The major supermarkets believe that new products have stimulated the market and would like to see even more being done to reinvigorate the sector.
Christopher Sellars, trading manager for yellow fats at Sainsbury, says: "The butter market will continue to decline apart from areas where there is a point of difference, ie the higher-end, premium-type butters.
"Spreadable butter is of great significance in our market as it will capture the customers from the declining block category.
"It also has the bonus of adding value into the category. The manufacturers could make the category more exciting, and NPD is definitely slow.
"Own brand is highly significant within the market ­ it is a very mixed market with half very loyal to brands and half loyal to promotions and price."
Safeway has found that over the past year butter has grown 1.3% in value terms with the overall market 0.5% in decline. Linsey Pugh, category buyer for dairy, says: "Spreadable butter has had a significant impact and has brought new consumers into the butter market.
"Any reinvigoration of the market needs to be in the higher value sectors as the volume will continue to fall as usage occasions are declining."
Jane Woodward, senior buyer for dairy at Budgens, believes that spreadable products will continue to grow.
"Eating habits have changed. As well as wanting to spread the product straight from the fridge, there is much less home baking," she says.
"Butter is so static, so it's an area that needs greater innovation than others."

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