Butter - Armenia | Statista Market Forecast

Revenue in the Butter market amounts to US$40.98m in 2024. The market is expected to grow annually by 11.69% (CAGR 2024-2029).
In global comparison, most revenue is generated India (US$7bn in 2024).
In relation to total population figures, per person revenues of US$14.75 are generated in 2024.
In the Butter market, volume is expected to amount to 4.58m kg by 2029. The Butter market is expected to show a volume growth of 6.9% in 2025.0.
The average volume per person in the Butter market is expected to amount to 1.16kg in 2024.

Definition:

Butter is a dairy product made up of several components, such as milk fat, milk proteins, and water. Butter contains a minimum of 80% fat and is widely used in baking and cooking, and as a flavor enhancer for a variety of dishes.

Additional Information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per unit (unit refers to kilogram), sales channels. The market encompasses retail sales through both online and offline sales channels to private end customers (B2C). The market only covers at-home consumption; out-of-home consumption is not included.

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Salted butter
Unsalted butter
Cultured butter
Light butter
Flavored butter

Margarine
Vegetable oils
Other animal fats (e.g. lard)
Clarified butter (Ghee)
Peanut butter
Out-of-home consumption

The Butter Market within the Oils & Fats sector in Armenia is experiencing minimal growth, influenced by factors such as fluctuating dairy prices, changing consumer preferences towards healthier alternatives, and the economic challenges faced by local producers.

Customer preferences: Consumers in Armenia are increasingly gravitating towards plant-based alternatives and healthier spreads, reflecting a broader shift in dietary preferences influenced by global wellness trends. This change is driven by a growing awareness of health issues linked to saturated fats and cholesterol, particularly among younger demographics. Additionally, urbanization and busy lifestyles are prompting a demand for convenient, ready-to-use products that align with health-conscious choices. As a result, traditional butter consumption is declining, prompting local producers to innovate and diversify their offerings.

Trends in the market: In Armenia, the Butter Market within the Oils & Fats sector is experiencing a notable shift towards healthier and plant-based alternatives as consumers become more health-conscious. This trend is largely influenced by increased awareness of the adverse effects of saturated fats and cholesterol, particularly among younger populations. Urbanization is driving demand for convenient, ready-to-use spreads that align with modern lifestyles. As traditional butter sales decline, local producers are responding by innovating and diversifying their product lines, which may lead to new market opportunities and competitive strategies for industry stakeholders.

Local special circumstances: In Armenia, the Butter Market within the Oils & Fats sector is shaped by unique cultural preferences and traditional culinary practices that emphasize the use of dairy products. The country's rich agricultural heritage, particularly in dairy farming, influences consumer loyalty to local butter brands. However, regulatory changes promoting health and nutrition are encouraging the introduction of low-fat and plant-based alternatives. Additionally, the rise of urban lifestyles is fostering demand for innovative, convenient butter substitutes, driving local producers to adapt their offerings and explore new market avenues.

Underlying macroeconomic factors: The Butter Market within the Oils & Fats sector in Armenia is significantly influenced by macroeconomic factors such as the overall economic stability, inflation rates, and consumer purchasing power. The country's economic growth, driven by agricultural advancements and a focus on local production, supports the demand for traditional butter products. However, global economic trends, such as fluctuating dairy prices and trade policies, also impact market dynamics. Additionally, government fiscal policies aimed at promoting health and nutrition are pushing for the development of lower-fat and alternative butter options, reflecting a shift in consumer preferences influenced by health awareness and urbanization.

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.