Butter, dairy spreads and milk fats market in Estonia

Earlier Report Observations

From 2018 to 2020, the Estonian butter and dairy fats market volume increased from 5 222 t to 5 519 t. This expansion was supported by a shift in consumer preferences toward healthier nutrition, which raised the use of dairy fats, including butter, in food industry segments such as baking, confectionery, and ice cream production.

Market volume declined to 4 869 t in 2021, while the market value rose to 28.7 million USD. The subsequent recovery in 2022, with volume reaching 4 951 t and value jumping to 33.6 million USD, coincided with stricter EU rules shielding dairy terms from misuse by plant‑based products, reinforcing consumer trust, and with surveys showing that purchase decisions were increasingly influenced by product origin and composition.

Growth continued through 2023 and 2024, with volume climbing to 5 629 t and value reaching 40.1 million USD. National subsidies for promoting agricultural products through short supply chains and local markets boosted marketing access for dairy fats. Furthermore, the EU Regulation on deforestation‑free products (EUDR) introduced due‑diligence obligations for operators, affecting supply chains and market practices.

Production butter, dairy spreads and milk fats in Estonia

In value, 2018-2021, K $ US

In Estonia, the output value of butter, dairy spreads, and milk fats reached 25 910 thousand US dollars in 2021, marking a 5.5% decrease from 2020. From 2018 to 2021, production fell by 12.1%, which translates to an annualized decline of 4.2%. The most significant drop occurred in 2019, at 8.5%, while the largest increase was seen in 2020, at 1.8%.

Annual dynamics of production in Estonia in value, 2018-2021, K $ US

In kind, 2018-2021, t

Top producers of butter, dairy spreads and milk fats, 2018-2021

World map of production of butter, dairy spreads and milk fats, 2018-2021

Following a two-year upward trend, Estonia's production volume of butter, dairy spreads, and milk fats experienced a decline. In 2021, the country produced 4 296 tonnes, reflecting a substantial year-on-year decrease of 22.1%. Over the 2018-2021 period, production decreased by 12.5%, with a compound annual growth rate of -4.3%. The peak volume was recorded in 2020 at 5 514 tonnes, which also saw the largest increase of 8.9%.

Annual dynamics of production in Estonia in kind, 2018-2021, t

Exports butter, dairy spreads and milk fats from Estonia

Exports in kind, t

In 2021, Estonia's exports of butter, dairy spreads, and milk fats amounted to 869 tonnes, showing a sharp contraction of 35.3% compared to the previous year. From 2018 to 2021, exports decreased by 5.2%, with a compound annual growth rate of -1.8%. The lowest export volume was in 2019 at 860 tonnes, while the highest was in 2020 at 1 345 tonnes, which also recorded the largest increase of 56.3%.

Annual dynamics of product's exports from Estonia in kind, 2018-2021, t

Between 2018 and 2021, the primary buyers of Estonia's butter, dairy spreads, and milk fats in volume terms were Latvia, accounting for 28.6% of exports, Lithuania at 23.9%, and the Netherlands at 23.2%. Together, these three countries represented 75.7% of total exports.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Estonia in kind, 2018-2021

Exports in value, K $ US

In 2021, the value of Estonia's butter, dairy spreads, and milk fats exports totaled 4 321 thousand US dollars, down by 20.1% from 2020. Over the 2018-2021 period, exports decreased by 17.7%, equating to an annualized decline of 6.3%. The lowest value was recorded in 2019 at 3 980 thousand US dollars, with the largest decline that year at 24.2%. The highest value was in 2020 at 5 409 thousand US dollars, which also saw the largest increase of 35.9%.

Annual dynamics of product's exports from Estonia in value, 2018-2021, K $ US

From 2018 to 2021, the main buyers of Estonia's butter, dairy spreads, and milk fats in value terms were Latvia, with 28.3% of exports, Lithuania at 25.9%, and the Netherlands at 20.6%. Collectively, these three markets accounted for 74.8% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Estonia in value, 2018-2021

Imports butter, dairy spreads and milk fats to Estonia

Imports in kind, t

Estonia's imports of butter, dairy spreads, and milk fats increased for the second consecutive year. In 2021, imports reached 1 442 tonnes, up by 6.8% year-on-year. Between 2018 and 2021, imports grew by 17.1%, with an annualized rate of 5.4%. The lowest import volume was in 2019 at 1 214 tonnes, which also experienced the largest decline of 1.4%. The largest increase occurred in 2020, at 11.3%.

Annual dynamics of product's imports to Estonia in kind, 2018-2021, t

During 2018-2021, Finland, Poland, and Lithuania were consistently the main sources of imports in volume terms for Estonia. Finland accounted for 50.9% of imports, Poland for 19.7%, and Lithuania for 16.3%, together making up 86.9% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Estonia in kind, 2018-2021

Imports in value, K $ US

After two years of decline, Estonia's imports of butter, dairy spreads, and milk fats saw an increase. In 2021, imports amounted to 7 114 thousand US dollars, indicating an uptick of 17.7% from 2020. Over the 2018-2021 period, imports rose by 2.9%, with a compound annual growth rate of 1.0%. The lowest value was recorded in 2020 at 6 044 thousand US dollars, while the largest decline was in 2019 at 11.2%.

Annual dynamics of product's imports to Estonia in value, 2018-2021, K $ US

Throughout 2018-2021, Finland, Lithuania, and Poland remained the key markets for Estonia's imports of butter, dairy spreads, and milk fats in value terms. Finland represented 50.4% of imports, Lithuania 17.8%, and Poland 16.9%, jointly accounting for 85.1% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Estonia in value, 2018-2021