attained the peak figure in 2022 and is expected to retain growth in years to come.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Italy ($7,372 per ton), while Saudi Arabia ($4,674 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Australia (+7.1%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Butter And Ghee

In 2022, approx. 2.1M tons of butter and ghee were exported worldwide; with an increase of 2.1% compared with 2021. The total export volume increased at an average annual rate of +1.7% over the period from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations in certain years. The most prominent rate of growth was recorded in 2018 with an increase of 6% against the previous year. Over the period under review, the global exports reached the maximum in 2022 and are likely to see steady growth in the immediate term.

In value terms, butter and ghee exports soared to $13.1B in 2022. Overall, total exports indicated a strong expansion from 2012 to 2022: its value increased at an average annual rate of +6.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +51.3% against 2020 indices. The growth pace was the most rapid in 2017 when exports increased by 42% against the previous year. The global exports peaked in 2022 and are likely to continue growth in years to come.

Exports By Country

The biggest shipments were from New Zealand (451K tons), the Netherlands (326K tons) and Ireland (240K tons), together accounting for 49% of total export. It was distantly followed by Belgium (148K tons), Germany (146K tons) and France (100K tons), together generating a 19% share of total exports. The following exporters - Belarus (85K tons), the United States (82K tons), Poland (74K tons), Denmark (66K tons), the UK (48K tons) and India (37K tons) - together made up 19% of total exports.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +18.1%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest butter and ghee supplying countries worldwide were New Zealand ($2.8B), the Netherlands ($2.2B) and Ireland ($1.6B), together comprising 50% of global exports. Belgium, Germany, France, Belarus, Poland, Denmark, the UK, the United States and India lagged somewhat behind, together accounting for a further 39%.

India, with a CAGR of +19.5%, saw the highest growth rate of the value of exports, among the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Exports By Type

In 2022, butter and dairy spreads (1.6M tons) was the key type of butter and ghee, achieving 79% of total exports. It was distantly followed by ghee (436K tons), committing a 21% share of total exports.

Butter and dairy spreads was also the fastest-growing in terms of exports, with a CAGR of +2.0% from 2012 to 2022. Ghee experienced a relatively flat trend pattern. From 2012 to 2022, the share of butter and dairy spreads increased by +3.1 percentage points.

In value terms, butter and dairy spreads ($10.1B) remains the largest type of butter and ghee supplied worldwide, comprising 77% of global exports. The second position in the ranking was taken by ghee ($2.9B), with a 23% share of global exports.

From 2012 to 2022, the average annual growth rate of the value of butter and dairy spreads exports totaled +7.1%.

Export Prices By Type

The average butter and ghee export price stood at $6,364 per ton in 2022, surging by 28% against the previous year. In general, export price indicated a prominent expansion from 2012 to 2022: its price increased at an average annual rate of +5.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter and ghee export price increased by +45.3% against 2020 indices. The pace of growth was the most pronounced in 2017 when the average export price increased by 48%. The global export price peaked in 2022 and is likely to continue growth in the immediate term.

Average prices varied noticeably amongst the major exported products. In 2022, the product with the highest price was ghee ($6,762 per ton), while the average price for exports of butter and dairy spreads stood at $6,272 per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by ghee (+5.7%).

Export Prices By Country

The average butter and ghee export price stood at $6,364 per ton in 2022, increasing by 28% against the previous year. Over the period under review, export price indicated a prominent expansion from 2012 to 2022: its price increased at an average annual rate of +5.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter and ghee export price increased by +45.3% against 2020 indices. The most prominent rate of growth was recorded in 2017 an increase of 48%. Over the period under review, the average export prices reached the maximum in 2022 and is expected to retain growth in the near future.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was France ($7,619 per ton), while the United States ($3,323 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by New Zealand (+6.6%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform