1 Global Buttermilk Market Scope
The global buttermilk market has been experiencing steady growth, with the total value reaching $5,398 million in 2024. Buttermilk, traditionally the liquid left behind after churning butter, is now predominantly produced through culturing pasteurized or ultra-pasteurized low-fat or skim milk. This cultured buttermilk is valued for its nutritional benefits, including its rich content of proteins, vitamins, and minerals, which contribute to its growing popularity in the food industry.
Looking ahead, the market is projected to maintain a CAGR of 2.54% from 2024 to 2029. This growth is driven by several factors, including the rising global population, increasing health awareness, and the expanding applications of buttermilk in the food and beverage industry. The versatility of buttermilk in enhancing the taste and texture of various food products, such as baked goods, dairy-based sauces, and ice cream, further propels its market value.
Figure Global Buttermilk Market Revenue and CAGR 2024-2029
2 Buttermilk Market Dynamics Analysis
2.1 Market Drivers Analysis
The growth of the global buttermilk market is primarily driven by the increasing demand from key regions such as North America, Europe, and Asia-Pacific. North America, being the largest producer of buttermilk, leads the market due to its well-established dairy industry and high consumption of dairy products. The Asia-Pacific region, with its rapidly growing population and rising incomes, is expected to witness significant growth in the coming years. Countries like China and India are emerging as major markets for buttermilk, driven by the increasing demand for nutritious and functional food ingredients.
Another significant driver is the growing awareness of the health benefits associated with buttermilk. Consumers are increasingly seeking products that offer nutritional advantages, and buttermilk’s rich content of vitamins, minerals, and probiotics aligns well with this trend.
2.2 Market Constraints Analysis
One of the primary constraints is the availability of substitutes, such as yogurt and sour cream, which can be easily used in place of buttermilk in many recipes. This reduces the urgency for consumers to purchase buttermilk, thereby limiting its market growth. Furthermore, the competitive nature of the dairy industry, with numerous players offering similar products, intensifies the competition and puts pressure on pricing strategies.
3 Buttermilk Market Technological Innovations and Industry Consolidation Analysis
Technological advancements have played a crucial role in the development of the buttermilk market. Innovations in processing techniques have led to the production of high-quality buttermilk powder, which has a longer shelf life and is more convenient for various industrial applications. This has expanded the market for buttermilk beyond its traditional liquid form, making it a more attractive option for food manufacturers and processors.
In addition to technological innovations, the industry has witnessed several mergers and acquisitions, which have led to consolidation and the strengthening of market positions. For instance, Dairy Farmers of America’s acquisition of a substantial part of Dean Foods for $425 million is a notable example of industry consolidation. Such strategic moves enable companies to expand their product portfolios, enhance their distribution networks, and gain a larger share of the market.
4 Global Buttermilk Market Analysis by Type
In 2024, the global buttermilk market was segmented into two primary types: Buttermilk Powder and Liquid Buttermilk. The total value of the market reached $5,398 million, with each type contributing significantly to this figure.
Buttermilk Powder was the dominant type, accounting for a substantial portion of the market. In 2024, the value of buttermilk powder was $4,746 million, representing 87.92% of the total market share. This type of buttermilk is highly valued for its long shelf life and versatility in various applications. It is widely used in the food industry as an ingredient in baked goods, dairy-based sauces, and as a substitute for skimmed milk in various recipes. The powder form allows for easy storage and transportation, making it a preferred choice for manufacturers and retailers alike.
On the other hand, Liquid Buttermilk contributed $652 million to the market, comprising 12.08% of the total market share. Liquid buttermilk is primarily used as a beverage and in cooking applications where its unique tangy flavor is desired. It is also used in the production of certain types of cheese and as a marinade for meats due to its tenderizing properties. Despite its smaller market share compared to buttermilk powder, liquid buttermilk continues to hold a significant position in the market, especially in regions where fresh dairy products are highly consumed.
Table Global Buttermilk Market Size and Share by Type in 2024
|
Type |
Market Size (M USD) |
Market Share (%) |
|---|---|---|
|
Buttermilk Powder |
4,746 |
87.92 |
|
Liquid Buttermilk |
652 |
12.08 |
5 Global Buttermilk Market Analysis by Application
In 2024, the global buttermilk market was segmented into various applications, each contributing significantly to the overall consumption. The total consumption of buttermilk reached 1,346.6 thousand tons. The different applications of buttermilk reflect its versatility and wide-ranging use in the food and beverage industry.
Dairy-based Sauces accounted for a substantial portion of the market, with a consumption of 362.9 thousand tons, representing 26.95% of the total market share. Buttermilk is a key ingredient in many dairy-based sauces due to its ability to enhance flavor and texture. Its creamy consistency and tangy taste make it an ideal component for salad dressings, dips, and other condiments, providing a unique and appealing taste profile.
Bakery was another significant application, contributing 422.1 thousand tons or 31.35% of the market share. Buttermilk is widely used in baking to improve the texture and flavor of various baked goods. It reacts with baking soda to create a light and fluffy texture, making it a popular choice for pancakes, muffins, and bread. Its acidic nature also helps to tenderize the dough, resulting in a more tender and moist final product.
Ice Cream had a consumption of 141.3 thousand tons, comprising 10.50% of the market share. In ice cream production, buttermilk is used to add a tangy flavor and improve the texture. It helps to create a smoother and creamier texture, enhancing the overall taste and mouthfeel of the ice cream. This application is particularly popular in regions where consumers prefer a unique and slightly tangy flavor profile in their frozen desserts.
Confectionery contributed 121.8 thousand tons to the market, representing 9.05% of the market share. Buttermilk is used in confectionery products such as chocolates, candies, and pastries to enhance flavor and improve texture. Its unique taste adds a subtle tanginess that can complement the sweetness of confectionery items, creating a balanced and appealing flavor profile.
Table Global Buttermilk Consumption and Share by Application in 2024
|
Application |
Consumption (K Tons) |
Market Share (%) |
|---|---|---|
|
Dairy-based Sauces |
362.9 |
26.95 |
|
Bakery |
422.1 |
31.35 |
|
Ice Cream |
141.3 |
10.50 |
|
Confectionery |
121.8 |
9.05 |
6 Global Buttermilk Market Analysis by Region
Europe emerged as the largest regional market by value, with a total of $2,055 million in 2024. This region accounted for 38.07% of the global market share. The dominance of Europe can be attributed to its rich dairy tradition and high consumption of dairy products. Countries like Germany, France, and the UK have a strong preference for buttermilk in both traditional and modern food applications.
The region’s robust food processing sector and the growing demand for functional food ingredients also played a crucial role in driving the market value. Europe’s market value was further bolstered by the increasing awareness of the health benefits associated with buttermilk, leading to its incorporation in various food products.
Americas was the second-largest regional market by value, reaching $1,644 million in 2024. This region’s market value was driven by the United States, which is a major consumer and producer of dairy products. The strong presence of established dairy companies and a well-developed food processing industry in the U.S. contributed to the region’s substantial market share. Additionally, the increasing demand for buttermilk in various applications, such as baking and dairy-based sauces, fueled the market growth in the Americas. The region’s market share stood at 30.46% of the global buttermilk market value.
Asia-Pacific was the fastest-growing region in terms of market value, with a significant increase from previous years. The market value reached $1,467 million in 2024, representing 27.17% of the global market share. The rapid growth in this region can be attributed to the expanding population, rising incomes, and increasing urbanization in countries like China, Japan, and India. The growing middle class in these countries has led to a higher demand for quality food products, including buttermilk.
Additionally, the region’s food and beverage industry is experiencing significant innovation, with buttermilk being used in a wide range of applications, from traditional dishes to modern culinary creations. The increasing health consciousness among consumers in Asia-Pacific also contributed to the growing demand for buttermilk, as it is perceived as a nutritious and versatile ingredient.
Figure Global Buttermilk Revenue Market Share by Region in 2024
7 Analysis of the Top 3 Companies in the Buttermilk Market
7.1 DairyAmerica
Company Introduction and Business Overview:
DairyAmerica was established in 1995 as a cooperative organization, bringing together dairy producers to manage the sales and marketing of dairy products. Headquartered in the United States, DairyAmerica operates with a global market distribution strategy. The company is uniquely positioned to supply customers across various regions, leveraging its access to port cities in California and New York, as well as its extensive distribution network. DairyAmerica is known for its commitment to delivering high-quality dairy products, including buttermilk, to a wide range of customers worldwide.
Products Offered:
DairyAmerica offers a variety of dairy products, with a particular focus on buttermilk powder. The buttermilk powder produced by DairyAmerica is derived from the butter churning process, where the remaining liquid is pasteurized, condensed, and spray dried to create a high-quality dry product. This buttermilk powder is ideal for use in prepared mixes, confectionery, and baking applications, providing a consistent and reliable ingredient for manufacturers.
7.2 Dairy Farmers of America
Company Introduction and Business Overview:
Dairy Farmers of America (DFA) is a leading dairy cooperative that operates across the United States. Founded in 1998, DFA is owned by dairy farmers who work together to produce and market a wide range of dairy products. The company is committed to providing high-quality dairy ingredients to customers in the food manufacturing, retail, and foodservice industries. DFA’s extensive network of dairy farmers and state-of-the-art processing facilities enable it to produce a diverse range of dairy products, including buttermilk, which is distributed globally.
Products Offered:
Dairy Farmers of America offers a variety of buttermilk products, including buttermilk powder. The buttermilk powder produced by DFA is known for its signature tangy flavor and versatility. It is used in various applications, such as baked goods, coatings for snack foods, thickening spreads, and enhancing the color and flavor of breads. DFA’s buttermilk powder is also an excellent ingredient for salad dressings, dips, and processed cheese, providing a consistent and reliable source of dairy solids for manufacturers.
7.3 Fonterra
Company Introduction and Business Overview:
Fonterra is a global dairy giant, headquartered in New Zealand. Established in 2001, Fonterra is the world’s largest exporter of dairy products, with a supply chain that reaches customers in over 140 countries. The company is built on the legacy of New Zealand’s dairy farmers and is known for its collaborative spirit and innovative approach to dairy production. Fonterra’s extensive range of dairy products, including buttermilk, are marketed under well-known brands such as Anchor, Tip Top, and Kapiti. The company’s commitment to quality and sustainability has helped it establish a strong reputation in the global dairy market.
Products Offered:
Fonterra offers a variety of buttermilk products, including buttermilk powder. The buttermilk powder produced by Fonterra is derived from cream and is spray-dried to create a rich, creamy product with excellent solubility and emulsifying properties. This buttermilk powder is used in various applications, such as ice cream, confectionery, bakery products, and as a milk substitute for calves in the animal feed industry. Fonterra’s buttermilk powder is known for its consistent quality and reliability, making it a preferred choice for manufacturers worldwide.