Market Insights Consumer Food Oils & Fats

Butter - South America

South America

Revenue in the Butter market amounts to €1.27bn in 2024. The market is expected to grow annually by 7.34% (CAGR 2024-2029).
In global comparison, most revenue is generated in India (€6,390m in 2024).
In relation to total population figures, per person revenues of €3.06 are generated in 2024.
In the Butter market, volume is expected to amount to 181.80m kg by 2029. The Butter market is expected to show a volume growth of 1.7% in 2025.
The average volume per person in the Butter market is expected to amount to 0.38kg in 2024.

Key regions: Canada, Japan, United Kingdom, South Korea, United States

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Analyst Opinion

The Butter Market within the Oils & Fats sector in South America is experiencing minimal growth, influenced by factors such as fluctuating dairy prices, changing consumer preferences, and increased competition from margarine and plant-based alternatives.

Customer preferences: In South America, consumers are shifting towards healthier dietary choices, resulting in a decline in traditional butter consumption. Younger demographics, particularly millennials and Gen Z, are gravitating towards plant-based spreads and functional fats that align with their wellness-oriented lifestyles. Additionally, cultural influences emphasizing sustainability and ethical sourcing are prompting consumers to seek organic and artisanal butter options. This transition reflects a broader trend of prioritizing health and environmental consciousness within The Food market.

Trends in the market: In South America, the Butter Market within the Oils & Fats sector is experiencing a notable shift as consumers increasingly prioritize health and wellness. This trend is driving a decline in traditional butter consumption, particularly among younger consumers who favor plant-based alternatives and functional fats. Additionally, ethical sourcing and sustainability are becoming critical factors, leading to a rise in demand for organic and artisanal butter options. These changes indicate a significant pivot towards health-conscious dietary choices, compelling industry stakeholders to adapt their product offerings and marketing strategies to align with evolving consumer preferences.

Local special circumstances: In South America, the Butter Market within the Oils & Fats sector is influenced by diverse geographical and cultural factors. The Andes region fosters a rich dairy tradition, yet many consumers are shifting towards health-conscious diets, driven by an increasing awareness of nutrition-related issues. Regulatory frameworks promoting organic farming and sustainable practices have also gained traction, particularly in countries like Argentina and Chile. These elements create a distinct market landscape, pushing producers to innovate with healthier, locally-sourced butter alternatives that resonate with evolving consumer values.

Underlying macroeconomic factors: The Butter Market within the Oils & Fats sector in South America is significantly shaped by macroeconomic factors such as commodity prices, inflation rates, and trade policies. Fluctuating global dairy prices impact production costs, while inflationary pressures influence consumer purchasing power, prompting shifts towards cost-effective alternatives. Additionally, national economic health varies, with countries like Brazil facing economic challenges that affect domestic consumption patterns. Fiscal policies promoting agricultural subsidies and export incentives can bolster local producers, enhancing competitiveness in international markets. These dynamics drive innovation in product offerings, catering to health-conscious consumers while navigating economic constraints.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.