Market Overview/Outlook (2022 to 2030)
The global Plant-based butter market was valued at USD 2.34 Billion in 2022 and is projected to reach USD 3.48 Billion by 2030, registering a CAGR of 5.1% for the forecast period 2023-2030.
Market Definition
Plant-based butter is a type of butter substitute made entirely from plant-based ingredients, typically without any animal products. With an increase in alternative diets like vegetarianism, veganism, and gluten intolerance, plant butter is a healthy non-dairy substitute for normal butter. It offers many health benefits, including cholesterol-free and lower calories and saturated fat. The plant-based butter is usually made up of a plant-based oil or blend of oils, such as coconut oil, avocado oil, soybean oil, or sunflower oil. Moreover, it has various varieties which contain ingredients like almonds, palm oil, cashews, and other nuts. It provides various types of butter according to dietary preferences which helps the consumer to improve their health. Additionally, plant-based butter provides a satisfactory option for consumer seeking a dairy-free or vegan option in their cooking and baking and can used in many recipes. Therefore, these are various factors that will help to grow the market in upcoming years.
Market Size:
The global Plant-based butter market was valued at USD 2.34 Billion in 2022 and is projected to reach USD 3.48 Billion by 2030, registering a CAGR of 5.1% for the forecast period 2023-2030.
Market Definition
Plant-based butter is a type of butter substitute made entirely from plant-based ingredients, typically without any animal products. With an increase in alternative diets like vegetarianism, veganism, and gluten intolerance, plant butter is a healthy non-dairy substitute for normal butter. It offers many health benefits, including cholesterol-free and lower calories and saturated fat. The plant-based butter is usually made up of a plant-based oil or blend of oils, such as coconut oil, avocado oil, soybean oil, or sunflower oil. Moreover, it has various varieties which contain ingredients like almonds, palm oil, cashews, and other nuts. It provides various types of butter according to dietary preferences which helps the consumer to improve their health. Additionally, plant-based butter provides a satisfactory option for consumer seeking a dairy-free or vegan option in their cooking and baking and can used in many recipes. Therefore, these are various factors that will help to grow the market in upcoming years.
Market Size:
- 2022: USD 2.34 billion
- 2030: USD 3.48 billion
- CAGR (2023-2030): 5.1%
Plant-based butter market Dynamics
Drivers Propelling the Demand for plant-based butter include:
Rising awareness among people about the health benefits of vegan butter is driving the market growth.
The rising awareness among people about the health benefits of plant-based butter is indeed a driving factor for the vegan butter market growth. Many consumers are becoming highly health-conscious and are looking for options for traditional dairy products, such as butter, due to awareness about saturated fat and cholesterol. This type of butter contains low-calorie fats and lower saturated fat which is a better alternative for consumer to improve their health. Consumers with dietary limitations depend on vegan butter which is suitable for their health. Therefore, if the number of people who follow the dietary schedule increases the demand for butter rises. Additionally, many users are searching for products with clean labels and natural ingredients. Plant-based butter often includes plant-based oils and fewer additives compared to traditional butter. It is free from the allergies or sensitivities to these ingredients. Manufacturers continuously innovate new products which helps to increase the potential customer which benefits to raise the market need.
Social media influencer supporting the plant-based butter is driving the growth of the market:
Social media influencers significantly impact the growth of the plant-based butter market. Influencers can reach potential audiences and introduce them to plant-based butter alternatives. By featuring these products in their ingredients, influencers increase the availability and importance of plant-based butter among their followers. Moreover, many consumers faith social media influencers as trusted sources of information or experts. When social media influencers give information about plant-based butter, it will help to increase their endorsement which benefits the growth of their market. Additionally, many influencers while promoting the product give ideas and recipes related to butter which helps to attract the consumer to the market.
Restraint in the Plant-based butter market
Protection and nurturing of the bees are restraining the growth of the market:
The protection and nurturing of bees highly hinder the growth of the plant-based butter market. Honeybees play a crucial role in pollinating various crops such as nuts, vegetables, and oilseeds. They contribute to the growth and production of a range of plant-based foods. The agricultural sector largely depends on the bees for cross-pollination. If the pollination is not proper in the field it may turn to reduce the yields and quality of many crops. Ingredients that are used in plant-based butter production including nuts and certain oils also depend on the bees for pollination. While bee protection and nurturing are essential for the comprehensive ecological balance and the sustainability of agriculture, their direct effect on the plant-based butter market is limited.
Challenges in the Plant-based butter market
Maintaining the taste of butter is challenging for the plant butter-based market:
Maintaining the taste of butter in plant-based butter products is challenging due to various factors, and addressing these challenges is important to the positive result of the plant-based butter-based market. Butter which is made up from the traditional method has the taste of milkfat which includes different compounds such as creamy taste and milk flavor. However, plant-based butter is typically made up of oils like coconut, sunflower, and soy which have different flavors than the traditional method.
These various oils have different tastes that need to be modified to mimic the taste of dairy butter. Moreover, dairy butter contains water which helps to enhance the creamy structure and plant-based butter contains emulsifiers, stabilizers, or other additives to change this texture. Therefore, this are various factors that affect the taste of butter which is a major challenge to maintain the taste of plant-based butter.
Opportunities in the Chatbot Industry
Innovation and changes in different flavors by the key players create an opportunity for the growth of the global plant-based butter market:
By innovating different flavors, plant-based butter manufacturers cater to a wide range of customer preferences. Various flavors of plant-based butter are modified to suit different culinary applications. For instance, garlic herb-flavored plant-based butter improves the taste of savory dishes. Developing unique flavors helps to attract new customers who have not considered plant-based butter before. Moreover, manufacturers introduce seasonal or limited-edition flavors to coincide with holidays. These various offers are used to increase sales during a specific period. Major players in the plant-based butter market collaborate with celebrity chefs, social media influencers, or other food brands which helps to broaden the audience.
Segment Analysis of the Plant-based Butter Market
The Plant-based butter market is segmented by source, flavor, distribution channel, and region
By Source
The oats segment is fastest fastest-growing during the forecast period:
Oats are a source of nutrition and healthful ingredients. They are mainly sources of vitamins, dietary fiber, minerals, and antioxidants, making them an attractive choice for health-conscious consumers. Plant-based butter is mainly made up of oats due to its health benefits in their marketing. Oats butter is dairy-free and suitable for consumers with lactose intolerance or any other type of allergies. As many people want dairy-free alternatives, the demand for oat-based butter has increased. Oat butter has a creamy texture and mild taste making it suitable for baking and cooking for various ranges of consumers.
Oats are considered a highly sustainable crop compared to some other plant sources, including palm oil. Customer aware of the environmental effect of their food choices may prefer oat-based butter for its lower environmental impact.
By Flavor
The flavored segment was the leading segment in 2022:
Flavor is a crucial factor affecting consumers' buying decisions. Consumers look for plant-based butter options that not only provide a dairy-free alternative but also mimic the familiar and enjoyable taste of traditional dairy butter. Flavor is the primary driver for the growth of the market. Usage of vegan butter has surged in the bakery industry, with a rising number of health-concerned consumers demanding bakery items preferring plant-based butter with various flavors. Moreover, flavored butter has been increasing with manufacturers launching new flavors which helps to satisfy the needs of consumers. Flavorful plant-based jars of butter are utilized in different culinary applications, such as spreading, cooking, and baking. These flavors contain traditional options such as salted and unsalted, as well as innovative and unique flavors including garlic herb, honey, truffle, and cinnamon alternatives.
Regional Analysis
North America occupies the largest market share in 2022:
North America gained the largest market share due to increasing awareness about health, introducing new flavors, and rising environmental concerns are various factors that mainly affect the growth of the market. North American customers, specifically in the United States and Canada, have shown a high level of concern and adoption of plant-based diets and products. Plant-based butter products are easily available and accessible in North American grocery stores, supermarkets, and online retailers.
Major plant-based food brands and startups have innovated a range of plant-based butter options, making them easily available to consumers. Moreover, in North America, numerous food bloggers, influencers, and media outlets actively promote plant-based diets and products. These influencers and media outlets play an important role in modifying consumer preferences and choices.
Segmentation Analysis of the Plant-based Butter Market
By Source
Drivers Propelling the Demand for plant-based butter include:
Rising awareness among people about the health benefits of vegan butter is driving the market growth.
The rising awareness among people about the health benefits of plant-based butter is indeed a driving factor for the vegan butter market growth. Many consumers are becoming highly health-conscious and are looking for options for traditional dairy products, such as butter, due to awareness about saturated fat and cholesterol. This type of butter contains low-calorie fats and lower saturated fat which is a better alternative for consumer to improve their health. Consumers with dietary limitations depend on vegan butter which is suitable for their health. Therefore, if the number of people who follow the dietary schedule increases the demand for butter rises. Additionally, many users are searching for products with clean labels and natural ingredients. Plant-based butter often includes plant-based oils and fewer additives compared to traditional butter. It is free from the allergies or sensitivities to these ingredients. Manufacturers continuously innovate new products which helps to increase the potential customer which benefits to raise the market need.
Social media influencer supporting the plant-based butter is driving the growth of the market:
Social media influencers significantly impact the growth of the plant-based butter market. Influencers can reach potential audiences and introduce them to plant-based butter alternatives. By featuring these products in their ingredients, influencers increase the availability and importance of plant-based butter among their followers. Moreover, many consumers faith social media influencers as trusted sources of information or experts. When social media influencers give information about plant-based butter, it will help to increase their endorsement which benefits the growth of their market. Additionally, many influencers while promoting the product give ideas and recipes related to butter which helps to attract the consumer to the market.
Restraint in the Plant-based butter market
Protection and nurturing of the bees are restraining the growth of the market:
The protection and nurturing of bees highly hinder the growth of the plant-based butter market. Honeybees play a crucial role in pollinating various crops such as nuts, vegetables, and oilseeds. They contribute to the growth and production of a range of plant-based foods. The agricultural sector largely depends on the bees for cross-pollination. If the pollination is not proper in the field it may turn to reduce the yields and quality of many crops. Ingredients that are used in plant-based butter production including nuts and certain oils also depend on the bees for pollination. While bee protection and nurturing are essential for the comprehensive ecological balance and the sustainability of agriculture, their direct effect on the plant-based butter market is limited.
Challenges in the Plant-based butter market
Maintaining the taste of butter is challenging for the plant butter-based market:
Maintaining the taste of butter in plant-based butter products is challenging due to various factors, and addressing these challenges is important to the positive result of the plant-based butter-based market. Butter which is made up from the traditional method has the taste of milkfat which includes different compounds such as creamy taste and milk flavor. However, plant-based butter is typically made up of oils like coconut, sunflower, and soy which have different flavors than the traditional method.
These various oils have different tastes that need to be modified to mimic the taste of dairy butter. Moreover, dairy butter contains water which helps to enhance the creamy structure and plant-based butter contains emulsifiers, stabilizers, or other additives to change this texture. Therefore, this are various factors that affect the taste of butter which is a major challenge to maintain the taste of plant-based butter.
Opportunities in the Chatbot Industry
Innovation and changes in different flavors by the key players create an opportunity for the growth of the global plant-based butter market:
By innovating different flavors, plant-based butter manufacturers cater to a wide range of customer preferences. Various flavors of plant-based butter are modified to suit different culinary applications. For instance, garlic herb-flavored plant-based butter improves the taste of savory dishes. Developing unique flavors helps to attract new customers who have not considered plant-based butter before. Moreover, manufacturers introduce seasonal or limited-edition flavors to coincide with holidays. These various offers are used to increase sales during a specific period. Major players in the plant-based butter market collaborate with celebrity chefs, social media influencers, or other food brands which helps to broaden the audience.
Segment Analysis of the Plant-based Butter Market
The Plant-based butter market is segmented by source, flavor, distribution channel, and region
By Source
The oats segment is fastest fastest-growing during the forecast period:
Oats are a source of nutrition and healthful ingredients. They are mainly sources of vitamins, dietary fiber, minerals, and antioxidants, making them an attractive choice for health-conscious consumers. Plant-based butter is mainly made up of oats due to its health benefits in their marketing. Oats butter is dairy-free and suitable for consumers with lactose intolerance or any other type of allergies. As many people want dairy-free alternatives, the demand for oat-based butter has increased. Oat butter has a creamy texture and mild taste making it suitable for baking and cooking for various ranges of consumers.
Oats are considered a highly sustainable crop compared to some other plant sources, including palm oil. Customer aware of the environmental effect of their food choices may prefer oat-based butter for its lower environmental impact.
By Flavor
The flavored segment was the leading segment in 2022:
Flavor is a crucial factor affecting consumers' buying decisions. Consumers look for plant-based butter options that not only provide a dairy-free alternative but also mimic the familiar and enjoyable taste of traditional dairy butter. Flavor is the primary driver for the growth of the market. Usage of vegan butter has surged in the bakery industry, with a rising number of health-concerned consumers demanding bakery items preferring plant-based butter with various flavors. Moreover, flavored butter has been increasing with manufacturers launching new flavors which helps to satisfy the needs of consumers. Flavorful plant-based jars of butter are utilized in different culinary applications, such as spreading, cooking, and baking. These flavors contain traditional options such as salted and unsalted, as well as innovative and unique flavors including garlic herb, honey, truffle, and cinnamon alternatives.
Regional Analysis
North America occupies the largest market share in 2022:
North America gained the largest market share due to increasing awareness about health, introducing new flavors, and rising environmental concerns are various factors that mainly affect the growth of the market. North American customers, specifically in the United States and Canada, have shown a high level of concern and adoption of plant-based diets and products. Plant-based butter products are easily available and accessible in North American grocery stores, supermarkets, and online retailers.
Major plant-based food brands and startups have innovated a range of plant-based butter options, making them easily available to consumers. Moreover, in North America, numerous food bloggers, influencers, and media outlets actively promote plant-based diets and products. These influencers and media outlets play an important role in modifying consumer preferences and choices.
Segmentation Analysis of the Plant-based Butter Market
By Source
- Coconut
- Soy
- Almonds
- Oats
- Others
By Flavor
- Flavored
- Plain
By Distribution Channel
- Health Food Stores
- Convenience Stores
- B2B-Food Service
- Supermarkets and Hypermarket
Competition Analysis
Key companies profiled in the Plant-based butter market report Vegusto, Miyoko’s Kitchen, Follow Your Heart, Earth Balance Foods, and others. These companies are adopting strategies such as facility expansions, mergers, acquisitions, new product launches, and collaborations to gain a competitive edge in the market.
Snapshot
Recent DevelopmentsKey companies profiled in the Plant-based butter market report Vegusto, Miyoko’s Kitchen, Follow Your Heart, Earth Balance Foods, and others. These companies are adopting strategies such as facility expansions, mergers, acquisitions, new product launches, and collaborations to gain a competitive edge in the market.
Snapshot
| Attributes | Details |
| Market Size in 2022 | USD 2.34 Billion |
| Market Forecast in 2030 | USD 3.48 Billion |
| Compound Annual Growth Rate (CAGR) | 5.1 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Source, By Flavor, By Distribution Channel and By Geography |
| By Source |
|
| By Flavor |
|
| By Distribution Channel |
|
| By Region |
|
| Base Year | 2022 |
| Historical Year | 2018-2022 |
| Forecast Year | 2023-2030 |
1. February 2023
Kagome USA Launched Sweet and Savory Plant-based butter blends.
Global food and beverage manufacturer Kagome is launching a new range of plant-based butter blends in the US. The butter alternatives are available in the sweet flavors Hot Honey and Cinnamon & Brown Sugar, along with the savory options Miso Ginger and Chipotle & Sun-Dried Tomato. Launching this type of innovative product helps to fulfill the needs of consumers according to dietary preferences. This will help to grow the market majorly and increase the demand for plant-based butter market.
Impact of the COVID-19 Pandemic on the Plant-based butter market:
The COVID-19 had a mixed impact on the Plant-based butter market. The pandemic increased customer awareness about health and wellness, prompting some individuals to explore plant-based diets as a means to boost immunity and overall health. Moreover, it surges the importance of sustainable and ethical food choices. Many consumers are motivated by animal welfare and environmental concerns, it affects majorly on market growth. Plant-based butter brands and manufacturers adapted to this trend by expanding their online presence, making it easier for consumers to access their products.
Additionally, the pandemic has some negative impacts on the market such as disruption in the supply chain, restaurant, and food service industry declines, economic uncertainty, and packaging problems various factors affect the growth of the plant-based butter market during the pandemic which turns to decrease the growth of the market.
