Butter, dairy spreads and milk fats market in Europe

Earlier Report Observations

Between 2018 and 2020, the European butter market saw significant shifts. Adverse climatic conditions in 2018 constrained milk fat availability, limiting butter production, while growing consumer preference for natural and organic products sustained demand. The market volume surged to 4.6 million tons in 2019, supported by robust demand for traditional butter despite rising interest in reduced-fat alternatives. However, in 2020, supply chain disruptions caused by the COVID-19 pandemic led to a decline in market volume to 4.5 million tons, even as increased home baking boosted butter consumption.

From 2021 to 2023, the market resumed growth amid production challenges. In 2021, volume recovered to 4.7 million tons, driven by strong demand for premium and organic butter, though unfavorable weather continued to limit milk supply. A slight contraction to 4.7 million tons occurred in 2022 as soaring energy and animal feed costs, exacerbated by the war in Ukraine, raised production expenses and constrained output. By 2023, market volume reached 5.0 million tons, fueled by high global butter prices, sustained consumption of organic and premium varieties, and product innovations such as flavored and convenient formats.

Production butter, dairy spreads and milk fats in Europe

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

Butter, dairy spreads, and milk fats production in Europe declined after two years of growth. In 2019, production reached its peak at 4 546 K t, but then fell to 4 503 K t in 2020, representing a 0.9% decrease year-over-year. Over the period from 2017 to 2020, production increased by 13%, which translates to an annualized growth rate of 4.2%. The most significant increase occurred in 2018, with a rise of 6.9%.

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

In value, 2017-2020, B $ US

Europe's butter, dairy spreads, and milk fats production declined for the second year in a row. In 2018, output peaked at 148.0 B $ US, but by 2020, it had dropped to 110.2 B $ US, marking a 19.6% reduction compared to 2019. From 2017 to 2020, production decreased by 17.3%, with a compound annual growth rate of -6.1%. The largest increase was recorded in 2018, at 11.1%.

Annual dynamics of production in Europe in value, 2017-2020, B $ US

Exports butter, dairy spreads and milk fats from Europe

Exports in kind, K t

Butter, dairy spreads, and milk fats exports from Europe fell for the second consecutive year. In 2018, exports reached their highest point at 1 013 K t, but then declined to 637 K t in 2020, which is 1.5% lower than in 2019. Between 2017 and 2020, exports decreased by 28.3%, with an annualized rate of -10.5%. The largest decline occurred in 2019, at 36.1%, while the largest increase was in 2018, at 14.0%.

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

From 2017 to 2020, butter, dairy spreads, and milk fats exports from Europe were not concentrated on a few key markets. The United States accounted for 2.5% of exports in kind, Saudi Arabia for 1.3%, and China for 1.0%, with these three countries together making up only 4.8% of total flows.

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

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

Exports in value, M $ US

Butter, dairy spreads, and milk fats exports from Europe declined for the second year in a row. In 2018, export value peaked at 7 760 M $ US, but fell to 6 109 M $ US in 2020, representing an 11.1% drop compared to the previous year. Between 2017 and 2020, exports decreased by 11.5%, with an annualized rate of -4.0%. The largest decline was in 2019, at 11.4%, while the largest increase was in 2018, at 12.4%.

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

An analysis of exports in value terms from 2017 to 2020 shows a broad distribution across many markets. The United States accounted for 3.3% of exports in value terms, Saudi Arabia for 1.4%, and China for 1.3%, with these three countries together making up only 6.0% of total flows, while the remaining 94.0% went to other partners.

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

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

Imports butter, dairy spreads and milk fats to Europe

Imports in kind, K t

Europe imported 584 K t of butter, dairy spreads, and milk fats in 2020, showing a strong decline of 14.2% compared to 2019. Between 2017 and 2020, imports decreased by 23.9%, with an annualized rate of -8.7%. The largest increase was recorded in 2019, at 1.2%.

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

From 2017 to 2020, New Zealand, Argentina, and Uruguay were the top suppliers of butter, dairy spreads, and milk fats to Europe. New Zealand accounted for 2.4% of imports in kind, Argentina for 0.7%, and Uruguay for 0.5%, with their combined share reaching 3.6% of total imports in kind.

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

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

Imports in value, M $ US

Butter, dairy spreads, and milk fats imports into Europe declined for the second consecutive year. In 2018, imports peaked at 6 565 M $ US, but fell to 5 109 M $ US in 2020, down by 10.1% relative to the prior year. Over the period from 2017 to 2020, imports decreased by 12.7%, with a compound annual growth rate of -4.4%. The largest decline occurred in 2019, at 13.5%, while the largest increase was in 2018, at 12.2%.

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

From 2017 to 2020, New Zealand and Argentina were the largest contributors to imports in value terms, together representing 3.1% of total flows.

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

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