Butter, dairy spreads and milk fats market in Italy

Earlier Report Observations

The Italian market for butter, dairy spreads, and milk fats saw substantial volume growth from 164 thousand tons in 2018 to a peak of 347 thousand tons in 2022, before receding to 220 thousand tons in 2024. The most dramatic expansion occurred in 2020, when market volume jumped by 65% to 302 thousand tons.

A key regulatory feature throughout the period was the mandatory labeling of the origin of raw milk on dairy products. First implemented in April 2017 as a trial measure, this requirement was extended several times, most recently until the end of 2025. Furthermore, the full enforcement of mandatory nutrition declaration for all prepacked foods under EU Regulation 1169/2011 took effect in 2022.

Significant price movements influenced the market in the latter years. Butter prices approximately doubled in 2024 compared to 2023, pressuring producer margins. During the same period, exports of Italian cheese and dairy products to the European Union grew by 13.2% in volume, likely reducing domestic availability.

Production butter, dairy spreads and milk fats in Italy

In value, 2017-2020, M $ US

Following two years of decline, Italy's production of butter, dairy spreads, and milk fats saw an increase. In 2020, the output was valued at 578.6 million US dollars, marking a 3.2% rise from the previous year. Over the period from 2017 to 2020, production overall decreased by 12.3%, with a compound annual growth rate (CAGR) of -4.3%. The lowest value was recorded in 2019 at 560.6 million US dollars, while the largest decline occurred in 2018 with a drop of 9.9%.

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

In kind, 2017-2020, K t

From 2017 to 2020, Italy ranked 22nd globally in the production of butter, dairy spreads, and milk fats.

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

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

The market showed an unstable trend during this period. Volumes reached their lowest point in 2018 at 110.6 thousand tonnes and peaked in 2020 at 257.1 thousand tonnes, representing a 2.3-fold increase. In 2020, production in Italy surged dramatically by 103.0% year-on-year. The largest decline was recorded in 2018, with a drop of 28.4%.

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

Exports butter, dairy spreads and milk fats from Italy

Exports in kind, t

Exports of butter, dairy spreads, and milk fats from Italy increased for the third consecutive year. In 2020, exports totaled 14,664 tonnes, a significant rise of 17.4% compared to 2019. Between 2017 and 2020, exports grew by 79.9%, equating to an annualized rate of 21.6%.

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

From 2017 to 2020, Germany, Greece, and Spain were consistently the main destinations for Italy's exports in kind. Germany accounted for 37.2% of exports, Greece for 8.6%, and Spain for 6.9%, together making up 52.8% of total export flows.

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

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

Exports in value, M $ US

In 2020, the value of butter, dairy spreads, and milk fats exported from Italy reached 81.0 million US dollars, up by 9.1% from 2019. Over the period from 2017 to 2020, exports increased by 65.1%, with a compound annual growth rate (CAGR) of 18.2%. The largest decline was recorded in 2019 at 1.9%, while the largest increase occurred in 2018 with a jump of 54.4%.

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

From 2017 to 2020, Germany, Belgium, and Greece remained the top destinations for Italy's exports in value terms. Germany held 44.2% of exports, Belgium 7.1%, and Greece 6.4%, collectively accounting for 57.7% of total export flows.

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

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

Imports butter, dairy spreads and milk fats to Italy

Imports in kind, t

After two years of growth, imports of butter, dairy spreads, and milk fats into Italy declined. In 2020, imports amounted to 59,613 tonnes, down by 14.1% from the previous year. Between 2017 and 2020, imports decreased by 2.5%, equating to an annualized rate of -0.8%. The highest value was recorded in 2019 at 69,368 tonnes, with the largest increase also occurring in 2019 at 6.9%.

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

Over the period from 2017 to 2020, Belgium, the Netherlands, and France consistently led as the main sources of imports in kind for Italy. Belgium accounted for 21.6% of imports, the Netherlands for 18.5%, and France for 15.9%, together representing 56.0% of total import flows.

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

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

Imports in value, M $ US

Imports of butter, dairy spreads, and milk fats into Italy declined for the second consecutive year. In 2020, imports reached 268.9 million US dollars, a sharp reduction of 24.9% compared to 2019. From 2017 to 2020, imports decreased by 28.4%, with a compound annual growth rate (CAGR) of -10.5%. The highest value was recorded in 2018 at 429.5 million US dollars, with the largest increase also in 2018 at 14.4%.

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

From 2017 to 2020, Belgium, the Netherlands, and France continued to be the leading suppliers of butter, dairy spreads, and milk fats to Italy in value terms. Belgium accounted for 22.8% of imports, the Netherlands for 18.1%, and France for 16.3%, jointly making up 57.3% of total import flows.

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

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