Butter and Spreads in Switzerland

2021 DEVELOPMENTS

Continued demand for butter as consumers prepare more meals at home

In 2021, butter will continue to benefit from continued working-from-home practices, which offer greater opportunity for consumers to cook and prepare food at home. This trend is reinforced by the closures and restricted operations in foodservice, which limit consumers’ ability to eat-out.

Domestic players will continue to lead butter and spreads due to consumers’ preference for Swiss brands

Domestic players are expected to continue dominating butter and spreads in Switzerland in 2021, with Branchenorganisation Butter leading the way in current retail value terms. Branchenorganisation Butter coordinates butter and spreads production and distribution in Switzerland and actively manages and promotes its Die Butter, Floralp and Bratbutter brands.

More butter imported in 2021 to prevent shortages

Switzerland is expected to face shortages in butter and spreads during the pandemic. A large portion of Swiss milk production continues to be used to produce cheese, which has a higher added value than butter, thus domestic butter is in short supply and not expected to meet demand.

PROSPECTS AND OPPORTUNITIES

Modest changes anticipated in the retailing of butter and spreads

Butter and spreads is expected to post marginal growth in the forecast period and is not expected to see major distribution changes. Modern grocery retailers is set to remain the dominant channel, led by supermarkets, discounters and hypermarkets.

Health and wellness trend to hinder category sales as consumers seek healthier alternatives

Over the forecast period, butter and spreads will likely face competition from non-dairy alternatives such as plant-based butter, cashew butter, and almond butter. Many consumers are increasingly opting for products made of plant-based ingredients rather than animal-origin fats.

Private label and imported products to see boost in current retail value share

Private label products are expected to see an increase in current retail value share over the forecast period. Migros and Coop, the leading grocery retailers in Switzerland, are expected to continue developing new private label lines over the forecast period and to continue offering a large variety of private label products.