This simple question can create some hot debate. Those who favour butter usually say it tastes better and is less processed than margarine. Those who favour margarine say it has less saturated fat and is better for heart health. But who is right?

A brief history on margarine

Margarine was first developed in 1869 in France in response to food shortages. The French government offered a prize to anyone able to create a cheaper alternative that tasted like butter. Hippolyte Mège-Mouriès created the closest alternative to butter, which he made from beef fat and skim milk. He called it oleomargarine.

As margarine was cheaper than butter, farmers in the dairy industry became concerned about how it would impact butter sales. To protect the butter industry, some countries banned margarine altogether. Others insisted it was not allowed to ‘look’ like butter. Interestingly, some American states were forced to make their margarine pink!

Margarine made its way to Australia in the early 1930s. It is now made from vegetable oils in a process called hydrogenation. Hydrogenation turns liquids into solids. This process can also turn some healthy fats into unhealthy (trans) fats.

What about butter?

Butter is made using fresh whole milk which is separated into cream and skim milk. The cream is churned and salt is added for flavour and a longer shelf life. In Australia, butter must be at least 80% milk fat.

What type of fat is in butter and margarine?

Margarine is an ultra-processed food but is often considered healthier than butter because of the types of fat it contains. Margarine contains higher amounts of unsaturated (healthy) fats. Butter contains higher amounts of saturated (unhealthy) fats.

Why does the type of fat matter?

The types of fats we eat affect our health because they cause our bodies to respond differently.  Eating unsaturated fats creates higher amounts of HDL or ‘healthy’ cholesterol in our blood which carries fats away from the arteries.

On the other hand, eating saturated fats creates higher amounts of LDL or ‘unhealthy’ cholesterol in our blood which deposits fat into the walls of our arteries. This can lead to a build-up of plaque which is a risk factor for heart attack or stroke. This is why doctors often closely monitor LDL cholesterol levels.

Interestingly, there is growing debate about whether saturated fat is bad for us. In fact, some recent studies suggest there is no association between saturated fat intake and the risk of cardiovascular disease or type 2 diabetes.

Despite all of this, most health professionals and governing health bodies still agree it is a good idea to limit your total saturated fat and to monitor your blood cholesterol levels under the supervision of your health care provider.

Hungry for some numbers? Here they are

If numbers are your thing, compare the types of fat found in common brands of butter and margarine.

The tables below show the type of fat in different kinds of butters and margarines in a 100g serving. It is always best to compare products using the ‘per 100g’ column. If you would like to learn more about label reading check out our understanding nutrition labels fact sheet.

Margarines
	Total fat per 100g	Saturated fat	Monounsaturated	Polyunsaturated	Trans	Main type of fat
Olive Grove Classic	60g	16.2g	30.5g	13g	0.3g	Monounsaturated
Meadowlea original	60g	15.3g	30g	14g	0.4g	Monounsaturated
Flora Proactiv	62g	12.5g	22.8g	27.5g	0.5g	Polyunsaturated
Nuttelex	63g	16.3g	27.2g	18.2g	0.1g	Monounsaturated

Butter – Block
	Total fat per 100g	Saturated fat	Monounsaturated	Polyunsaturated	Trans	Main type of fat
Western Star	80.5g	53.1g	Not listed	Not listed	Not listed	Saturated
Devondale butter	81.0g	55.1g	Not listed	Not listed	Not listed	Saturated
Westgold	82.1g	53.1g	Not listed	Not listed	3.8g	Saturated

What’s the deal with trans fats?

Trans fats are considered unhealthy fats. This is because they lower healthy cholesterol and increase inflammation and unhealthy cholesterol levels. While the process of creating margarine does create some trans fats, the resulting amount is low. A study by Food Standards Australia New Zealand (FSANZ) in 2013 found trans fats in margarine to be less than or equal to 3.3%. This is comparable to butter which usually contains about 3% trans fat. The only difference with butter is that the trans fats are naturally occurring instead of being made through processing. So, butter and margarine are very alike when it comes to trans fats.

Do we eat much saturated and trans fats from the butter or margarine we spread on our toast?

No, because it is such a small quantity. You eat much larger amounts of saturated or trans fats from foods with large quantities of butter or margarine. These foods include meat pies, sausage rolls, croissants, biscuits and cakes. You also find saturated and trans fats in fatty or processed meats, fried food, dairy and solid fats (i.e. ghee, coconut oil, lard, copha).

What if I need to lower my cholesterol levels?

You will get the biggest improvement by reducing your intake of foods that contain larger amounts of saturated fats that you eat regularly.

Food habits to look out for which may be increasing your unhealthy cholesterol levels:

• Regularly eating fatty poultry such as chicken thighs, chicken marylands or chicken skin
• Regularly eating fatty meats such as sausages, marbled steaks and streaky bacon
• Eating red meat more than twice a week
• Having biscuits with your tea or coffee
• Having a high intake of dairy foods, such as three or more milky coffees in addition to eating cheese and/or yoghurt daily
• Eating foods with pastry such as meat pies, sausage rolls, quiches or pastries more than once a week
• Regularly eating chocolate or ice-cream.

What should I do to lower my saturated fat intake?

• Swap fatty poultry for leaner options such as chicken breast
• Remove the skin from the chicken
• Eat red meats fewer than twice a week
• Train yourself to drink tea and coffee without a snack
• Swap full fat milk for reduced fat milk
• Broaden the variety of your snacks if they are mostly contain dairy
• Limit food with pastry to less than weekly
• Set a ‘budget’ on how many times you eat chocolate or ice-cream each week

Butter or margarine? The verdict

If you like butter, it is fine to use sparingly as part of a low saturated fat diet. Swapping your butter to margarine may help you reduce your overall intake of saturated fat. But regardless of whether you choose butter or margarine, the healthier option would always be the reduced salt option. Because of the ultra-processed nature of margarine it is also worth considering a healthier, less processed alternative rich in beneficial mono- and polyunsaturated fats, such as olive oil, nut butter, avocado or canola oil.

A further point to consider is that it is the long-term overall diet pattern and food profile that really matters for health and diabetes management, not an isolated amount of saturated fat from a specific food. The spread you choose is just one piece of the overall nutritional profile of a diet. In other words, it may be what you are putting your spread on that is more important, rather than the spread itself as it will make it a completely different meal.

It might even be worth considering whether butter or margarine is needed in your diet at all. With a balanced diet of nutrient-dense whole foods, you are getting fats from dairy, nuts, olive oil, meats and avocado, so you may not need to add extra margarine or butter.

Article updated 28 March 2025