Butter, dairy spreads and milk fats market in Hungary

Earlier Report Observations

Between 2018 and 2020, the Hungarian butter and dairy fats market volume remained relatively high, fluctuating around 23 000 t. In 2018, the market was characterized by cautious producers with low investment appetite and stagnating supply, pressured by global and European dairy oversupply, which weighed on local production dynamics.

From 2021 onward, the market volume in physical terms contracted sharply, falling to 14 325 t in 2021 and further to 12 685 t in 2023, before a partial recovery to 13 750 t in 2024. In contrast, the market value grew significantly from $70.9 million in 2021 to $91.5 million in 2024, indicating a substantial rise in average prices or a shift towards higher-value products amid changing market conditions.

By 2025, competitive pressures intensified. The Hungarian Competition Authority (GVH) launched a sector inquiry over suspected competition distortions, while retailer Aldi Hungary cut butter prices by 15% following international price declines. Consumer preferences continued shifting towards health-conscious products, and the sector faced ongoing EU oversupply, falling raw milk prices, and rising production costs.

Production butter, dairy spreads and milk fats in Hungary

In value, 2018-2021, K $ US

Annual dynamics of production in Hungary 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

In 2021, Hungary produced 8 546 tons of butter, dairy spreads, and milk fats, marking a significant 53.5% decrease compared to the previous year. Looking at the period from 2018 to 2021, production fell by 54.4%, with an average annual decline of 23.0%. The only notable increase occurred in 2020, when production rose by 6.5%.

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

Exports butter, dairy spreads and milk fats from Hungary

Exports in kind, t

The export market for butter, dairy spreads, and milk fats showed considerable volatility during this period. In 2019, exports hit their lowest point at 859 tons, but surged to a peak of 1 652 tons in 2020, representing a 1.9-fold increase. By 2021, exports had dropped to 889 tons, a 46.2% decrease year-over-year. The largest growth was recorded in 2020, with a 92.4% increase.

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

From 2018 to 2021, the key export destinations for butter, dairy spreads, and milk fats in volume terms were Romania, accounting for 36.1% of exports, Serbia with 23.2%, and Israel at 20.0%. Together, these three countries made up 79.3% of total export flows.

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

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

Exports in value, K $ US

Export values exhibited irregular patterns, reflecting a volatile market environment. In 2019, exports reached their lowest point at 3 851 thousand US dollars, but jumped to a peak of 8 096 thousand US dollars in 2020, a 2.1-fold rise. In 2021, exports declined to 4 317 thousand US dollars, down 46.7% from the previous year. The most significant increase occurred in 2020, with a 110.2% growth.

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

Over the 2018–2021 period, the primary markets for butter, dairy spreads, and milk fats in value terms were Romania, which contributed 36.5% of export value, Israel at 22.9%, and Serbia with 19.1%. Collectively, these three destinations represented 78.5% of total export flows.

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

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

Imports butter, dairy spreads and milk fats to Hungary

Imports in kind, t

After two years of growth, Hungary's imports of butter, dairy spreads, and milk fats declined. In 2021, imports totaled 6 667 tons, a modest 4.0% decrease year-over-year. Over the 2018–2021 period, imports increased by 13.4%, with an average annual growth rate of 4.3%. The highest import volume was recorded in 2020 at 6 944 tons, while the largest increase of 11.3% occurred in 2019.

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

Between 2018 and 2021, the leading sources for Hungary's imports of butter, dairy spreads, and milk fats in volume terms were Germany, which supplied 38.5% of imports, Poland at 14.4%, and the Netherlands with 14.1%. Together, these three countries accounted for 67.0% of total import flows.

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

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

Imports in value, K $ US

Following a two-year decline, Hungary's import value for butter, dairy spreads, and milk fats increased. In 2021, imports reached 33 746 thousand US dollars, up 13.1% from the previous year. However, over the 2018–2021 period, imports decreased by 3.7%, equivalent to an average annual decline of 1.2%. The lowest value was recorded in 2020 at 29 843 thousand US dollars, with the largest drop of 10.7% occurring in 2019.

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

From 2018 to 2021, Germany remained the top supplier of butter, dairy spreads, and milk fats to Hungary in value terms, accounting for 39.6% of imports, followed by Poland at 14.5%, and the Netherlands with 14.0%. These three countries jointly formed 68.1% of total import value.

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

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