Ghee Market Size, Share & Industry Analysis, By Type (Cow Ghee, Buffalo Ghee, Others), By Application (Industrial, Household) and Regional Forecast, 2024-2032

Ghee or clarified butter is a dairy product produced by heating milk, cream, or butter until complete evaporation of water and the removal of non-fat solids. The removal of non-fat solids from ghee allows it to be a lactose-free dairy product. Ghee is a traditional dairy product from the Middle East and Asia, especially India, where it is very popular due to its use in Ayurveda medicine. Nonetheless, in the last few years, the use and consumption of ghee have increased around the world.

The increasing popularity of the ghee due to the health benefits that have been granted by Ayurveda medicine is anticipated to drive the global market of ghee. Ghee is recommended as a healthy food by fitness studios, yoga centers, and doctors. Moreover, the increasing popularity of ghee as a superfood is expected to strongly attract the attention of consumers and dairy products manufacturers towards ghee. The players operating in the ghee market are embarking upon the innovation and new product launches to increase their footprint in the market. For instance, in August 2019, Akiva Superfoods launched flavored ghee in the Indian market. The product is available in two different flavors i.e. Vanilla and Garlic & Herbs.

The increasing popularity of ghee across the globe due to its unique flavor and taste is expected to drive the global market of ghee. Ghee is a carrier of fat-soluble vitamins including A, D, E, and K, which are essential for human body and perform many essential functions. Similarly, the essential fatty acids, which cannot be synthesized in the human body, are also supplied by ghee. The increasing demand for pure fat from consumers is anticipated to drive the global ghee market. Furthermore, Ghee is the best cooking oil with its great aroma, flavor, and several healing properties. Ghee can be easily used for sautéing, stir-frying, and deep-frying due to its high smoking point. Ghee enhances food quality and taste and adds a unique flavor to it. Ghee has one of the highest flash points of all oils and is very difficult to burn. These are expected to be a favorable factors for market growth. Ghee is one of the great sources of conjugated linoleic acid and it also contains essential fatty acids. The moderate consumption of conjugated linoleic acid helps in fat loss, weight maintenance, and also retaining lean muscle mass, which is expected to boost the demand for ghee in forthcoming years. The several health benefits associated with ghee consumption such as it promotes weight loss, improves digestion and eyesight, soothes inflammation, strengthens immunity and bones, cures cough, relieves constipation, and cures thyroid dysfunction are predicted boost the demand for ghee worldwide. Furthermore, the increasing production of milk (raw material for ghee) worldwide is predicted to boost the production of ghee. For instance, according to the Food and Agriculture Organization (FAO), world milk production has been increased by 1.46% from 800.2 million tonnes in 2016 to 811.9 million tonnes in 2017.

Key Market Driver -

Rising Popularity of Ghee Worldwide

Key Market Restraint -

High Price of the Product

The high price of the ghee compared to normal cooking oils is anticipated to hamper the market growth. The rising consumer shift towards a vegan diet and low-fat diet is also anticipated to restrain the market growth in forthcoming years.

Key Players Covered:

The prominent players operating in the global ghee market are, Amul, Britania Industries Ltd., Milkfood Limited, Madhusudan Ghee, Karnataka Milk Federation, Nestle S. A., Verka, Parag Milk Foods, RSD Group, VRS Foods, and Others.

Cow ghee is anticipated to witness robust growth in the global ghee market followed by buffalo ghee. Cow ghee has less fat content compared to buffalo ghee which is anticipated to boost the demand for cow ghee. The moderate consumption of cow ghee helps in weight management and to maintain a healthy heart. Cow ghee is a rich source of calcium, vitamin, and protein which is predicted to boost the demand for cow ghee. Moreover, the increasing popularity of buffalo ghee among consumers due to its various health benefits is anticipated to leverage the sale of buffalo ghee positively.

The industrial application of ghee is anticipated to hold a significant share in the global ghee market. The increasing number of traditional restaurants worldwide is anticipated to boost the demand for ghee from hotels and restaurants. The unique taste and flavor offered by ghee and its high smoking point are some of the major factors attributed to the increasing utilization of ghee from various restaurants and hotels.

Regional Analysis:

Asia Pacific is anticipated to hold a prominent share in the global ghee market owing to the abundant production of raw material i.e. milk. According to the Department of Animal Husbandry and Dairying, India, milk production in India during the period 1950-51 to 2017-18, has increased from 17 million tonnes to 176.4 million tonnes as compared to 165.4 million tonnes during 2016-17 recording a growth of 6.65 %. Moreover, increasing awareness about the health benefits of ghee consumption within Asian consumers is expected to drive the market within Asia Pacific. The presence of prominent market players coupled with the ease of product availability is anticipated to drive the market within the region.

North America is predicted to witness steady growth in the global market of ghee. The increasing demand for healthy food and good fat among Americans is anticipated to leverage the sale of ghee within the region. The increasing consciousness over health and wellness among Americans is predicted to further propel the market growth. The ease of product availability on various e-commerce platforms is also expected to boost the sale of ghee within the region. 

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Segmentation

Key Industry Developments:

• In September 2019, Amul, announced the launch of dairy, milk, ghee and other items in smaller pack sizes to meet rural demand.


• In February 2019, Mother Dairy Fruit & Vegetable Pvt. Ltd., announced the launch of Khaanti Ghee, a traditional East Indian Delicacy, for consumers across the city of Kolkata.