Global Ghee Market Size, Share, And Business Benefits By Product Type (Cow Ghee, Buffalo Ghee, Others), By Packaging Type (Plastic Container, Glass Jar, Tin, Pouches, Others), By Production Method (Direct Cream Method, Bilona Method, Creamery Butter Method, Prestratification Method, Continuous Method), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, Specialty Stores, Others), By End-use (Household, Food Service, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

Global Ghee Market is expected to be worth around USD 13.4 billion by 2034, up from USD 8.4 billion in 2024, and grow at a CAGR of 4.8% from 2025 to 2034. Ghee is essential in regional diets; the Asia-Pacific market captures USD 3.8 billion, 46.40%.

Ghee is a form of clarified butter that originates from South Asia and is widely used in Indian cooking. Made by simmering butter to separate milk solids and water from pure butterfat, it has a rich, nutty flavor and high smoking point, making it ideal for sautéing and deep-frying. Ghee also holds cultural and religious importance in many Indian households, used in rituals, Ayurveda, and traditional medicine for centuries.

The ghee market is evolving, with both traditional and modern influences shaping consumption patterns. Urbanization, rising disposable income, and changing dietary habits have all boosted ghee consumption across cities and towns. Additionally, the shift toward natural and clean-label products has reignited interest in ghee as a healthier alternative to hydrogenated fats and refined oils. Both unpackaged and branded segments are witnessing steady demand.

Growth factors include increasing health awareness around good fats, the growing influence of Ayurveda, and the inclusion of ghee in high-protein or ketogenic diets. As people become more conscious of ingredients in their food, ghee is benefiting from its ‘pure’ and ‘natural’ perception. Foodservice and hospitality industries are also contributing to bulk demand, particularly in traditional cuisine and sweets preparation.

Demand is expanding not only in rural and urban India but also in international markets driven by exports. The global Indian diaspora and health-conscious consumers abroad are fueling cross-border demand. Ghee’s long shelf life without refrigeration makes it a practical cooking fat in various climates.

Opportunity lies in value-added product innovation, such as flavored ghee, organic variants, or ghee blends with herbs. There’s also space in e-commerce and gourmet retail where premium ghee is positioned as an artisanal or health-forward product. With traditional appeal and new-age wellness trends converging, ghee is well-placed for future growth.

Key Takeaways

• Global Ghee Market is expected to be worth around USD 13.4 billion by 2034, up from USD 8.4 billion in 2024, and grow at a CAGR of 4.8% from 2025 to 2034.
• In 2024, Cow Ghee led the ghee market by product type with a 67.3% share dominance.
• Plastic containers held the top spot in packaging type, accounting for 38.7% of total market usage.
• The Direct Cream Method emerged as the preferred production method, capturing 41.2% market share overall.
• Supermarkets and hypermarkets remained the leading sales channels, contributing 41.3% to ghee market distribution.
• Household consumption continues to dominate end-use in the ghee market with a strong 72.3% share.
• Strong cultural culinary traditions propel ghee’s popularity in the Asia-Pacific, securing 46.40% market.

By Product Type Analysis

In the Ghee Market, Cow Ghee leads with a 67.3% market share.

In 2024, Cow Ghee held a dominant market position in the By Product Type segment of the Ghee Market, capturing a substantial 67.3% share. This segment’s prominence is primarily due to the increasing consumer preference for natural and traditional dairy products, which are perceived as healthier alternatives to processed fats. Cow ghee’s popularity is further bolstered by its versatile use in various culinary practices, particularly in regions where ghee is a staple, like in many South Asian countries.

The market for Cow Ghee benefits significantly from its reputed health benefits, including its role in enhancing digestion and reducing inflammation. These attributes make it a preferred choice not only for household consumption but also in the medicinal and ayurvedic sectors, where it is utilized for its therapeutic properties. Additionally, the growing awareness of lactose intolerance has shifted some consumers towards cow ghee, which is considered easier to digest compared to other dairy products.

By Packaging Type Analysis

Plastic containers dominate Ghee packaging, holding a 38.7% share in 2024.

In 2024, Plastic Container held a dominant market position in the By Packaging Type segment of the Ghee Market, with a 38.7% share. This preference for plastic containers can be attributed to several key factors that appeal to both manufacturers and consumers.

Primarily, plastic containers offer convenience, durability, and cost-effectiveness, which are crucial in the competitive food packaging sector. They are lightweight, reducing transportation costs, and are less fragile compared to glass containers, minimizing the risk of breakage.

Additionally, plastic containers provide excellent barrier properties, which are essential for preserving freshness and extending the shelf life of ghee. This is particularly important in regions with warm climates where dairy products are prone to spoilage. The versatility of plastic allows for various sizes and shapes, enhancing the visual appeal on shelves and facilitating ease of use for consumers.

By Production Method Analysis

The Direct Cream Method contributes 41.2% to total ghee production volume.

In 2024, the Direct Cream Method held a dominant market position in the By Production Method segment of the Ghee Market, with a 41.2% share. This method’s popularity is largely due to its efficiency and ability to maintain a rich flavor and texture, which are highly valued in ghee. Traditional ghee consumers prefer the Direct Cream Method because it closely aligns with the authentic preparation techniques, which emphasize a natural taste and high nutritional content.

This production method involves simmering cream or full-fat milk to evoke a nutty flavor, a process that resonates well with culinary traditions in many cultures, especially in South Asia. The method’s capacity to produce ghee that boasts a longer shelf life without the need for preservatives makes it particularly appealing in markets where longevity and purity are selling points.

By Distribution Channel Analysis

Supermarkets/Hypermarkets are the main sellers with 41.3% distribution channel share.

In 2024, Supermarkets/Hypermarkets held a dominant market position in the By Distribution Channel segment of the Ghee Market, with a 41.3% share. This channel’s predominance is primarily attributed to the convenience it offers consumers in accessing a wide range of ghee products under one roof. Supermarkets and hypermarkets facilitate easy comparison of brands and prices, enhancing consumer purchasing decisions.

The significant footprint of these retail giants allows them to cater to a broad consumer base, providing visibility and accessibility to various ghee brands, from premium to budget-friendly options. This accessibility is vital in educating consumers about the different types of ghee available, including organic, grass-fed, and region-specific varieties, which can influence purchasing patterns.

Additionally, the strategic placement of ghee in these outlets, often alongside other cooking essentials, increases impulse purchases. Marketing strategies such as in-store promotions, discounts, and loyalty programs further drive the sales of ghee in these channels.

By End-Use Analysis

Households remain key consumers of ghee, accounting for 72.3% market share.

In 2024, Household held a dominant market position in the By End-use segment of the Ghee Market, with a 72.3% share. This substantial market share is indicative of ghee’s integral role in home cooking, particularly in cultures where it is a staple ingredient. Households prefer ghee for its rich flavor and health benefits, which include high levels of butyric acid and vitamins A, D, E, and K.

Ghee’s popularity in household cooking is also bolstered by its versatility. It can be used for sautéing, frying, or as a spread, making it a preferred choice over other fats for a variety of recipes and cooking techniques. Additionally, ghee is known for its high smoking point, which makes it an excellent option for high-temperature cooking, a common requirement in many traditional dishes.

Key Market Segments

By Product Type

• Cow Ghee
• Buffalo Ghee
• Others

By Packaging Type

• Plastic Container
• Glass Jar
• Tin
• Pouches
• Others

By Production Method

• Direct Cream Method
• Bilona Method
• Creamery Butter Method
• Prestratification Method
• Continuous Method

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail
• Specialty Stores
• Others

By End-use

• Household
• Food Service
• Others

Driving Factors

Health Benefits Propel Ghee’s Popularity in Kitchens

One of the top driving factors for the ghee market is its numerous health benefits, which have significantly bolstered its popularity and consumption worldwide. Ghee, often considered a healthier alternative to traditional cooking fats like butter or cooking oil, is rich in fat-soluble vitamins A, D, E, and K and also contains butyric acid, which can improve digestive health and reduce inflammation.

Its high smoking point makes it ideal for cooking, preventing the release of harmful free radicals that occur with other oils when overheated. As consumers become more health-conscious and informed about the benefits of good fats in their diet, the demand for ghee has surged, particularly in markets where people are looking for natural and organic food options.

Restraining Factors

High Caloric Content Challenges Ghee Market Growth

A significant restraining factor for the ghee market is its high caloric content, which can be a concern for consumers focused on calorie-controlled diets or those with specific health issues like obesity and heart disease. Ghee is a concentrated source of fat, and although it contains healthy fats, excessive intake can lead to an increased risk of weight gain and associated health problems if not consumed in moderation.

This aspect of ghee often leads health-conscious consumers to seek alternative cooking fats that are perceived as lighter or lower in calories. Additionally, the growing popularity of plant-based diets and the perception of animal-based products as less sustainable or ethical can further impact ghee’s market penetration among certain demographics.

Growth Opportunity

Expanding Ghee Use in Health Food Trends

A prime growth opportunity for the ghee market lies in its expanding use within health food trends, particularly among consumers seeking lactose-free and Paleo-friendly alternatives. Ghee’s natural production process removes nearly all the lactose, making it an excellent option for those with lactose intolerance or sensitivity.

Additionally, its alignment with Paleo and ketogenic diets, which emphasize high-fat, low-carb eating, positions ghee as a beneficial and versatile ingredient. This adaptability opens new avenues in health food sectors and specialty diet markets, where consumers are constantly looking for products that support their health goals without compromising on taste or quality.

Capitalizing on this trend by marketing ghee as a superfood could significantly increase its penetration in global health food markets, especially in Western countries where dietary trends rapidly evolve and influence consumer behavior.

Latest Trends

Organic and Grass-Fed Ghee Gains Market Traction

One of the latest trends in the ghee market is the rising popularity of organic and grass-fed varieties. As consumers become more aware of the benefits of organic farming practices and animal welfare, there is a growing demand for ghee products that are certified organic and sourced from grass-fed cows. These products are perceived to be of higher quality and nutritional value, containing higher levels of omega-3 fatty acids and vitamins.

The trend is driven by an increasing consumer preference for natural, minimally processed foods that are free from additives and preservatives. Additionally, the narrative around grass-fed ghee supporting sustainable agricultural practices adds to its appeal, particularly among environmentally conscious consumers.

Regional Analysis

Asia-Pacific dominates the Ghee Market with a 46.40% share, valued at USD 3.8 billion.

In 2024, Asia-Pacific emerged as the dominant region in the global ghee market, capturing a significant 46.40% share, valued at USD 3.8 billion. This dominance is largely driven by strong cultural preferences and traditional dietary practices that incorporate ghee as a staple cooking fat.

Countries such as India, Bangladesh, and Sri Lanka contribute significantly to this consumption, where ghee remains essential in both household cooking and religious offerings. In North America, the demand for ghee continues to rise steadily, driven by increasing consumer interest in lactose-free and ketogenic diets, where ghee is positioned as a healthier fat alternative.

Europe also reflects a growing awareness of traditional dairy products, with gradual market expansion supported by the popularity of ethnic cuisines. The Middle East & Africa region shows moderate demand, with ghee being used in regional dishes and festive preparations.

Meanwhile, Latin America reflects limited but emerging interest, primarily in urban markets influenced by global food trends. Across all regions, evolving consumer habits and the rise of health-conscious dietary preferences are shaping the ghee market landscape.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

In 2024, the global ghee market witnessed significant contributions from key players such as Nestlé S.A., Milkio Foods Limited, and KMG Milk Food Limited, each adopting distinct strategies to bolster their market presence.

Nestlé S.A., a global food and beverage leader, has been instrumental in shaping the ghee market landscape. The company’s emphasis on quality assurance and adherence to regulatory standards has fostered consumer trust and loyalty. Nestlé’s commitment to product innovation and diversification, including the introduction of organic and flavored ghee varieties, aligns with evolving consumer preferences and has reinforced its position in the market.

Milkio Foods Limited, based in New Zealand, has carved a niche in the premium ghee segment. Specializing in organic and grass-fed ghee, Milkio has expanded its footprint to over 27 countries, catering to both B2B and B2C markets. The company’s participation in international trade events, such as Private Label Middle East 2024, underscores its proactive approach to market expansion and brand visibility.

Top Key Players in the Market

• Nestlé S.A.
• Milkio Foods Limited
• KMG Milk Food Limited
• Amul
• Britannia Industries Limited
• Two Brothers Organic Farms
• Nirvaanic Life Foods Private Limited
• Praakritik
• Jivika Naturals
• Vedically
• Golden Ghee
• Royal VIVBuisman
• Super Ghee
• HSA Group Yemen
• Other Key Players

Recent Developments

• In August 2024, Milkio Foods was fined NZD 420,000 by the New Zealand Commerce Commission for misrepresenting the origin of its ghee products. The company had labeled products made with imported Indian butter as “100% Pure New Zealand” and used the FernMark logo without proper authorization.
• In September 2023, Two Brothers Organic Farms announced plans to expand into the U.S. market. This move aimed to serve the Indian diaspora by offering organic products like cultured ghee, wood-pressed oils, and natural sweeteners. The company set a revenue target of ₹50 crore by 2025 as part of this global expansion strategy.

Report Scope