The butter and margarine segments have followed divergent paths over the last five years. While butter has seen an overall sales increase of 11%, margarine sales have slid by 4%. Butter’s strongest growth occurred in 2001, when sales jumped 19.5%. While prices pushed down consumption levels that year, during the five-year time span reviewed, butter volumes rose by about 13%.

In contrast, margarine consumption levels fell by a similar amount. Some consumers may be switching back to butter from margarine due to health concerns over trans fatty acids. Yet despite the declines in margarine sales, the number of pounds sold remains more than 2.5 times that of butter, no doubt because of margarine’s much lower price. While average butter prices fluctuated between $2.51 and $3.17 per pound during the five-year period, margarine prices steadily rose from 96 cents to $1.08 a pound--still far below butter price levels.

Among the key issues covered in this report are the fluctuating supply and price of milkfat, consumer perception of the relative healthiness of butter and margarine, and how changing household habits are affecting sales. Original consumer research examines attitudes and behavior by age, gender, ethnicity and income, and a six-year trend analysis predicts future growth.

The forms of butter included in this report are stick butter, soft butter, premium grade butter, and flavored butter. Also covered are butter blends, margarine, spreads with yogurt, spreads with olive oil, and “functional” margarine such as Take Control. Squeezable butter blends, margarine, and spreads are included.

Excluded from this report are other dairy products (such as cheese and cream), olive oils, vegetable shortening, lard, rennet and vegetable oils.

This report may contain US IRI InfoScan data. Report contents may be subject to change prior to the date of publication.

A number of U.S. reports covering related sectors have been published, are planned, or are in preparation, including:

Ice Cream, U.S. Report, August 2003

Milk, U.S. Report, April 2003

FDA-Approved Health Claims, U.S. Report, April 2003

Edible Fats and Oils, U.S. Report, October 2002

Cooking Sauces, U.S. Report, February 2002

Eggs & Egg Substitutes, U.S. Report, January 2002

Ingredient Trends, U.S. Report, December 2001

Butter & Margarine, U.S. Report, December 2001

Sweet Spreads, U.S. Report, November 2001