Butter, dairy spreads and milk fats market in Northern Europe

Earlier Report Observations

From 2018 to 2019, the market for butter, dairy spreads, and milk fats in Northern Europe grew from 923 thousand t to 1 029 thousand t, primarily driven by a consumer shift toward natural and protein-rich dairy products, which increased demand for butter. The market then contracted sharply to 768 thousand t in 2020 as production declined and exports rose.

A strong rebound followed in 2021, with market volume reaching 1 041 thousand t. This recovery was supported by high world butter prices, which encouraged production, and a growing consumer preference for organic dairy products. In 2022, the market stabilized at 1 050 thousand t, with a marginal 0.7% increase in butter consumption occurring alongside higher retail prices due to elevated feed, transport, and energy costs.

In 2023, the market size fell to 913 thousand t. This decrease coincided with a 4.4% drop in total milk production and sustained exports fueled by high international prices. The year also saw the initial effects of a new milk and dairy price regulation system (PGE), which began influencing market dynamics.

Production butter, dairy spreads and milk fats in Northern Europe

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 growth, Northern Europe's production of butter, dairy spreads, and milk fats experienced a decline. In 2019, output reached its peak at 1 279 K t, but by 2020 it had fallen to 1 049 K t, marking a significant 18.0% decrease from the previous year. Over the 2017-2020 period, production overall increased by 4.7%, with an average annual growth rate of 1.6%. The most substantial year-on-year increase occurred in 2018, when production rose by 17.2%.

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

In value, 2017-2020, M $ US

After two years of expansion, the production value of butter, dairy spreads, and milk fats in Northern Europe contracted. In 2019, the value peaked at 7 388 M $ US, but in 2020 it dropped to 4 813 M $ US, representing a sharp 34.8% decline compared to the previous year. From 2017 to 2020, the total production value decreased by 8.1%, with a compound annual growth rate of -2.8%. The largest annual increase was recorded in 2018, when the value surged by 34.0%.

Annual dynamics of production in Northern Europe in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from Northern Europe

Exports in kind, K t

In 2020, Northern Europe exported 407.1 K t of butter, dairy spreads, and milk fats, which was an 11.9% increase from 2019. Over the 2017-2020 period, exports grew by 17.8%, with an average annual growth rate of 5.6%. The most notable decline occurred in 2019, when exports fell by 4.5%.

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

Between 2017 and 2020, Northern Europe's butter, dairy spreads, and milk fats were exported to a diverse range of markets. Even the top three destinations—the Netherlands, Germany, and Belgium—collectively accounted for only 46.4% of total export volume, highlighting the broad distribution of these products.

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

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

Exports in value, M $ US

Northern Europe's export value of butter, dairy spreads, and milk fats declined for the second year in a row. In 2020, exports amounted to 1 868 M $ US, down 11.2% from 2019. Over the 2017-2020 period, export value increased by 3.4%, with an average annual growth rate of 1.1%. The highest value was recorded in 2018 at 2 280 M $ US, which also saw the largest annual increase of 26.1%.

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

From 2017 to 2020, the export value of butter, dairy spreads, and milk fats from Northern Europe was spread across numerous partner countries. The Netherlands, Belgium, and Germany were the leading destinations, but together they represented just 42.6% of total export value, with the Netherlands alone accounting for 20.8%, Belgium for 11.5%, and Germany for 10.3%.

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

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

Imports butter, dairy spreads and milk fats to Northern Europe

Imports in kind, K t

In 2020, Northern Europe imported 126.0 K t of butter, dairy spreads, and milk fats, a modest 9.9% increase from 2019. Over the 2017-2020 period, imports decreased by 2.3%, equivalent to an average annual decline of 0.8%. The lowest import volume was in 2019 at 114.6 K t, while the highest was in 2018 at 130.2 K t. The most significant drop occurred in 2019, with a 12.0% decrease.

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

During 2017-2020, Northern Europe's imports of butter, dairy spreads, and milk fats came from a wide array of partners. The top three sources—the Netherlands, Germany, and France—collectively made up only 28.4% of total import volume, with the Netherlands contributing 15.8%, Germany 7.0%, and France 5.6%. The remaining 71.6% was sourced from many other countries.

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

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

Imports in value, M $ US

Northern Europe's import value of butter, dairy spreads, and milk fats fell for the second consecutive year. In 2020, imports totaled 586 M $ US, a 2.3% decrease from 2019. Over the 2017-2020 period, import value declined by 16.4%, with an average annual decrease of 5.8%. The peak value was in 2018 at 782 M $ US, which also experienced the largest annual increase of 11.6%. The most substantial decline occurred in 2019, with a 23.3% drop.

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

From 2017 to 2020, the import value of butter, dairy spreads, and milk fats into Northern Europe was highly dispersed across countries. The Netherlands, France, and Germany were the top sources, but together they accounted for only 30.8% of total import value, with the Netherlands at 17.3%, France at 6.9%, and Germany at 6.6%. The remaining 69.2% was distributed among a wide range of other partners.

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

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