Ghee Industry Forecasted to Expand to USD 13.4 Billion by 2034, Growing at a Compound Annual Growth Rate (CAGR) of 4.8%

In the culinary and cultural landscape of India, ghee continues to hold a steadfast position, fuelling a steady demand in cooking and rituals. This love for the traditional clarified butter extends beyond India's borders, with the global ghee market projected to reach an impressive USD 13.4 billion by 2034, growing at a CAGR of 4.8% from 2025 to 2034.

The Asia-Pacific region, with its strong cultural culinary traditions, leads the global ghee market, accounting for a significant 46.4% share in 2024, valued at USD 3.8 billion. Within this region, Cow Ghee dominates the market, holding a 67.3% share.

Competition in the ghee market is heating up, with established players like Amul (GCMMF) and new entrants vying for a piece of the pie. Britannia Industries Limited recently entered the fray with "Britannia Pure Ghee", aiming to challenge the market leaders. Meanwhile, Milkio Foods Limited is making waves with its grass-fed, organic ghee, targeting health-conscious consumers not just in India, but also in the US, EU, and other health-focused markets.

The growing consumer awareness of ghee's health benefits and the rising demand for natural and organic food products are driving the market's growth. This trend is particularly evident in North America and Europe, where interest in lactose-free and ketogenic diets is on the rise. Brands like Patanjali Foods Limited, known for offering lactose-free and ketogenic diet-suitable ghee, are gaining popularity in these regions.

The production method used in ghee manufacturing also plays a crucial role in the market. The Direct Cream Method, which captured 41.2% of the market share, is currently the preferred production method.

When it comes to packaging, plastic containers hold the top spot, accounting for 38.7% of total market usage. Supermarkets and hypermarkets remain the leading sales channels, contributing 41.3% to ghee market distribution.

The ghee market is also expanding beyond culinary applications. It is used in Ayurvedic and medicinal uses, skincare and beauty, industrial and foodservice use, and as a nutritional supplement. Nestlé S.A. is one of the companies capitalising on this trend, expanding its ghee portfolio in South Asia, focusing on premiumization and health claims.

KMG Milk Food Limited is another player making strides in the market. The company is expanding its exports to the Middle East and Southeast Asia, with its A2 Bilona Ghee, made using traditional churning methods.

In a bid to attract rural and lower-income consumers, Amul (GCMMF) has introduced smaller, affordable packs. This strategy, coupled with its dominance in the market, positions Amul well to continue its lead in the ghee market.

In conclusion, the global ghee market is poised for significant growth, driven by factors such as cultural traditions, health benefits, and the rising demand for natural and organic food products. With key players like Britannia, Milkio, Patanjali, and Amul, among others, vying for a share of the market, it promises to be an exciting space to watch.

Ghee Industry Forecasted to Expand to USD 13.4 Billion by 2034, Growing at a Compound Annual Growth Rate (CAGR) of 4.8%