Butter - South Africa | Statista Market Forecast

Revenue in the Butter market amounts to US$53.61m in 2024. The market is expected to grow annually by 10.22% (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$0.88 are generated in 2024.
In the Butter market, volume is expected to amount to 5.36m kg by 2029. The Butter market is expected to show a volume growth of 6.1% in 2025.0.
The average volume per person in the Butter market is expected to amount to 0.07kg 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 Market in South Africa is experiencing subdued growth, influenced by factors such as fluctuating dairy prices, changing consumer preferences towards healthier alternatives, and economic challenges affecting purchasing power.

Customer preferences: Consumers in South Africa are increasingly gravitating towards plant-based alternatives, driven by health consciousness and environmental concerns, which is impacting the traditional butter market. The rise of veganism and flexitarian diets, particularly among younger demographics, has led to a notable demand for margarine and nut-based spreads. Additionally, urbanization and busy lifestyles are prompting a preference for convenient, ready-to-use products that align with health trends, reshaping the landscape of fats and oils in The Food market.

Trends in the market: In South Africa, the butter market within the oils and fats sector is experiencing a significant shift as consumers increasingly favor plant-based alternatives. This trend is fueled by a growing awareness of health issues and environmental sustainability, prompting many to adopt vegan and flexitarian diets. As a result, there is heightened demand for margarine and nut-based spreads, especially among younger consumers. Additionally, urban lifestyles are driving the popularity of convenient, health-oriented products, compelling industry stakeholders to innovate and adapt their offerings to remain competitive in this evolving market landscape.

Local special circumstances: In South Africa, the butter market within the oils and fats sector is influenced by unique local factors, including a rich cultural heritage that emphasizes traditional dairy products, yet is increasingly intersecting with modern health trends. The diverse culinary landscape encourages the incorporation of both local and international flavors, driving innovation in butter alternatives. Additionally, regulatory frameworks promoting sustainable practices are reshaping consumer preferences, steering them toward eco-friendly options. Urbanization and a youthful demographic further amplify the demand for convenient, plant-based spreads, creating a dynamic market environment.

Underlying macroeconomic factors: The butter market in South Africa is significantly shaped by macroeconomic factors such as national economic stability, consumer purchasing power, and global dairy trends. The country's economic health, characterized by fluctuating inflation rates and unemployment levels, directly impacts disposable income and, consequently, spending on premium dairy products. Additionally, fiscal policies promoting local agriculture encourage investment in sustainable dairy practices, fostering innovation in butter alternatives. Global supply chain dynamics, influenced by trade agreements and international pricing, further affect local butter prices, shaping consumer choices in a competitive landscape driven by both tradition and modern dietary preferences.

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.