Butter - Mongolia | Statista Market Forecast

Revenue in the Butter market amounts to US$8.33m in 2024. The market is expected to grow annually by 14.28% (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$2.38 are generated in 2024.
In the Butter market, volume is expected to amount to 538.00k kg by 2029. The Butter market is expected to show a volume growth of 5.8% in 2025.0.
The average volume per person in the Butter market is expected to amount to 0.11kg 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 in Mongolia is experiencing steady growth, fueled by factors such as changing consumer preferences, increased demand for dairy products, and the expanding food industry, which enhances the availability and variety of butter options.

Customer preferences: In Mongolia, consumers are increasingly prioritizing natural and organic food options, leading to a rising demand for high-quality butter made from grass-fed cows. This shift is influenced by a growing awareness of health and nutrition among the younger population, who are more inclined to seek out locally sourced dairy products. Additionally, urbanization and busy lifestyles are prompting a preference for versatile butter varieties, such as those infused with herbs or spices, catering to both traditional and contemporary culinary practices.

Trends in the market: In Mongolia, the Butter Market within the Oils & Fats sector is experiencing a notable shift towards premium, organic butter products sourced from grass-fed cows. This trend is primarily driven by a health-conscious younger demographic that prioritizes nutrition and sustainability, leading to a surge in demand for locally produced dairy items. Furthermore, the increasing urbanization and fast-paced lifestyles are fostering interest in innovative butter varieties, such as herb-infused options, which appeal to both traditional and modern culinary preferences. These evolving consumer behaviors signify a potential opportunity for local dairy producers and entrepreneurs to enhance product offerings and tap into the growing market for high-quality, versatile butter.

Local special circumstances: In Mongolia, the Butter Market within the Oils & Fats sector is shaped by unique local factors such as its nomadic culture and vast pastures that support free-ranging livestock. The traditional practice of dairy farming enhances the authenticity and quality of local butter, attracting consumers who value heritage and craftsmanship. Additionally, regulatory frameworks promoting organic farming bolster the rise of premium butter products. These elements create a distinct market dynamic, fostering a strong preference for natural, locally-sourced dairy and presenting opportunities for innovative product development among local producers.

Underlying macroeconomic factors: The Butter Market within the Oils & Fats sector in Mongolia is significantly influenced by macroeconomic factors such as agricultural productivity, consumer income levels, and global dairy price trends. As the national economy gradually stabilizes, increased disposable income allows consumers to prioritize quality and authenticity in their food choices, driving demand for premium butter products. Furthermore, global fluctuations in dairy prices impact local production costs, affecting pricing strategies. Additionally, supportive fiscal policies and investments in agricultural infrastructure enhance the capabilities of local dairy farmers, promoting sustainable practices that align with rising consumer interest in organic and locally-sourced products.

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.