Cultured Buttermilk Market Size - By Type, Form, Application, Distribution Channel Analysis, Share, Growth Forecast, 2024 - 2032

Cultured Buttermilk Market Size

The global cultured buttermilk market size was valued at USD 1.6 billion in 2023 and is estimated to grow at a CAGR of over 4.1% from 2024 to 2032. Cultured buttermilk has seen significant growth in recent years, driven by rising consumer demand for probiotic-rich dairy products and increasing awareness of health benefits associated with fermented foods. Its applications extend beyond traditional uses in baking and cooking; it's increasingly incorporated into smoothies, dressings, and snacks, appealing to health-conscious consumers.
 

Additionally, the growing trend towards clean-label and natural ingredients has bolstered the market, as cultured buttermilk is often perceived as a healthier alternative to synthetic flavorings and preservatives. Innovations in product formulation and flavor profiles are also expanding its use in various culinary applications. Overall, the cultured buttermilk market is poised for continued growth as consumers increasingly prioritize nutrition and taste.
 

For instance, in April 2023, Sid's Farm launched a new buttermilk product as a refreshing summer drink, targeting health-conscious consumers. This introduction aligns with the growing demand in the buttermilk powder market, driven by consumer interest in nutritious and probiotic-rich beverages. As more brands, like Sid's Farm, focus on high-quality ingredients and health benefits, the market for buttermilk powder is expected to expand further, catering to a rising preference for convenient, health-oriented dairy options.
 

Cultured Buttermilk Market Trends

The cultured buttermilk industry is experiencing notable trends driven by health-conscious consumer preferences and the rise of clean-label products. Increased awareness of the benefits of probiotics has led to a surge in demand, with consumers seeking fermented dairy products for gut health and digestive wellness.
 

Additionally, cultured buttermilk is gaining popularity in various culinary applications, from baking to salad dressings, as chefs and home cooks alike embrace its unique flavor and texture. Innovations in product formulation, including lactose-free options and flavored varieties, are also contributing to market expansion. The shift towards healthier lifestyles, coupled with the growing interest in natural and authentic food experiences, positions the market for continued growth in the coming years.
 

Cultured Buttermilk Market Analysis

The cultured buttermilk industry is poised for robust growth, driven by rising consumer demand for probiotic-rich foods and increasing awareness of their health benefits. Key growth drivers include the shift towards clean-label products and the expansion of cultured buttermilk applications in the food industry, from baking to beverages. Upcoming trends highlight innovations in product formulations, such as lactose-free options and flavored varieties, catering to diverse consumer preferences.
 

Additionally, the growing trend of incorporating functional ingredients into everyday foods presents significant future opportunities for cultured buttermilk producers. As consumers continue to prioritize health and wellness, the market is likely to witness sustained growth, positioning cultured buttermilk as a versatile and nutritious choice in various culinary applications.
 

The traditional cultured buttermilk market size held over USD 1.1 billion in 2023, and it is anticipated to expand 4.2% of CAGR during 2024-2032, due to its established heritage and widespread consumer familiarity. Its time-honored fermentation process, often utilizing specific bacterial cultures, results in a unique flavor profile and texture that many consumers prefer. Traditional varieties are typically perceived as more authentic and natural, aligning with the growing consumer trend toward clean-label products.
 

Furthermore, traditional cultured buttermilk serves as a staple ingredient in various regional cuisines, enhancing its demand in both culinary applications and home cooking. This enduring popularity solidifies its position as a key player in the market.
 

The cultured buttermilk market from liquid form segment was valued at USD 1.4 billion in 2023 and gained 4.2% CAGR from 2024 to 2032. Liquid cultured buttermilk holds a dominant position in the market due to its versatility and convenience in various culinary applications. Its fluid form allows for easy incorporation into recipes, from baked goods to sauces and smoothies, enhancing texture and flavor. Liquid cultured buttermilk is also favored in food service settings, where it can be used as a base for dressings and marinades, appealing to chefs seeking consistent quality.
 

Additionally, its perceived freshness and traditional appeal resonate with health-conscious consumers, further solidifying its market presence. This dominance is expected to continue as innovations focus on flavor enhancements and packaging solutions that cater to consumer preferences.
 

The cultured buttermilk market from beverage segment accounted for USD 600 million in 2023 and gained 4.3% CAGR till 2032, fueled by the growing consumer preference for nutritious, probiotic-rich drinks. Products like smoothies, flavored buttermilk beverages, and health drinks are gaining traction due to their appeal as convenient, on-the-go options that support digestive health.
 

Additionally, the rise of functional beverages aligns with the trend of incorporating natural ingredients and gut-friendly probiotics into daily diets. Manufacturers are innovating by introducing ready-to-drink cultured buttermilk products, further enhancing market penetration. This focus on beverages not only caters to health-conscious consumers but also expands the overall market reach and versatility of cultured buttermilk.
 

The cultured buttermilk market from offline retail segment reached USD 1.2 billion in 2023 and gained 4% CAGR through 2032. Offline retail remains a dominant distribution channel in the market, primarily due to the established presence of supermarkets, grocery stores, and specialty food retailers. Consumers often prefer purchasing perishable items like cultured buttermilk in physical stores, where they can assess product quality and freshness.
 

Additionally, the in-store experience allows for effective merchandising and sampling opportunities, which can boost consumer confidence and drive sales. Retailers frequently leverage promotions and discounts to attract customers, further enhancing the appeal of offline shopping. Despite the growth of online channels, the tactile shopping experience and immediate product availability keep offline retail at the forefront of the market.
 

The U.S. cultured buttermilk market size dominated around USD 352.8 million in 2023 and poised to expand at a 3.1% CAGR between 2024 and 2032, driven by a strong dairy industry and a growing consumer interest in probiotic-rich foods. The prevalence of diverse culinary applications, from baked goods to dressings, supports high demand.
 

U.S. consumers increasingly favor clean-label and natural ingredients, further fueling market growth. Moreover, innovative product development, including lactose-free and flavored cultured buttermilk, caters to a broader audience. The established distribution networks and strong marketing strategies employed by leading dairy companies enhance product accessibility and visibility, solidifying the U.S.'s leading role in the market.
 

Cultured Buttermilk Market Share

The cultured buttermilk industry features various companies, each contributing to its dynamics. Bharat Group has a significant market share due to its strong presence in India, focusing on traditional dairy products and expanding into health-oriented options. LUPICIA, renowned for its specialty teas, diversifies its offerings by tapping into the cultured buttermilk segment to cater to health-conscious consumers. COFCO, a major player in food production, leverages its extensive distribution network to enhance market penetration. Teasenz specializes in premium tea blends, and its venture into cultured buttermilk emphasizes quality and unique flavors.
 

California Tea House positions itself in the gourmet segment, appealing to niche markets with innovative cultured buttermilk products. Panella Foods and Beverages Private Limited focuses on regional preferences, capturing market share through localized offerings. Finally, Bettys and Taylors Group Ltd blends tradition with modernity, offering gourmet cultured buttermilk products that resonate with quality-conscious consumers, thereby solidifying their market position.
 

Cultured Buttermilk Market Companies

Major players operating in the cultured buttermilk industry are:

• Bettys and Taylors Group
• Bharat Group
• CALIFORNIA TEA HOUSE
• COFCO
• FMS Consumer Products
• LUPICIA
• Panella Foods and Beverages
• Stash Tea
• Teasenz
• VAHDAM
   

Cultured Buttermilk Industry News

• In March 2023, Heritage Foods Ltd. introduced a new line of buttermilk products branded as A-One, along with a selection of milkshakes packaged in convenient single-serve cartons. Heritage A-One Spiced Buttermilk is a low-calorie, naturally refreshing drink made from fermented fresh Heritage milk. It boasts a smooth, creamy consistency and a balanced sour and salty flavor, enhanced with natural extracts of green chilies and ginger, making it an ideal on-the-go beverage.
   
• In April 2023, Sid’s Farm, a premium direct-to-consumer (D2C) dairy brand based in Telangana, India, launched its buttermilk in a whole new convenient packaging. The new product is available in 200 ml recyclable food-grade disposable cups and is available for home delivery, e-commerce, and aggregator channels.
   

This cultured buttermilk market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2032, for the following segments:

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Market, By Type

• Traditional cultured buttermilk
• Flavored cultured buttermilk

Market, By Form

• Liquid
• Powder

Market, By Application

• Beverages
• Bakery & confectionery
• Dairy-based sauces and dressings
• Snacks and savories
• Others

Market, By Distribution Channel

• Offline retail
  • Supermarkets & hypermarkets
  • Convenience stores
  • Specialty stores
  • Others
• Online retail
  • E-commerce platforms
  • Company websites

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa