Butter Blocks Market Report 2026

The butter blocks market size has grown steadily in recent years. It will grow from $34.12 billion in 2025 to $35.74 billion in 2026 at a compound annual growth rate (CAGR) of 4.7%. The growth in the historic period can be attributed to expansion of commercial bakery operations, rising consumption of baked goods, increased use of butter in professional kitchens, growth of organized foodservice sector, improvements in cold chain logistics.

The butter blocks market size is expected to see steady growth in the next few years. It will grow to $42.27 billion in 2030 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to growing demand from large-scale food processors, increasing focus on standardized ingredients, expansion of premium bakery segments, rising adoption of efficient bulk packaging, growth of foodservice chains in emerging markets. Major trends in the forecast period include growing demand from commercial bakeries, rising preference for bulk dairy formats, expansion of foodservice supply chains, increasing use in industrial baking applications, enhanced focus on consistent butter quality.

The increasing demand for bakery products is expected to propel the growth of the butter blocks market in the coming years. Bakery products encompass a wide range of items produced and sold by bakeries, including breads, pastries, cakes, and cookies. Demand for these products is rising due to efforts to enhance customer experience, growing interest in healthier and premium baked goods, and the expansion of diversified bakery product portfolios. Butter blocks play a critical role in bakery applications, as they are essential for producing laminated doughs used in croissants and puff pastries, enriching doughs for brioche and cookies, and enhancing the flavor, texture, and mouthfeel of pie crusts, tarts, and savory pastries. For instance, in February 2024, the Agriculture and Horticulture Development Board (AHDB), a UK-based government organization, reported that baking activities in 2023 increased by 1%, reaching 13 million occasions compared with the previous year. This growth was largely driven by a substantial rise in sweet home baking, which recorded an additional 29 million occasions. As a result, the increasing demand for bakery products is driving growth in the butter blocks market.

Major companies operating in the butter blocks market are focusing on developing innovative offerings such as portion-controlled butter blocks to improve convenience, minimize waste, and ensure consistent results in cooking and baking. Portion-controlled butter blocks are pre-measured butter formats divided into uniform segments, allowing consumers and bakers to use precise quantities for recipes, thereby simplifying preparation and reducing unnecessary butter usage. For example, in October 2025, Lurpak, a Denmark-based butter brand, launched limited-edition, baking-focused butter block packs designed to inspire classic home baking such as scones, cookies, and brownies. These products retain Lurpak’s traditional butter composition made from churned cream with a consistent butterfat profile, while introducing baking-specific packaging that features recipe inspiration directly on the pack. This approach aims to stimulate creativity, encourage new baking occasions, and appeal to younger, socially active home bakers by combining functional utility with motivational and occasion-based design.

In March 2024, Lakeland Dairies Co-op Society Ltd. expanded its presence in the European butterfat sector through the acquisition of De Brandt Dairy International NV, a Belgium-based company specializing in butter and butter oil products. This strategic move aims to bolster Lakeland's product offerings, increase operational capabilities, and potentially access new distribution channels and markets.

Major companies operating in the butter blocks market are Danone S.A., Lactalis Group, Fonterra Co-operative Group Limited, Royal FrieslandCampina, Saputo Inc., Arla Foods amba, Kerry Group, Agropur Cooperative, Dairy Farmers of America, Land O'Lakes Inc., Glanbia PLC, Schreiber Foods Inc., Emmi AG, Megmilk Snow Brand Co. Ltd., DMK Group, Ornua Co-operative Ltd., Associated Milk Producers Inc., California Dairies Inc., Grassland Dairy Products Inc., Anand Milk Union Limited, Eurial, Dairy Crest.

Europe was the largest region in the brewer's spent grain market in 2025. The regions covered in the butter blocks market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the butter blocks market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The butter blocks market consists of sales of sweet cream butter blocks, fermented butter blocks, grass-fed butter blocks, and infused butter blocks. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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