U.S. Butter And Ghee Market - Key Findings And Insights

 
 
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WALNUT, Calif. - May 28, 2018 - PRLog -- U.S. Butter And Ghee Market - Key Findings And Insights

Consumption of butter and ghee remains flat for the second consecutive year

Butter and ghee market in the U.S. experienced an upward trend from 2007 to 2017, with mild fluctuations in certain years. According to the report "U.S. Butter And Ghee Market. Analysis And Forecast to 2025" recently published by IndexBox, the market volume reached its highest level of 852K tonnes in 2017, leveling off over the last two years. In wholesale prices, the market value dropped by 38% to $2,423B in 2017, due to price decrease. This figure reflects total revenue of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price).

Butter and ghee market is expected to reach 967K tonnes by 2025

Butter and ghee consumption in the U.S. increased gradually over the period under review on the backdrop of population growth, increasing production of bread, bakery and confectionery, as well as expanding food industry overall; improving logistics and transportation of frozen products also constitute the factors. On the other hand, stiff competition with substitute products like margarine constrains the market performance, especially in bread and bakery segment. Another restraint is increasing awareness of healthy food issues, which promotes reducing consumption of fats.

Overall, no radical changes are expected in consumption patterns with regard to butter; therefore, the butter and ghee market is expected to retain its current trend pattern and increase on average by +1.6% per year from 2018 to 2025, which should bring the market volume to 967K tonnes by 2025.

Production of butter and ghee  remains stable

U.S. butter and ghee manufacturing retained the level of the previous year, amounting to 840K tonnes in 2017. After reaching its highest level in 2013, production volume decreased marginally over the next four years. In value terms, production amounted to $2.3B in 2017, a 39% growth against the year before.

Only 5% of butter and ghee consumption was imported

Only 5% of butter consumption was buoyed by imported products, both in physical terms. This indicates that the U.S. dairy industry is fully capable to meet the domestic demand. The share of imports in the total consumption decreased slightly from its outset level of 8% in 2007.

Ireland emerged as the largest supplier of butter to the U.S.

The volume of total U.S. butter imports totalled 46K tonnes in 2017, increasing rapidly over the last year. In value terms, it equated $238M. Imports soared noticeably from 2014-2017, driven by increasing supplies of Irish butter; however, these volumes remain negligible in the whole market scale.

Thus, Ireland (23K tonnes) emerged as a key supplier of butter into the U.S., comprising approx. 47% of total U.S. imports in 2017 against 2% in 2007. Given that tangible growth, Ireland outstepped New Zealand in terms of the volume of imports: New Zealand now ranks second with 6.5K tonnes in 2017, which accounted for 14% of the total imports. The share of New Zealand decreased dramatically by -40 percentage points against 2007. Mexico (6.2K tonnes) constituted the third largest supplier of butter, with its share increasing from 1% in 2007 to 13% in 2017.

Canada remains the key foreign market for American butter

The U.S. exported 34K tonnes of butter in 2017, which equalled $139M; this number, however, accounted for only 4% of U.S. butter output. The volume of exports roller-coasted over the period under review, but over the last three years it had been increasing gradually after bottoming out in 2015.

In 2017, Canada (15K tonnes) constituted the main destination of U.S. butter exports, with the share of 43% of the total figure. Mexico (4K tonnes) remains the second major destination, with the share of 12%. From 2007-2017, the share exported to Canada increased (+39 percentage points), while the share sent to Mexico remained relatively unchanged. Outside these two leaders, American butter is being exported to Saudi Arabia, Korea, Egypt, Peru and other countries; all these supplies remain negligible and do not affect the market significantly.

Source: https://www.indexbox.io/store/united-states-of-america-butter-and-ghee-market-report-analysis-and-forecast-to-2025/

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