Butter Fat Fraction Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

The global butter fat fraction market has experienced impressive growth during the period forecast period. In 2024, the market achieved a substantial milestone, recording sales worth US$ 170 million. The recent report unveils key trends and factors influencing this burgeoning market.

Key Trends Shaping the Butter Fat Fraction Market

1. Rising Demand in Infant Nutrition Products

The global population is steadily increasing and is estimated to reach 9.8 billion by 2050. This population growth is driving the demand for infant nutrition products. High demand for infant formula is particularly evident in China and other Asia Pacific countries, driven by a combination of a high infant population and increasing urbanization. Reduced infant mortality rates in these regions have also contributed to the growing demand for infant nutrition products.

2. Butter Fat Fraction in Functional Food & Beverages

Functional food and beverages are on the rise, with consumers increasingly seeking products that offer health benefits. Butter fat fractions provide a variety of health benefits, including support for neuronal and cognitive development, a healthy gut, and the promotion of a healthy microbiota. While currently used primarily in infant formula and medical nutrition due to low production yields and high pricing, manufacturers are exploring ways to scale up production and lower costs to cater to the growing demand from the functional food and beverage sector.

3. Consumer Preference for Healthier Products

Consumers are shifting their focus from solely functional components to natural products. They are avoiding products that contain high levels of chemicals, preservatives, and stabilizers, even if they claim to be low in fat. Consumers are unwilling to compromise on taste and are taking a holistic approach to their health. This shift has led consumers to opt for spreads and butter over margarine, as these products are considered more natural and trusted for their quality.

4. Challenges Include Lack of Comparable Clinical Studies and High Production Costs

Despite their potential benefits, dairy-based value-added fractions like butter fat fractions face challenges. Manufacturers often opt for alternatives that offer similar benefits at a lower cost. Commercializing these products is expensive, requiring advanced machinery and technical expertise. Additionally, limited clinical trials with varying parameters make it challenging to gain regulatory approval for these ingredients, further hindering market growth.

Country-wise Insights

China's Growing Role in the MFGM Sector (Milk Fat Globule Membrane)

China is emerging as a significant market for MFGM due to the increasing demand for premium infant formula. Rising disposable income and food safety concerns have driven the demand for high-quality infant formula, making MFGM an attractive ingredient to enhance nutritional and functional value.

U.S. Dominance in the Butter Fat Fraction Market

The U.S. leads the butter fat fraction market in North America in 2023. Consumers in the U.S. prefer functional foods and are increasingly adopting chemical-free and organic products. This consumer preference is boosting the butter fat fraction market and encouraging producers to innovate and develop new products with lower butter fat content.

Competitive Landscape

Manufacturers of butter fat fraction are committed to enhancing their production processes through the adoption of new technologies. They prioritize customer service, quality-controlled products, competitive pricing, and timely deliveries.

Key Companies Profiled

• Arla Foods Ingredients Group P/S
• Corman SA
• Murray Goulburn Co-Operative Co. Limited
• Groupe Lactalis S.A
• FrieslandCampina N.V.
• Royal VIV Buisman
• Land O'Lakes, Inc
• Dairy Crest Group Plc
• Glanbia Plc
• Fonterra Co-operative Group Limited
• Agropur Ingredients, LLC
• The Tatua Co-operative
• Others

Butter Fat Fraction Industry Research by Category

By Ingredient Type:

• MFGM (Milk Fat Globule Membrane)
• Phospholipid
• Ganglioside

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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