Butter, dairy spreads and milk fats market in MENA

Earlier Report Observations

The market for butter, dairy spreads, and milk fats in the MENA region fluctuated between 970.3 and 1 030.7 thousand tonnes from 2018 to 2023. Growth was primarily driven by shifting consumer preferences towards healthy natural fats, with increasing demand for butter over margarines, and the expansion of food service sectors including fast-food chains and restaurants.

The COVID-19 pandemic caused supply chain disruptions in dairy production, affecting market stability. Economic factors such as inflation and rising production costs further contributed to volume contractions in 2019 and 2022, before stabilization in 2023.

Global regulatory initiatives, notably the WHO REPLACE action to eliminate industrial trans fats, indirectly influenced the market by promoting product reformulation. Additionally, product innovations like flavored butters and healthy spreads catered to evolving regional consumer tastes.

Production butter, dairy spreads and milk fats in MENA

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

Following two consecutive years of decline, butter, dairy spreads, and milk fats production in the MENA region rebounded. In 2019, output hit its lowest point at 743.4 thousand tonnes, marking a 5.9% decrease. The following year, production rose to 807.3 thousand tonnes in 2020, an 8.6% year-over-year increase.

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

Exports butter, dairy spreads and milk fats from MENA

Exports in kind, K t

The market showed considerable volatility over the period. In 2019, exports reached their minimum at 5.0 thousand tonnes, with a significant 50.3% drop. By 2020, foreign supplies from MENA surged to 14.2 thousand tonnes, a sharp 182.9% year-over-year advance, resulting in a peak-to-trough ratio of 2.8 times between these years.

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

From 2017 to 2020, Ethiopia, the United States, and Maldives were among the top buyers of butter, dairy spreads, and milk fats from MENA, accounting for 1.2%, 0.9%, and 0.7% of exports in kind, respectively. However, their combined share was just 2.8%, highlighting a highly diversified export partner base.

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

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

Exports in value, M $ US

After two years of growth, butter, dairy spreads, and milk fats exports from MENA declined. In 2019, exports peaked at 116 million US dollars, with a 43.7% increase. The following year, exports fell to 73 million US dollars in 2020, a sharp 37.2% year-over-year decrease. Over the 2017-2020 period, exports grew by 28.1%, equivalent to an 8.6% annualized rate.

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

Between 2017 and 2020, butter, dairy spreads, and milk fats exports from MENA in value terms were widely distributed across markets. The United States, Maldives, and Turkey accounted for 1.3%, 1.0%, and 0.7% of exports in value, respectively, totaling only 3.0% of overall flows, indicating a broad market spread.

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

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

Imports butter, dairy spreads and milk fats to MENA

Imports in kind, K t

Following two years of growth, butter, dairy spreads, and milk fats imports into MENA declined. In 2019, imports reached their highest point at 231.9 thousand tonnes, with a 9.1% increase. The next year, imports dropped to 212.6 thousand tonnes in 2020, a modest 8.3% year-over-year decrease. Over the 2017-2020 period, imports rose by 7.1%, equating to a 2.3% annualized rate.

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

From 2017 to 2020, butter, dairy spreads, and milk fats imports into MENA came from a diverse range of markets. New Zealand, Denmark, and India were the largest suppliers, contributing 31.6%, 8.7%, and 6.4% of imports in kind, respectively. Together, they made up 46.7% of total imports, with numerous smaller destinations accounting for the remaining 53.3%.

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

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

Imports in value, M $ US

Cross-border shipments of butter, dairy spreads, and milk fats into MENA declined for the second year in a row. In 2018, imports peaked at 1 283 million US dollars, with a 20.1% increase. By 2020, imports fell to 1 033 million US dollars, representing a substantial 18.8% decrease compared to 2019. Over the 2017-2020 period, imports decreased by 3.4%, with a compound annual growth rate of -1.1%.

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

Between 2017 and 2020, New Zealand, Denmark, and India were the leading suppliers of butter, dairy spreads, and milk fats to MENA in value terms, accounting for 31.9%, 9.9%, and 6.6% of imports, respectively. Their combined share was 48.4%, set against a backdrop of many smaller partners, reflecting a broad supplier base.

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

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