6 Reasons you should invest in table butter manufacturing in India
The Indian table butter market is pegged at USD 3.06 billion. While most of the butter produced is consumed locally, India is also one of the top-15 table butter exporters in the world with an annual export of around ~ USD 190 million.
Volume-wise table butter production in 2022 amounted to 6.5 million tons, growing at a CAGR of 2.1%. Key table butter producers in India include Amul, Mother Dairy, Nandini, Gowardhan, Patanjali, Britania, etc.
Though there is small competition from other substitutes such as peanut butter (market size of USD 104.9 million), the market for table butter will continue to grow in India.
6 Major factors driving the table butter market in India
- India is one of the biggest producers of milk in the world with an annual capacity of more than 220 million tons. By 2031, India plans to reach an annual production of 330 million tons. India is home to the largest number of bovine cattle in the world, pegged at 305.5 million.
- 48% of the milk produced is consumed locally while the remaining is sent for packaging and processing. Besides packaged milk production, India is also expanding its footprint in high-value products such as table butter, cheese, milk powder, yogurt, etc.
- Traditionally India is a milk-consuming nation and dairy-based products are perceived to be healthy. 444 million Indians are aged between 0-18, which further translates into growing demand for milk-based proteins.
- In recent years penetration of refrigerators in households, both in urban and rural India has increased steadily. Currently, 37.9% of Indian households have refrigerators, which makes it easy for them to store and consume perishables.
- General growth in food retail is conducive to products such as table butter, which are now becoming daily essentials in many Indian households. In India’s retail industry, which is sized at USD 1 trillion, food comprises around 35-40% market share.
- In addition to retail, the growth of table butter is also dovetailed by a surge in demand from the F&B segment as well as other categories such as bakeries, fast foods, sauces, etc. where butter is used frequently. If we just talk about the F&B segment, the market is sized at USD 15.2 Billion (as per the analysis by The India Watch in 2022.). These are positive signs for the butter consumption in India.
Project Feasibility Study to Start a New Table Butter Factory in India
The Indian Table Butter market is genuinely a lucrative business option in the face of the rise in demand and India’s cultural heritage where dairy-based proteins are rated very high.
Meanwhile, before starting butter or any other dairy-based business, it is also important to learn about the market properly so that informed business decisions can be made and risks can be minimized. It is always advisable to conduct a project feasibility study before committing any investments.
These are the 7 benefits of conducting a feasibility study
- Learn about the market, industry, and future growth potential.
- Existing categories of products and their market share =.
- Know about the competition and their product lines, marketing strategy, business strategy, etc.
- Key customer segments alongside their needs and wants.
- Information on key vendors, equipment, location, etc.
- Insights on the overall retail value chain.
- Get an in-depth future strategic roadmap including marketing, pricing, business strategy, customer strategy, etc.
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