Vegan Butter Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[227+ Pages Report] According to Facts and Factors, the global vegan butter market size was valued at USD 2621.39 million in 2022 and is predicted to surpass USD 3794.15 million by the end of 2023. The vegan butter industry is expected to grow by a CAGR of 4.76%.

Market Overview

Vegan butter refers to a plant-based alternative to the conventional dairy butter. Vegan butter is made from plant sources without the inclusion of any animal by-product. It is manufactured to replicate the texture and functionality of a traditional dairy butter for individuals who have adopted the vegan diet.

Key Insights

• As per the analysis shared by our research analyst, the global vegan butter market size is estimated to grow annually at a CAGR of around 4.76% over the forecast period (2023-2030).
• In terms of revenue, the global vegan butter market size was valued at around USD 2621.39 million in 2022 and is projected to reach USD 3794.15 million by 2030.
• Shifting consumer preferences is driving the growth of the global vegan butter market.
• Based on the application, the dairy industry segment is growing at a high rate and is projected to dominate the global market.
• Based on the sales channel, the business-to-consumer sales channel segment is projected to swipe the largest market share.
• Based on the flavor, the flavored butter segment is expected to swipe the largest share of the market.
• Based on the source, the oat milk segment accounts for the largest share of the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Growth Drivers

• Shifting consumer preferences is likely to drive the growth of the global market.

The changing perception of people towards plant-based diets due to health, environmental, and animal welfare reasons is driving the growth of the global vegan butter market. The growing consciousness among people regarding the environmental impact of conventional dairy production is further encouraging them to adopt plant-based alternatives like vegan butter in their daily lives.

Also, the innovation of a wide variety of vegan butter is further widening the scope of the industry. Vegan butter is highly utilized in spreading, baking, and cooking applications, making it a desirable alternative to dairy butter. However, the easy availability and accessibility factors have further made vegan butter a popular choice among consumers. Online platforms, health food stores, and supermarkets are filling their shelves with various flavored vegan butter to attract more consumers.

Restraints

• High cost of production is likely to hamper the growth of the global market.

The cost incurred in the production of high-quality vegan butter is high, which limits the adoption of vegan butter among consumers. The high cost of production can be attributed to the specialized ingredients involved in the process of extracting high-quality vegan butter. However, this is likely to hamper the growth of the vegan butter industry to some extent.

Opportunities

• Branding and marketing strategies are likely to foster growth opportunities in the global market.

The effective brand marketing strategy adopted by the big companies to promote vegan butter is expected to foster huge developments in the vegan butter industry. These brands are launching campaigns to raise consumer awareness regarding plant-based diets to drive the acceptance of vegan butter, which is likely to further widen the scope of the industry.

For instance, WhiteCub said to come up with the WhiteCub vegan butter product in August 2022. The product is high in vitamin D and B12 without the touch of any dairy product.

Challenges

• Competition from dairy butter is a big challenge in the global market.

Traditional butter is highly ingrained in the culinary tradition of people. Shifting such consumer preferences and traditions is a big challenge in the global vegan butter market. Also, the companies find it difficult to achieve the taste and texture of traditional butter, thereby affecting the acceptance of vegan butter among consumers.

Segmentation Analysis

The global vegan butter market can be segmented into application, sales channel, flavor, source, and region.

On the basis of application, the market can be segmented into hotel, restaurant, & retail channels (HoReCa), household pantries, dietary supplements, dairy industry, bakery industry, confectionery items, and others. The dairy industry is anticipated to project the highest growth rate during the forecast period.

The high growth rate can largely be attributed to the product formulation application in the dairy industry. The surging trend of incorporating vegan butter alternatives into dairy-free products like vegan ice cream, yogurt cheese, and several others is popularizing the use of vegan butter in product formulation.

Moreover, the high adoption rate of vegan butter alternatives by manufacturing in the food service industry to cater to consumers who look forward to dairy-free options is further accentuating the demand in the segment.

On the basis of sales channels, the market can be segmented into business-to-consumer (B2C) and business-to-business (B2B). The business-to-consumer (B2C) segment can further be bifurcated into online retail, independent small groceries, food & drink specialty stores, discount stores, mom-and-pop stores, convenience stores, hypermarkets, and other retail formats.

The business-to-business (B2B) segment can further be bifurcated into cafes, restaurants, and hotels. The business-to-consumer sales channel is the fastest-growing segment in the global vegan butter market. Changing consumer preferences is one of the major factors propelling the growth of the segment.

People nowadays have become more interested in dairy-free alternatives and plant-based diets largely due to ethical, environmental, and health reasons. Moreover, e-commerce and other online platforms have made it convenient for people to access a broad range of products, which in turn is further widening the scope of the segment.

On the basis of flavor, the market can be segmented into unflavored and flavored butter. The flavored segment can further be bifurcated into vanilla, strawberry, raspberry, peanut, butter, lemon, hazelnut, grape, coconut, banana, cinnamon, chocolate, and others.

The flavored butter segment is expected to swipe the largest share of the market in the forthcoming years. The rising demand for unique and diverse flavors contributes to the growth of the segment. Also, the culinary trend and government preferences among chefs and home cooks to add a distinct taste to the dishes are further fostering developments in the segment.

Furthermore, flavored butter is not only used in baking, cooking, or spreading, but it also serves as a high-end ingredient that offers a premium finished touch to the dishes to complement them with richness and flavor. The segment largely caters to the premium market because of its status.

By source, the vegan butter industry can be segmented into hemp milk, coconut milk, cashew milk, almond milk, corn milk, oat milk, and others. The oat milk segment accounts for the largest share of the vegan butter industry. Oat milk is gaining popularity among people because of the dietary environment and health reasons.

Moreover, it is also seen as a high nutritional profile food offering minerals, vitamins, and fibers in large amounts. Moreover, oats are versatile in nature, making their milk ideal for usage in a variety of applications like cooking, baking, etc.

Report Scope

Regional Analysis

• North America to dominate the global market during the forecast period.

North America accounts for the largest share of the global vegan butter market because of the growing preference for dairy-free and plant-based alternatives among consumers in the region. Moreover, the rising trend towards a healthy lifestyle also drives consumers towards plant-based food, thereby boosting the demand for vegan butter in the market.

Moreover, the increasing product innovation in the region is further accentuating the demand in the market. Companies are actively improving the taste and quality of vegan butter, thereby increasing appeal to consumers in the region. The variety of vegan butter is further increasing its preference in various applications in the region, making it a popular choice for consumers who are looking forward to vegan meals.

Asia Pacific is expected to witness notable growth in the forthcoming years. Changing dietary preferences is one of the major reasons driving the growth of the regional market. A growing number of people are opting for plant-based diets.

Also, the rising awareness among people regarding the benefits of vegan diets further drives the demand for dairy-free alternatives like vegan butter among the people in the region. The international and local brands are increasingly investing in the region because of the presence of immense potential for vegan products in the region. Companies are coming up with new varieties of vegan butter with different textures, flavors, and ingredients to cater to the diverse preferences of people in the region.

Competitive Analysis

The key leaders in the global vegan butter market include:

• Miyoko's Creamery 
• Earth Balance 
• Country Crock Plant Butter 
• WayFare Foods 
• Fora Foods (formerly known as FabaButter) 
• Melt Organic 
• Nutiva 
• Violife 
• I Can't Believe It's Not Butter!

For instance, Axia Foods came up with the world's first vegan butter with protein in December 2021. The company is a Pune-based company trying to expand fast in the market.

The global vegan butter market is segmented as follows:

By Application Segment Analysis

• Hotel, Restaurant And Retail Channels (HoReCa)
• Household Pantry
• Dietary Supplements
• Dairy Industry
• Bakery Industry
• Confectionery Items
• Others

By Sales Channel Segment Analysis

• Business To Consumer (B2C)
• Business To Business (B2B)

By Flavor Segment Analysis

• Unflavored Butter
• Flavored Butter

By Source Segment Analysis

• Hemp Milk
• Coconut Milk
• Cashew Milk
• Almond Milk
• Corn Milk
• Oat Milk
• Others

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