Butter and Spreads in Denmark

2021 DEVELOPMENTS

Butter and spreads sees declining retail sales, as consumers rush back to re-opened restaurants and cafés

Butter and spreads is falling into declines in 2021, following the boom seen in 2020 due to the uptick in home-cooking during the time of COVID-19 lockdowns. In 2021, with liftings on restrictions in Denmark, consumers are seeking activities outside the home again and restaurants and cafés are open again in the country.

Free-from lactose and organic variants see temporary drop in popularity due to the return of foodservice, although trend will pick up again

Free-from lactose and organic variants are reported to be showing a small volume decrease 2021, albeit still faring better than pre-pandemic levels. In 2020, health and wellness butter and spreads sales were fuelled by general volume growth and consumers’ increased focus on healthy nutrition.

Dairy giant Arla Foods maintains its healthy lead in butter, thanks to strong and strategic evolution

Dairy giant Arla Foods Amba is maintaining its healthy lead in butter and spreads in 2021. The company owns the most important brands in Denmark, such as Kæregården and Lurpak, with the latter being revitalised in terms of packaging in 2020.

PROSPECTS AND OPPORTUNITIES

Low levels of innovation suppress sales, with one notable exception coming from Thise Mejeri’s new grass milk products

Butter is expected to remain in negligible retail volume figures over the forecast period. This is largely due to low levels of product innovation, with the large brands holding the majority of shelf space and remaining unchallenged, thus resulting in a stagnant competitive environment.

Margarine and spreads lose popularity as baking ingredients, as consumers embrace ready-made baked goods

Whilst margarine and spreads is showing the least steep declines in 2021, retail sales will fall significantly again over the forecast period. It is mainly the decreasing popularity of margarine which is placing downwards pressure on the sub-category, due to the stagnation of spreads overall (being mixed products and therefore seen as less healthy and impure).

Growth in free-from lactose butter and spreads set to be revitalised over the forecast period

Growth in free-from lactose butter and spreads is to set to be revitalised once again, after the current consumer flurry for foodservice, and will continue to show positive figures over the forecast period. It is a rather special situation in the category, as the vegan alternative (margarine) of the main product (butter) has, de facto, always been present.