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Market Overview:
The Clarified Butter Market size is estimated to reach $5.9 Billion by 2031, growing at a CAGR of 6.9% during the forecast period 2025-2031, according to a recent report published by IndustryARC, titled, Clarified Butter Market- By Product Type (Conventional and Organic), By Source (Cow, Buffalo, Others), By Packaging (Jars & Tubs, Pouches, Tins and Others), By End User (Food and Beverage Industry, Households, Pharmaceutical Industry, Personal Care and Cosmetics, Others), By Distribution Channel (Offline, Online) and By Geography - Global Opportunity Analysis & Industry Forecast, 2025-2031.
Clarified Butter is widely used in South Asian cuisines particularly in Indian and Pakistani cuisines which drives the market demand. The health benefits associated with clarified butter further boost its adoption. Clarified butter is increasingly being used in pharmaceuticals, cosmetics and personal care products. Its moisturizing properties make it a valuable ingredient in skincare formulations while Ayurvedic and herbal medicine industries are incorporating it into traditional healing remedies.
APAC Dominated the Market in 2024:
Asia-Pacific (APAC) region dominated the clarified butter (ghee) market in 2024 driven by strong cultural, culinary and health trends. The consumption of ghee in APAC is deeply ingrained in the daily diets of countries like India, Pakistan, Bangladesh and Nepal, where it plays a central role in both traditional cooking and religious practices. The region's large population and high consumption patterns sustain significant demand. As per Godrej Jersey’s Milk Report, released in November 2024 about the demand for value-added dairy products, ghee is the top choice among Pune consumers, with 81% of consumers favoring it. Additionally, the growing adoption of clarified butter in Southeast Asian countries, influenced by Indian cuisine further contributes to APAC’s dominance.
Clarified Butter Market: Key Takeaways
Health and Wellness Trends
Health and wellness trends have played a significant role in driving the demand for clarified butter (ghee), as more consumers prioritize natural, nutrient-dense foods in their diets. Ghee is increasingly recognized for its health benefits, including its rich content of vitamins A, D, E, and K, as well as its high levels of butyric acid, which is known to support gut health and reduce inflammation. In line with growing trends in paleo, keto and dairy-free diets, ghee is valued for being a lactose-free alternative to butter while still providing a rich, creamy texture.
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Expanding Applications
Beyond its traditional use in cooking, ghee is increasingly being incorporated into health and wellness products, with its benefits being promoted in areas like skincare, haircare and even dietary supplements. In skincare, ghee is prized for its moisturizing properties and is used in natural beauty formulations to nourish dry skin and reduce signs of aging. Its rich nutrient profile, including essential fatty acids and antioxidants makes it a popular ingredient in anti-aging creams and balms.
Scope of the Report:
Recent Developments
- In July 2024, Aashirvaad Svasti, a leading dairy brand from ITC, announced the launch of Aashirvaad Svasti Lower Cholesterol Ghee. The product offers 90% lower cholesterol than regular cow ghee from the brand.
- In March 2024, Nova Dairy announced the launch of A2 Cow Ghee.
Clarified Butter Market: Competitive Landscape
Key companies profiled in the Clarified Butter Market are Amul (Gujarat Co-operative Milk Marketing Federation Ltd), Britannia Industries, Nestle S.A, Heritage Foods Limited, Mother Dairy Fruit & Vegetable Pvt. Ltd, Karnataka Co-operative Milk Producers Federation, Hatsun Agro Product Ltd (HAP), VRS Foods Limited, Parag Milk Foods, Godrej Creamline Jersey Products Limited and Others
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