Why Desi Ghee is Becoming a Hot Commodity in International Markets

Ghee, or clarified butter, is a dairy product produced by heating milk, cream, or butter until complete evaporation of water and the removal of non-fat solids. The removal of non-fat solids from ghee allows it to be a lactose-free dairy product. Ghee is a traditional dairy product from the Middle East and Asia, especially India, where it is very popular due to its nutritional benefits, growing demand for organic and natural products, and increasing awareness about Ayurveda and traditional wellness practices. The surge in its popularity has resulted in a steady rise in exports, making desi ghee a high-demand commodity worldwide.

Rising Global Demand for Desi Ghee

According to recent market research, the global ghee market size reached USD 51.85 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 91.86 Billion by 2033, exhibiting a growth rate (CAGR) of 5.72% during 2023-2033. The escalating health consciousness, surging demand for natural and organic products, cultural and traditional uses, increasing usage for culinary purposes, growth in the dairy industry, and rising disposable incomes are some of the key factors influencing the market growth. Countries like the USA, Canada, the UAE, Australia, and the UK are witnessing a surge in demand as Indian and South Asian diaspora communities expand, bringing their traditional food habits along with them.

The rising trend of healthy fats in modern diets, such as keto and paleo, has further boosted ghee’s acceptance. Unlike processed oils, ghee is rich in omega-3 fatty acids and vitamins A, D, E, and K, making it a healthier alternative for cooking. Moreover, its high smoke point makes it an ideal choice for frying and sautéing, attracting global chefs and food enthusiasts.

Factors Driving the International Market for Desi Ghee

Increasing Indian Diaspora and Cultural Influence:

The Indian diaspora, which stands at over 32 million people globally, has significantly contributed to the rising international demand for Indian food products, including desi ghee. Restaurants, retail chains, and online marketplaces now prominently feature desi ghee, catering to this growing consumer base.

E-Commerce and Digital Expansion

Online grocery platforms and international retailers such as Amazon, Walmart, and Whole Foods have played a crucial role in making Desi Ghee accessible to global consumers. Brands that offer organic, grass-fed, and preservative-free ghee have seen an exponential increase in sales across e-commerce channels.

Rise in Demand for Organic and Natural Products:

Consumers are increasingly demanding organic and natural food products. This has greatly benefited the ghee market. Organic ghee, made from milk obtained from grass-fed cows that have never been treated with synthetic fertilizers, pesticides, or genetically modified organisms, is perceived as healthier and more environmentally friendly. In addition to this, the ghee market forecast also reveals that the growing consciousness relating to the health environment from conventional farming methods and qualms concerning the safety and quality of foods are impelling the market growth. This growth trend is more pronounced in the developed markets of North America and Europe, where the consumer is still willing to pay a premium for organic food products, which is further aiding in market expansion.

Growing Health Consciousness:

Another major driver of the ghee market is health consciousness, as it contains a large number of essential fatty acids, including fat-soluble vitamins A, D, E, and K, along with antioxidants, thus making it very attractive to health-conscious consumers. It is also known to aid digestion, improve immunity, and offer overall well-being. As a result, the increasing rate of lifestyle diseases like obesity, diabetes, and cardiovascular conditions is bolstering ghee market revenue with people looking for healthier options of food more intensively.

Expanding Applications in Cooking:

Another reason fueling the market growth of ghee is its increasing applications in cooking. Traditionally,it finds a place in Indian and Middle Eastern cuisines, and in Western kitchens, owing to its high smoke point, it is a versatile cooking fat just perfect for frying, sautéing, and baking, besides finding a place in many recipes as a substitute for butter. The rich, nutty flavor that ghee imparts makes it an indispensable item in a chef’s or home cook’s menu. The ghee market insights reveal that the extensive trend towards experimentation by consumers in international recipes and flavors, the greater the demand for ghee, on account of its unique flavor and versatile applications in a huge variety of food items.

Export Potential and Market Trends

India remains the largest producer and exporter of desi ghee, accounting for a significant share in the global dairy market. According to APEDA (Agricultural and Processed Food Products Export Development Authority), India exported over 20,000 metric tons of dairy products, including ghee, in 2023 alone. Key export destinations include the Middle East, the United States, Canada, Australia, and the European Union.

The international dairy industry has also seen a rise in private-label ghee brands that source directly from India. This trend has encouraged many dairy manufacturers to adopt premium packaging, sustainable sourcing, and enhanced quality certifications to meet global standards.

Challenges in Exporting Desi Ghee

Despite the growing demand, the international trade of desi ghee faces several challenges, including:

• Stringent quality regulations: Countries like the US and the EU have strict import regulations regarding dairy products, requiring manufacturers to obtain FSSAI, FDA and EU dairy certifications.

• Shelf life concerns: Ghee, being a dairy fat product, requires proper storage and packaging to maintain its quality and increase shelf life.

• Competitive market: The presence of local butter substitutes and plant-based alternatives has become a challenge for traditional dairy ghee exporters.

How Businesses Can Tap into the Growing Global Market

For businesses looking to export Desi Ghee internationally, leveraging a B2B platform like Tradologie.com can facilitate a streamlined approach. With over 800,000 registered buyers and sellers in over 100 countries, Tradologie.com enables direct business negotiations, ensuring better pricing, verified buyers, and hassle-free deals.

Other strategies for increasing international sales include:

• Invest in organic and grass-fed ghee: These varieties are increasingly being preferred in health-conscious markets such as North America and Europe.

• Compliance with global certifications: Acquiring certifications such as USDA Organic, FDA, EU Organic and Halal can increase credibility and export potential.

• Expanding the distribution network: Partnering with supermarkets, online marketplaces and specialty stores can expand the customer base.

Conclusion

The global demand for desi ghee is growing due to its health benefits, cultural influence, and the growing preference for organic products. As the popularity of Ayurveda grows and the Indian diaspora increases, the ghee market is set to grow. However, businesses will have to deal with regulatory challenges, invest in quality certification, and expand their distribution networks to maximize export potential. Leveraging a B2B SaaS platform like Tradologie.com can help streamline the process and connect exporters with verified international buyers, ensuring a successful global trade in desi ghee.