Butter, dairy spreads and milk fats market in Guatemala

Earlier Report Observations

The Guatemalan market for butter and dairy fats saw a dip in physical volume to 4 755 t in 2019 before recovering to 4 904 t in 2020. This recovery period coincided with the onset of the COVID-19 pandemic, which disrupted dairy supply chains and increased raw material costs. Concurrently, the legislative foundation for future market changes was laid with the 2018 presentation of the Healthy Food Promotion Bill (Initiative 5504), proposing front-of-pack warning labels for products high in saturated fats.

From 2021, the market entered a phase of sustained volume growth, reaching 5 666 t by 2023. This expansion was supported by increased investments within the national dairy industry to improve product quality and variety. Imports, particularly from the United States, surged by 45% in 2022, supplementing domestic supply. Global factors, including the Russia-Ukraine conflict and lingering pandemic disruptions, drove up production costs, contributing to a significant rise in the market's value, which peaked at 33.3 million USD in 2022.

Regulatory developments shaped the market environment throughout the period. The advancement of the front-of-pack labeling law (Initiative 5504), which reached a second reading in February 2024, alongside the mandatory Central American Technical Regulation (RTCA) on nutritional labeling, set new compliance requirements for the industry. The sector adapted to these rules while navigating macroeconomic pressures such as inflation and exchange rate fluctuations, which influenced consumer purchasing power.

Production butter, dairy spreads and milk fats in Guatemala

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

In 2020, Guatemala produced 3 512 tonnes of butter, dairy spreads, and milk fats, marking a year-over-year increase of 2.6%. Over the period from 2017 to 2020, production grew by 3.3%, with a compound annual growth rate of 1.1%. The most significant drop occurred in 2019, when production fell by 1.7%.

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

Exports butter, dairy spreads and milk fats from Guatemala

Exports in kind, t

Butter, dairy spreads, and milk fats exports from Guatemala have risen for the third year in a row. In 2020, export volumes reached 18 tonnes, up 11.1% compared to the previous year. From 2017 to 2020, exports surged by 693.3%, translating to a compound annual growth rate of 99.4%.

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

From 2017 to 2020, Honduras was the dominant partner for Guatemala's exports in kind, accounting for 71.0% of total flows. Other markets held relatively smaller shares during this period.

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

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

Exports in value, K $ US

The market showed an unstable trend over the timeframe. Exports bottomed in 2018 at 13 thousand US dollars and peaked in 2020 at 109 thousand US dollars, representing an 8.6-fold difference. In 2020, Guatemala's butter, dairy spreads, and milk fats exports totaled 109 thousand US dollars, an 11.0% increase year-over-year. The largest decline was in 2018, when exports fell by 43.4%, while the largest increase occurred in 2019, with a jump of 677.5%.

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

Between 2017 and 2020, Honduras remained the top buyer of butter, dairy spreads, and milk fats from Guatemala in value terms, holding 73.8% of total exports. The remainder was distributed among various other countries.

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

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

Imports butter, dairy spreads and milk fats to Guatemala

Imports in kind, t

In 2020, Guatemala imported 1 410 tonnes of butter, dairy spreads, and milk fats, reflecting a moderate rise of 4.6% from the previous year. Over the 2017-2020 period, imports increased by 2.7%, with a compound annual growth rate of 0.9%. The minimum volume was recorded in 2019 at 1 348 tonnes, while the maximum was in 2018 at 1 600 tonnes. The largest decline happened in 2019, with a drop of 15.8%, and the largest increase was in 2018, with a rise of 16.5%.

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

From 2017 to 2020, New Zealand, Costa Rica, and France were the main sources for Guatemala's imports in kind of butter, dairy spreads, and milk fats. New Zealand accounted for 37.2% of imports, Costa Rica for 30.3%, and France for 9.2%, together making up 76.7% of total imports.

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

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

Imports in value, K $ US

In 2020, Guatemala imported butter, dairy spreads, and milk fats worth 6 263 thousand US dollars, which is 4.6% higher than the prior year. Between 2017 and 2020, imports decreased by 3.2%, equating to an annualized rate of -1.1%. The minimum value was in 2019 at 5 987 thousand US dollars, and the maximum was in 2018 at 7 579 thousand US dollars. The largest decline occurred in 2019, with a fall of 21.0%, while the largest increase was in 2018, with a rise of 17.2%.

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

Over the 2017-2020 period, New Zealand, Costa Rica, and France led as the top suppliers of butter, dairy spreads, and milk fats to Guatemala in value terms. New Zealand held 47.2% of imports, Costa Rica 20.6%, and France 8.8%, combining for 76.5% of total import value.

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

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