Why is Lurpak so expensive - and will prices continue to rise?

With the cost of living crisis in full swing, supermarket products have been creeping up in price. The latest to stun UK shoppers is the ever-popular spreadable butter, Lurpak.

Lurpak butter has been the most recent product to feel the strain of inflation, with a 1kg tub being priced at £9 at Ocado or £7.25 for a 750g spreadable tub at Sainsbury's. 'Lurpak' was trending on Twitter yesterday, as images of security tags on packs on the butter in Asda were shared on social media.  

But why are food prices going up? Topcashback spokesperson, Abigail Yearley told us, "Food inflation is at its highest rate since 2013, and prices are set to increase even more over the coming months." Food prices are predicted to increase by £380 over the next year. Currently, we've seen milk prices jump 7%, pasta prices jump 39.5% and the cost of crisps has risen by 17%. 

Why is Lurpak so expensive? 

Owners Arla Foods released a statement yesterday, explaining why Lurpak butter is now so expensive. It read, "We understand that recent inflation in food price is hitting many households really hard right now. Unfortunately, our farmers are facing a similar situation with prices for the feed, fertiliser, and fuel they need to produce milk, all rising significantly in recent months. While we don't set the prices on the shelves, we do work closely with the retailers to ensure our farmers receive a fair price for the milk they produce."

In May earlier this year, chief commercial officer of Arla Foods Peter Giortz-Carlson, who spoke to Sky News reported that the war in Ukraine had also had an effect - and noted packaging and feed costs have increased by as much as 40%. And it's not just Lurpak butter feeling the strain, Arla Foods manages Cravendale milk and Skyr yoghurt. 

We compared the current cost of Lurpak at leading supermarkets based on a 750g tub of Lurpak spreadable slightly salted:

Will the price of Lurpak continue to rise?

Research by data analysts Kantar, suggests families will pay £380 more on food shopping over the next year. This suggests we'll continue to see gradual price increases across the board - particularly for fresh produce such as milk, eggs, yogurt, and butter - such a Lurpak.

Cheaper alternatives to Lurpak butter

There are cheaper alternatives to Lurpak for those who don't mind making the switch. Aldi offers its own brand, Nordpak, priced at just £4.01 per kg, and according to previous Aldi taste tests have been comparable. 

At the time of writing Lurpak spreadable slightly salted, 750g tub is being sold for £5.30 at Tesco and Lurpak spreadable slightly salted, 750g tub is being sold for £6 at Asda, which are the cheapest prices when comparing leading supermarket brands.

Alternative Lurpak price comparisons

We compared other popular brands of butter to a 750g tub of Lurpak spreadable slightly salted to see the price difference:

Tesco 

Lurpak £5.30 for 750g (£7.07 per kg)

Anchor Spreadable £5.75 for 750g (£7.67 per kg) - more expensive than Lurpak

Country Life Original Spreadable £4.50 for 750g (£6.00 per kg) - cheaper than Lurpak

Morrisons 

Lurpak £7.25 for 750g (£9.67 per kg)

Anchor Spreadable £6.50 for 750g 

Country Life Original Spreadable £4.99 for 750g (£6.65 per kg) - cheaper than Lurpak

Sainsbury's 

Lurpak £7.25 for 750g (£9.67 per kg)

Anchor Spreadable £5.25 for 750g (£7.00 per kg) - cheaper than Lurpak

Country Life Original Spreadable £4 for 750g (£5.33 per kg) - cheaper than Lurpak

Asda

Lurpak £6 for 750g (£8.00 per kg)

Anchor Spreadable £6.50 for 750g (£8.67 per kg) - more expensive than Lurpak

Country Life Original Spreadable £4.95 for 750g (£6.60 per kg) - cheaper than Lurpak

Ocado 

Lurpak £7.25 for 750g (£9.67 per kg)

Anchor Spreadable £6.50 for 750g

Country Life Original Spreadable £5.60 for 750g

A cheap alternative to Lurpak is Country Life Original Spreadable £4 for 750g (£5.33 per kg) at Sainsbury's 

How have other food prices been affected? 

Many other food prices have increased recently. These include tea bags, which are up 17.1% - averaging 14p more per pack of 40 teabags. Instant coffee has risen by 34p per 200g, which is a 14.1% jump. Pasta is also up 39.5%, and crisps have shot up by 11%. 

Dairy seems to be the biggest area impacted by chronic worker shortages, and the ongoing war in Ukraine. Milk is now at least 7% more than it was last year, even in the cheapest supermarkets. 

Increasing labour, energy, and transportation costs are behind the majority of food price rises across the UK.  

Related features:

• Tomato shortage: Why are UK supermarkets running out of tomatoes?
• Fruit and vegetable shortage in the UK - those empty shelves explained
• Why is there an egg shortage in the UK?
• Coffee Mate shortage 2023: Why are supermarkets running out of Coffee Mate

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