Butter Powder Market Share, Size, Trends, Growth, Analysis, Research Report and Forecast

Demand for butter powder rising owing to high convenience & prolonged shelf life, surge in demand form food industry, increase in health & dietary consideration

WILMINGTON, DE, UNITED STATES, November 25, 2025 /EINPresswire.com/ -- The global butter powder industry was valued at $376.7 million in 2022 and is projected to reach $643.8 million by 2032, registering a CAGR of 5.5% from 2023 to 2032.

Butter powder is obtained from milk fat and dehydrated and ground into a fine powder. It is commonly used as a dairy fat replacement in baking, pastry, and frosting, as well as in other preparations. Additionally, butter powder may be dissolved in water to form butter. Butter powder is simple to use and store, making it ideal for butter manufacturers who wish to add butter benefits to their products.

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The global butter powder market growth is attributed to factors, such as high convenience and prolonged shelf life, a surge in demand from the food industry, and the increase in health and dietary consideration. On the other hand, fluctuation in raw material prices and high competition from alternative products may restrict market growth to some extent. Furthermore, the rise in product innovation and differentiation and the increase in export opportunities are presenting new opportunities in the coming years.

Butter powder is a dehydrated form of butter. it is used in recipes of baked goods, popcorn, sauces, soups, seasonings, beverages, and dietary supplements. It offers several advantages such as shelf stability, convenience, versatility, and extended usability. In addition, it is considered suitable for emergency preparations, travel, camping, and long-term food storage. It saves time and can be conveniently used in everyday cooking; for instance, it can be sprinkled on moist and warm foods such as steamed vegetables, rice, pasta, hot cereals, and potatoes, thus enchanting the flavor. Moreover, it is heat stable and requires no refrigeration until the mixture of water and butter powder has been prepared which has increased Butter Powder Market Share. 

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 The butter powder market is segmented into nature, flavor, distribution channel, and region. By nature, the market is bifurcated into conventional and organic. Among these, the conventional segment occupied the major share of the Butter Powder Industry in 2022 and is anticipated to maintain its dominance during the forecast period. Conventional butter is a dehydrated version of actual butter that has had the liquid removed. In addition, as it offers the ease of having butter immediately available without the requirement of refrigeration, it is used in baking and cooking. It is made once the powder is reconstituted with water or another liquid. Furthermore, conventional butter powder retains the original flavor and fat content of butter, unlike margarine or other alternatives which has increased Butter Powder Market Growth. 

Based on region, North America held the highest market share in 2022, contributing to around two-fifths of the global butter powder market revenue, and is expected to maintain its dominance during the forecast period. Consumers are increasingly interested in cooking and baking products available in the market for primary uses in recipes, which is driving them to switch from conventional butter powder to organic products. Simultaneously, the Asia-Pacific region would portray the fastest CAGR of 6.5% throughout the forecast period.

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Leading Market Players: -

PB2 Foods, Inc.
Garden of Life
BetterBody Foods
Nutrient Survival
Hoosier Hill Farm
Betty Lou's Inc.
powbab
Nutricost.
Laita
Z Natural Food, LLC

The report provides a detailed analysis of these key players in the global butter powder market size. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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David Correa
Allied Market Research
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