Butter, dairy spreads and milk fats market in France

Earlier Report Observations

Between 2018 and 2020, butter production in France was affected by climatic conditions that reduced the availability of high-fat milk, contributing to production volatility which fell from 429.3 thousand tons in 2018 to 422.2 thousand tons in 2019 before recovering to 440.2 thousand tons in 2020. Concurrently, a rising consumer preference for natural and organic dairy products sustained demand, particularly in the premium segment, while increased production costs linked to inflation began to influence market prices.

Market volume grew from 549.6 thousand tons in 2020 to 568.0 thousand tons in 2022. This expansion was supported by the entry of new players onto the global butter market, which intensified competition and boosted export opportunities from France. Furthermore, ongoing climatic and sanitary disruptions affected milk supply, and tightening regulatory requirements for fat labeling increased transparency, fueling demand for higher-quality products, including organic and premium butter.

In 2023, the market volume saw a slight contraction to 565.3 thousand tons, yet its value remained elevated due to strong food inflation, which pushed butter prices up by 9.6%. The period also featured rising exports, spurred by robust demand from China and the United States, and the announcement by major player Lactalis to reduce milk collection in France, pointing to continued supply-side pressures and elevated price trends into 2024.

Production butter, dairy spreads and milk fats in France

In kind, 2017-2020, K t

From 2017 to 2020, France maintained the 9th position globally in terms of butter, dairy spreads, and milk fats production volume.

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

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

Following a two-year decline, France's production of butter, dairy spreads, and milk fats rebounded. In 2019, output hit its lowest point at 422.2 K t, marking a 1.6% decrease. The following year, in 2020, production rose modestly by 4.3% to reach 440.2 K t.

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

In value, 2017-2020, M $ US

In 2020, the value of butter, dairy spreads, and milk fats production in France stood at 2 710 M $ US, up 4.1% from the previous year. The highest value was recorded in 2018 at 2 821 M $ US, reflecting a 9.0% increase. However, 2019 saw a significant drop of 7.7%. Overall, from 2017 to 2020, production value grew by 4.7%, with a compound annual growth rate of 1.6%.

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

Exports butter, dairy spreads and milk fats from France

Exports in kind, K t

Butter, dairy spreads, and milk fats exports from France fell for the third year in a row. In 2020, export volume reached 91.7 K t, down 0.6% year-over-year. Over the period from 2017 to 2020, exports declined by 5.7%, translating to an annualized rate of 1.9%.

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

Between 2017 and 2020, France exported butter, dairy spreads, and milk fats to numerous countries. The top destinations—Belgium, Italy, and the United Kingdom—collectively accounted for just 32.4% of total export volume, indicating a broad distribution.

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

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

Exports in value, M $ US

The value of butter, dairy spreads, and milk fats exports from France decreased for the second consecutive year. In 2020, exports amounted to 565 M $ US, a 0.8% drop from the previous year. The peak was in 2018 at 613 M $ US, with a 5.3% increase that year, while 2019 experienced a 7.1% decline. From 2017 to 2020, export value fell by 3%, equating to an annualized rate of 1.0%.

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

From 2017 to 2020, Belgium (12.4% of export value), Italy (10.2%), and the United Kingdom (8.0%) were the leading buyers of butter, dairy spreads, and milk fats from France. Together, they made up 30.7% of total export value, highlighting a diversified market structure.

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

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

Imports butter, dairy spreads and milk fats to France

Imports in kind, K t

After two years of growth, imports of butter, dairy spreads, and milk fats into France declined. In 2019, imports peaked at 220.9 K t, up 2.1% from the previous year. By 2020, imports fell to 201.0 K t, a moderate 9.0% decrease year-over-year. Overall, from 2017 to 2020, import volume dropped by 5.8%, with an annualized rate of 2.0%.

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

During 2017–2020, the Netherlands (29.9% of import volume), Belgium (25.3%), and Germany (12.2%) were the primary sources for butter, dairy spreads, and milk fats imports into France, together representing 67.4% of total volume.

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

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

Imports in value, M $ US

France's imports of butter, dairy spreads, and milk fats declined for the second year in a row. In 2020, imports totaled 885 M $ US, a sharp 17.1% reduction year-over-year. The highest value was in 2018 at 1 348 M $ US, with a 17.1% increase that year, followed by a 20.8% drop in 2019. From 2017 to 2020, import value fell by 23.2%, corresponding to an annualized rate of 8.4%.

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

Throughout 2017–2020, the Netherlands (30.0% of import value), Belgium (25.9%), and Germany (12.3%) remained the key suppliers of butter, dairy spreads, and milk fats to France, jointly accounting for 68.1% of total import value.

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

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