Ghee Market To Reach USD 13.4 Bn by 2034 at 4.8% CAGR

Overview

New York, NY – April 21, 2025 – ​The global Ghee Market is witnessing steady growth, with its size projected to increase from USD 8.4 billion in 2024 to approximately USD 13.4 billion by 2034, reflecting a compound annual growth rate (CAGR) of 4.8% during the forecast period from 2025 to 2034.

The Asia-Pacific region led the global ghee market in 2024, holding a 46.4% share valued at USD 3.8 billion. This dominance is fueled by deep-rooted cultural and dietary traditions that position ghee as a key cooking fat. Countries like India, Bangladesh, and Sri Lanka drive significant consumption, with ghee integral to household cooking and religious rituals.

Cow Ghee dominates the Ghee Market in 2024, holding a 67.3% share. Its leadership stems from growing consumer demand for natural, traditional dairy products viewed as healthier alternatives to processed fats. Plastic containers lead ghee packaging with a 38.7% share. Their dominance is due to convenience, durability, and cost-effectiveness. The Direct Cream Method accounts for 41.2% of ghee production in 2024. Its efficiency and ability to deliver rich flavor and texture make it the preferred method.

Key Takeaways

• Global Ghee Market is expected to be worth around USD 13.4 billion by 2034, up from USD 8.4 billion in 2024, and grow at a CAGR of 4.8% from 2025 to 2034.
• In 2024, Cow Ghee led the ghee market by product type with a 67.3% share dominance.
• Plastic containers held the top spot in packaging type, accounting for 38.7% of total market usage.
• The Direct Cream Method emerged as the preferred production method, capturing 41.2% market share overall.
• Supermarkets and hypermarkets remained the leading sales channels, contributing 41.3% to ghee market distribution.
• Household consumption continues to dominate end-use in the ghee market with a strong 72.3% share.
• Strong cultural culinary traditions propel ghee’s popularity in the Asia-Pacific, securing 46.40% market.

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Analyst Viewpoint

Investment opportunities shine brightly, particularly in regions like Asia-Pacific, where ghee holds a cultural stronghold, commanding a 46.4% market share valued at USD 3.8 billion in 2024. India’s love for ghee in cooking and rituals fuels steady demand, while North America’s growing appetite driven of consumers following keto or lactose-free diets—opens doors for premium and organic ghee brands.

Small-scale producers can tap into e-commerce, with global consumers preferring online grocery shopping, offering a low-cost entry to reach health-conscious buyers. However, risks loom large. Fluctuating raw milk prices, squeeze margins, especially for smaller players. Geopolitical tensions in dairy-producing regions could disrupt supply chains, and competition from plant-based alternatives, threatens traditional ghee’s dominance.

Technological impact is reshaping production and sales. Automated cream separators and IoT-enabled storage boost efficiency, cutting waste for large manufacturers, but high setup costs deter smaller firms. E-commerce platforms using AI-driven ads increase sales conversions, leveling the playing field for new entrants.

Report Scope

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Key Market Segments

By Product Type Analysis

• Cow Ghee dominates the Ghee Market in 2024, holding a 67.3% share. Its leadership stems from growing consumer demand for natural, traditional dairy products viewed as healthier alternatives to processed fats. Cow Ghee’s versatility in culinary applications, especially in South Asian cuisines, drives its popularity. Health benefits, such as aiding digestion and reducing inflammation, boost its appeal in households and ayurvedic practices. Additionally, its digestibility makes it a preferred choice for lactose-intolerant consumers.

By Packaging Type Analysis

• Plastic containers lead ghee packaging with a 38.7% share. Their dominance is due to convenience, durability, and cost-effectiveness. Lightweight and less prone to breakage than glass, plastic containers reduce transportation costs and breakage risks. They offer excellent preservation, extending ghee’s shelf life, especially in warm climates. The versatility of plastic enables varied sizes and shapes, enhancing shelf appeal and consumer usability.

By Production Method Analysis

• The Direct Cream Method accounts for 41.2% of ghee production in 2024. Its efficiency and ability to deliver rich flavor and texture make it the preferred method. Aligned with traditional preparation techniques, it appeals to consumers valuing authenticity and nutritional quality. By simmering cream or full-fat milk, this method produces ghee with a nutty flavor and extended shelf life without preservatives, making it ideal for markets prioritizing purity.

By Distribution Channel Analysis

• Supermarkets and hypermarkets lead ghee distribution in 2024, capturing a 41.3% share. Their dominance is driven by the convenience of offering diverse ghee products under one roof, enabling easy brand and price comparisons. With extensive reach, these retailers enhance product visibility and accessibility, catering to varied consumer preferences, from premium to budget options. Strategic placement, in-store promotions, and loyalty programs further boost ghee sales.

By End-Use Analysis

• Households dominate ghee consumption in 2024, accounting for a 72.3% share. Ghee’s integral role in home cooking, particularly in cultures where it’s a staple, drives this trend. Valued for its rich flavor, high smoking point, and health benefits including butyric acid and vitamins A, D, E, and K ghee is versatile for sautéing, frying, and spreading.

Regional Analysis

• The Asia-Pacific region led the global ghee market in 2024, holding a 46.4% share valued at USD 3.8 billion. This dominance is fueled by deep-rooted cultural and dietary traditions that position ghee as a key cooking fat. Countries like India, Bangladesh, and Sri Lanka drive significant consumption, with ghee integral to household cooking and religious rituals.
• In North America, ghee demand is growing steadily, propelled by interest in lactose-free and ketogenic diets, where it serves as a healthier fat option. Europe is witnessing gradual market growth, driven by increasing awareness of traditional dairy products and the rising popularity of ethnic cuisines.
• The Middle East & Africa exhibit moderate demand, with ghee used in regional cuisines and festive occasions. Latin America shows emerging interest, particularly in urban areas influenced by global food trends. Across all regions, shifting consumer preferences toward health-conscious diets are shaping the ghee market’s evolution.

Top Use Cases

• Culinary Applications: Ghee is widely used in cooking due to its rich flavor and high smoke point. It enhances the taste of various dishes, from sautéed vegetables to baked goods. Its stability at high temperatures makes it ideal for frying and roasting, offering a healthier alternative to some other cooking fats.​
• Ayurvedic and Medicinal Uses: In Ayurveda, ghee is valued for its healing properties. It’s used in detoxification processes and as a carrier for herbal medicines, aiding in their absorption. Ghee is believed to balance bodily energies and support digestion, making it a staple in traditional wellness practices.​
• Skincare and Beauty: Ghee serves as a natural moisturizer, nourishing the skin deeply. Rich in fatty acids and vitamins, it helps in reducing dryness and promoting a healthy glow. Its antioxidant properties may also assist in slowing down skin aging and improving overall skin texture.​
• Industrial and Foodservice Use: In the food industry, ghee is utilized for its flavor and shelf stability. Restaurants and food manufacturers incorporate it into recipes to enhance taste and texture. Its long shelf life and resistance to spoilage make it a practical choice for large-scale culinary operations.​
• Nutritional Supplement: Ghee is consumed as a dietary supplement for its health benefits. It provides essential fatty acids and fat-soluble vitamins, supporting overall well-being. Incorporating ghee into the diet can aid in nutrient absorption and may contribute to improved energy levels and immune function.

Recent Developments

1. Nestlé S.A.

• Nestlé has been expanding its ghee portfolio under brands like Everyday and Milkmaid in South Asia, focusing on premiumization and health claims. The company is leveraging fortification (Vitamin A & D) to cater to nutrition-conscious consumers. Nestlé is also investing in sustainable dairy sourcing to enhance traceability.

2. Milkio Foods Limited

• Milkio, a New Zealand-based brand, is gaining traction with its grass-fed, organic ghee, targeting health-focused consumers in the US, EU, and India. Milkio emphasizes non-GMO, keto-friendly positioning, capitalizing on the global wellness trend. Its e-commerce growth surged YoY due to Amazon and specialty health stores.

3. KMG Milk Food Limited

• KMG, an Indian dairy player, launched A2 Bilona Ghee, made using traditional churning methods, to differentiate in a crowded market. The company is expanding exports to Middle East and Southeast Asia, Revenue boost in FY23-24. KMG is also adopting blockchain for supply chain transparency, appealing to quality-conscious buyers.

4. Amul (GCMMF)

• Amul, India’s largest dairy brand, continues to dominate the ghee market. It recently introduced “Amul Cow Ghee” in smaller, affordable packs to attract rural and lower-income consumers. The company is also pushing exports to the US and Australia, Amul’s strong distribution network keeps it ahead of rivals.

5. Britannia Industries Limited

• Britannia entered the ghee segment with “Britannia Pure Ghee”, competing directly with Amul and regional brands. The company is using aggressive marketing (celebrity endorsements & digital campaigns) to gain market share. Britannia’s strength lies in its retail penetration, but it faces challenges in matching Amul’s pricing.

Conclusion

The Ghee Market is poised for significant growth. This upward trajectory is fueled by increasing consumer awareness of ghee’s health benefits, including its rich content of essential fatty acids and fat-soluble vitamins. The rising demand for natural and organic food products further amplifies ghee’s appeal as a wholesome dietary choice. Culturally, ghee holds a significant place in traditional cuisines, especially in the Asia-Pacific region, where it is integral to daily cooking practices.

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