The butter market - Italy (2024)

1.2 The global market

The size of the global butter market reached about $**.** billion in ****. The market is expected to grow at a CAGR of *.** percent between **** and ****, reaching a value of about $**.** billion by ****.

Among the different types of butter available worldwide, salted butter holds an important part of the global butter market share. This can be largely attributed to its widespread acceptance and popularity among consumers worldwide.salted butter is commonly found in retail stores and food service establishments, usually packaged for convenience. One of the advantages of salted butter is its longer shelf life compared to unsalted varieties, making it easier to store. In addition, the addition of salt not only enhances the flavor but also contributes to the overall texture of the butter.

Global Butter Market World, ****-****, in billions of dollars expertmarketresearch.com

Regional Insights

In the global butter market, theAsia-Pacific region accounts for the highest revenue share, with a value of about ** percent of the market. This is due to the high population, to which India and China mainly contribute. In addition, high consumption of fast food, baked goods and other processed items stimulate demand for butter. The region is expected to see importaant growth from ****-**** due to ...

1.3 The Italian market

The Italian butter market showed a slight decline in ****, stabilizing at a similar value to the previous year. Butter production in Italy followed a similar trend, with a modest decrease in **** from the peak reached in ****.

Looking at the graph, it can be seen that butter production undergoes an increase in the first two quarters of ****, surpassing the levels of ****, not a very good year for the dairy industry. However, in the third quarter, production volumes fall again.

In addition, cow's milk deliveries in Italy continue to remain below last year's levels and, according to Agea data, the decline recorded in the first four months of **** is -*.* percent. The cautious attitude of breeders has still been influenced by the high level of raw material costs in the spring months, and the weather situation of the current summer -- with prolonged heat waves in June and July -- does not suggest any change of course.

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Butter production Italy, January **** - August ****, thousands of tons esploradati.istat.it

1.4 Import-Export

Regarding trade, data regarding imports and exports refer to HS code:**** - Butter and other fats and oils derived from milk.

Italy is predominantly an exporter of these products, however, in some periods there were discrete increases in exports against smaller increases in imports. The highest coverage ratio was in ****; thereafter there was a major increase in imports in **** (***), probably also due to lower domestic supply in the face of a general increase in supply chain costs.

Import-Export of butter and other milk-derived oils and fats Italy, ****-****, in millions of dollars comtradeplus.un.org

The main countries supplying butter and other similar fats to Italy are the Netherlands and Belgium, which together account for about ** percent of the total import in monetary value. They are followed by Spain, with a significant share of ** percent, and right behind Germany (***).

Main suppliers of butter and other fats and oils derived from milk Italy, ****, in millions of dollars comtradeplus.un.org

The main destinations of butter and similar exports from Italy are Belgium, Spain and Germany, which together account for ** percent of total exports. Next are Greece andAustria, both with a *% share.

Main export destinations for butter and other fats and oils derived ...

1.5 Impact of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict and the resulting inflation had a significant impact on the dairy industry and thus, also on the butter market.

In the face of shrinking supply andrising production costs there has been an equally extraordinary increase in the price of milk, which has continued to rise also driven by rising prices for processed products, especially butter and low-fat powders. According to the Commission's estimates, the average EU milk price continued to rise for September deliveries to a record ** euros/*** kg (***). Also driving the value of milk was thesoaring prices of butter and low-fat powders.

As for the market of major commodities, after the spring peak, the upward race of prices seems to have come to a halt as a result of less pressure from global demand. To be considered, however, overall prices remain at levels well above those of the previous year. Stabilization also in the butter market, with prices settling around *** euros/*** kg and changes compared to last year of more than ** percent: at the global level, in fact, lower Chinese demand (***).

Average farmgate milk price Europe, January **** - September ****, euros/***kg ismeamercati.it

Price increases affected the entire food sector, but the case of ...

2.1 Demand in Italy

Istat's latest findings show a sharp decline in inflation from +*.* percent in May to +*.* percent in June, mainly as a result of falling energy goods prices. The level of inflation remains high, however, as prices of products in the so-called "shopping cart" continue to grow by +**.* percent in June, mainly driven by fresh food. Consumer demand is significantly depressed, and in the first six months of ****, even for milk and dairy products, trends are significantly more pronounced than they were a year ago. In detail, according to data from the NilesenIQ panel, household spending on da iry products--of which more than ** percent is cheese--is up **.* percent in the first six months of ****, against a -*.* percent reduction in quantities.

Faced with rising prices and a generalized loss of purchasing power, reducing the quantities purchased seems to be the prevailing attitude of Italian households; this is compounded by the search for convenience, resulting in brand disloyalty and nomadism between channels.

Regarding the butter product more specifically, the trend in average monthly household spending from **** to **** can be observed. Since ****, spending has been on a mostly upward trend, except for the year ****. Based on the assumptions about the demand for dairy products, it ...

2.2 Demand drivers

Factors that can stimulate demand for butter are diverse, the main ones are listed below.

Food trends: culinary globalization has led to the fusion of flavors and ingredients from around the world. Butter has become a canvas for such global inspirations, with producers and chefs experimenting with flavors that reflect different cuisines. These trends often lead to the addition of spices, herbs, and even other ingredients in dairy products. Fusion cuisine can also lead to innovative uses of butter. Its inclusion in Asian cuisine, for example, can increase its market demand.

Health and Wellness: the perception of butter as a natural product compared to other alternatives, such as margarine. The current trend toward valuing natural components has led to an increase in the popularity of dairy products, including butter, that contain no additives.

Economic conditions and raw material prices: fluctuations in the cost of milk and other ingredients can affect the price of butter and thus, the relative demand for it.

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2.3 The geographical distribution of demand

Based on Istat data, the average monthly household expenditure concerning the item: butter and other oils and fats derived from milk, broken down by macroregion, is shown.

The value of expenditure is highest in northern areas (***), there may be slight price differences for some products, however, it is likely that the expenditure is also higher due to a greater use of butter in northern Italian cuisine, rather than in Mediterranean cuisine. The second highest value is in the Central areas, and finally, there is Southern Italy with an average monthly expenditure of *.**€.

3.1 The market structure

The analysis of the butter market structure is carried out on the basis of data belonging to the category related to ATECO code **.**.* (***). Specifically, three different quantities are considered: number of active enterprises, number of employees, legal form of enterprises.

Looking at the number of active enterprises in the sector from **** to ****, there is a gradual decrease in the number of companies carrying out these activities in Italy. In ****, enterprises decreased by **% compared to ****.

Number of enterprises ATECO code ***** Italy, ****-****, in number istat.it

Regarding the type of enterprises, the legal form of the limited liability company prevails, which is adopted by ** percent of enterprises. This form is certainly suitable for fairly structured contexts such as corporate realities. Immediately after in terms of relevance is the form of sole proprietor/freelancer/self-employed (***).

Legal form enterprises ATECO code ***** Italy, ****, % istat.it

As for the average number of employees, although they decreased in the years ****-****, they are increasing again in **** (***). In the face of a decrease in the number of enterprises examined earlier, it can be assumed that there is a greater concentration of the market, where there are fewer enterprises, but with a higher number of employees.

Number of employees ...

3.2 The value chain

The value chain of butter production includes several stages, which are summarized in the following image.

3.3 Distribution

The prevailing attitude of households detected by Ismea Markets is that of seeking convenience, resulting in brand disloyalty and nomadism between channels, in addition to a generalized reduction in volumes purchased.

The prevailing sales channel by volumes purchased of milk and dairy products remains the Supermarket (***), which accounts for more than */* of preferences, but is the purchase channel with the greatest regression in volumes compared to last year.

Domestic purchases of milk and dairy products by sales channel (***) Italy, *st half ****, % ismeamercati.it

3.4 The main actors

The following are the main companies active in the dairy sector in Italy, referable to ATECO code **.**.*(***) and whose activity includes the production of butter.

Egidio Galbani s.r.l: a well-known Italian dairy company specializing in the production of a wide range of dairy products. Founded by Egidio Galbani, the company has a long history and a solid reputation for the quality of its products. it is particularly famous for some of its cheeses, such as Galbanino and Bel Paese. Galbani is recognized for its tradition in Italian dairy products, maintaining a balance between artisanal production methods and technological innovations.

Latteria Soresina: an Italian company specializing in the production of dairy products. Founded in **** in Soresina, Lombardy, the company is renowned for producing high-quality cheeses, including Grana Padano and Provolone Valpadana. With a history spanning more than a century, Latteria Soresina is committed to maintaining the high quality and authenticity of its products, combining tradition and innovation. it is considered one of the leading dairy cooperatives in Italy, with a strong commitment to sustainability and traceability of its products.

Colla s.p.a: an Italian company specializing in the production of cheese and other dairy products. Founded in Reggio Emilia, ...

4.1 Supply analysis

Butter is one of the most popular dairy products produced by churning cream or milk. The process is carried out by mechanically stirring the cream, causing the fat molecules to clump together and form butter. The remaining liquid is called buttermilk. The resulting butter is then generally washed and kneaded to remove excess liquid and improve consistency.

Butter consists mainly of butterfat, water and milk protein. The standard composition of butter is about ** percent butterfat, with water and milk solids making up the remaining ** percent. Butter is high in saturated fat but also contains vitamins such as A, E and D. it is also a source of cholesterol and contains trace amounts of protein and carbohydrates.

Butter has been a staple food in many cultures for thousands of years. It has significant cultural importance in regions such as Europe and South Asia. Butter is an important product in the dairy industry.

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There are several types of butter derived from milk on the market:

Cooking butter--produced from the cream of milk and is known for its rich flavor and creamy texture, making it ideal for baking, frying, and adding a flavorful touch to a variety of dishes, from sauces to desserts ...

4.2 The prices

Following the price surge that took place in ****, there are currently the first signs of subsidence in relation to the dairy sector. Quotations in the first weeks of July confirm the downward trend, but market balance in the second half of the year will also depend on production trends.

With regard to butter in particular, a gradual normalization of price listsis confirmed, which in June **** stood at €*.**/kg for churned, marking a ** percent drop from the previous year's quotations.

The reduction in wholesale prices is evidently reflected in retail prices for end consumers. Looking at the graph below, this trend can be seen with regard to theconsumer price index for the collective.

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Butter Consumer Price Index [***] Italy, November **** - November ****, index numbers (***) istat.it

4.3 New supply trends

The future of artisanal butter

Artisan butter has always been a mainstay of traditional cuisine. Customization and experimentation are two key words concerning the future prospects of artisanal butter. More and more chefs and culinary enthusiasts are experimenting with artisan butter to create customized versions.

A rise in flavored butter, where butter is blended with a variety of herbs, spices, edible flowers and even superfoods, is expected to create a unique product that can add a special touch to any dish.

Another trend is the use of artisanal butter in molecular cooking. This branch of cooking focuses on the innovative use of ingredients to create dishes that challenge convention. Artisan butter, with its creamy texture and rich flavor, can be transformed into a variety of shapes and textures, such as foams, gels, or spheres, to surprise and delight diners.

Finally, the growing awareness of the importance of sustainable and ethical food production will have a significant impact on the future of artisan butter. Artisan butter producers are already moving in this direction, choosing to use only milk from organic farms, with respect for animal welfare.

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5.1 The legislation

Laws affecting butter, particularly in the European Union and Italy, can include several regulatory areas. The most important ones are listed below.

Definition of the product butter

As specified by Law No. *** of May **, ****, Butter is the product obtained from the cream obtained from cow's milk and to the product obtained from cow's whey, as well as from the mixture of the two indicated products, which meets specific chemical, physical and organoleptic requirements. Butter is formed as a result of the agglomeration of the fat globules of cream into a single mass by violent agitation or beating, undergone during the churning process.

EU regulations on dairy products

There are specific EU regulations that define the characteristics and quality standards for dairy products, including butter. For example, Regulation (***) No. ****/**** establishes rules on the common organization of markets in agricultural products and includes provisions on dairy products.

Labeling Regulations

EU legislation requires that all foods, including dairy products such as butter, be labeled with clear information on ingredients, allergens, expiration date, and origin. These rules are detailed in Regulation (***) No. ****/**** on food information to consumers.

Production Standards and Food Safety

EU and national laws include food safety and hygiene regulations to ensure that ...

6.1 Segmentation

• Galbani
• Latteria Soresina
• Colla SPA
• Ambrosi s.p.a
• Zarpellon s.p.a