Butter, dairy spreads and milk fats market in Bulgaria

Earlier Report Observations

Between 2018 and 2020, the Bulgarian butter and dairy fats market volume grew to over 10 thousand tons in 2019, primarily driven by rising imports which increased from 6.9 thousand tons to 9.1 thousand tons. This import growth responded to steady consumer demand, while domestic production saw a slight rise despite a 16% reduction in the number of dairy farms, as larger commercial operations improved herd productivity and management. Regulatory pressure on products containing vegetable fats, including campaigns against cheeses with palm oil, began shifting consumer preferences toward pure dairy items. In 2020, local butter production fell sharply to 1.1 thousand tons, but the total market volume remained near 9.7 thousand tons, supported by record butter imports from Germany and the Netherlands, which grew by 5.9%.

A key regulatory shift occurred in November 2021 with a new rule prohibiting the labeling, advertising, or presentation of dairy products containing vegetable fats as traditional dairy products. This tightening of standards, aimed at consumer protection, boosted demand for genuine butter and contributed to a recovery in domestic output from 1.2 thousand tons in 2021 to 1.4 thousand tons in 2022. Further legislation in 2022 banned the use of terms like 'butter' and 'cheese' for products with vegetable fats, aligning with European requirements. However, the total market volume in physical terms declined from 9.6 thousand tons to 9.1 thousand tons, partly due to the impact of global factors including the war in Ukraine and energy inflation, which raised production costs and prices, likely constraining consumption.

In 2023, butter production fell again to 871 tons, even as the broader dairy sector stabilized and investments were made to enhance farm efficiency. The market volume held steady at about 9.2 thousand tons, as imports reached a record 9.3 thousand tons, offsetting the drop in local output. Continuing global inflationary pressures kept costs high. By 2024, production recovered to 979 tons, but the total market volume contracted to 8.4 thousand tons due to reduced imports. Ongoing industry consolidation and a focus on exports, which grew to 1.4 thousand tons, also shaped market dynamics during this period.

Production butter, dairy spreads and milk fats in Bulgaria

In value, 2017-2020, K $ US

Annual dynamics of production in Bulgaria in value, 2017-2020, K $ US

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

Bulgaria's production of butter, dairy spreads, and milk fats declined after two years of growth. In 2019, production peaked at 2 180 tonnes, but then fell sharply by 48.2% to 1 129 tonnes in 2020. Over the period from 2017 to 2020, production decreased by 46.7%, which translates to an annualized decline of 18.9%. The largest year-on-year increase occurred in 2019, at 1.9%.

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

Exports butter, dairy spreads and milk fats from Bulgaria

Exports in kind, t

Bulgaria's exports of butter, dairy spreads, and milk fats dropped significantly in 2020. After reaching a high of 648 tonnes in 2019, exports fell by 27.3% to 471 tonnes in 2020. From 2017 to 2020, exports decreased by 20.9%, with an annualized rate of decline of 7.5%. The largest increase was recorded in 2019, at 22.2%.

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

From 2017 to 2020, Romania remained the primary destination for Bulgaria's butter, dairy spreads, and milk fats exports, accounting for 74.7% of total export volume. The remaining exports were distributed among other countries.

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

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

Exports in value, K $ US

Bulgaria's export value of butter, dairy spreads, and milk fats declined in 2020. After peaking at 2 869 thousand US dollars in 2019, exports fell by 32.8% to 1 927 thousand US dollars in 2020. Over the 2017-2020 period, exports decreased by 30.5%, with a compound annual growth rate (CAGR) of -11.4%. The largest increase occurred in 2019, at 9.4%.

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

From 2017 to 2020, Romania continued to dominate Bulgaria's butter, dairy spreads, and milk fats exports in value terms, holding a 76.2% share of total export flows. The rest was fragmented across other markets.

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

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

Imports butter, dairy spreads and milk fats to Bulgaria

Imports in kind, t

Bulgaria's imports of butter, dairy spreads, and milk fats increased for the second consecutive year. In 2018, imports hit a low of 6 916 tonnes, but then rose by 22.9% in 2019 and by another 6.6% in 2020, reaching 9 061 tonnes. Over the 2017-2020 period, imports grew by 17.6%, with an annualized increase of 5.5%. The largest decline was in 2018, at 10.3%.

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

From 2017 to 2020, Germany, the Netherlands, and Poland were the main sources of butter, dairy spreads, and milk fats imports to Bulgaria. Germany accounted for 53.5% of import volume, the Netherlands for 14.8%, and Poland for 10.6%, together making up 79.0% of total imports.

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

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

Imports in value, K $ US

Bulgaria's import value of butter, dairy spreads, and milk fats declined for the second year in a row. After reaching a peak of 41 753 thousand US dollars in 2018, imports fell by 5.1% to 38 658 thousand US dollars in 2020. Over the 2017-2020 period, imports decreased by 6.5%, with a CAGR of -2.2%. The largest increase was in 2018, at 1.0%.

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

From 2017 to 2020, Germany, the Netherlands, and Poland remained the top suppliers of butter, dairy spreads, and milk fats to Bulgaria in value terms. Germany held a 55.0% share, the Netherlands 16.6%, and Poland 10.5%, collectively accounting for 82.0% of total import value.

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

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