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Butter and Margarine - Canada - January 2016

"Butter’s advantage lies in two areas, its versatility, meaning its ability to be used both in recipes and as a spread, and in its perception of being a more natural option to margarine."

- Joel Gregoire, Senior Food & Drink Analyst

This report covers the following issues:

  • Commodity perception supports price sensitivity
  • Consumers averse to processed foods
  • Pressure to reform current supply management model

For the purposes of this report, Mintel has used the following definitions for consumer feedback:

Butter

  • Regular stick butter – salted
  • Regular stick butter – unsalted
  • Spreadable butter
  • Flavoured butters or spreads (eg garlic, honey)
  • Whipped butter
  • Spray butter
  • Yogurt/butter blend.

Margarine

  • Soft margarine spreads
  • Cholesterol-reduced margarine spreads
  • Stick margarine.

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Commodity perception supports price sensitivity
            • Consumers averse to processed foods
              • Pressure to reform current supply management model
                • The opportunities
                  • Flexibility an opportunity to support margarine sales
                    • Figure 1: Top uses for butter and/or margarine, November 2015
                  • Varied demand for alternative ingredients and flavours
                    • Figure 2: Interest in butter and/or margarine flavours, November 2015
                  • Opportunity to support margin by promoting health benefits
                    • Figure 3: Percent of consumers who are willing to pay more for products with added health benefits, by age, November 2015
                  • What it means
                  • The Market – What You Need to Know

                    • Butter’s growth forecast to continue to outpace margarine’s
                      • A declining Canadian Dollar impacts grocery inflation
                        • Canada’s aging population benefits butter
                        • Market Size and Forecast

                          • Butter sales to continue to outpace margarine sales
                            • Figure 4: Total Canada retail value sales forecast of butter, at current prices, 2010-20
                            • Figure 5: Total Canada retail value sales fan chart forecast of butter, at current prices, 2010-20
                            • Figure 6: Total Canada retail volume sales fan chart forecast of butter, 2010-20
                            • Figure 7: Total Canada retail value sales forecast of margarine, at current prices, 2010-20
                            • Figure 8: Total Canada retail value sales fan chart forecast of margarine, at current prices, 2010-20
                            • Figure 9: Total Canada retail volume sales fan chart forecast of margarine, 2010-20
                        • Market Factors

                          • Canadians feeling the pinch of inflation at grocery
                            • Focus on health and weight management to continue
                              • Figure 10: Body mass index, self-reported rate of being overweight or obese among Canadian adults, by gender, 2009-13
                            • Canada’s aging population supports butter usage
                              • Figure 11: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
                          • Key Players – What You Need to Know

                            • Potential liberalization of Canadian market supports need for added innovation
                              • Canadians divided on their perception of butter’s vs margarine’s health
                                • International appeal may be a path to (limited) growth
                                • What’s Working?

                                  • Margarine’s health innovation noted by Canadian consumers
                                    • Figure 12: I Can’t Believe It’s Not Butter (US)
                                  • Butter’s natural appeal supporting growth
                                  • What’s Struggling?

                                    • De-commoditizing butter’s perception
                                      • Figure 13: Summer Butter (US)
                                    • Margarine’s competition from butter and other categories
                                      • Figure 14: Palmia Multi-Purpose Margarine (Indonesia)
                                  • What’s Next?

                                    • Import regulation changes may be on the horizon for butter
                                      • The butter vs margarine health debate likely to continue
                                        • Looking to new ingredients
                                          • Figure 15: Dennree Organic Yogurt Butter (Germany)
                                          • Figure 16: Thrive Culinary Algae OIL (US)
                                        • International appeal in Canada
                                          • Figure 17: Sunshine Farm Artisan Cow Ghee (US)
                                      • The Consumer – What You Need to Know

                                        • Butter is more commonly used than margarine
                                          • Price is the primary driver for choice
                                            • A third of consumers open to flavour innovation
                                            • Butter and Margarine Usage

                                              • Butter surpasses margarine in usage
                                                • Figure 18: Usage of butter and/or margarine, November 2015
                                              • Lower frequency among less commonly used butter and margarines
                                                • Figure 19: Usage of butter and/or margarine, by user group, November 2015
                                              • Usage patterns point to younger consumers’ interest in “butter innovation”
                                                • Figure 20: Usage of butter and/or margarine, under-45s vs over-45s, November 2015
                                              • Men gravitate to less commonly used varieties
                                                • Figure 21: Usage of butter and/or margarine, by gender, November 2015
                                              • Opportunity to promote margarine’s flexibility
                                                • Figure 22: Top uses for butter and margarine, November 2015
                                              • Host food usage suggests opportunities to engage young Millennials
                                                • Figure 23: Use of butter and margarine on popcorn, by age, November 2015
                                            • Perceived Price Sensitivity

                                              • Three quarters of consumers are price-sensitive
                                                • Figure 24: Top factors considered when choosing butter and/or margarine (ranked among top 5), November 2015
                                              • Price sensitivity declines with age
                                                • Figure 25: Price as a factor, by age (ranked among top 5), November 2015
                                              • The influence of price promotion
                                                • Figure 26: Attitudes around price, brand and promotion as purchase influencers, November 2015
                                            • Opportunities for Innovation

                                              • A third of consumers show interest in innovation
                                                • Figure 27: Attitudes around demand for more flavour varieties in butter and margarine, by age, November 2015
                                              • Varied demand for new flavours
                                                • Figure 28: Interest in butter and/or margarine flavours (any rank), November 2015
                                                • Figure 29: Beppino Occelli Butter Spread with Truffle (Italy)
                                                • Figure 30: Tesco Finest Brandy Butter (UK)
                                                • Figure 31: Churn Gourmet Handmade Butter (Canada)
                                                • Figure 32: Vita Coco Coconut Oil (US)
                                              • Demand for blending of margarine and butter
                                                • Figure 33: Interest in spreadable butter and/or margarines that look and taste like butter, November 2015
                                              • Demand for alternative ingredients varies
                                                  • Figure 34: Lurpak Cook’s Range (UK)
                                              • The Importance of Health and Natural for Butters and/or Margarine

                                                • Butter is “naturally” winning
                                                  • Figure 35: Percent of consumers who agree butter is healthier and is more natural than margarine, by age, November 2015
                                                • Older consumers are more sceptical of health claims
                                                  • Figure 36: Percent of consumers who agree products with added health benefits are worth paying more for, by age, November 2015
                                                • Half of consumers perceive butter as being healthier than margarine
                                                • Segmenting the Butter/Margarine Consumer

                                                    • Figure 37: Segmentation of target groups, November 2015
                                                  • Enthusiasts
                                                    • Budget Conscious
                                                      • Brand Adherents
                                                      • Appendix – Data Sources and Abbreviations

                                                        • Data sources
                                                          • Sales data
                                                            • Fan chart forecast
                                                              • Consumer survey data
                                                                • Consumer qualitative research
                                                                  • Abbreviations and terms
                                                                    • Abbreviations
                                                                    • Appendix – The Market

                                                                        • Figure 38: Total Canada retail sales and forecast of butter, at inflation-adjusted prices, 2010-20
                                                                        • Figure 39: Total Canada retail sales and forecast of margarine, at inflation-adjusted prices, 2010-20

                                                                    Companies Covered

                                                                    To learn more about the companies covered in this report please contact us.

                                                                    Butter and Margarine - Canada - January 2016

                                                                    £3,277.28 (Excl.Tax)