Butter - Uganda | Statista Market Forecast

Revenue in the Butter market amounts to US$32.12m in 2024. The market is expected to grow annually by 12.23% (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$0.64 are generated in 2024.
In the Butter market, volume is expected to amount to 3.20m kg by 2029. The Butter market is expected to show a volume growth of 7.3% in 2025.0.
The average volume per person in the Butter market is expected to amount to 0.05kg 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 Uganda is experiencing subdued growth, influenced by factors such as fluctuating dairy production, changing consumer preferences, and competition from alternative spreads, which impact overall market expansion.

Customer preferences: Consumers in Uganda are increasingly gravitating towards healthier and more diverse food options, which is reshaping the Butter Market within the Oils & Fats sector. There is a growing awareness of health and wellness, leading to a preference for spreads with lower saturated fat content and natural ingredients. Additionally, younger demographics are leaning towards plant-based alternatives, influenced by global trends and a desire for sustainable choices. This shift underscores a cultural move towards nutrition-conscious eating, impacting traditional butter consumption patterns.

Trends in the market: In Uganda, the Butter Market within the Oils & Fats sector is experiencing a notable transition as consumers increasingly opt for healthier alternatives. There is a marked shift towards spreads with reduced saturated fat and organic ingredients, driven by heightened health awareness. Concurrently, the popularity of plant-based options is surging, particularly among younger consumers who are motivated by sustainability and global dietary trends. This evolution is prompting traditional butter producers to innovate and diversify their offerings to remain competitive, influencing market dynamics and consumer choices significantly.

Local special circumstances: In Uganda, the Butter Market within the Oils & Fats sector is shaped by unique local factors that influence consumer preferences and industry practices. The country’s diverse agricultural landscape allows for the cultivation of various dairy products, creating a competitive environment for local butter producers. Cultural traditions emphasize the use of locally sourced ingredients, driving demand for natural and organic butter alternatives. Furthermore, regulatory frameworks promoting food safety and quality standards are encouraging producers to innovate, aligning with global health trends while catering to the local palate.

Underlying macroeconomic factors: The Butter Market within the Oils & Fats sector in Uganda is significantly influenced by macroeconomic factors such as national economic growth, trade policies, and consumer spending trends. As Uganda's economy continues to develop, increased disposable income allows consumers to prioritize quality dairy products, including butter. Moreover, global commodity prices impact local production costs, affecting pricing strategies for manufacturers. Favorable fiscal policies that support agricultural development and investments in dairy infrastructure also bolster the market. Additionally, shifting consumer preferences towards health-conscious eating, alongside a growing focus on sustainability, further drive demand for locally produced, organic butter options.

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.