The market for butter - Germany

1.1 Introduction

The butter market is a segment of the dairy industry that focuses on the production, distribution and sale of butter. This market is divided into different products classified by their fat content, production methods(traditional butter, industrial butter) and product types(sweet cream butter, semi-salted butter, salted butter). Butter can be used as a natural preservative for certain foods because its high fat content prevents bacterial growth.

The global butter market has grown steadily in recent years, with a CAGR of 3%. Europe is the largest producer and consumer of butter, accounting for nearly 45% of global production. Butter prices fluctuate widely and are significantly influenced by raw material costs such as milk, as well as supply chain disruptions that can lead to butter shortages in supermarkets.

The German butter market is one of the key sectors of the national dairy industry. In fact, Germany is the second largest butter producer in Europe after France, with a production of nearly 600,000 tons per year. In Germany, the per capita consumption of butter in 2022 was almost 7 kg, a slight increase compared to previous years. German consumers attach importance to quality and, in particular, to the origin of the milk used for butter production.

• The largest German milk producer is DMK (Deutsche Milchkontor).
• The family-owned company Meggle, which specializes in the production of butter and various dairy products, is also enjoying growing popularity.

Animal welfare and ethical production methods are gaining popularity among German consumers overall, bringing changes in requirements and expectations in this market. Low fat products and those with environmentally responsible labels will be the first to be able to respond to this changing demand.