Butter & Margarine - US - December 2004
Growth in the butter and margarine between 1999 and 2004 was similar to
inflation, resulting in a flat market--a 1% decline. As a near universal
household food staple, this market is challenged to grow sales due to its mature
state. Rather than gaining sales for the market as a whole, sales are more often
exchanged between the two segments--butter and margarine. Factors such as
changes in price, frequency of promotion, and health concerns have the most
influence over this volatile market. Margarine and butter are nearly equally
split in terms of dollar sales, with margarine holding a slightly higher share
of the FDM market in 2004. Over the review period, margarine sales declined 15%
at constant prices, whereas butter sales remained flat. In terms of volume,
margarine accounts for two and a half times more volume sold than butter. Yet,
butter is sold on feature, promotion or display at high percentages, especially
when volume is low due to high prices.
Butter sales have been slowly inching forward and this trend is expected to
continue, as consumers become less concerned with saturated fat content and more
appreciative of flavor. As such, health concerns and diet trends have influenced
market sales and will continue to do so. While margarine manufacturers have been
at the forefront of product innovation in terms of eliminating trans fatty acids
in its products, product promotion and education must certainly be effective to
thwart sales from the butter segment.
Mintels report is a detailed analysis of the whole butter and margarine
market, including market size, drivers, segmentation, trends, and distribution.
Original consumer research delves into the attitudes behind purchasing behavior,
and a five-year market forecast helps you prepare for the future in the butter
and margarine market.
This report covers stick butter, soft butter, premium grade butter, and
flavored butter. Also included are butter blends, margarines, spreads with
yogurt, spreads with olive oil, and "functional" margarine such as
Take Control. Squeezable butter blends, margarines, and spreads are included.
Other dairy items are excluded from the scope of this report, including
cheese, cream, milk-based products, olive oils, vegetable shortening, lard,
rennet, and vegetable oils.
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