Plant-Based Butter Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[209+ Pages Report] According to Facts & Factors, the global plant-based butter market size was valued at USD 2,481.70 million in 2023 and is predicted to surpass USD 3,950.10 million by the end of 2032. The plant-based butter industry is expected to grow by a CAGR of 5.30% between 2024 and 2032.

Plant-based Butter Market: Overview

Plant-based butter is a healthy alternative to traditional dairy-based butter. It is made with natural ingredients and is ideal for people with lactose intolerance or dietary restrictions. Plant-based butter is made from a blend of oils like coconut, palm, or avocado oil with basic ingredients like seeds and nuts.

Also, plant-based butter is cholesterol-free and healthy for people with heart problems. The product comes in a variety of formulations with different herb-infused flavors. Moreover, this butter is ideal for cooking and baking and can easily substitute dairy butter in the baking industry. This butter can easily spread on food items straight from the refrigerator.

Key Insights

• As per the analysis shared by our research analyst, the global plant-based butter market size is estimated to grow annually at a CAGR of around 5.30% over the forecast period (2024-2032).
• In terms of revenue, the global plant-based butter market size was valued at around USD 2,481.70 million in 2023 and is projected to reach USD 3,950.10 million by 2032.
• Rising trend of the vegan lifestyle is driving the growth of the global plant-based butter market
• Based on the source, the oats segment is growing at a high rate and is projected to dominate the global market.
• Based on the type, the nut butter segment is projected to swipe the largest market share.
• Based on the packaging, the tubes/cups segment is expected to dominate the global market.
• Based on the distribution channel, the store-based segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Plant-based Butter Market: Growth Drivers

• Rising trend of the vegan lifestyle is driving the growth of the global market.

Increasing demand for plant-based alternatives like vegan butter is expected to revolutionize the global plant-based butter market in the coming years. The growing popularity of plant-based butter is due to the emerging vegan lifestyle of people. This transition is because of the growing health consciousness, sustainability concerns, and animal welfare issues among consumers.

Additionally, the plant-based alternative, like butter, is a healthy choice over the traditional animal-based butter. Plant-based butter is cholesterol-free and is low in saturated fats. Plant-based butter is appealing to consumers, particularly individuals with dairy allergies or lactose intolerance.

Government policies are a major factor in promoting the growth of the industry in the coming years. The government is encouraging plant-based diets, clean labeling, transparent ingredient lists, and sustainable agricultural practices, which are further expected to pave a positive growth path for the plant-based butter industry.

For instance, Wayfare Foods innovated a vegan butter spread made out of oats and other natural ingredients in June 2023. The company is known for its expertise in making vegan dairy products.

Plant-based Butter Market: Restraints

• Influencer culture is expected to foster growth opportunities in the global market.

Endorsements by health-conscious individuals, influencers, and celebrities are expected to positively impact the growth of the plant-based butter industry. The social media platform is playing an important role in accentuating the demand for plant-based diets and products. The growing availability of plant-based products such as butter in grocery stores, online platforms, & other retail stores is also expected to propel the growth of the industry. Manufacturers are adopting marketing campaigns and strategies to increase the brand visibility of plant-based products. The versatility of plant-based butter is further boosting the adoption rate.

Moreover, the advancements in food technology are also likely to widen the scope of the industry. Companies are coming up with products that can closely mimic the taste, functionality, and texture of traditional butter, which will further complement the growth of the industry. For instance, Earth Balance launched a unique butter stick in September 2021. The stick is made from a blend of different oils like palm fruit oil and avocado. The product is ideal for spreading, cooking, and baking.

Plant-based Butter Market: Opportunities

• Perceived taste and texture differences are expected to hamper the growth of the global market.

People in many regions still view plant-based products as inferior in terms of taste and texture. People are still reluctant to try plant products due to the unfamiliarity, which is likely to limit the growth of the global plant-based butter market during the forecast period.

Also, people are concerned with the nutritional value and the health implications of such products. The negative perception of people regarding the processed food associated with plant-based butter is expected to negatively impact its growth trajectory.

Plant-based Butter Market: Challenges

• Competition from alternative spreads is a big challenge in the global market.

The emergence of plant-based butter alternatives is a big challenge in the plant-based butter industry. There is intense competition with other non-dairy spreads like vegetable oil spreads, margarine, and other nut-based butter. The diverse availability of these alternatives is likely to slow down the growth of the industry.

Plant-based Butter Market: Segmentation

The global plant-based butter market can be segmented into source, type, packaging, distribution channel, and regions.

By Source Insights

On the basis of source, the market can be segmented into hemp, flax, cashew, coconut, almond, pea, soy, corn, rice, oats, and others. The oats segments account for the largest share of the plant-based butter industry during the forecast period. Oats are known for their high nutritional value, like antioxidants, minerals, vitamins, fiber, content and others.

These are ideal for managing weight, heart health, and digestive issues, thereby it is gaining popularity among consumers. Oats are naturally free from common allergens and are ideal for people with food allergies or intolerances. Oats are naturally creamy, and when blended, they convert into emulsified butter. It offers a spreadable smooth consistency, very similar to traditional butter.

By Type Insights

On the basis of type, the market can be segmented into vegetable butter and nut butter. Nut butter is the fastest-growing segment in the global plant-based butter market. Nut butters are popular because they are versatile in nature and can be used in a wide range of sweet and savory recipes like dressings, sauces, spreads, baked goods, smoothies, and others. Its nutty flavor improves the mouth feel of the dishes.

Additionally, the popularity of artificial food products is further propelling demand for premium nut butter. People are willing to pay for premium products because of their natural flavors and speciality blends.

By Packaging Insights

On the basis of packaging, the market can be segmented into tubes/cups and jars/bottles. The tubes/cups segment is likely to dominate the plant-based butter industry during the forecast period. Tubes and cups are easy to use and dispense. People can easily scoop out the product directly from the packaging onto the food items.

Additionally, these are convenient and portable. Therefore, ideal for on-the-go consumption and travel. Additionally, this comes in a single-serve option, which further attracts people with portion control, traveling, and snacking habits. Innovative packaging further appeals to consumers with unique features like tear tops, resealable closures as quick, dispensers and ergonomic shapes.

By Distribution Channels Insights

On the basis of distribution channels, the market can be segmented into store-paste and non-store-based channels. The store-based channel segment is projected to witness heavy growth during the forecast period. The fast expansion of store-based channels like speciality stores, convenience stores, hypermarkets and supermarkets offer extensive reach, thereby increasing the accessibility of the products to consumers.

Store-based channels offer product visibility through shelf positioning and promotional activity. Brands can promote the product with marketing strategies to attract the consumer's attention and stimulate impulse purchases. Additionally, these channels help start-ups in new companies to conduct sampling and productive administration, which further encourages trial purchases.

Report Scope

Plant-based Butter Market: Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global plant-based butter market during the forecast period. The region is witnessing growth in consumer awareness regarding sustainability and animal welfare concerns, which is the major reason for the significant shift in demand for plant-based alternatives. Consumers in the region are adopting a healthy lifestyle, which is further driving the demand for plant-based butter. The fast retail distribution in the region is further driving sales in the region as retail stores like specialty grocers, natural food stores, and supermarkets are boosting the visibility of these products.

The ongoing innovations in the region, particularly for plant-based butter formulations, are further expected to penetrate the market. Manufacturers are coming up with improved formulations to mimic the taste, texture and functionality of traditional butter. Various varieties, like flavored options and many others, are driving the interest of people in the region.

Europe is also expected to witness heavy growth during the forecast period because of the growing emphasis on environmental sustainability and climate change mitigation. Also, the region is at the forefront of lowering its environmental footprint. The regulatory landscape of the region is further expected to positively impact the growth trajectory of the regional market. The European Union is imposing strict regulations on labeling and food safety industry standards. These compliances are likely to encourage transparency and consumer safety in products like plant-based butter.

Additionally, the region's rich culinary heritage is further expected to foster many growth opportunities in the coming years in modern recipes. For instance, Axia Foods introduced the world’s first vegan butter with protein in 2021. The company is based out of Pune, India.

Plant-based Butter Market: Competitive Analysis

The key players in the global plant-based butter market include:

• Ceres Organics
• Daisya Fine Food
• Naturally Organic
• Kitchen Garden
• Dhatu Organics
• Vegan Way
• Alpino Health Foods
• Pintola
• Carley’s Organic
• Chobani LLC
• Milkadamia
• The Leaviet Corp.
• The J.M. Smucker Co.
• Wild Friend Foods
• Ekogram-the real food
• Naturli Foods
• Premier Organics
• Califia Farms
• Lyrical Foods Inc.
• Prosperity Organic Food Inc.
• Wayfare Food
• Miyoko’s Creamery
• Upfield Foods
• Conagra Brands Inc.

For instance, Miyoko’s Ceremony came up with a new product line of vegan butter in March 2022. It is made out of cashews and organic coconut oil. The company is focusing on innovating products which can mimic the flavor and consistency of regular dairy butter.

The global plant-based butter market is segmented as follows:

By Source Segment Analysis

• Hemp
• Flax
• Cashew
• Coconut
• Almond
• Pea
• Soy
• Corn
• Rice
• Oats
• Others

By Type Segment Analysis

• Vegetable Butter
• Nut Butter

By Packaging Segment Analysis

• Tubes/Cups
• Jars/Bottles

By Distribution Channel Segment Analysis

• Store-Based
• Non-Store-Based Channels

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America