Butter, dairy spreads and milk fats market in Japan

Earlier Report Observations

Between 2018 and 2020, the Japanese butter, dairy spreads, and milk fats market grew from 134.9 thousand tonnes to 161.2 thousand tonnes. This expansion was driven by a shift in consumer preference from margarine to butter, partly influenced by stricter trans-fat regulations in the United States, which bolstered butter's purchase rate to 36.2% in 2018. Simultaneously, raw milk production increased in Hokkaido, supporting domestic dairy output. The COVID-19 pandemic in 2020 further boosted household spending on dairy products, including butter, as it remained a storable staple during lockdowns.

Market volume stabilized around 160 thousand tonnes in 2021 and 2022. In 2021, an oversupply of raw milk led to concerns about wastage, prompting a government appeal for increased milk consumption. The following year, demand for butter remained robust due to consumer trends favoring healthier and less processed foods. However, by 2023, the market contracted to 150.2 thousand tonnes. This decline was primarily caused by a reduction in raw milk production, which constrained butter output, coupled with persistently high dairy prices that affected market accessibility.

Production butter, dairy spreads and milk fats in Japan

In kind, 2018-2021, t

From 2018 to 2021, Japan ranked as the 25th largest global producer of butter, dairy spreads, and milk fats.

Top producers of butter, dairy spreads and milk fats, 2018-2021

World map of production of butter, dairy spreads and milk fats, 2018-2021

Japan's production of butter, dairy spreads, and milk fats grew for the third year in a row. In 2021, output reached 146 634 tonnes, marking a modest increase of 2.5% compared to the previous year. Over the 2018-2021 period, production rose by 23.2%, with an average annual growth rate of 7.2%.

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

In value, 2018-2021, M $ US

The value of butter, dairy spreads, and milk fats production in Japan increased for the third consecutive year. In 2021, output was valued at 3 022 million US dollars, showing only a slight change from 2020. Between 2018 and 2021, production grew by 23.2%, equivalent to an annualized rate of 7.2%.

Annual dynamics of production in Japan in value, 2018-2021, M $ US

Exports butter, dairy spreads and milk fats from Japan

Exports in kind, t

Export volumes showed volatility during the observed period. Exports hit their lowest point in 2019 at 6 tonnes, then surged to 21 tonnes in 2021, representing a 166.2% increase from 2020. Overall, exports varied by 3.7 times between the peak in 2021 and the trough in 2019.

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

From 2018 to 2021, the key destinations for Japan's butter, dairy spreads, and milk fats exports in volume terms were Asia, not elsewhere specified (34.5% of exports), Hong Kong (22.5%), and Thailand (14.9%). Together, these three accounted for 71.9% of total export flows.

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

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

Exports in value, M $ US

The value of butter, dairy spreads, and milk fats exports from Japan rose for the third straight year. In 2021, exports totaled 0.4 million US dollars, up 160.5% from 2020. Over the 2018-2021 period, export value increased by 264.3%, with an average annual growth rate of 53.9%.

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

In the 2018-2021 period, the main destinations for Japan's butter, dairy spreads, and milk fats exports in value terms were Asia, not elsewhere specified (36.4% of exports), Hong Kong (21.3%), and Thailand (20.7%). These three combined made up 78.3% of total export value.

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

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

Imports butter, dairy spreads and milk fats to Japan

Imports in kind, t

Imports of butter, dairy spreads, and milk fats into Japan fell for the second consecutive year. In 2021, imports amounted to approximately 11 934 tonnes, down 34.4% year-over-year. Over the 2018-2021 period, imports decreased by 24.8%, with an average annual decline of 9.0%. The highest import volume was recorded in 2019 at 24 608 tonnes, which saw a 55.1% increase that year.

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

Between 2018 and 2021, three major suppliers—New Zealand, the Netherlands, and France—collectively accounted for 82.7% of Japan's total butter, dairy spreads, and milk fats imports in volume terms.

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

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

Imports in value, M $ US

Japan's imports of butter, dairy spreads, and milk fats in value terms declined for the second year in a row. In 2021, imports stood at 62.8 million US dollars, a sharp drop of 30.7% from the previous year. Between 2018 and 2021, import value fell by 34.8%, equating to an annualized decrease of 13.3%. The peak was in 2019 at 132.4 million US dollars, which saw a 37.6% increase that year, followed by the largest decline of 31.6% in 2020.

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

From 2018 to 2021, New Zealand (53.6% of imports in value terms), France (14.0%), and the Netherlands (14.0%) were the primary sources for Japan's butter, dairy spreads, and milk fats imports, together representing 81.6% of total import value.

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

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