Clarified Butter Market - By Type , By Source , By Packaging , By End User , By Distribution Channel and By Geography - Global Opportunity Analysis & Industry Forecast, 2025-2031.

Clarified Butter Market Overview

Clarified Butter Market size is forecast to reach $5.9 Billion by 2031, after growing at a CAGR of 6.9% during 2025-2031. Clarified butter, commonly known as ghee, is a form of butter that has been simmered to remove water content and milk solids leaving behind a pure golden-yellow fat. It is widely recognized for its rich, nutty flavour, high smoke point and numerous health benefits. Its versatility in food, personal care and pharmaceuticals ensures a bright future in both traditional and emerging markets. Additionally, the demand for healthy fats is contributing to the market growth.

A major trend in the market is the rising popularity of organic and grass-fed clarified butter. Grass-fed means that the cows have been fed with grass and other herbs instead of being fed non-organic cereals or grains and other processed food. As a result, grass fed cow milk is perceived to be healthier. Consumers are increasingly seeking organic and grass-fed clarified butter due to its higher nutritional value, better taste and absence of synthetic additives. Another trend in the market is the availability of flavored clarified butter. For instance, Aranya Farms has clarified butter in 4 different flavors- kari patta, jeera, tulsi and haldi (curry leaves, cumin, holy basil and turmeric).

Market Snapshot: 

Clarified Butter Market - Report Coverage:

The “Clarified Butter Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Clarified Butter Market.

Key Takeaways

APAC dominates the market

The Asia-Pacific (APAC) region stands as the largest market for clarified butter (ghee) due to its deep-rooted cultural, culinary and health traditions. The region also produces high amounts of milk, the main raw material used for clarified butter. According to USDA’s Dairy and Products Annual Report 2024, India’s total milk production is projected to rise to 216.5 MMT in 2025, attributable to the growing herd size of animals in milk and increased government support for the dairy sector. As a result, India’s dairy products sector, including clarified butter, is also expected to rise. Clarified butter is a staple in South Asian countries like India and Pakistan where it is extensively used in cooking, religious ceremonies and in traditional medicines like Ayurveda.

Conventional is the Largest Segments

Conventional clarified butter leads the market due to its affordability, widespread availability and established consumer trust. It is a preferred choice for households and food service providers, particularly in regions like Asia-Pacific, where clarified butter holds cultural significance. Conventional clarified butter benefits from economies of scale in production and distribution making it accessible to diverse consumer groups. Moreover, this segment is well-suited for traditional cooking methods including high-heat cooking and frying which enhances its appeal in both home kitchens and restaurants. According to Shahji Ghee, ghee has a high smoke point, typically around 450°F (232°C). As a result, it can withstand high temperatures without breaking down or producing harmful smoke or any harmful compounds such as trans fats. This makes ghee suitable for deep frying as it can maintain its stability and integrity during the cooking process.

Clarified Butter from Cow Milk is the Largest Segment

Cow-milk clarified butter dominates the market owing to its extensive use in culinary traditions particularly in Asian cuisines. Cow ghee is often considered superior due to its flavor, nutritional content and compatibility with various dishes making it a preferred choice among consumers. According to Heritage Foods Limited, Cow ghee (clarified butter) is a rich source of vitamin A, D, E & K that are important in ensuring normal cellular function and growth in humans. In Ayurveda, cow ghee is the most preferred base for preparing any medicine because it can reach the deepest of tissues in the human body and nourish it. In regions like South Asia, cow ghee holds religious and cultural importance further boosting its demand. Additionally, the high availability of cow milk ensures a consistent supply for clarified butter production which strengthens its market position.

Use of Clarified Butter in Cosmetics to Drive the Market

Clarified butter (ghee) is gaining popularity as a natural ingredient in skincare and haircare products due to its nourishing and moisturizing properties. Clarified butter is rich in essential fatty acids, vitamins and antioxidants which is effective in addressing skin dryness, irritation and aging making it a sought-after ingredient in premium cosmetic formulations. The growing consumer preference for natural and organic cosmetics has further fueled this trend with ghee often marketed as a chemical-free alternative. In July 2024, personal care and wellness brand Himalaya Wellness Company expanded its babycare offering and launched a new cow ghee product range. The new line features a selection of skincare and body care goods and is live on the brand’s D2C e-commerce store.

Adulteration to Hamper the Market

The increasing prevalence of adulteration in clarified butter production is a significant challenge that can hamper market growth. The addition of low-quality oils, artificial flavors and synthetic compounds compromises the purity and nutritional benefits of clarified butter, leading to consumer distrust. In regions where ghee holds cultural and religious significance, concerns over adulteration resulted in stricter regulatory scrutiny. In September 2024, Food Safety and Drug Controller Department Uttarakhand started a comprehensive campaign to curb adulteration in desi ghee and butter across the state. Governments and food safety authorities are implementing stringent quality control measures but counterfeit and substandard products continue to pose a challenge. 

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Key Market Players

Clarified Butter top 10 companies include:

1. Amul (Gujarat Co-operative Milk Marketing Federation Ltd)
2. Britannia Industries
3.  Nestle S.A
4. Heritage Foods Limited   
5. Mother Dairy Fruit & Vegetable Pvt. Ltd 
6.  Karnataka Co-operative Milk Producers Federation
7.  Hatsun Agro Product Ltd (HAP)
8. VRS Foods Limited
9.  Parag Milk Foods
10. Godrej Creamline Jersey Products Limited

Scope of the Report: 

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