Butter, dairy spreads and milk fats market in Latin America and the Caribbean

Earlier Report Observations

The market volume for butter, dairy spreads, and milk fats in Latin America and the Caribbean grew from 566 thousand tons in 2018 to 700 thousand tons in 2023. This expansion began in 2018 when shifting consumer perceptions regarding health risks favored dairy fats over trans-fat alternatives, coupled with butter's repositioning as a premium dairy product where consumers showed willingness to pay more for high-quality brands.

Growth continued through the period, supported by sustained demand. In 2023, consumption increased notably in Mexico, driven primarily by the hotel and restaurant sector and the bakery industry, which accounts for approximately 80% of butter usage. Concurrently, in Brazil, rising imports due to price differences with products from Argentina and Uruguay created pressure on the local market, while Lactalis Group launched new lines of organic fermented butter to meet demand for natural and sustainable products.

By 2024, Mexico solidified its position as the leading butter producer in the region. Production also rose in Argentina and Brazil, fueled by domestic and export demand. Market infrastructure was bolstered by the expansion of distribution channels like supermarkets and significant investments in dairy processing, while government regulations on trans fats and a consumer shift toward healthier fats continued to influence product formulations.

Production butter, dairy spreads and milk fats in Latin America and the Caribbean

In kind, 2017-2020, K 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

Latin America and the Caribbean have seen butter, dairy spreads, and milk fats production increase for the third year in a row. In 2020, the region produced 629.7 thousand tonnes, marking a modest year-on-year rise of 8.6%. Looking at the period from 2017 to 2020, production grew by 20.7%, which translates to an average annual growth rate of 6.5%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In contrast, the value of butter, dairy spreads, and milk fats production in Latin America and the Caribbean has declined for the third consecutive year. In 2020, output was valued at 2 431 million US dollars, representing a significant year-on-year decrease of 19.9%. Over the 2017-2020 period, production value fell by 30.8%, with a compound annual growth rate of -11.5%.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from Latin America and the Caribbean

Exports in kind, t

Following two years of growth, butter, dairy spreads, and milk fats exports from Latin America and the Caribbean declined in 2020. Exports that year amounted to 39 420 tonnes, down 4.1% from the previous year. Between 2017 and 2020, exports overall increased by 82.2%, averaging an annual growth rate of 22.1%. The peak was recorded in 2019 at 41 118 tonnes, with the largest year-on-year increase of 51.6% also occurring in 2019.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, t

From 2017 to 2020, the main destinations for butter, dairy spreads, and milk fats exports from Latin America and the Caribbean were Russia, accounting for 41.8% of exports in kind, the United States at 19.8%, and Morocco at 2.6%. Together, these three countries represented 64.3% of total export flows.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

After a two-year rise, butter, dairy spreads, and milk fats exports from Latin America and the Caribbean declined in value terms in 2020. Exports stood at 152.2 million US dollars, showing a sharp drop of 29.3% compared to the previous year. Over the 2017-2020 period, export value increased by 4.4%, with an average annual growth rate of 1.5%. The highest value was recorded in 2019 at 215.3 million US dollars, and the largest year-on-year increase of 27.9% also occurred in 2019.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

Between 2017 and 2020, Russia was the top buyer of butter, dairy spreads, and milk fats from Latin America and the Caribbean in value terms, accounting for 38.7% of exports, followed by the United States at 24.7%, and Morocco at 2.2%. These three markets combined made up 65.6% of total export value.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports butter, dairy spreads and milk fats to Latin America and the Caribbean

Imports in kind, t

After a two-year uptick, butter, dairy spreads, and milk fats imports into Latin America and the Caribbean declined in 2020. Imports stood at 29 262 tonnes, indicating a steep drop of 61.7% from the previous year. From 2017 to 2020, imports decreased by 26.7%, with an average annual decline of 9.8%. The maximum volume was recorded in 2019 at 76 430 tonnes, while the largest year-on-year increase of 47.0% occurred in 2018.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, t

Throughout 2017-2020, New Zealand, the United States, and France were the key sources for butter, dairy spreads, and milk fats imports into Latin America and the Caribbean, together accounting for 72.7% of total import flows in kind.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

The import market for butter, dairy spreads, and milk fats in Latin America and the Caribbean showed volatility during the observed period. Imports reached their highest point in 2019 and fell to their lowest in 2020, with a 2.8-fold difference between these years. In 2020, imports amounted to 157.2 million US dollars, representing a sharp decrease of 64.6% compared to the previous year. The maximum value was recorded in 2019 at 444.4 million US dollars, and the largest year-on-year increase of 83.8% occurred in 2018.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, New Zealand, the United States, and France were the principal markets for butter, dairy spreads, and milk fats imports into Latin America and the Caribbean in value terms, together accounting for 74.8% of total imports.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020