Butter, dairy spreads and milk fats market in Georgia

Earlier Report Observations

The butter and dairy fats market in Georgia showed a clear growth trajectory from 2020 onward, following a slight contraction in 2019. Market volume increased steadily from 5 200 tons in 2020 to 5 405 tons in 2021, setting the stage for a more accelerated expansion.

A significant surge of 20% lifted the market to 6 470 tons in 2022. This jump was primarily driven by shifting consumer preferences in Georgia toward natural and premium dairy fats, which bolstered demand. Simultaneously, the opening of new butter production plants in New Zealand and capacity expansions in the United States enhanced global supply, improving import availability for the Georgian market. Major industry developments, such as Fonterra's launch of a reduced-saturated-fat butter oil, catered to health-conscious trends and supported market dynamism.

Growth continued into 2023, with the market reaching 6 617 tons, cementing an overall volume increase of over 25% for the period from 2018 to 2023.

Production butter, dairy spreads and milk fats in Georgia

In kind, 2017-2020, 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

Georgia's production of butter, dairy spreads, and milk fats has increased for the third consecutive year. In 2020, the country produced 788.7 tonnes of these products, marking a 4.2% rise compared to the previous year. From 2017 to 2020, production grew by 11.2%, which translates to an average annual increase of 3.6%.

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

In value, 2017-2020, K $ US

Georgia's production of butter, dairy spreads, and milk fats has increased for the third consecutive year. In 2020, the output was valued at 4 383 thousand US dollars, representing a 26.9% increase from the previous year. Between 2017 and 2020, production rose by 39.5%, with an average annual growth rate of 11.7%.

Annual dynamics of production in Georgia in value, 2017-2020, K $ US

Exports butter, dairy spreads and milk fats from Georgia

Exports in kind, t

Georgia's exports of butter, dairy spreads, and milk fats have increased for the third consecutive year. In 2020, the country exported 1 373 tonnes of these products, showing a sharp year-over-year increase of 245.8%. From 2017 to 2020, exports surged by 963.9%, averaging an annual growth rate of 119.9%.

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

From 2017 to 2020, Azerbaijan and Armenia formed the core of Georgia's butter, dairy spreads, and milk fats exports in volume terms, together accounting for 100.0% of total flows.

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

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

Exports in value, K $ US

Georgia's exports of butter, dairy spreads, and milk fats have increased for the third consecutive year. In 2020, exports reached 7 632 thousand US dollars, reflecting a 321.3% gain from the previous year. Between 2017 and 2020, exports grew by 1 234.5%, with an average annual rate of 137.2%.

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

From 2017 to 2020, Azerbaijan and Armenia dominated Georgia's butter, dairy spreads, and milk fats exports in value terms, together making up 100.0% of total flows.

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

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

Imports butter, dairy spreads and milk fats to Georgia

Imports in kind, t

Georgia's imports of butter, dairy spreads, and milk fats have increased for the third consecutive year. In 2020, the country imported 5 785 tonnes of these products, indicating a robust 20.8% uptick compared to 2019. Between 2017 and 2020, imports rose by 42.6%, averaging an annual growth of 12.6%.

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

Throughout 2017 to 2020, the three largest sources for Georgia's butter, dairy spreads, and milk fats imports in volume terms were Ukraine, France, and Belarus, which together accounted for 61.5% of total flows.

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

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

Imports in value, K $ US

Georgia imported approximately 26 037 thousand US dollars worth of butter, dairy spreads, and milk fats in 2020, up by 13.8% from the previous year. Over the period from 2017 to 2020, imports increased by 45%, with a compound annual growth rate of 13.2%. The largest decline occurred in 2019, at 0.7%, while the largest increase was recorded in 2018, at 28.3%.

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

From 2017 to 2020, Ukraine (34.0% of imports in value terms), France (19.4%), and Finland (9.9%) consistently held leading positions in Georgia's import structure for butter, dairy spreads, and milk fats, jointly accounting for 63.3% of total flows.

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

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