Clarified Butter Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Clarified Butter Market is Segmented By Packaging Type (Jars, Tubs, Tins), By Nature (Organic, Conventional), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Clarified Butter Market Size

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 2024-2031. Clarified butter is a nutritionally rich class of clarified butter used as a cooking medium. It is known for its taste and pure health in the Indian subcontinent.

It has uses in South Asian and Middle Eastern cuisines, traditional medicines, and religious rituals. It is prepared by gently heating butter and retaining the clear liquid fat while discarding the solid residue that has settled to the bottom. One key market trend related to clarified butter is the growing demand for organic and natural food products. Consumers are becoming more conscious of their food choices and are seeking healthier alternatives to traditional products. As a result, there is an increasing preference for organic and natural ingredients, including clarified butter.

For instance, a notable trend in the clarified butter market is the rise in demand for grass-fed or pasture-raised clarified butter. Grass-fed butter is obtained from cows that are allowed to graze on natural pasture, resulting in a higher nutritional profile and healthier fat composition compared to butter from cows fed on grain-based diets. This trend is driven by the belief that grass-fed products are more sustainable, environmentally friendly, and offer superior taste and health benefits.

Clarified Butter Market Summary

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Clarified Butter Market Dynamics

Increasing Demand for Clarified Butter Owing to its Therapeutic Properties is Expected to Drive the Market Growth

One of the most popular types of butter, clarified butter, is becoming more and more popular due to its medicinal benefits. For instance, the product has healing properties, according to Ayurveda, because it contains chains of fatty acids that improve nutrient absorption and alkalize the blood. 

It is also used to lessen the body's production of leukotrienes and prostaglandins, which are responsible for inflammation and pain. It has been demonstrated that organic clarified butter variants lower blood cholesterol and aid in the treatment of coronary problems. These clarified butter varieties are also frequently advised for those with poor digestion because they start the production of stomach acids, which improves the stomach's capacity for digestion.

Increasing Emphasis on Nutritional Enrichment is Driving the Clarified Butter Market

Increasing emphasis on nutritional enrichment is indeed driving the clarified butter market. There is a growing recognition among consumers that not all fats are bad for health. Healthy fats, such as those found in clarified butter, are being embraced as part of a balanced diet. For instance, according to a study published in the journal PLOS ONE, the consumption of healthy fats is associated with a reduced risk of cardiovascular diseases. This knowledge has led to an increased demand for healthy fat sources like clarified butter.

Clarified butter is known to have a rich nutty flavor, which enhances the taste of a recipe endlessly. Its intense flavor, along with its versatility, has contributed immensely to its inclusion in various cuisines. Clarified butter is used for sautéing, stir-frying, pan-frying, shallow frying, deep-frying, and drizzling over prepared food. Unlike various other alternatives available for the aforementioned purposes, this superfood imparts flavor to the food and makes it affluent and heavy on the palate.

High Cholesterol Associated With Clarified Butter may Hamper the Market

Health concerns like increasing cholesterol due to a high rate of fat are estimated to hamper the market's demand. Furthermore, complying with stringent regulations and varying standards around the globe, growing competition, inflation estimated to remain above the upper band during the short term in key nations, and fluctuating raw material prices are some of the clarified butter market restraints over the forecast period.

The perception of dietary cholesterol's impact on blood cholesterol levels has evolved over the years. Previously, it was believed that consuming foods high in cholesterol, such as butter, directly raised blood cholesterol levels. However, more recent scientific research suggests that the link between dietary cholesterol and blood cholesterol levels is not as significant as once thought. The Dietary Guidelines for Americans, published jointly by the U.S. Department of Agriculture (USDA) and the U.S. Department of Health and Human Services (HHS), no longer includes a specific limitation on dietary cholesterol intake.

Clarified Butter Market Segmentation Analysis

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

In the Global Market of Clarified Butter, the Conventional Clarified Butter Segment Holds the Largest Market Share

Conventional clarified butter has been a traditional ingredient in many cuisines for centuries. It has a long-standing history of use in various culinary traditions and is deeply ingrained in cultural cooking practices. As a result, consumers are more familiar with conventional clarified butter and tend to gravitate towards what they know and trust. 

Conventional clarified butter is valued for its versatility in cooking. It has a high smoke point, which means it can be used for a variety of cooking methods, including frying, sautéing, and baking. Its rich and nutty flavor enhances the taste of many dishes, making it a preferred choice for chefs and home cooks alike. According to my food data, there are 112 calories in Ghee (Clarified Butter) coming from 0.98% protein, 0% carbs, 99.02% fat, and 0% alcohol. A pie chart showing the macronutrient components of Ghee (Clarified Butter). This food consists of 0.24% water, 0.28% protein, 0% carbs, 99.48% fat, and 0% alcohol.

Clarified Butter Market Geographical Share

The Asia Pacific Region Held the Largest Share of the Clarified Butter Market

The Asia Pacific region is home to diverse culinary traditions that heavily rely on dairy products, including clarified butter. In countries like India, ghee (a form of clarified butter) has been an integral part of traditional cooking for centuries. Similarly, countries like Pakistan, Bangladesh, Sri Lanka, and Nepal have a strong culinary tradition that incorporates clarified butter in various dishes. The cultural preferences and longstanding traditions associated with clarified butter contribute to its widespread usage and popularity in the region.

The Asia Pacific region is densely populated, with several countries having large populations. This substantial consumer base contributes to a significant demand for clarified butter in the region. According to Statista, the overall domestic consumption of milk was over 203 million metric tons in 2022. In addition, the daily consumption of milk was equal among men and women. India offers a variety of dairy-based cuisines that are unique to its diverse culture. Paneer, a soft and non-melting kind of cottage cheese, is very popular in the North and used in several dishes.

Clarified Butter Market Companies

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. 

COVID-19 Impact on Clarified Butter Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis

Covid-19 Impact:

The COVID-19 pandemic has led to disruptions in global supply chains, including the dairy industry. Lockdown measures, restrictions on transportation, and labor shortages have affected the production, processing, and distribution of dairy products, including clarified butter. These disruptions may have impacted the availability and distribution of clarified butter in certain markets. The food service industry, including restaurants, cafes, and hotels, has been greatly impacted by COVID-19 restrictions and closures. These establishments are significant consumers of clarified butter for their culinary preparations. The decline in dine-in customers, temporary closures, and reduced operating capacities have significantly affected the demand for clarified butter from the food service sector.

Key Developments

• In July 2022, Pangea Natural Foods Inc. announced the launch of Pangea Old Fashioned Ghee, a grass-fed, organic, clarified butter sourced from New Zealand. Cow's milk butter is slowly heated until the water content evaporates and the milk solids can be skimmed and strained out to create ghee. Ghee is an alternative for people who have dairy allergies or sensitivities because it separates milk from fat and is lactose-free.
• In May 2023, DSM and Firmenich completed their merger, creating a new company “DSM-Firmenich.”
• In August 2022, ID Fresh Food announced its foray into the 10,000-crore ghee, or clarified butter, market with the launch of ID Ghee in Mumbai. The company expects to earn an additional 100 crores from the sale of packaged ghee.

Why Purchase the Report?

• To visualize the global clarified butter market segmentation based on packaging type, nature, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of clarified butter market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

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