Irish Butter Market – Global Industry Size, Share, Trends, Opportunity and Forecast, Segmented By Product Type (Salted Butter, Unsalted Butter, Others), By Packaging Type (Sticks, Tubs, Wrappers, Others), By Sales Channel (Supermarkets/Hypermarkets, Departmental Stores, Online, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 964.55 Million
CAGR (2026-2031)	5.43%
Fastest Growing Segment	Online
Largest Market	Asia Pacific
Market Size (2031)	USD 1324.68 Million

Market Overview

The Global Irish Butter Market will grow from USD 964.55 Million in 2025 to USD 1324.68 Million by 2031 at a 5.43% CAGR. Irish butter is a premium dairy product distinguished by its high butterfat content and distinct golden hue derived from the beta-carotene available in the diet of grass-fed cows. The primary drivers supporting market growth include the rising global demand for natural and clean-label ingredients within the premium bakery and confectionery sectors which require consistent high-quality fat sources. Additionally, the intrinsic flavor profile and texture associated with grass-fed dairy continue to attract discerning retail consumers who prioritize ingredient provenance in their purchasing decisions.

According to 'Bord Bia', in '2024', 'butter exports grew by approximately €400 million or 31% to reach a value of €1.7 billion'. Despite this strong financial performance, the market faces a significant challenge regarding stringent environmental regulations. Compliance with the Nitrates Action Programme and potential reductions in nitrate derogation limits constrain dairy herd sizes, thereby restricting milk supply volume and impeding the potential for further production expansion to meet growing international demand.

Key Market Drivers

Strategic Export Expansion in North American and Asian Markets acts as a primary engine for the sector as producers reduce dependency on the European Union by targeting high-value international territories. This approach leverages the scalability of logistics and tailored marketing to penetrate regions where demand for premium European dairy is accelerating. The United States remains a critical focus, where the strategic placement of Irish brands in major retail chains has solidified market presence against domestic competitors. According to Dairy Industries International, April 2025, in the 'Ornua reports higher turnover and a record year for Kerrygold' report, the Kerrygold brand reached a record number of US households and secured its position as the number two butter brand in the market. This expansion effectively mitigates local saturation risks while capitalizing on the higher margins available in trans-Atlantic trade corridors.

Rising Consumer Preference for Grass-Fed and Pasture-Raised Dairy functions as the second major catalyst, distinguishing Irish products through their nutritional profile and superior spreadability derived from grass-based diets. This preference drives purchasing decisions among health-conscious consumers who reject artificial substitutes in favor of natural fats with transparent provenance. The global appetite for this specific product quality is reflected in the substantial volume of units moving through retail supply chains. According to Ornua, April 2025, in the 'Annual Report 2024', over 12 million retail packs of Kerrygold butter and cheese were sold globally every week. This high-volume demand validates the industry focus on quality and underscores the financial vitality of the sector. According to Farmers Journal, in 2025, Ornua recorded a stable group turnover of €3.4 billion for the financial year 2024, highlighting the economic impact of these combined market forces.

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Key Market Challenges

The enforcement of stringent environmental regulations acts as a primary barrier to the scalability of the Global Irish Butter Market by imposing physical limits on production capacity. Compliance requirements associated with the Nitrates Action Programme and the lowering of nitrate derogation limits compel dairy farmers to reduce stocking rates on grazing land. This regulatory environment necessitates a reduction in herd sizes to ensure nitrogen emissions remain within legally permissible thresholds. As a result, the volume of milk available for processing is constrained, directly limiting the quantity of butter that can be manufactured regardless of processing efficiency or downstream demand.

This contraction in primary supply is statistically evident and highlights the severity of the challenge. According to 'Teagasc', in '2024', 'dairy cow numbers reduced by 1.3%, marking the first decrease since 2009, contributing to a projected decline in national milk production of up to 3%'. This reduction in the raw material base creates a hard ceiling on market growth, preventing exporters from fulfilling the full potential of international orders and stalling the upward trajectory of the sector despite strong global appetite for the product.

Key Market Trends

The proliferation of culinary-focused flavor blends and value-added formats is reshaping the market as producers seek to capture higher margins beyond standard commodity blocks. Brands are actively expanding portfolios to include compound butters featuring savory and sweet infusions, targeting the premium home-cooking and snacking sectors. This transition toward specialized, higher-margin products is generating tangible financial returns for major cooperatives, validating the move away from bulk ingredient reliance. According to The Impartial Reporter, April 2025, in the 'Annual report shows strong performance for Lakeland Dairies' article, the cooperative's revenue increased to €1.75 billion in 2024, a growth attributed significantly to a rise in value-added sales and improved pricing, particularly within the butter category.

The implementation of regenerative agriculture standards is becoming a primary differentiator for Irish butter, moving the industry beyond basic sustainability claims to verified, incentivized on-farm practices. Leading cooperatives are establishing rigorous soil health and biodiversity programs, marketing these attributes to appeal to eco-conscious consumers who prioritize environmental stewardship over simple product provenance. This strategic shift is evidenced by the widespread financial adoption of such standards among producers, ensuring that environmental claims are backed by audited actions. According to Tirlán FarmLife, April 2025, in the 'Tirlán delivers strong 2024 performance' report, over 99% of the co-operative's active milk suppliers received a Sustainability Action Payment in 2024, validating the sector-wide integration of paid regenerative measures.

Segmental Insights

The Online distribution channel represents the fastest-growing segment within the Global Irish Butter Market. This expansion is primarily driven by the global acceleration of e-commerce grocery platforms and the increasing consumer preference for convenient home delivery services. Major retailers are optimizing their digital supply chains to ensure cold-chain integrity, making the distribution of perishable dairy products increasingly viable. Furthermore, strategic export initiatives by organizations such as Bord Bia have enhanced the digital visibility of premium Irish dairy, encouraging international consumers to access these specialty products through third-party marketplaces and direct-to-consumer portals.

Regional Insights

Asia Pacific stands as the leading region in the Global Irish Butter Market, fueled by rapid urbanization and changing consumer lifestyles. The region dominates due to a burgeoning middle class in key economies like China and India, which has accelerated the adoption of Western dietary habits and increased consumption of premium dairy. Additionally, a thriving bakery and foodservice industry drives consistent demand for high-quality butter to compensate for significant local milk deficits. This structural reliance on imports, combined with expanding disposable incomes, positions Asia Pacific as the principal hub for market activity.

Recent Developments

• In August 2024, Ornua launched a new large-format butter product in the United States under its flagship Kerrygold brand. The introduction of the 1lb Butter Sticks, available in both salted and unsalted varieties, was developed in direct response to consumer requests for larger quantities suitable for extensive baking and cooking. Each 16-ounce box contained four individual 4-ounce sticks, offering enhanced convenience for family-sized meal preparation. The Head of Innovation at Ornua Foods North America highlighted that this launch represented a key category innovation, aimed at doubling the volume of sticks per pack to better serve the loyal customer base in the US market.
• In May 2024, Lakeland Dairies entered into a major supply partnership with Vital Farms, a leading ethical food company based in the United States. Through this collaboration, the Irish cooperative began supplying high-quality, grass-fed butter to the US market, which was subsequently managed and sold under the Vital Farms brand. This strategic move effectively positioned Lakeland Dairies as a competitor to other established Irish butter exporters in the region. The product, marketed with specific grass-fed claims, leveraged the global reputation of Irish dairy farming to appeal to American consumers seeking premium, ethically sourced dairy ingredients.
• In March 2024, Lakeland Dairies completed the strategic acquisition of De Brandt Dairy International NV, a family-owned butterfat business based in Belgium. This significant transaction allowed the Irish cooperative to take over the Belgian company's customer base and key operational assets, thereby enhancing its value-added capabilities within the European dairy sector. The collaboration was described by the Chairman of Lakeland Dairies as a major step that would open new markets and product categories for the cooperative. Specifically, the deal strengthened the company's foothold in the premium texturised butter market, which provides specialised technical solutions for the catering and baking industries.
• In March 2024, North Cork Creameries announced a significant expansion of its Ór-Real Irish Butter product range to capitalize on rising consumer demand. The independent cooperative introduced two new product formats, including a smaller 227g pack size and an unsalted butter variant, marking the first major extension of the brand's offering. This product launch was designed to provide greater convenience for home baking and to broaden the brand's appeal across the retail sector. The CEO of North Cork Creameries noted that the expansion aimed to build upon the brand's rapid sales growth and extensive distribution network within major Irish supermarkets.

Key Market Players

• Ornua Co-operative Limited
• Dansko Foods Ltd
• Abernethy Butter
• Lakeland Dairies Co-operative Society Limited
• Tirlán Limited
• Henderson Foodservice Limited
• North Cork Creameries Ltd
• Glenstal Foods Ltd.
• Associated British Foods plc
• The Little Milk Company

By Product Type	By Packaging Type	By Sales Channel	By Region
Salted Butter Unsalted Butter Others	Sticks Tubs Wrappers Others	Supermarkets/Hypermarkets Departmental Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Irish Butter Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Irish Butter Market, By Product Type:

• Salted Butter
• Unsalted Butter
• Others

• Irish Butter Market, By Packaging Type:

• Sticks
• Tubs
• Wrappers
• Others

• Irish Butter Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Departmental Stores
• Online
• Others

• Irish Butter Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE