Butter, dairy spreads and milk fats market in Asia

Earlier Report Observations

Between 2018 and 2019, the butter and dairy spreads market in Asia expanded from 13.8 million tons to 14.6 million tons, supported by the broadening of the domestic dairy market and a premiumization strategy for functional fermented dairy products. The slight stabilization of the market in 2020, with volumes at 14.5 million tons, occurred against the backdrop of the COVID-19 pandemic, which increased at-home cooking and boosted consumer focus on health and convenience, supporting demand.

A significant surge to 15.6 million tons followed in 2021. This growth was primarily influenced by global supply chain constraints and volatility in raw milk production, which tightened supplies, alongside a notable expansion of industrial anhydrous milk fat production and exports from major producers like India. The market stabilized near this level in 2022 at 15.6 million tons, as rising energy and feed costs in Europe, coupled with livestock disease outbreaks, increased production expenses and created supply pressures internationally.

Market volume continued its upward trajectory, reaching 16.0 million tons in 2023. In 2024, key market developments included government actions, such as South Korea's approval of an additional 4,000 tons of butter imports, bringing the total quota to 14,000 tons to address tight inventories. The recovery of foodservice and tourism demand, along with rising international prices, spurred a shift from imported to domestic products in some markets. Simultaneously, consumer preferences continued to evolve, with increased demand for health-oriented, functional, and plant-based dairy products shaping the market's structure.

Production butter, dairy spreads and milk fats in Asia

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

Butter, dairy spreads, and milk fats production in Asia declined after two years of growth. In 2020, production reached 14 020 K t, showing minimal change compared to the previous year. Between 2017 and 2020, production increased by 9.1%, which translates to an annualized growth rate of 2.9%. The highest production level was recorded in 2019 at 14 093 K t, with the largest annual increase of 5.7% occurring that same year.

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

In value, 2017-2020, B $ US

Asia's butter, dairy spreads, and milk fats production value declined following a two-year advance. In 2020, the output was valued at 258.9 B $ US, representing a 22.1% decrease from the previous year. Over the 2017-2020 period, production value decreased by 6.9%, with a compound annual growth rate of 2.3%. The peak value was recorded in 2019 at 332.4 B $ US, while the largest annual increase of 19.4% occurred in 2018.

Annual dynamics of production in Asia in value, 2017-2020, B $ US

Exports butter, dairy spreads and milk fats from Asia

Exports in kind, K t

Asia's butter, dairy spreads, and milk fats export volume increased for the second consecutive year. In 2020, exports reached 28.0 K t, reflecting a substantial 24.5% increase compared to the previous year. Over the 2017-2020 period, exports decreased by 3.5%, with a compound annual growth rate of 1.2%. The lowest export volume was recorded in 2018 at 22.0 K t, which also saw the largest annual decline of 24.1%.

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

From 2017 to 2020, Asia's butter, dairy spreads, and milk fats exports in kind were distributed across multiple markets. Russia accounted for 11.1% of exports, Egypt for 0.9%, and Asia, not elsewhere specified, for 0.8%. Together, these three markets represented only 12.8% of total export flows, indicating a broad market spread.

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

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

Exports in value, M $ US

Butter, dairy spreads, and milk fats exports in Asia declined after a two-year gain. In 2020, exports totaled 162 M $ US, reflecting a steep 33.4% decrease compared to 2019. Over the 2017-2020 period, exports increased by 8.4%, with a compound annual growth rate of 2.7%. The highest export value was recorded in 2019 at 244 M $ US, which also saw the largest annual increase of 37.4%.

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

From 2017 to 2020, Russia was the largest buyer of butter, dairy spreads, and milk fats from Asia in value terms, accounting for 12.3% of exports. Australia followed with 1.1%, and Asia, not elsewhere specified, with 0.9%. Together, these three markets contributed 14.3% of total export value, reflecting a diversified country structure.

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

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

Imports butter, dairy spreads and milk fats to Asia

Imports in kind, K t

Asia's butter, dairy spreads, and milk fats imports declined after two years of increase. In 2020, imports reached approximately 471.2 K t, reflecting a small 2.5% decrease compared to the previous year. Over the 2017-2020 period, imports increased by 6.7%, with a compound annual growth rate of 2.2%. The highest import volume was recorded in 2019 at 483.0 K t, while the largest annual increase of 6.7% occurred in 2018.

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

From 2017 to 2020, New Zealand was the dominant source for butter, dairy spreads, and milk fats imports to Asia in kind, accounting for 51.6% of imports. France contributed 5.9%, and Denmark 4.5%. Together, these three countries accounted for 62.0% of total imports in kind, remaining the main destinations.

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

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

Imports in value, M $ US

Butter, dairy spreads, and milk fats imports to Asia declined for the second consecutive year. In 2020, imports totaled approximately 2 329 M $ US, corresponding to a 12.1% contraction over the past year. Between 2017 and 2020, imports decreased by 2.7%, equating to an annualized rate of 0.9%. The highest import value was recorded in 2018 at 2 903 M $ US, which also saw the largest annual increase of 21.3%.

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

From 2017 to 2020, New Zealand consistently remained the main source for butter, dairy spreads, and milk fats imports to Asia in value terms, accounting for 51.7% of imports. France contributed 7.4%, and Denmark 5.2%. Together, these three countries accounted for 64.3% of total import flows.

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

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