Butter, dairy spreads and milk fats market in Mexico

Earlier Report Observations

The market for butter, dairy spreads and milk fats in Mexico saw a substantial expansion from 62 175 t in 2018 to 83 733 t in 2019. This surge was primarily driven by a marked increase in consumer demand for butter, cream and cheeses during 2019. The following year, the market volume contracted sharply to 48 753 t, a decline largely attributable to the impact of the IEPS tax on high-calorie products, which negatively affected consumption.

A steady recovery began in 2021, supported by a 2.7% increase in national milk production that year, providing greater raw material availability. Market growth continued through 2023, reaching 85 733 t, underpinned by annual growth in butter consumption of 1.5% in both 2022 and 2023. The hotel and restaurant sector remained the key driver of this sustained demand.

Throughout the period, the broader dairy landscape evolved with the entry of new local brands producing plant-based dairy alternatives, offering more affordable options. Concurrently, ongoing shifts in consumer preferences towards products with lower fat and sugar content, and a growing interest in functional ingredients, influenced product development within the category.

Production butter, dairy spreads and milk fats in Mexico

In kind, 2018-2021, t

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

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

Butter, dairy spreads, and milk fats production in Mexico has increased for the third consecutive year. In 2021, Mexico produced 50 554 tonnes of these products, marking a 5.3% year-over-year rise. From 2018 to 2021, production grew by 10%, with an average annual growth rate of 3.2%.

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

Exports butter, dairy spreads and milk fats from Mexico

Exports in kind, t

The market showed significant volatility during this period. Exports peaked in 2019 at 9 340 tonnes and dropped sharply to a low of 62 tonnes in 2020, representing a 151-fold fluctuation. In 2020, Mexico exported 62 tonnes of butter, dairy spreads, and milk fats, a dramatic 99.3% decrease compared to the previous year. The largest increase occurred in 2019, with a 52.1% rise.

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

From 2018 to 2021, exports were heavily concentrated on the United States, which accounted for 99.2% of total flows.

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

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

Exports in value, M $ US

Market performance exhibited noticeable fluctuations during this period. Export values varied significantly, with a 199-fold difference between the high in 2019 and the low in 2020. In 2020, butter, dairy spreads, and milk fats deliveries from Mexico totaled 0.3 million US dollars, a sharp 99.5% decrease from the previous year. The maximum value was recorded in 2019 at 57.5 million US dollars, while the largest increase occurred that same year with a 22.0% rise.

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

Throughout 2018–2021, exports in value terms remained highly focused on the United States, which represented 99.2% of total flows.

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

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

Imports butter, dairy spreads and milk fats to Mexico

Imports in kind, t

Market performance showed noticeable fluctuations during this period. Import volumes varied widely, with a 56-fold difference between the peak in 2019 and the trough in 2020. In 2021, Mexico's butter, dairy spreads, and milk fats import volume reached 3 174 tonnes, an abrupt 291.4% increase year-over-year. The minimum value was recorded in 2020 at 811 tonnes, while the maximum was in 2019 at 45 430 tonnes. The largest decline occurred in 2020, with a 98.2% drop.

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

From 2018 to 2021, New Zealand was the key supplier of butter, dairy spreads, and milk fats to Mexico, accounting for 85.0% of total imports in kind, while a diversified group of other countries made up the remainder.

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

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

Imports in value, M $ US

Market performance displayed noticeable fluctuations during this period. Import values climbed to their maximum in 2019 and dropped to a minimum in 2020, representing a 62-fold shift. In 2021, Mexico imported 15.4 million US dollars worth of butter, dairy spreads, and milk fats, which is 258.0% higher than the previous year. The minimum value was recorded in 2020 at 4.3 million US dollars, while the maximum was in 2019 at 266.9 million US dollars. The largest decline occurred in 2020, with a 98.4% decrease.

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

Throughout 2018–2021, the country structure of imports in value terms was dominated by New Zealand, which accounted for 85.2% of total flows, while other destinations were relatively small.

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

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