Butter, dairy spreads and milk fats market in India

Earlier Report Observations

The Indian market for butter, dairy spreads, and milk fats expanded from 8 983 thousand tons in 2018 to 10 696 thousand tons in 2021. This growth was primarily fueled by industry-wide adoption of automation and new technologies, which enhanced production efficiency and product quality. Simultaneously, increasing consumer awareness drove demand for healthier options like low-cholesterol and trans-fat-free spreads. Government incentives and cold chain infrastructure development facilitated processing capacity expansion, while the emergence of new product segments, including low-fat and vegetable-oil-blended spreads, broadened market appeal.

After stabilizing at 10 679 thousand tons in 2022 amid inflationary pressures and rising input costs, the market resumed growth to reach 10 932 thousand tons in 2023. Consumer trends continued to favor health-conscious and premium dairy fats, supporting demand throughout the period.

Production butter, dairy spreads and milk fats in India

In kind, 2017-2020, K t

India was the world's leading producer of butter, dairy spreads, and milk fats from 2017 to 2020.

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

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

India's production of butter, dairy spreads, and milk fats grew for the third year in a row. In 2020, the country produced 9 732 thousand tonnes, marking a modest increase of 1.5% compared to the previous year. Over the period from 2017 to 2020, production rose by 12.2%, which translates to an average annual growth rate of 3.9%.

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

Exports butter, dairy spreads and milk fats from India

Exports in kind, t

The data shows irregular shifts, pointing to a volatile market. Exports reached their lowest point in 2017 and peaked in 2019, with a 3.2-fold difference between these years. In 2020, India exported 17 145 tonnes of butter, dairy spreads, and milk fats, a sharp decline of 60.7% from the year before. The highest volume was recorded in 2019 at 43 616 tonnes, while the largest increase occurred in 2018, with a jump of 118.5%.

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

From 2017 to 2020, Egypt, Turkey, and the United Arab Emirates were the top destinations for India's exports in volume terms. Egypt accounted for 20.2% of exports, Turkey for 18.9%, and the UAE for 15.8%. Together, these three markets made up 55.0% of total export flows.

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

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

Exports in value, M $ US

Market performance showed noticeable fluctuations during this period. The lowest value was in 2017 and the highest in 2019, with a 2.3-fold variation between them. In 2020, India's exports of butter, dairy spreads, and milk fats were valued at 104.1 million US dollars, a steep drop of 45.0% year-over-year. The peak value was 189.4 million US dollars in 2019, and the largest increase happened in 2018, at 82.9%.

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

The market base for exports in value terms was broad from 2017 to 2020. The United Arab Emirates, Egypt, and Turkey were key players, with the UAE contributing 19.5% of export value, Egypt 16.1%, and Turkey 13.2%. Combined, they accounted for 48.8% of total flows, while the remaining 51.2% was distributed among many other countries.

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

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

Imports butter, dairy spreads and milk fats to India

Imports in kind, t

After two years of decline, India's imports of butter, dairy spreads, and milk fats in volume terms increased. In 2020, the country imported 1 000 tonnes, up by 22.5% compared to the previous year. Over the 2017–2020 period, imports fell by 62.1%, averaging an annual decrease of 27.6%. The lowest volume was in 2019 at 458 tonnes, and the biggest drop occurred in 2018, with a 68.8% decline.

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

From 2017 to 2020, Uganda, Nepal, and New Zealand were the main sources for India's imports in volume terms. Uganda supplied 21.4% of imports, Nepal 21.1%, and New Zealand 20.1%. Together, these three countries represented 62.6% of total import flows.

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

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

Imports in value, M $ US

Following a two-year downturn, India's imports of butter, dairy spreads, and milk fats in value terms rose. In 2020, imports totaled 2.7 million US dollars, an increase of 24.1% from the year before. Between 2017 and 2020, imports decreased by 48.9%, with an average annual decline of 20.1%. The lowest value was recorded in 2019 at 2.2 million US dollars, and the largest fall was in 2018, at 57.9%.

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

Throughout 2017–2020, New Zealand, Nepal, and Uganda formed the core group for India's imports in value terms. New Zealand accounted for 23.3% of import value, Nepal for 21.1%, and Uganda for 13.2%. Collectively, they made up 57.6% of total import flows.

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

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