Ghee Market Size, Share, Growth, and Industry Analysis, By Type (Organic, Conventional), By Application (Food, Personal care, Medical) and Regional Forecast to 2033

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GHEE MARKET OVERVIEW

The global ghee market size is forecasted to reach USD 25 billion by 2033 from USD 15 billion in 2024, growing at a steady CAGR of 5.80% from 2025 to 2032.

There is a rapidly growing ghee market due to the rising demand for conventional and healthy cooking oil. Hydrogenated Mongna is a ghee, which is clarified butter used traditionally by the Indies and the South Asians and is now increasingly being sold in the global market since it is flavored and has a long shelf life as well as having numerous perceived health benefits to the consumer. With more and more people gravitating towards natural and organic foods, ghee has also found its way to be much healthier than normal butter and other oils because while it is rich in calories, it is totally lactose and casein free and comprises of vitamins A, D, E, & K among others. Additionally, the wellness markets firmed up by the health benefits ghee offers in the digestion of foods and its traditional use in Ayurveda has fueled its rise. As there is growing trend towards more ethnic foods particularly due to its increased use in Asian cuisine coupled with increased uptake of vegan, gluten free and dairy free diets there is expected more growth in the ghee market ahead. Some of the major players operating in the market are the old players of South Asia and new players, which focused mainly on catering the western world.

COVID-19 IMPACT

"Ghee Market Had a Negative Effect Due to Supply Chain Disruptions and Decreased Consumer Demand During COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The ghee market share was affected by the COVID-19 virus due to disruptions in all segments of the market, including production, supply, and demand. Due to lockdown periods ghee manufacturing faced problem in labor availability, factory shutdowns and restrictions on the availability of raw material which in turn has constrained local and global production capacity. Further, the shutdown of restaurant and food-service companies, being key buyers of ghee, put a dampener to some segments. On the consumer side although consumers focused mainly on necessities such as the food items, consumption of categories such as ghee which is a premium product reduced since consumers’ priorities and purchasing powers changed due to insensibilities in the economy. Besides, distribution constraints, especially in the international market due to movements restrictions and closure of ports, among other issues would delay delivery of ghee in some parts of the world. Nonetheless, the market has diagnostics to an extent because demand for traditional and healthy cooking oils has risen after the pandemic.

LATEST TREND

"Rising Demand for Organic and Grass-Fed Ghee Products Drives Market Growth"

One latest trend in ghee market is heartfelt consumption of organic and grass-fed ghee products. With increased awareness about the sort of food that is consumed, consumers have switched to consuming organic and grass-fed ghee. These ghee products are produced from natural cow’s milk that is obtained without synthesis of hormones and use of antibiotics that make them better products than the normal ghee. This phenomenon is also fueled by the increasing requests for the organic and grass-fed products so that ghee is a healthy fat containing vitamins and antioxidants. Moreover, to meet such a need, brands are adding new more healthier profiles to their products, for instance, ghee that is packed with omega-3 fatty acids and aids digestion. It is expected that this trend will have a further push when the consumer shifts gauge towards the consumption of healthier, sustainable, and ethically sourced food products.

GHEE MARKET SEGMENTATION

By Type

Based on type, the global market can be categorized into organic, conventional

• Organic:The organic ghee is prepared from the milk of the organically fed cows without pesticide, antibiotics, or synthetic hormones. It is made through the conventional processes and is believed to be healthier than the other type as it has traces of omega-3 fatty acids as well as vitamins. Organic ghee is preferred by the consumers especially those who embraces the healthy lifestyle and quality food products. It is often more expensive because organic certification and production are expensive.

• Conventional: Regular ghee is prepared from cows’ milk products that can be given feed that is not organic and given antibiotics or hormones. It is made using more advanced, commercial techniques that could make it possible to keep the cost of manufacturing low and therefore set lower prices on products. Even though its culinary advantages remain the same as those of organic ghee, it is not as likely to target this category of customers as organic or eco-friendly products.

By Application

Based on by application, the global market can be categorized into food, personal care, medical

• Food: This food is commonly used in culinary processes especially in Asian region specifically South Asiatic countries. It is preferred for its great taste, desirable smoke point as well as for the nutritive value. It is commonly used when frying and sautéing foods and also as the base for many other Desi foods which definitely makes it a healthy substitute of normal oil and butter. This has driven the demand of this application in the health conscious and ethnic food markets.

• Personal care: Mainly, ghee is used in cosmetics and products for body use included in moisturizers, hair, and skin products because of its rich nutrient content. This product is said to improve the skin and hair health due to its abilities to hydrate, reduce inflammation and act as an antioxidant. One of the main factors determining the expansion of this product in the cosmetics sector is the increasing popularity of natural and Ayurvedic remedies.

• Medical: Ghee has multiple medicinal purposes more apparent in the ancient anchor of Ayurvedic system of medicine. This he claimed enhance digestion, strengthened the immune system, and helped in improving brain functions. Ghee finds its application in different healthcare products and cure due to its high concentration of unsaturated fatty acids and vitamins that is helpful for a healthy and long living life.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Health Benefits and Nutritional Value Boost the Market"

Another factor that has been seen to be driving the market for ghee used on the fact that ghee has health benefits. Compared to normal oils and butter, ghee is believed to be a better fat in the sense that it has Omega 3 acids, vitamins A, D, E, and potassium, as well as antioxidant properties. It is also free from lactose and casein which will enable people who are allergic to dairy products to take it. The latest trend that many consumers are adopting as result of adopting natural and nutrient value rich foods has also boosted the intake of ghee hence stimulating demand for organically made ghee derived from grass fed animals.

"Rising Popularity of Ayurvedic and Natural Products Expand the Market"

One more important driver for ghee market growth is the trend of using natural products especially Ayurvedic medicine and products. Clarified butter or ghee has been in use for many years in Ayurveda practices for digestive and inflammatory conditions. Thanks to the trendy demands for natural products across the world, ghee is not only used as a food seasoning but also applied as a beauty element in beauty care products, hair care products, and health products for boosting healthy development, making the ghee acceptable and in high demand of the increasing sectors.

Restraining Factor

"High Cost of Organic and Grass-Fed Ghee Impede Market Growth"

Another limitation of the ghee market is that organic and grass-fed butter fat is relatively expensive. These types of ghee come from milk produced by farm raised cows fed organically which makes it a little expensive to produce. The procedure to receive the organic stamp on them and maintaining the norms of ethical sourcing makes these ghee products very expensive compared to the normal ghee. The inherent disadvantage of this price level is its potential to exclude low-income consumers and therefore slow the growth of the market in developing countries.

Opportunity

"Growing Demand for Natural and Healthy Products Create Opportunity for The Product in The Market"

One new trend in the global ghee market is the increased demand for natural food products, especially those proactively concerning people’s health. The main trends towards cleaner ingredients, organic food, and environmentally friendly production are making ghee an increasingly popular product with healthy, tasty, natural fats for nutrition. This trend holds great prospect for ghee manufactures to establish new outlets especially in the health and organic foods sector.

Challenge

"Supply Chain Disruptions Could Be a Potential Challenge for Consumers"

The four major issues that are affecting ghee market include, a vulnerable supply chain exposed to risk whenever there is a calamity such as the current COVID 19 outbreak. The production of ghee requires fresh quality milk, any unfavorable change in the supply system and productivity of dairy farming can influence ghee production and volatility. Interruptions of this sort affect both local and global markets; the steady demand for products and raw materials makes it challenging for producers to maintain a consistent delivery pace, especially in emerging, logistically, and infrastructurally unsustainable markets.

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GHEE MARKET REGIONAL INSIGHTS

• North America

North America is experiencing a high growth in the United States ghee market, prompted by the growing conc," Health and Ethnical foods. switching to natural organic and lactose-free foods Ghee is now considered a healthy fat to use in cooking and preparation of foods. It is also slowly finding its way into the health niche, especially with ghee being used in beauty and nutritional products. As a result of the clean-label movement and the need for quality organic and grass-fed ghee is being introduced to the market. Moreover, the two new trends of veganism and gluten-free diets have continued to boost the uptake of ghee as well. North America is expected to remain a key market, as consumers increasingly look for natural food products and ghee is taking up more space in supermarkets and via online retailers.

• Europe

The ghee market in Europe is rising since consumers are increasingly interested in ethnic and healthy products. Old-fashioned fats such as ghee are retreating from the kitchen because customers are increasingly recognizing that they are rich in vitamins and healthy fatty acids. In many countries within South Asia there is a sizeable Diaspora population, cooking with ghee is traditional and it is also starting to become popular among the European population who wish to avoid butter and oil. The growing interest for organic and natural products makes the European market for premium and organic ghee expected to grow. Also, ghee as an ingredient in preparing skincare and wellness products is also enabling the market for ghee in this region.

• Asia

The origin of ghee is in Asia, and it is still the largest market for ghee. Ghee is especially used in India, Pakistan, and Bangladesh, and is a traditional part of a culture that is passed from one generation to the next. Ghee is also coming to the forefront due to healthy fats’ selection with the increase in the knowledge of health and nutrition. The demand for organic and the premium ghee is also increasing in the countries with a growing middle-income population. Moreover, ghee in Ayurvedic and wellness products has gone far beyond the mere status of an edible fat; this trend is stirring the growth of ghee’s market in Asia. The region will remain a big portion of the international ghee market due to the historical and traditional relationship bearing ghee.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Key industry players in the ghee market are Amul (India) one of the largest dairy producers of ghee and holds a major share of market in India and international markets. Others are Patanjali Ayurved, from India which has produced ghee which is organic and natural and has been on the market due to its benefits associated with its consumption. The markets in North America are steadily positioning brands such as Ancient Organics and 4th & Heart to offer consumers only the finest organic and grass-fed ghee. European producers like The Ghee Factory in UK are also growing as more customers seek better quality, organic and grass-fed ghee. In a similar stead, South Asia’s local players including Milkfood Limited and Gowardhan Ghee, also maintain their incumbent market position and continue to offer both the traditional and newly trending organic ghee to cater the increasing customer demand and consumption of traditional and healthy food products. Here are these companies that are the key industry players that are revolutionizing and growing the ghee market globally.

List of Top Ghee Companies

• KMG Milk Food (India​)
• Shree Radhe Dairy Farm & Foods (India)
• Swagat (India)
• Haryana Milk Foods (India)

KEY INDUSTRY DEVELOPMENT

August 2024: Amul's launch of a brand-new line of organic ghee merchandise faucets into the growing customer demand for healthier, herbal food options. This pass aligns with the growing fashion of health-aware ingesting, where clients are in search of merchandise that promote wellbeing without compromising on taste. By supplying organic ghee, Amul is catering to the growing choice for smooth, sustainably sourced components. This strategic expansion into the organic region reflects a broader enterprise shift closer to herbal, unprocessed food alternatives, capitalizing on customer hobby in preserving a balanced food plan.

REPORT COVERAGE

There is potential for the ghee market, which is expected to gain momentum with the growing customer awareness of ghee and its nutritional and orthodox medicinal benefits in ayurveda. As a result of concern for natural food products ghee particularly the organic and grass-fed are enjoying demand in the developed and the developing regions. North America and Europe are identified as two fast-growing regions due to increasing consumer awareness about healthy food consumption, and Asia as the largest region as consumers associate herbs with their traditional diets. But it has challenges as follows: high cost of production of premium ghee currently competing in the market and supply chain vulnerabilities. Nevertheless, in the existing conditions it is possible to speak about the opportunities for the exponential growth of the production portfolio, including ghee-based cosmetics and dietary supplements, the expansion of the clean label and environmentally friendly food products line. Due to increasing demand for ghee in the global market, there will be a great growth in the market share with major players striving to cater to various demographic needs.