Butter is Better: Keto is driving resurgence as a premium product11 Feb 2022
After years of being shunned as an ingredient, fat is back thanks in large part to the popularity of the keto diet. The market for keto products is growing steadily with the global value of this category forecast to reach $15.6 billion by 2027, according to data from Irish ingredients producer Kerry.
As a diet that promotes low-carb, high-fat combinations, butter has become a preferred ingredient. But not just any butter will do. While traditional butter has seen a surge in sales as the pandemic prompted more people to cook and bake at home, this animal fat has also seen a fair amount of innovation in recent months — particularly in the premium category.
Keto Krisp bars by CanDo recently released its seventh flavor to its bar line up in a Butter & Salt with Collagen flavor that is positioned as a functional snacking option that is keto-friendly. This butter-laden bar is also combined with collagen to create a protein-rich bar with a low ratio of net carbs and sugar. The premiumization of butter as a functional bar ingredient has helped lift the CanDo brand’s sales by 570% year over year.
Other brands are also looking to butter as an ingredient to drive growth. Garden of Life has a grass fed butter powder that is sold as a supplement for those that are looking to integrate additional healthy fats into their diets. At $40 for 300 grams of powder on online retailers, this product clearly positions butter as something better than an accompaniment to toast. And premium grass fed butter has even found its way into coffee beverages like Bulletproof Coffee.
While this interest in butter is nothing new, it is one that is proving to stand the test of time. In 2019, one in six launches with a fat-related claim and healthy fat content carried a keto diet claim, a nearly 300% growth from 2017, according to data from Innova Market Insights. In particular, meal replacement and powdered beverages led the pack for products where healthy fats like butter and ghee are growing rapidly. Bars were another category where healthy fats have a significant presence. According to CanDo, which cited data from SPINS, keto bars propel 65% of the overall growth of the bar category.
Despite the demand for butter that the keto diet is driving, butter has recently seen significant price increases. For the week ending Dec. 11, 2021, butter prices increased 40% as compared to a year prior, according to an analysis of USDA data by IndexBox. At the same time, the amount of butter available decreased. In 2021, butter production declined by 2.8%.
While this does not spell disaster for product innovation, it is worth noting that while butter is a popular ingredient for those on the keto diet, it is not the only healthy fat choice available. MCT oil, coconut oil, and animal fats like bacon are also sources that could potentially replace this star ingredient if the market continues to push up the price of this particular commodity.
Oats growing in popularity, winning awards and consumer favor
10 Feb 2022
While the pandemic is primarily associated with less-than-favorable alterations to society, one positive change it did catalyze was the catapulting of oats from a little-known breakfast ingredient into a show-stopping, plant-based option. Now, oats are...Read more
Chobani debuts plant-based coffee creamer
21 Jan 2022
After two years of producing dairy- and oat-based coffee creamers, Chobani is branching into plant-based coffee pairing options with the debut of Chobani Plant-Based Coffee Creamers. These creamers come in four flavors: Caramel Macchiato, Chocolate Haz...Read more
Animal-free dairy company raises $120M for commercialization
18 Jan 2022
Israeli animal-free dairy company Remilk raised $120 million in a Series B funding round led by Hanaco Ventures with participation from a number of other investors, including Impossible Foods backer CPT Capital, plant-based protein company Just, Yofix,...Read more
Chobani Sales surge as it moves closer to IPO
26 Nov 2021
Greek yogurt company Chobani saw its sales hit $1.2 billion as of Sept. 25 this year. That is only $200 million short of what the company recorded for all of 2020, when its sales rose 5.2% to $1.4 billion last year, according to a filing with the Secur...Read more
Cell-cultured dairy company maker TurtleTree closes $30M in Series A
8 Nov 2021
Singapore’s TurtleTree successfully closed a $30 million Series A funding round led by Verso Capital. This investment is one of the largest rounds to date in Asia’s cell-based food sector and brings TurtleTree’s total investment figure to $40 million.Read more
EU approves protein ingredient from Eat Just
25 Oct 2021
Eat Just, the company behind the mung bean-based Just Egg, received approval from the European Food Safety Authority (EFSA) stating that its novel mung bean protein used in its egg substitute is safe for consumption. It is the first novel legume protei...Read more
Clara Foods rebrands as the EVERY Company and launches animal-free egg
20 Oct 2021
Fermentation startup Clara Foods announced it is rebranding as the EVERY Company at the same time that it is launching the world’s first animal-free, nature-equivalent egg protein — ClearEgg.Read more
Mondelez introduces a vegan version of its Cadbury bar
18 Oct 2021
Cadbury will soon have a new vegan chocolate bar in the U.K., called the Cadbury Plant Bar, Mondelez International announced. The new plant-based offering is inspired by Cadbury’s Dairy Milk, one of the most well-known chocolate bar options in the regi...Read more
Danone set to launch “dairy-like” segment
8 Oct 2021
To help close the gap between dairy drinkers and plant-based milk acolytes, dairy giant Danone is launching a plant-based “dairy-like” segment in January 2022. Initially, the new segment will launch with two beverages: Silk nextmilk and So Delicious Wo...Read more
Ripple closes $60M investment round, targets global expansion
6 Oct 2021
Animal-free, pea-protein-based dairy maker Ripple Foods raised $60 million in a Series E funding round led by Rage Capital, Ajax Strategies, and S2G Ventures, with backing from OurCrowd, GV, Prelude Ventures, Euclidean, Fall Line Capital, and Tao Capit...Read more
Are you a supplier?
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation