Anhydrous Milk Fat Market Share 2024-2032: Industry Trends, Research and Forecast Report


According to the latest report by IMARC Group, titled “Anhydrous Milk Fat Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024-2032,” the study provides a detailed analysis of the industry, including the global anhydrous milk fat market share, size, trends, and growth forecasts. The report also includes competitor and regional analysis and highlights the latest advancements in the market.

How Big is the Anhydrous Milk Fat Market?

The global anhydrous milk fat market size reached US$ 2.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.1 Billion by 2032, exhibiting a growth rate (CAGR) of 6.5% during 2024-2032.

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Factors Affecting the Growth of the Anhydrous Milk Fat (Butter Oil) Industry:

  • Consumer Preferences and Health Trends:

The growth of the anhydrous milk fat (butter oil) market is significantly influenced by evolving consumer preferences and health trends. As awareness about the nutritional benefits of dairy fats increases, there is a rising demand for natural and minimally processed fats like anhydrous milk fat. This product is perceived as a healthier alternative to hydrogenated fats and oils, which are associated with various health risks. Additionally, the trend towards organic and grass-fed dairy products further boosts the market, as these types of butter oil are perceived to be of higher quality. However, the growing vegan movement and concerns about cholesterol and saturated fats in dairy products can potentially restrain market growth. The balance between the perceived health benefits and concerns plays a critical role in shaping consumer demand for anhydrous milk fat.

  • Technological Advancements in Dairy Processing:

Technological advancements in dairy processing are pivotal in driving the anhydrous milk fat market. Modern processing techniques have enabled more efficient separation and purification of milk fat, leading to higher yields and better-quality products. Innovations in packaging and preservation technology also contribute to extending the shelf life of butter oil, making it more attractive for both domestic and international markets. Moreover, advancements in logistics and cold chain infrastructure have facilitated the global trade of dairy products, allowing manufacturers to tap into new markets. However, the high cost of advanced technologies and the need for significant investment can be a barrier for smaller producers, potentially affecting market dynamics and competition.

  • Global Economic and Regulatory Factors:

The anhydrous milk fat market is also influenced by global economic and regulatory factors. Economic conditions, such as changes in income levels and consumer spending power, directly impact the demand for dairy products, including butter oil. In regions with growing economies, there is often an increased consumption of dairy products, which in turn fuels market growth. Furthermore, trade policies and regulations play a crucial role. Tariffs, import-export restrictions, and food safety regulations can either facilitate or hinder the trade of anhydrous milk fat. For instance, strict quality standards and labeling requirements in certain countries might limit market access for international producers, while favorable trade agreements can open up new opportunities for market expansion.

Anhydrous Milk Fat (Butter Oil) Market Report Segmentation:

Breakup by End-Use:

  • Dairy
  • Bakery
  • Confectionary
  • Others

Dairy represents the largest segment in the anhydrous milk fat (butter oil) market due to its extensive use in various dairy products for enhanced flavor and texture.

Regional Insights:

  • Oceania
  • Europe
  • North America
  • Asia
  • Latin America
  • Middle East and Africa

Oceania emerged as the largest market for anhydrous milk fat (butter oil) due to its well-established dairy industry and high export capabilities in dairy products.

Global Anhydrous Milk Fat (Butter Oil) Market Trends:

The increasing demand for natural and pure dairy ingredients in the food industry boosts AMF’s popularity, as it is valued for its rich flavor and versatility in product formulations. Additionally, the growth in gourmet and artisanal food sectors, where quality and authenticity are highly prized, further elevates the demand for premium AMF. Moreover, its extended shelf life compared to regular butter makes it a preferred choice in regions with limited cold storage facilities. The expanding global bakery and confectionery industries, where AMF is extensively used for its superior texture and taste, significantly contribute to its market growth.

Leading Companies Operating in the Global Anhydrous Milk Fat (Butter Oil) Market Industry:

  • Fonterra
  • Dairy Farmers of America
  • Hilmar Cheese Company
  • Murray Goulburn
  • Westland Milk Products
  • Synlait Milk Limited

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