Global Anhydrous Milk Fat Market Fuelled by Thriving Food Industry

The global anhydrous milk fat market has been witnessing a positive growth over the past few years. This can be attributed to various factors such as changing eating patterns, growing health consciousness among consumers and rising applications in the food industry.



Anhydrous milk fat (AMF) or butter oil is a high-quality dairy milk fat which is either white or yellow in colour. It is produced by a mechanical process called centrifugation of cream or milk. The processing of milk or cream results in different compositions which are used for manufacturing three varieties including anhydrous butteroil, anhydrous milk fat and butteroil. AMF can be found in a semi-liquid or liquid form so that it can be easily blended and mixed into various food recipes. The high temperature fractions of AMF are used for formulating coated bakery products such as chocolate and croissant confections. A new research report by IMARC Group, titled “Anhydrous Milk Fat (Butter Oil) Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, estimates that the market was worth more than US$ 2 Billion in 2017. The report further anticipates the market to cross US$ 4 Billion by 2023, at a projected CAGR of more than 10% over the forecast period.

Global Anhydrous Milk Fat Market

Global Anhydrous Milk Fat Market Drivers/Constraints:

  • The demand for anhydrous milk fat is rapidly increasing due to its longer shelf-life coupled with an ease of transportation and storage. This is one of the significant factors which is driving the growth of the global anhydrous milk fat market.
  • Butter oil finds numerous applications across the food industry where it is used as an important ingredient for the preparation of various finished products. This, in turn, contributes towards the increasing demand for AMF across the globe.
  • Some of the other factors which are positively influencing the growth of the market include increasing disposable incomes, changing dietary habits and rising demand from developing markets.
  • However, the presence of saturated and trans-fatty acids in AMF poses a threat of causing obesity, cardiovascular diseases and diabetes. This acts as a major hindrance towards the growth of the market.


Regional Insights:

On a geographical front, Oceania represents the largest region in the global anhydrous milk fat market on account of its high demand in the region. It is followed by Europe, North America, Asia, Latin America, and Middle East and Africa.

Competitive Landscape:

The market is fragmented in nature with the presence of a large number of global and regional players. Some of the leading players operating in the market include:

  • Fonterra
  • Dairy Farmers of America
  • Hilmar Cheese Company
  • Murray Goulburn
  • Westland Milk Products
  • Synlait Milk Limited


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