Bread market in Mongolia

Earlier Report Observations

The bread market in Mongolia expanded from 31 395 t in 2018 to 35 756 t in 2020. This growth was supported by the introduction of mandatory fortification for flour and bread in May 2018, which required producers to enrich their products, stimulating production upgrades. Enhanced food safety laws and labeling requirements also improved quality standards. The COVID-19 pandemic in 2020 increased at-home consumption of staple foods like bread, further boosting market volume.

From 2021 to 2023, the market continued to rise, reaching 47 942 t in 2023. Ongoing refinements in food safety legislation and labeling, aligned with international standards, helped build consumer trust and encouraged market expansion. Domestic production grew steadily, reaching 40 447 t in 2023. Although high inflation in 2023 led to higher bread prices, demand for this essential commodity remained resilient, supporting volume growth.

In 2024, bread imports increased to 8 931 t. The Mongolian government implemented policies to reduce reliance on food imports and support local manufacturing, including a 30% incentive for import-substituting products. Concurrent legal reforms aimed at adopting international food safety standards and strengthening laboratory capacity seek to further modernize the sector.

Production bread in Mongolia

In kind, 2017-2020, t

From 2017 to 2020, Mongolia ranked 27th globally in bread production.

Top producers of bread, 2017-2020

World map of production of bread, 2017-2020

Bread production in Mongolia grew for the third year in a row. In 2020, the country produced 30 992 tonnes of bread, marking a strong increase of 11.5% compared to the previous year. Over the 2017-2020 period, production rose by 30.1%, with an average annual growth rate of 9.2%.

Annual dynamics of production in Mongolia in kind, 2017-2020, t

Exports bread from Mongolia

Exports in kind, t

Mongolia's bread exports declined for the second consecutive year. In 2020, export volume reached 11 tonnes, down 26.2% year-over-year. Between 2017 and 2020, exports fell by 56.5%, equivalent to an annualized decrease of 24.2%. The highest export volume was recorded in 2018 at 29 tonnes. The largest drop occurred in 2019, with a 48.1% decrease, while the biggest increase was in 2018, at 13.4%.

Annual dynamics of product's exports from Mongolia in kind, 2017-2020, t

Between 2017 and 2020, China and the United States were the key export partners for bread in kind, together accounting for 94.5% of total flows, with other partners making up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Mongolia in kind, 2017-2020

Exports in value, K $ US

The export market showed volatility during the observed period. Import levels varied significantly, with a 6.5-fold difference between the low in 2020 and the high in 2019. In 2020, bread exports from Mongolia amounted to 15 thousand US dollars, representing an 84.5% decline from the previous year. The peak value was in 2019 at 94 thousand US dollars, with the largest increase that year at 136.3%.

Annual dynamics of product's exports from Mongolia in value, 2017-2020, K $ US

From 2017 to 2020, China remained the primary market for bread exports in value terms, holding a 71.9% share of total flows, while the rest was distributed among various other destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Mongolia in value, 2017-2020

Imports bread to Mongolia

Imports in kind, t

Bread imports into Mongolia increased for the third consecutive year. In 2020, imports totaled 4 775 tonnes, up 5.5% from 2019. Between 2017 and 2020, imports grew by 47.1%, corresponding to an average annual rate of 13.7%.

Annual dynamics of product's imports to Mongolia in kind, 2017-2020, t

During 2017-2020, Russia (with 42.8% of imports in kind), China (22.3%), and Vietnam (11.2%) were the main sources for bread imports into Mongolia, together comprising 76.4% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Mongolia in kind, 2017-2020

Imports in value, K $ US

Mongolia's bread import value rose for the third year in a row. In 2020, imports reached 12 901 thousand US dollars, showing a moderate increase of 4.5% compared to 2019. Over the 2017-2020 period, imports increased by 56.2%, equating to an annualized growth rate of 16.0%.

Annual dynamics of product's imports to Mongolia in value, 2017-2020, K $ US

From 2017 to 2020, Russia (accounting for 39.3% of imports in value terms), China (20.0%), and Vietnam (9.4%) led as the top suppliers of bread to Mongolia, with their combined share reaching 68.7% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Mongolia in value, 2017-2020