Butter, dairy spreads and milk fats market in China

Earlier Report Observations

The Chinese butter and milk fats market opened the period at 287.7 thousand tons in 2018, supported by strong demand from the food and beverage sector where anhydrous milk fat became increasingly used in trending products. Tight cream supplies and rising import prices for anhydrous milk fat further shaped market conditions. After a contraction to 267.0 thousand tons in 2019, the market regained momentum, climbing to 310.9 thousand tons in 2020 and 338.7 thousand tons in 2021.

A sharp expansion occurred in 2022, when market volume rose to 366.1 thousand tons and value jumped to $1.9 billion. This was driven by a substantial 27.7% increase in import prices for butter due to international market tightness and higher raw material costs, alongside a rise in butter imports. In 2023, volume growth slowed to 367.1 thousand tons while value edged down slightly, coinciding with continued price increases for imported anhydrous milk fat and expanded output of domestic products by major local manufacturers.

Production butter, dairy spreads and milk fats in China

In kind, 2017-2020, t

From 2017 to 2020, China ranked 20th globally in the production of butter, dairy spreads, and milk fats.

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

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

China's production of butter, dairy spreads, and milk fats grew for the third year in a row. In 2020, output reached 196 392 tonnes, marking a 6.8% increase from 2019. Over the 2017-2020 period, production rose by 12.6%, with an average annual growth rate of 4.0%.

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

In value, 2017-2020, M $ US

Following a two-year decline, butter, dairy spreads, and milk fats production in China rebounded. In 2020, the output was valued at 748.2 million US dollars, up 9.7% year-over-year. However, from 2017 to 2020, overall production decreased by 3.3%, with a compound annual growth rate of -1.1%. The lowest value was in 2019 at 682.2 million US dollars, and the sharpest drop occurred in 2018 with a 9.6% decline.

Annual dynamics of production in China in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from China

Exports in kind, K t

After two years of growth, China's exports of butter, dairy spreads, and milk fats fell. In 2020, exports totaled 1.1 thousand tonnes, down 54.6% compared to the previous year. Over the 2017-2020 period, exports decreased by 35.7%, with an average annual decline of 13.7%. The peak was in 2019 at 2.4 thousand tonnes, while the largest increase happened in 2018 at 25.0%.

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

From 2017 to 2020, the Philippines, Hong Kong, and North Korea were the key partners for China's exports in kind. The Philippines accounted for 54.7% of exports, Hong Kong for 18.3%, and North Korea for 14.4%, together making up 87.4% of total flows.

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

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

Exports in value, M $ US

Following a two-year rise, the value of butter, dairy spreads, and milk fats exports from China dropped. In 2020, exports were recorded at 4.2 million US dollars, a sharp 53.4% decrease from the year before. Over the 2017-2020 period, exports fell by 44.8%, with an average annual decline of 18.0%. The highest value was in 2019 at 9.0 million US dollars, and the largest increase occurred in 2018 at 11.6%.

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

Between 2017 and 2020, the Philippines, Hong Kong, and North Korea contributed the most to China's exports in value terms. The Philippines represented 52.9% of exports, Hong Kong 18.7%, and North Korea 15.4%, collectively accounting for 87.0% of total flows.

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

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

Imports butter, dairy spreads and milk fats to China

Imports in kind, K t

In 2020, China's imports of butter, dairy spreads, and milk fats amounted to 115.6 thousand tonnes, a 35.2% increase from 2019. From 2017 to 2020, imports grew by 26.5%, with an average annual rate of 8.1%. The lowest volume was in 2019 at 85.5 thousand tonnes, which also saw the largest decline of 24.5%.

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

From 2017 to 2020, New Zealand dominated China's imports in kind, accounting for 85.1% of total flows, while other countries made up the remainder.

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

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

Imports in value, M $ US

In 2020, the value of butter, dairy spreads, and milk fats imports into China reached 546.2 million US dollars, up 17.1% from 2019. Over the 2017-2020 period, imports increased by 9.4%, with an average annual growth rate of 3.0%. The lowest value was in 2019 at 466.4 million US dollars, and the highest was in 2018 at 696.8 million US dollars. The largest decline occurred in 2019 at 33.1%, while the biggest increase was in 2018 at 39.5%.

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

Throughout 2017-2020, New Zealand remained the primary source for China's imports in value terms, taking 82.8% of total flows, with the rest spread among various smaller markets.

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

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