Buttermilk Market To Surpass USD 56.2 Bn by 2034

Overview

New York, NY – May 30, 2025 – The Global Buttermilk Market is growing fast, driven by rising demand for healthy and natural dairy products. In 2024, the market was valued at USD 36.9 billion, and it is expected to reach USD 56.2 billion by 2034, growing at a CAGR of 4.3%.

In 2024, Liquid Buttermilk secured a commanding market share of over 65.9%, fueled by its widespread use in bakery and confectionery products. Conventional Buttermilk dominated the market in 2024, holding an 84.1% share due to its affordability and widespread availability.

Supermarkets and Hypermarkets led the buttermilk market in 2024, capturing a 53.5% share. Their dominance stems from offering a wide range of products, strategic shelf placements, and promotional deals that encourage bulk and impulse purchases.

US Tariff Impact on Buttermilk Market

At Half Full Dairy in upstate New York, AJ Wormuth manages a herd of 3,600 dairy cattle amid challenges stemming from President Donald Trump’s recent trade policies. The implementation of 20% tariffs on Chinese imports and 25% tariffs on automobiles, steel, and aluminum has significantly increased operational costs. For instance, a planned barn renovation now faces inflated metal stall prices, rising from USD 85,000 to USD 106,000. These rising expenses are squeezing the farm’s budget, making it harder to maintain profitability in an already demanding industry.

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Further complicating matters, the threat of a broader trade war looms large, with Trump announcing potential 25% tariffs on Mexican and Canadian goods set to take effect on April 2, 2025. These policies are driving down milk prices, creating a dual financial burden for Wormuth. The combination of higher costs for essential materials and lower revenue from milk sales is creating a precarious situation, threatening the farm’s economic stability and its ability to plan for the future.

The dairy industry’s reliance on immigrant labor adds another layer of complexity to Wormuth’s challenges. According to the National Milk Producers Federation, 79% of US milk production depends on immigrant workers who endure long hours, early mornings, and harsh weather conditions year-round. Potential disruptions from trade policies could intensify labor shortages and further increase costs, amplifying the industry’s struggles. For farms like Half Full Dairy, this “double whammy” of rising expenses and declining income underscores the broader impact of trade policies on agricultural operations.

Key Takeaways

• Buttermilk Market size is expected to be worth around USD 56.2 billion by 2034, from USD 36.9 billion in 2024, growing at a CAGR of 4.3%.
• Liquid Buttermilk held a dominant market position, capturing more than a 65.9% share.
• Conventional Buttermilk held a dominant market position, capturing more than an 84.1% share.
• Supermarkets and Hypermarkets held a dominant market position, capturing more than a 53.5% share.
• Asia-Pacific (APAC) region emerged as the dominant market for buttermilk, capturing a significant 42.8% share valued at USD 15.7 billion.

Report Scope

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Key Market Segments

By Type

• In 2024, Liquid Buttermilk secured a commanding market share of over 65.9%, fueled by its widespread use in bakery and confectionery products. Growing consumer demand for healthier, low-fat dairy options has significantly driven the segment’s growth. The rising popularity of traditional dairy beverages, valued for their probiotic and nutritional content, has further solidified their dominance. This trend is particularly strong in regions with robust dairy processing sectors, where liquid buttermilk is increasingly incorporated into functional foods and beverages.

By Nature

• Conventional Buttermilk dominated the market in 2024, holding an 84.1% share due to its affordability and widespread availability. As a key ingredient in baked goods, confectioneries, and ready-to-drink beverages, it remains a staple in both commercial and household settings. Established distribution networks and steady demand for traditional dairy products continue to support its strong market presence. With manufacturers prioritizing cost-effectiveness and quality, conventional buttermilk is expected to maintain its leading position through 2025, driven by its expanding applications across culinary uses.

By Application

• Supermarkets and Hypermarkets led the buttermilk market in 2024, capturing a 53.5% share. Their dominance stems from offering a wide range of products, strategic shelf placements, and promotional deals that encourage bulk and impulse purchases. Consumers favor these outlets for their convenience, access to both branded and private-label buttermilk, and diverse packaging options. As supermarkets and hypermarkets expand into urban and semi-urban areas, the segment is poised to sustain its dominance, supported by growing consumer demand for dairy-based beverages and evolving purchasing habits.

Regional Analysis

• The Asia-Pacific (APAC) region held a leading 42.8% share of the buttermilk market, valued at USD 15.7 billion. This dominance is driven by high demand for dairy products in countries like India, China, and Japan. India, the world’s largest milk producer with 209.9 million metric tons in 2024 (per the FAO), significantly contributes to the buttermilk market, fueled by growing consumption of traditional dairy beverages and health-conscious trends.
• In China, urban consumers are increasingly drawn to functional dairy beverages for their nutritional and probiotic benefits. Japan’s aging population further boosts demand for fermented dairy products like buttermilk, valued for supporting digestive health and immunity. The region benefits from advanced dairy processing facilities, supportive government initiatives, and improved cold chain logistics in countries like Australia and New Zealand, ensuring a steady supply and enhanced distribution of buttermilk products.

Top Use Cases

• Bakery and Confectionery: Buttermilk is widely used in baking to add moisture and a tangy flavor to products like cakes, muffins, and biscuits. Its acidity helps activate baking soda, creating light, fluffy textures. In 2024, its use in healthier, low-fat baked goods grew, appealing to consumers seeking nutritious yet tasty options.
• Dairy-Based Beverages: Buttermilk is a popular base for ready-to-drink beverages, especially traditional and probiotic-rich drinks. Its tangy taste and nutritional benefits, like calcium and protein, make it a hit in markets like India and China. Flavored and fortified variants are gaining traction among health-conscious urban consumers.
• Functional Foods: Buttermilk is increasingly used in functional foods due to its probiotic content, supporting gut health and immunity. In 2024, manufacturers added it to health-focused products like smoothies and nutrition bars, targeting consumers seeking natural, nutrient-dense options, particularly in the Asia-Pacific region.
• Culinary Ingredient: Buttermilk is a staple in home and commercial kitchens for dishes like pancakes, marinades, and dressings. Its tangy flavor and tenderizing properties enhance recipes. In 2024, its use in global cuisines grew, driven by demand for authentic, traditional flavors in both restaurants and households.
• Fermented Dairy Products: Buttermilk is a key ingredient in fermented dairy products like yogurt and cheese, valued for its natural cultures. In 2024, its use in Japan and other markets rose due to demand for digestive health products. Its versatility makes it a go-to choice for innovative dairy offerings.

Recent Developments

1. Arla Foods

• Arla Foods has introduced a new low-fat buttermilk variant under its “Arla A38” brand, targeting health-conscious consumers in Europe. The product is rich in probiotics and designed for baking and smoothies. Arla is also promoting sustainable packaging for its buttermilk line.

2. Fonterra

• Fonterra has expanded its buttermilk powder production in New Zealand to meet global demand, particularly in the bakery and confectionery sectors. The company emphasizes clean-label, non-GMO buttermilk ingredients for food manufacturers.

3. Valley Milk

• Valley Milk has launched a new organic buttermilk line in the U.S., catering to the growing demand for natural and organic dairy products. The product is sourced from pasture-raised cows.

4. Nova Dairy

• Nova Dairy has introduced flavored buttermilk variants (mint, mango) in India, targeting the refreshment beverage market. The company is also investing in extended shelf-life technology for buttermilk.

5. Land O’Lakes, Inc.

• Land O’Lakes has enhanced its buttermilk offerings with a “cultured buttermilk” line, emphasizing traditional fermentation methods. The company is also focusing on sustainable dairy farming practices.

Conclusion

The Buttermilk Market in 2024 demonstrated strong growth, driven by the dominance of liquid buttermilk, conventional variants, and robust distribution through supermarkets and hypermarkets. The Asia-Pacific region, particularly India, China, and Japan, led the market due to high demand for dairy-based, health-focused products. With consumers increasingly seeking affordable, nutritious, and probiotic-rich options, the buttermilk market is set to continue its upward trajectory through 2025, supported by innovation in product offerings and expanding retail and processing infrastructure.

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