Clarified Butter Market– Statistics And Analysis & Forecast To 2027

Posted by Mrudula Anil Karmarkar on April 22nd, 2021

The global clarified butter market size is expected to reach USD 3.34 billion by 2027, expanding at a CAGR of 9.9% over the forecast period, according to a new report by Grand View Research, Inc. Demand for clarified butter, also known as ghee, is expected to be driven by phenomenal globalization of food systems across the world. Additionally, easy access of diversified food is propelling the adoption of clarified butters in different cuisines, which is a major driver of the ghee market. For instance, Ethiopian cuisine has emerged as a major global food, and thus clarified butter in the form of Niter kibbeh finds usage as an important ingredient in the gastronomy.

Growing popularity of the product is compelling the companies to launch new products to sustain and enhance their market share. For instance, in February 2020, Gourmet Ghee Company launched Holi Ghee in U.S. The clarified butter is inspired from the Indian festival Holi as it comprises colorful crunchy sprinkles. These colorful sprinkles are made of organic-based dyes and the sweetness is induced using some hand-selected ingredients. It has a subtle sweetness with a rich taste and texture. The product is suitable for making traditional Indian sweets, including Gujiya and Matthi.

Similarly, in March 2020, the Rumiano Cheese Company launched Grass-Fed Ghee. The ingredients for the product are claimed to be completely organic and non-GMO and are sourced from family farms and foragers in the Pacific Northwest. The clarified butter has a high content of omega-3 fatty acids and beta-carotene. It is available in three flavors including plain, turmeric black pepper, and honey. The product has a rich golden color and a nutty aroma and is available in 10 oz. glass jars. The company entered this segment due to emerging high performance lifestyle and upcoming demand for healthy, high-fat diets among the millennials. It also plans to expand its portfolio of organic products.

They are open to a myriad of choices due to reduced cross-border barriers in the movement of regional food ingredients. Changing taste patterns and increasing focus on nutritional enrichment among consumers have been creating new avenues for dairy manufacturers, which, in turn, is compelling them to introduce various kinds of clarified butter across the globe, thus driving the growth of ghee market.

Clarified Butter Market Report Highlights

  • Based on application, the B2C segment generated a revenue of USD 1035.9 million in 2020. Growing popularity of clarified butter across the globe for its caliber to add a distinctive flavor to food is expected to drive the market among household consumers
  • The B2B application segment is expected to exhibit the fastest CAGR of 10.2% from 2020 to 2027 owing to the use of the product as an essential ingredient in some of the most coveted gourmet foods, including biryani, in restaurants and hotels across the globe
  • Online channel is expected to expand at the fastest CAGR of 12.1% from 2020 to 2027. The growth is attributed to increased importance of e-commerce channels among millennials as convenience friendly shopping options
  • India emerged as the largest consumer of clarified butter and generated a revenue of more than USD 400 million in 2020. The product is considered an essential staple ingredient to the Indian cuisine in household and commercial spaces

The modern-day consumers are becoming conscious about nutritional enrichment and have been consistently adopting products that are beneficial for health. As a result, consumers have been increasingly adopting clarified butter in various cuisines. These dairy-derivatives are considered completely free of artificial preservatives and trans fats.

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 actually imparts flavor to the food and makes it affluent and heavy on the palate. Clarified butter, when brought across heat, creates a distinctive aroma, which has a very enticing fragrance and is capable of enhancing the appetite.

Ghee, one of the most popular kinds of clarified butter, is also gaining popularity owing to its therapeutic properties. According to Ayurveda, the product has healing properties as it consists of chains of fatty acids, which enhance the absorption of nutrients and alkalize the blood. It is also used to reduce the secretion of leukotrienes and prostaglandins in the body as these cause pain and inflammation. Organic variants of the clarified butter have been proved to reduce cholesterol in the body and help in overcoming coronary issues. These clarified butter variants are also largely recommended for people with poor digestion as they initiate the secretion of stomach acids, which ultimately enhances the digestive capability of the stomach.

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Rising adoption of clarified butter indicates the vast potential of the market. Startups and venture capitals can be seen grooving towards this. For instance, in July 2020, 4th & Heart, a startup producing flavored ghee, received series C funding of USD 7.6 million from Harbinger Ventures. The company is known to offer 21 products and is available in over 10,000 stores in U.S.

Some of the key market players are Saputo, Arla Foods amba, Almarai, Heritage Foods Limited, Britannia Industries, HAP, Jhandewalas Foods Limited, Parmalat Canada, and GCMMF (Amul). The established players have realized the market potential and it has been acting as an inviting factor for many startups in the industry. Moreover, venture capital firms have been increasingly spending on these startups to leverage the opportunity. For instance, in July 2020, startup 4th & Heart, an innovative ghee manufacturer, closed a USD 7.6 million from Harbinger Ventures. Similarly, NutriMoo, another startup producing dairy products, along with ghee, secured funding of USD 1 million from IndoCan Honey Pvt Ltd.

Grand View Research has segmented the global clarified butter market on the basis of product, application, distribution channel:

Clarified Butter Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Conventional
  • Flavored

Clarified Butter Application Outlook (Revenue, USD Million, 2016 - 2027)

  • B2B
  • B2C

Clarified Butter Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

  • Online
  • Offline

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

For More Information:www.grandviewresearch.com

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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