Butter, dairy spreads and milk fats market in Bangladesh

Earlier Report Observations

The market for butter, dairy spreads, and milk fats in Bangladesh expanded consistently between 2018 and 2023, with total volume increasing from 61.4 thousand tonnes to 78.2 thousand tonnes. This growth was primarily driven by rising domestic production, which climbed from 60.2 thousand tonnes to 77.1 thousand tonnes over the same period.

The most pronounced surge occurred in 2021, when market volume jumped by over 15% to 75.3 thousand tonnes. This was accompanied by a significant rise in production, indicating a strengthening domestic supply chain. Market growth moderated in the following years but remained positive, with volumes reaching 78.2 thousand tonnes by 2023.

For 2024, global trends are shaping the market. Consumer preference is shifting towards natural dairy fats like butter over vegetable oils due to health perceptions. Additionally, international factors such as global dairy price fluctuations, the WHO REPLACE initiative targeting trans fats, and expanded dairy processing infrastructure worldwide are influencing Bangladesh's market dynamics, affecting import patterns and local consumption.

Production butter, dairy spreads and milk fats in Bangladesh

In kind, 2017-2020, 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

Bangladesh has seen butter, dairy spreads, and milk fats production grow for the third year in a row. In 2020, the country produced 64 382 tonnes, marking a 3.7% increase from 2019. Over the 2017-2020 period, production rose by 10.8%, with an average annual growth rate of 3.5%.

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

Exports butter, dairy spreads and milk fats from Bangladesh

Exports in kind, t

Export performance showed significant fluctuations during this period. Exports reached their lowest point in 2019 at 46 tonnes, then surged to 120 tonnes in 2020—a dramatic 161.3% increase from the previous year. From 2017 to 2019, exports fell by 2.8 times, with the largest decline of 63.1% occurring in 2019.

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

From 2017 to 2020, the main destinations for Bangladesh's butter, dairy spreads, and milk fats exports were Senegal (30.6% of exports in kind), Saudi Arabia (23.2%), and the United States (9.3%). Together, these three countries accounted for 63.1% of total export flows.

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

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

Exports in value, K $ US

The data shows irregular changes, pointing to a volatile market environment. The lowest export value was recorded in 2018 at 250 thousand US dollars, while the highest came in 2020 at 991 thousand US dollars—a fourfold difference between the peak and trough. In 2020, exports jumped by 116.6% compared to the previous year, with the largest decline of 17.6% occurring in 2018.

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

Between 2017 and 2020, the United States (36.0% of exports in value terms), Saudi Arabia (24.4%), and Australia (19.3%) dominated the export structure. Combined, these three markets represented 79.6% of total export value.

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

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

Imports butter, dairy spreads and milk fats to Bangladesh

Imports in kind, t

Bangladesh's imports of butter, dairy spreads, and milk fats totaled 1 013 tonnes in 2020, up 4.4% year-on-year. Over the 2017-2020 period, imports grew by 4.1%, averaging 1.3% annually. The lowest import volume was 970 tonnes in 2019, while the highest was 1 294 tonnes in 2018. The largest decline of 25.1% happened in 2019, and the biggest increase of 33.0% occurred in 2018.

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

From 2017 to 2020, New Zealand, India, and Australia were the top sources for Bangladesh's butter, dairy spreads, and milk fats imports, together making up 75.8% of total import volume.

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

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

Imports in value, K $ US

Bangladesh's imports of butter, dairy spreads, and milk fats declined for the second consecutive year. In 2020, imports amounted to {value_last_year} thousand US dollars, down 4.8% from the prior year. Over the 2017-2020 span, imports fell by 8.3%, with an average annual decrease of 2.8%. The highest import value was 6 768 thousand US dollars in 2018, while the largest drop of 33.5% took place in 2019, and the biggest rise of 44.9% was in 2018.

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

During 2017-2020, New Zealand (60.5% of imports in value terms), the United Arab Emirates (8.5%), and India (8.4%) remained the primary suppliers of butter, dairy spreads, and milk fats to Bangladesh. These three countries collectively accounted for 77.4% of total import value.

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

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