Global Lipolyzed Butter Fat Market Size, Share, Growth Analysis Report - Forecast 2034

Lipolyzed Butter Fat Market Size

The global lipolyzed butter fat market size was worth around USD 9.72 Billion in 2024 and is predicted to grow to around USD 13.92 Billion by 2034 with a compound annual growth rate (CAGR) of roughly 3.8% between 2025 and 2034.

The report analyzes the global lipolyzed butter fat market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the lipolyzed butter fat industry.

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Lipolyzed Butter Fat Market: Overview

In order to impart flavor to dairy, bread, and confectionery items, lipolyzed butter fat is obtained by breaking butter fat with the help of a microbial lipase enzyme. This result is a yellowish creamy liquid with a milk fat odor typical of enzymolysis. In lipolyzed butter fat, the use of microbial lipase protein is essential. The use of lipolyzed butter fat in food is growing, especially in countries like Israel and the Gulf Cooperation Council. Aside from that, increased health awareness among consumers, as well as a variety of product applications observed across the food industry, are likely to propel the lipolyzed butter fat market forward in the coming years. The global market for lipolyzed butter fat is expected to grow in the near future.

Lipolyzed Butter Fat is lower in fat and higher in nutrients than ordinary butterfat. Lipolyzed Butter Fat is commonly used in the manufacture of nutritional foods and health supplements that include lipolyzed milk products as a key ingredient. The rise in demand for Lipolyzed Butter Fat in the United States is attributed to a growing preference for health supplements paired with a desire for nutritious foods. In addition, in response to consumer demand for oil with little or no fats, the cosmetics industry has increased its use of Lipolyzed Butter Fat.

Key Insights

• As per the analysis shared by our research analyst, the global lipolyzed butter fat market is estimated to grow annually at a CAGR of around 3.8% over the forecast period (2025-2034).
• Regarding revenue, the global lipolyzed butter fat market size was valued at around USD 9.72 Billion in 2024 and is projected to reach USD 13.92 Billion by 2034.
• The lipolyzed butter fat market is projected to grow at a significant rate due to increasing demand for natural dairy flavors in processed foods, particularly in bakery, confectionery, and savory applications, due to its enhanced flavor profile.
• Based on End-User, the Dairy - yogurt segment is expected to lead the global market.
• On the basis of Product, the Dairy segment is growing at a high rate and will continue to dominate the global market.
• Based on region, Europe is predicted to dominate the global market during the forecast period.

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Lipolyzed Butter Fat Market: Growth Drivers

Lipolyzed butter fat is a yellowish creamy liquid, which possesses a typical enzymolysis milk fat odor. The product is used in bakery products, confectionaries, and dairy products, etc. Lipolyzed butter fat is obtained by breaking butter fat by using microbial lipase enzyme in order to provide flavor to the dairy, bakery, and confectionary products. The usage of microbial lipase enzyme in the lipolyzed butter fat makes it a halal product as it is certified by the Halal or Kosher. The consumption of the lipolyzed fat is increasing in the food products especially in the countries such as Israel.

The microeconomic factors driving the global lipolyzed butter fat market include growing food and beverages industry and growing demand for products such as dairy, confectionary, and bakery, etc. Companies manufacturing lipolyzed butter fat products have potential opportunities in regions such as Asia Pacific, North America, and Europe, owing to rapidly growing demand for low-fat food products, and this trend is anticipated to continue during the forecast period. Companies have a considerable opportunity in the global lipolyzed butter fat market through association with end-users, for instance, food and beverages manufacturers.

Lipolyzed Butter Fat Market: Segmentation

The global lipolyzed butter fat market is segregated based on end-user and product.

By End-user, the market is classified into Dairy - yogurt, ice-cream, Confectionaries, Bakery - cakes, bread, muffins, and Others such as fats, snacks, oils, and cereals. Due to strong demand for the component in goods such as ice cream, yoghurt, and other frozen dairy products, the dairy segment accounts for a large value share in the global lipolyzed butter fat market over the forecast period. Due to the increasing expansion of low-fat bakery products such as cakes, muffins, pizza, and breads, the bakery category is followed by the dairy segment.

By Product, the market is classified into Dairy, Ice-cream, Yogurt, Others, Bakery, Breads, Cakes, Muffins, and Others. The dairy sub-segment contributes for significant value share over the forecast period in the global lipolyzed butter fat market. It includes products such as ice cream, and yogurt. The bakery segment is followed by the dairy segment attributed to the rapid growth the low-fat bakery products including cakes, muffins, pizza, breads, etc.

Lipolyzed Butter Fat Market: Report Scope

Lipolyzed Butter Fat Market: Regional Analysis

During the forecast period, North America is expected to be the most dominant region. Through marketing investigation instruments and solid foundations of existence, it will exhibit significant growth in the time allotted. Because of the growing population and the high per capita income of the customers, the item's consumption is increasing. Due to the relatively high demand for lipolyzed butter fat from the food and beverage industry, the Asia Pacific area is expected to show strong potential for growth in terms of both revenue and opportunity for vendors. Countries like India, China, and ASEAN are likely to grow substantially in the regional market in the next years. Furthermore, while the company's global expansion accounts for a substantial percentage of the Lipolyzed Butter Fat market, regions like as the Middle East and Africa will continue to develop progressively.

Lipolyzed Butter Fat Market: Competitive Analysis

The report provides a company market share analysis to give a broader overview of the key market players. In addition, the report also covers key strategic developments of the market, including acquisitions & mergers, new product launches, agreements, partnerships, collaborations & joint ventures, research & development, and regional expansion of major participants involved in the lipolyzed butter fat market on a global and regional basis.

The global lipolyzed butter fat market is dominated by players like:

• Cargill Inc.
• Dairyland Laboratories Inc.
• Flavorjen Group
• and Shanghai Fuxin Fine Chemical Co.
• Ltd

The global lipolyzed butter fat market is segmented as follows;

By End-User

• Dairy - yogurt
• ice-cream
• Confectionaries
• Bakery - cakes
• bread
• muffins
• and others such as fats
• snacks
• oils
• and cereals

By Product

• Dairy
• Ice-cream
• Yogurt
• Others
• Bakery
• Breads
• Cakes
• Muffins
• and Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America