Retail Intelligence Report: Butter/Margarine

Market Trends: Ghee butter is experiencing growing popularity across global markets, driven by a shift toward health-conscious and nutritious eating habits. Its lactose-free composition, high smoke point, and beneficial fatty acids make it a favored choice for individuals with dietary restrictions and for high-heat cooking methods. Ghee’s long shelf life, stability at room temperature, and culinary versatility further contribute to its appeal, particularly in traditional cooking methods like traditional English puddings. In Germany and Italy, ghee is increasingly marketed as a premium, artisanal product.

Noteworthy Products: In France, Go-Keto Organic Ghee (500g) was exceptional due to its certified organic quality and Ayurvedic blend, making it a popular choice among health-conscious consumers. Designed to support the keto diet, this organic fatty butter is made from pasture-raised butter and is completely lactose-free, enhancing its appeal to those with dietary restrictions.

Industry News: Butter prices in the US have plummeted to an 18-month low of USD 2.45 per pound (lb) in Jan-25 due to oversupply, with Dec-24 stocks increasing by 11.4% year-over-year (YoY). The surplus of cheap cream has exacerbated the downward pressure on butter prices, leading farmers to reconsider production strategies and explore alternative uses for cream. Meanwhile, trade tensions and potential tariffs on dairy exports could further disrupt the market, pushing producers to diversify export destinations. Despite the current challenges, embracing technology, efficient feed management, and sustainable practices can help dairy farmers navigate market volatility and maintain profitability.