Butter, dairy spreads and milk fats market in ASEAN

Earlier Report Observations

The ASEAN butter and dairy spreads market expanded moderately to 225 thousand tonnes by 2019, supported by product diversification and competitive developments including NutiFood's first export of ready-made powdered milk to the US. However, global supply chain disruptions from the COVID-19 pandemic in 2020 sharply reduced market volume to 147 thousand tonnes, affecting both production and imports.

Market volume recovered to 158 thousand tonnes in 2021, driven by increased consumer health awareness in Vietnam and dairy company investments in product innovation. Growth subsequently moderated as plant-based milk alternatives gained popularity in Singapore and Vietnam, and global factors such as bluetongue disease outbreaks in Europe impacted dairy fat availability and import costs, contributing to a market size of 146 thousand tonnes in 2023.

In 2024, butter imports into ASEAN faced cost pressures from supply constraints in Europe due to shrinking herds and disease outbreaks. Regulatory updates in Malaysia and Singapore, including the elimination of partially hydrogenated oils and stricter labeling requirements, influenced product formulations, while consumer preferences continued shifting towards natural, organic, and functional dairy products.

Production butter, dairy spreads and milk fats in ASEAN

In kind, 2017-2020, K t

Top producers of butter, dairy spreads and milk fats, 2017-2020

World map of production of butter, dairy spreads and milk fats, 2017-2020

ASEAN's production of butter, dairy spreads, and milk fats declined after two years of growth. In 2020, the region produced 42.1 K t, marking a significant 60.8% decrease compared to the previous year. Over the period from 2017 to 2020, production fell by 58.5%, with an average annual decline of 25.4%. The peak was reached in 2019 at 107.5 K t, which also saw the largest increase of 4.1% during this timeframe.

Annual dynamics of production in ASEAN in kind, 2017-2020, K t

Exports butter, dairy spreads and milk fats from ASEAN

Exports in kind, K t

Following a two-year decline, ASEAN's exports of butter, dairy spreads, and milk fats showed a slight uptick. In 2020, exports totaled 7.3 K t, remaining nearly unchanged from the year before. From 2017 to 2020, exports decreased by 30%, translating to an average annual drop of 11.2%. The lowest point was in 2019 at 7.3 K t, while the sharpest decline occurred in 2018 with a 23.6% decrease.

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

Between 2017 and 2020, ASEAN's exports of butter, dairy spreads, and milk fats were not heavily concentrated on a few key markets. Japan accounted for 16.3% of exports, the United Arab Emirates for 6.5%, and Asia, not elsewhere specified, for 3.3%. Together, these three destinations made up only 26.2% of total export flows, indicating a diverse distribution.

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

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

Exports in value, M $ US

ASEAN's export value of butter, dairy spreads, and milk fats declined for the second year in a row. In 2020, exports stood at 37.2 M $ US, reflecting a substantial 21.8% drop from the previous year. From 2017 to 2020, exports fell by 25.9%, with an average annual decrease of 9.5%. The highest value was recorded in 2018 at 52.6 M $ US, which also saw the largest increase of 4.9% during this period.

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

From 2017 to 2020, ASEAN's export value of butter, dairy spreads, and milk fats was spread across a wide range of buyers. Japan contributed 19.8% of the total value, the United Arab Emirates 8.8%, and Asia, not elsewhere specified, 3.5%. Combined, these three accounted for just 32.1% of total exports, with many other countries holding smaller but notable shares.

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

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

Imports butter, dairy spreads and milk fats to ASEAN

Imports in kind, K t

ASEAN's imports of butter, dairy spreads, and milk fats in volume terms declined for the second consecutive year. In 2020, imports amounted to 111.9 K t, down 10.6% from the previous year. Over the 2017-2020 period, imports decreased by 8.4%, with an average annual decline of 2.9%. The peak was in 2018 at 127.3 K t, which also experienced the largest increase of 4.2%.

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

Between 2017 and 2020, ASEAN's imports of butter, dairy spreads, and milk fats were highly concentrated on New Zealand, which held a dominant 72.9% share of total import volumes. The remaining volume was distributed among various other trading partners.

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

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

Imports in value, M $ US

ASEAN's import value of butter, dairy spreads, and milk fats fell for the second year in a row. In 2020, imports totaled 575.1 M $ US, a 19.6% decrease from the year before. From 2017 to 2020, imports dropped by 17.2%, with an average annual decline of 6.1%. The highest value was in 2018 at 804.4 M $ US, which also saw the largest increase of 15.8%.

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

From 2017 to 2020, New Zealand remained the primary source for ASEAN's imports of butter, dairy spreads, and milk fats in value terms, accounting for 71.7% of total flows. The rest of the imports were spread across numerous other destinations.

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

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