High Fat (>85%) Butter Market Size - By Product Type, By Form, By Source, By Packaging Type, By Distribution Channel, By Application, By End Use, Forecast, 2025 - 2034

High Fat (>85%) Butter Market Size

The global high fat (>85%) butter market size was valued at USD 250.5 million in 2024, with expectations to reach USD 480.2 million by 2034, growing at a CAGR of 6.8%.
 

The market is increasing at a steady pace due to shifting consumer demand towards richer and more natural or artisanal dairy products. For many years, butter with high-fat content was strictly confined to niche markets such as gourmet foodservice and specialty baking. But with the increasing popularity of high-fat, low-carb diets like keto and paleo, the market has broadened among health-conscious consumers.
 

There is now a premium clean-label market that is moving toward butter made from churning methods and ‘origin’ verified organic certified butter. High fat butter is now widely incorporated into fine dining, specialty pastries, and gourmet packaged foods. Despite cost and supply volatility challenges, consumers are still indulging in rich tasting dairy products. The market is further poised for growth because of evolving innovations, rising awareness of fat's functional advantages, and an expanding global demographic with high-quality standards claiming authenticity in dairy.
 

High fat (>85%) butter Market Trends

The High fat (>85%) butter industry has been growing significantly as a result of changing consumer behaviours towards richer natural premium dairy products. One of the most important trends that drives growth is the increasing consumer demand for health-oriented, organic, grass-fed, and clean label butter options. Culinary trends, especially artisanal and home baking, are increasing the use of high-fat butter in recipes due to enhanced flavour and culinary nostalgia.
 

Flavoured and specialty variants like truffle, herb-infused, and cultured butters are gaining traction in gourmet cooking and foodservice. Moreover, high consumption of these butter types will also be supported by the ongoing keto and paleo diets which promote healthy fats as the main energy source. While the market is poised for growth, other headwinds include raw material price volatility and supply chain disruptions, especially for smaller producers.
 

These changes were made to appeal to the larger consumer market through innovation in packaging, portion sizes, and aggressive functional claims. Sustainable practices like using eco-friendly materials for packaging and ensuring traceable sourcing are becoming additional key market differentiators.
 

Developments in retail approaches and emerging market access, alongside expanding specialty food stores and online platforms, will also contribute to the continuous growth of the high-fat butter market, which offers premium food items and is sensitive to the quality and origin awareness globally.
 

High Fat (>85%) Butter Market Analysis

The high fat (>85%) butter market by product type is segmented into fat content and flavor profile. The fat content accounted for 54.8% of the market share in 2024 with a market size of USD 137.2 million.
 

• An ever-evolving trend can be seen in the high fat butter market (>85%) with respect to both fat content and flavor. For instance, lesser used 85–90% commercial grade butter range contains baking and food service bulking butter. These products are still widely used due to their flavor balance and functional value. Nonetheless, premium and artisanal food producers who seek richer taste and smoother texture do seem to be rising in demand for the 90-95% fat content butter.
   
• The highest purity category, 95%+, known in the market as anhydrous milk fat (AMF) or Butter oil, is gaining traction in use across various global processed foods and confectionaries as well as exports because of its durability, low-temperature storage benefits, and suitability for longer cooking.
   
• The longer cooked high purity grade works exceptionally well for more heat-intensive applications. Furthermore, the flavor trend showcases greater diversification. Bakeries and households use unsalted butter as a staple due to their versatility and command over sodium while spreadable and ready to use portions of anchored salted variants maintain popularity. The tangy notes together with the probiotic enriched cultured or fermented butter spell growth opportunity in the gourmet and health-conscious segments. High fat flavored butter such as those infused with herbs, garlic, and chili are gaining traction in niche culinary markets helping fill the void of convenient and easy-to-use flavor-enriching options.
   
• These developments mark both an elevation in taste among consumers and a broader usage of high-fat butters.
   

The high fat (>85%) butter market is segmented into block/stick, spreadable, clarified/ghee and others based on form. Block/stick made up 41.5% of the market in 2024 and expected to grow at a faster rate of 6.4% CAGR to reach a wider consumer base.
 

In the butter market, which holds more than eighty-five percent of its fat content, trends are mostly shaped by consumer needs and regional differences. In the Western world, these remain the most popular because of their ease of use and familiarity- Block and stick forms continue to be sold on retail shelves. Rather handy for cooking and baking, they are effective for measurement too. Sticks and blocks are particularly useful in the west.
 

Gained from more advanced methods of production, these newly introduced formats are especially loved by urban health-conscious consumers who hope for convenience and easy use without any compromises on flavor. Because of their ease of spread, these soft types are very much in demand in urban districts for direct application on bread or crackers.
 

Clear butter and ghee users are encouraged because of its ever-growing needs globally. While they have always been accepted in middle eastern, South Asian and African cuisines, the clear perception of being healthy coupled with shelf life has led to increasing butter use in functional cooking as well. Now, they are used increasingly in clean-label product categories. Other forms such as whipped or portion-controlled butter are available in airlines and hotels for premium dining.
 

As these require specific portion, great care is taken to their presentation while serving. These preferences showcase the global tendency to adapt to new business opportunities for increased value by promoting easy-to-use premium health-conscious butter products made for any dish in any cuisine around the world.
 

The high fat (>85%) butter market by source is segmented into conventional, organic, grass-fed and specialty animal sources. The conventional source accounted for 39.7% of the market share in 2024 with a market size of USD 99.6 million.
 

In the high-fat (>85%) butter market, conventional butter remains prevalent due to its affordability and widespread availability, appealing to cost-conscious consumers. However, organic butter is gaining traction, driven by health-conscious buyers seeking products free from synthetic additives and produced through sustainable practices.
 

Grass-fed butter is experiencing significant growth, attributed to its richer nutritional profile, including higher omega-3 fatty acids and vitamins, and its association with ethical, pasture-based farming. Specialty butters, such as European-style, flavored, and artisanal varieties, are also on the rise, catering to consumers desiring unique flavors and premium quality. Overall, the market is evolving to meet diverse consumer preferences, balancing traditional choices with emerging demands for health, sustainability, and gourmet experiences.
 

The market is segmented into blocks/sticks, tubs & containers, bulk packaging, specialty & gift packaging and others based on packaging. Blocks/sticks is expected to grow at a faster rate of 6.2% CAGR.
 

In the butter market, specifically for products with extremely high fat content (> 85%), packaging is being modernized to accommodate consumer preferences around convenience, sustainability, and decoration. Blocks and sticks of butter remain popular due to their versatility for portion control and cooking or baking ease. Tubs and containers designed with recyclable or biodegradable materials appeal to consumers who want a user-friendly and resealable design.
 

 Individual wrappers and gran bulk cartons are preferred by foodservice establishments and bakeries, as they provide more value in relation to their cost. Gift packaging with unique shapes, customizable emblems, and eco-friendly materials stands out to shoppers looking for more unusual and environmentally friendly items. Innovations like resealable packing and smart packing using QR codes improve interaction with the brand and user experience. With all these factors considered, these changes serve to address the increasing importance of function, the environmental impact of design, and the desires of users.
 

The high fat (>85%) butter market is segmented supermarkets & hypermarkets, specialty & gourmet stores, online retail, foodservice industry and others based on distribution channel. Supermarkets & hypermarkets is expected to grow at a faster rate of 6.1% CAGR..
 

In the high-fat (>85%) butter market, distribution channels are evolving to meet diverse consumer preferences and shopping habits. Supermarkets and hypermarkets remain dominant, offering a wide selection of products and the convenience of one-stop shopping, which appeals to a broad customer base. Specialty and gourmet stores are gaining traction by catering to consumers seeking premium, organic, and artisanal butters, providing unique and high-quality options.
 

The online retail segment is experiencing rapid growth, driven by the convenience of home delivery and the ability to access a wide range of products, a trend accelerated by the COVID-19 pandemic. The foodservice industry, including restaurants and bakeries, continues to be a significant channel, utilizing high-fat butter for its superior taste and performance in culinary applications. Other channels, such as convenience stores and direct-to-consumer sales, also contribute to market distribution by offering accessibility and personalized purchasing experiences. Overall, the market is adapting to changing consumer behaviors by diversifying distribution strategies across multiple platforms.
 

The market is segmented into culinary applications, baking & confectionery, spreads & toppings, dietary & nutritional applications, industrial applications and others based on application. Baking & confectionery applications is expected to grow at a faster rate of 6.3% CAGR.
 

In the high-fat (>85%) butter market, baking and confectionery hold the lead in application trends due to the pampering demand for texture, flavor, and consistency in high-end pastries, cookies and chocolates. There is also a rise in culinary applications as chefs prefer to use high-fat butter for sautéing, sauces, and flavor enhancement. Spreads and toppings appeal to consumers who are looking for rich indulgent and creamy alternatives, while dietary and nutritional applications are expanding owing to trends in keto and high-fat diets. Industrial applications utilize high-fat butter in gourmet processed foods, but on a much smaller scale. All in all, transforming consumer preferences for quality, taste, and functionality are driving activity to the diverse use of high-fat butter across applications.
 

The market is segmented into household/retail consumers, food service industry, food processing industry and others based on end user industry. Household/retail consumers applications is expected to grow at a faster rate of 6.9% CAGR.
 

In the high-fat (>85%) butter market, household/retail consumers drive strong demand, influenced by trends in home baking, gourmet cooking, and preference for clean-label, premium products. The food service industry is expanding usage in upscale restaurants, bakeries, and cafes seeking superior flavor and performance. The food processing industry utilizes high-fat butter in premium packaged foods, confectionery, and baked goods, focusing on texture and mouthfeel enhancement. Specialty diet trends also impact demand across segments. Overall, increasing consumer awareness, demand for artisanal and natural products, and the pursuit of culinary excellence are reshaping end-user industry trends in the high-fat butter market.
 

The high fat (>85%) butter market is dominated by Europe, accounting for 34.3% of total revenue in 2024.
 

• The condensed and evaporated milk market showcases distinct regional dynamics influenced by cultural consumption patterns, culinary traditions, and economic development. In Europe, demand remains steady, driven by the widespread use of evaporated milk in traditional cooking and processed food products. North America demonstrates a mature market, with strong utilization in baking and convenience foods, though growth is relatively stable. In contrast, the Asia Pacific region is witnessing rapid expansion due to urbanization, changing dietary habits, and increasing demand for Western-style desserts and beverages that incorporate these dairy products.
   
•  Latin America shows a strong affinity for sweetened condensed milk, particularly in traditional desserts, supporting consistent market demand. Meanwhile, the Middle East and Africa (MEA) are experiencing growing interest, with increasing urban middle-class populations adopting condensed and evaporated milk in both domestic cooking and commercial foodservice. Overall, regional growth is tied closely to evolving lifestyles, foodservice industry development, and local dietary preferences.
   

High Fat (>85%) Butter Market Share

The Kerrygold (Ornua Co-operative Limited), Lurpak (Arla Foods amba), Président (Lactalis Group), Anchor (Fonterra Co-operative Group) and Amul (Gujarat Cooperative Milk Marketing Federation Ltd.) are significant 5 players in the global high fat (>85%) butter market with respect to innovation and distribution. Danone S.A., Nestlé S.A., The J.M. Smucker Company (Eagle Brand), Arla Foods, and Friesland Campina N.V. play significant roles in shaping the global condensed and evaporated milk market.
 

Nestlé leads with its extensive product portfolio and global distribution reach, while Danone leverages its dairy expertise and focus on nutritional innovation. The J.M. Smucker Company, through Eagle Brand, maintains strong brand loyalty in North America. Arla Foods emphasizes quality and sustainability in its dairy offerings, contributing to premium market segments. Friesland Campina, with its strong European base, drives innovation and exports, particularly in value-added dairy products like sweetened condensed and evaporated milk.
 

High fat (>85%) butter Market Companies

Kerrygold (Ornua Co-operative Limited): Kerrygold expanded its production capacity with a Euro 40 million investment in Kerrygold Park, aiming to support growing global demand for high-fat, premium butter. This move strengthens its market presence and aligns with Ornua’s strategy to develop Kerrygold into a multimillion-euro international dairy brand.
 

Lurpak (Arla Foods amba): Arla Foods launched Lurpak Plant-Based butter in key European markets to tap into the rising demand for dairy alternatives. This innovation diversifies Lurpak’s product line, supports sustainability goals, and attracts a new segment of health-conscious, flexitarian, and vegan consumers while maintaining Lurpak’s premium brand image.
 

Président (Lactalis Group): Lactalis Group acquired Kraft Heinz’s natural cheese business, expanding its dairy portfolio and enhancing global distribution channels. The acquisition supports growth in value-added dairy segments, including premium and high-fat butter offerings, and strengthens Lactalis’s presence across North America and other key international markets.
 

Anchor (Fonterra Co-operative Group): Fonterra drives growth through its global application centers, innovating over 200 product applications annually for bakery and foodservice sectors. This includes high-fat dairy formats tailored to regional demands, supporting Anchor’s expansion and its focus on value-added, high-margin dairy ingredients and premium butter variants.
 

Amul (Gujarat Cooperative Milk Marketing Federation Ltd.): Amul formed a strategic partnership with Michigan Milk Producers Association to launch its dairy products in the U.S. market. The brand also introduced flavored butter variants like garlic butter to appeal to evolving Indian consumer tastes, boosting its position in the value-added, high-fat butter category.
 

High fat (>85%) butter Industry News:

• In March 2023, SPX FLOW Inc. introduced the Gerstenberg Schröder Butter Bulk Packer BP5000 to meet European standards while enhancing operational safety and user convenience. This automated system segments semi-solid fats into portions sized between 22 and 55 pounds. It is compatible not only with butter but also with other crystallized fats, including vegetable and dairy blends.
   

The high fat (>85%) butter market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 - 2034 for the following segments:

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Market, By Product Type

• By fat content
  • 85-90% fat content
  • 90-95% fat content
  • 95%+ fat content (Anhydrous Milk Fat/Butter Oil)
• By Flavor Profile
  • Salted
  • Unsalted
  • Cultured/Fermented
  • Flavored & Infused

Market, By Form

• Block/Stick
• Spreadable
• Clarified/Ghee
• Others

Market, By Source

• Conventional
• Organic
• Grass-Fed
• Specialty animal sources
  • Buffalo
  • Goat
  • Sheep
  • Others

Market, By Packaging Type

• Blocks/Sticks
• Tubs & Containers
• Bulk packaging
• Specialty & Gift packaging
• Others

Market, By Distribution Channel

• Supermarkets & Hypermarkets
• Specialty & gourmet stores
• Online retail
  • E-commerce platforms
  • Direct-to-consumer websites
  • Subscription services
• Foodservice industry
• Others

Market, By Application

• Culinary Applications
  • Cooking & Sautéing
  • Sauces & Emulsions
  • Other culinary uses
• Baking & Confectionery
  • Pastries & laminated dough
  • Cakes & Cookies
  • Confectionery products
• Spreads & toppings
  • Bread & toast
  • Crackers & savory items
  • Other spread applications
• Dietary & nutritional applications
  • Ketogenic diet
  • Bulletproof coffee & beverages
  • Other dietary uses
• Industrial applications
  • Food manufacturing
  • Cosmetics & personal care
  • Other industrial uses
• Others

Market, By End Use

• Household/Retail consumers
• Food service industry
  • Fine dining restaurants
  • Bakeries & patisseries
  • Hotels & catering
  • Other foodservice establishments
• Food processing industry
  • Bakery & confectionery manufacturers
  • Ready meals & prepared foods
  • Other food processors
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE