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Buttermilk is perceived as a healthy beverage owing to its probiotic content, which is believed to aid digestion and boost the immune system. The product contains milk, water, milk proteins, and sugar lactose and is known to be a rich source of calcium, potassium, probiotics, and other essential nutrients. It helps improve digestive health, strengthens bones and teeth, regulates blood pressure, and prevents dehydration. Thus, the rising health awareness related to buttermilk has led to growing applications in various food and beverage products. According to the National Library of Medicine, U.S., buttermilk is known to have received increased interest in nutrition research and food science and helped develop products with health-promoting properties and increased nutritional value.
Buttermilk is a perfect substitute for skimmed milk in various food applications due to its similar functional properties, such as thickening and binding. With rising health concerns and a growing lactose-intolerant population, the demand for buttermilk is expected to grow in the forecast period. The growing need for buttermilk led manufacturers to launch innovative products. For instance, in March 2023, Heritage Foods Ltd., one of the largest private sector dairy enterprises in Hyderabad, India, launched a new range of Buttermilk products under the brand name `A-One.' The new product is a low-calorie natural refreshment drink made by fermenting Heritage milk, extracts of green chilies, and ginger.
The report covers the following key insights:
By Type | By Nature | By Application | By Geography |
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By type, the market is divided into liquid buttermilk and buttermilk powder. The liquid buttermilk segment is anticipated to hold a major share of the global market over the forecast period. Several consumers prefer the fresh taste and texture of liquid buttermilk, especially for drinking or using in marinades or salads. Liquid buttermilk plays a crucial role in baking, adding moisture, tenderness, and a slight tang to baked goods. Moreover, consumers are increasingly drawn to the perceived health benefits of buttermilk, particularly its probiotic content. Probiotics are believed to aid digestion, boost the immune system, and potentially offer other health advantages.
The buttermilk powder segment is expected to grow considerably over the forecast period. Buttermilk powder offers great convenience as it has a longer shelf life. It is a versatile ingredient used in a variety of processed food products such as bakery products, dips, snacks, and others. The rising demand for convenient and processed food products is expected to propel the growth of the buttermilk powder market.
By nature, the market is divided into organic and conventional. The conventional segment is anticipated to hold a major share of the global market over the forecast period. The conventional segment refers to buttermilk produced using traditional methods, typically involving churning cream or culturing milk with bacteria. It's generally less expensive than organic buttermilk.
The organic segment is projected to grow at a high CAGR over the forecast period. Consumers are increasingly interested in products perceived as natural and healthy. Organic buttermilk aligns with this trend as it is produced from cow milk and is not treated with antibiotics or growth hormones. Organic products often carry a premium image, and buttermilk is also thus gaining attention. This trend is attracting consumers who are willing to pay a bit more for what they perceive as a high-quality product.
By application, the market is divided into confectionery, ice cream, bakery and pastry products, soups, dressings and dips, and others. The bakery and pastry products segment is expected to hold a major share of the global market over the forecast period. Buttermilk enhances the overall flavor and texture of breads, cakes, pastries, and other baked goods. Buttermilk also helps slightly extend the shelf life of baked products by keeping them moist and preventing them from drying out quickly.
The confectionery segment is expected to grow significantly in the forecast period. Buttermilk adds a tangy and creamy texture to confections, enhancing the overall flavor profile and creating a richer mouthfeel. Moreover, compared to traditional ingredients such as butter or cream, buttermilk can be perceived as a healthier option due to its lower fat content and the presence of probiotics.
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The global market is geographically segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Asia Pacific is expected to account for the largest proportion of the global buttermilk market over the forecast period. The region is home to the world’s largest milk producers, such as India, which makes a readily available supply of raw materials for buttermilk production. Consumers in cities tend to consume more processed foods, which often contain buttermilk powder as an ingredient fueling the market growth.
Europe is anticipated to expand with a significant growth rate during the forecast period. Europe has a well-established dairy industry with a long history of consuming fermented dairy products such as buttermilk. Countries such as Germany, the U.K., and France are significant consumers of buttermilk in the region. According to the German Federal Office for Agriculture and Food (BLE), Germany produced 2.740 tons of buttermilk powder in 2020. Buttermilk consumption in the country spikes during the summer months owing to its cool and tangy taste, further fueling its demand in the region.
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