Butter, dairy spreads and milk fats market in Eastern Asia

Earlier Report Observations

In 2018, the Chinese government launched policies to improve the dairy industry structure and enhance quality safety, raising the scale thresholds for new processing plants and creating entry barriers. Major dairy companies simultaneously increased investments in farms and supply chains to secure raw milk quality. Despite these measures, the butter and milk fats market volume contracted in 2019, likely reflecting lingering cost pressures from earlier years. The situation reversed sharply in 2020 when the COVID‑19 pandemic suspended school meals and reduced foodservice demand, while production of storable dairy items, including butter, remained at full capacity, contributing to a market size increase of over 13% to 660.4 thousand tons.

Growth continued at a more moderate pace in 2021–2022, supported by a 6.7% rise in China’s raw milk output and the expansion of raw milk production bases by large processors. Consumer preference shifted toward premium and health‑functional products, a trend reinforced by government modernization plans and the diversification of distribution channels, including online sales. These drivers helped lift the market to a peak of 722.5 thousand tons in 2022.

The market dipped by approximately 2% in 2023, coinciding with a reported decline in dairy consumption and a drop in butter imports. Domestic prices rose due to higher raw material and labor costs, while leading players such as Maeil Dairy restructured their operations and launched premium product lines in response to growing competition from imported goods.

Production butter, dairy spreads and milk fats in Eastern 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

In 2019, Eastern Asia produced 451.1 thousand tonnes of butter, dairy spreads, and milk fats, marking the lowest output during the period. Production then rebounded in 2020, reaching 503.8 thousand tonnes, an 11.7% increase from the previous year. Over the entire 2017-2020 timeframe, production grew by 11.5%, averaging an annual growth rate of 3.7%. The most significant decline occurred in 2019, when output fell by 8.0%.

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

In value, 2017-2020, M $ US

In 2019, the value of butter, dairy spreads, and milk fats production in Eastern Asia was at its lowest, totaling 2 048 million US dollars. This followed a peak in 2018, when output reached 2 390 million US dollars, representing a 10.1% increase from the previous year. In 2020, production value rose to 2 211 million US dollars, a modest 7.9% year-over-year gain. The most notable decline was in 2019, with a 14.3% drop.

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

Exports butter, dairy spreads and milk fats from Eastern Asia

Exports in kind, K t

Exports of butter, dairy spreads, and milk fats from Eastern Asia peaked in 2019 at 3.6 thousand tonnes, reflecting a 17.9% increase from the previous year. However, in 2020, exports fell sharply to 2.1 thousand tonnes, a 41.2% decline year-over-year. Over the 2017-2020 period, exports decreased by 27.2%, with an average annual decline of 10.0%.

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

From 2017 to 2020, the Philippines, Guatemala, and Singapore were the primary destinations for butter, dairy spreads, and milk fats exports from Eastern Asia. The Philippines accounted for 36.6% of exports in volume, Guatemala for 3.7%, and Singapore for 1.4%, collectively making up 41.7% of total exports.

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

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

Exports in value, M $ US

The value of butter, dairy spreads, and milk fats exports from Eastern Asia reached its highest point in 2019 at 16.5 million US dollars, up 9.8% from the previous year. In 2020, export value dropped significantly to 9.4 million US dollars, a steep 43.2% decline year-over-year. Over the 2017-2020 period, exports fell by 33.4%, with an average annual decrease of 12.7%.

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

Between 2017 and 2020, exports of butter, dairy spreads, and milk fats from Eastern Asia in value terms were widely distributed across various markets. The Philippines held a 29.4% share, Guatemala 3.2%, and Singapore 1.4%, together accounting for 33.9% of total export value.

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

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

Imports butter, dairy spreads and milk fats to Eastern Asia

Imports in kind, K t

Imports of butter, dairy spreads, and milk fats into Eastern Asia saw a significant increase in 2018, rising by 24.8% from the previous year. In 2019, imports declined by 9.8%, but rebounded in 2020 to 158.7 thousand tonnes, a 16.1% increase from 2019. Over the 2017-2020 period, imports grew by 30.8%, with an average annual growth rate of 9.4%.

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

From 2017 to 2020, New Zealand dominated the import market for butter, dairy spreads, and milk fats in Eastern Asia, accounting for 74.5% of total imports in volume. Other countries had relatively smaller shares.

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

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

Imports in value, M $ US

The value of butter, dairy spreads, and milk fats imports into Eastern Asia peaked in 2018 at 937.7 million US dollars, a 39.2% increase from the previous year. In 2019, import value fell by 19.8%, but recovered slightly in 2020 to 776.7 million US dollars, up 3.3% from 2019. Over the 2017-2020 period, imports increased by 15.3%, with an average annual growth rate of 4.8%.

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

Between 2017 and 2020, New Zealand was the dominant source for butter, dairy spreads, and milk fats imports into Eastern Asia in value terms, holding a 71.6% share. The remaining imports were spread across multiple smaller partners.

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

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