Butter, dairy spreads and milk fats market in Nepal

Earlier Report Observations

From 2018 to 2022, the market volume for butter, dairy spreads, and milk fats in Nepal grew steadily from 114 thousand tons to 134.9 thousand tons. This expansion was primarily driven by the active growth of private dairy companies, including pioneers like Sitaram Gokul Milk and newer entrants such as Chitawon Milk Limited and Global Dairy Nepal, which expanded production capacities and strengthened links with farmers through cooperative collection centers. Concurrently, strong consumer preference for traditional, high-fat products like ghee and butter, along with increased demand for hygienic and natural dairy items, supported rising consumption.

Despite supply chain disruptions during the COVID-19 pandemic in 2020, the market continued to grow as private dairies invested in improved processing technologies and stricter hygiene protocols. In subsequent years, modernization efforts, product innovations like flavored milk, and policy support for sustainable dairy farming further contributed to the increase. By 2023, the market volume stabilized at 134.9 thousand tons.

Production butter, dairy spreads and milk fats in Nepal

In kind, 2017-2020, t

Between 2017 and 2020, Nepal ranked as the 26th largest global producer 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

Nepal's production of butter, dairy spreads, and milk fats grew for the third year in a row. In 2020, the country produced 122 669 tonnes, marking a moderate 4.4% increase from 2019. From 2017 to 2020, overall production rose by 17%, which translates to an annualized growth rate of 5.4%.

Annual dynamics of production in Nepal in kind, 2017-2020, t

Exports butter, dairy spreads and milk fats from Nepal

Exports in kind, t

Nepal's exports of butter, dairy spreads, and milk fats fell for the third consecutive year. In 2020, shipments abroad totaled 14.5 tonnes, a sharp 80.7% drop compared to 2019. Over the 2017-2020 period, exports declined by 95.8%, with a compound annual growth rate of -65.2%.

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

From 2017 to 2020, India accounted for nearly all of Nepal's butter, dairy spreads, and milk fat exports in volume, holding a 90.9% share of total flows.

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

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

Exports in value, K $ US

The value of Nepal's butter, dairy spreads, and milk fat exports decreased for the third year running. In 2020, export value stood at 128 000 US dollars, down 56.5% year-over-year. Between 2017 and 2020, exports fell by 90.7%, with a compound annual growth rate of -54.7%.

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

During 2017-2020, India was the primary and almost exclusive market for Nepal's butter, dairy spreads, and milk fat exports in value terms, representing 91.9% of total flows.

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

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

Imports butter, dairy spreads and milk fats to Nepal

Imports in kind, t

Nepal's imports of butter, dairy spreads, and milk fats declined for the third straight year. In 2020, imports reached 198.3 tonnes, a steep 27.0% decrease from 2019. Over the 2017-2020 period, imports dropped by 78.2%, with a compound annual growth rate of -39.8%.

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

From 2017 to 2020, India was the main supplier of butter, dairy spreads, and milk fats to Nepal, accounting for 86.9% of total import volume, while a diverse group of other countries made up the remainder.

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

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

Imports in value, K $ US

The value of Nepal's butter, dairy spreads, and milk fat imports fell for the third consecutive year. In 2020, import value amounted to 1 043 000 US dollars, showing a strong 24.9% drop compared to the previous year. Between 2017 and 2020, imports decreased by 75.6%, with a compound annual growth rate of -37.5%.

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

In 2017-2020, India dominated Nepal's butter, dairy spreads, and milk fat imports in value, capturing 88.7% of total flows, with a fragmented mix of other markets accounting for the rest.

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

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