Butter, dairy spreads and milk fats market in Norway

Earlier Report Observations

Following regulatory changes in mid-2018 that altered contract practices, the Norwegian butter and dairy fats market grew, supported by active participation from both the dominant cooperative Tine and other players like Q-Meieriene. This expansion was interrupted in 2020 when a decline in feed for ruminant animals impacted milk supply and the COVID-19 pandemic disrupted related food sectors, leading to a drop in production and market volume.

The market rebounded strongly in 2021 as dairy companies, notably Q-Meieriene, invested in production facilities and innovation to enhance capacity. Continued growth in consumer butter intake, as recorded in national dietary surveys for 2022, helped sustain market size despite persistent public health recommendations favoring margarine over dairy fats.

By 2023, the market adjusted as large regulatory and commercial butter stockpiles held by Tine, coupled with intense price competition among retailers, contributed to a reduction in production and overall market volume.

Production butter, dairy spreads and milk fats in Norway

In kind, 2018-2021, K 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

In 2021, Norway produced 35 K t of butter, dairy spreads, and milk fats, representing a 15.3% increase compared to the previous year. Production reached its lowest point in 2020 at 30 K t, which saw the largest decline of 8.0%. Over the period from 2018 to 2021, production grew by 9.5%, averaging an annualized rate of 3.1%.

Annual dynamics of production in Norway in kind, 2018-2021, K t

Exports butter, dairy spreads and milk fats from Norway

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Exports hit their lowest point in 2021 at 1.3 t, marking a sharp reduction of 92.9% year-over-year. In contrast, exports peaked in 2020 at 18.5 t, which also recorded the largest increase of 54.4%. The gap between these years was substantial, with a 14.1-fold difference.

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

From 2018 to 2021, Sweden and the Netherlands were the primary destinations for exports in kind, together accounting for 86.9% of total flows. Other partners played much smaller roles individually.

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

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

Exports in value, K $ US

There were noticeable fluctuations in market performance during this period. Exports in value terms reached their maximum in 2019 at 143 K $ US, which also saw the largest increase of 35.1%. By 2021, they dropped to a minimum of 10 K $ US, marking a sudden fall of 90.7% compared to 2020. This represents a 14.2-fold shift between the peak and trough.

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

Between 2018 and 2021, Sweden dominated exports in value terms, accounting for 74.1% of total flows. The remaining share was distributed among various smaller destinations.

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

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

Imports butter, dairy spreads and milk fats to Norway

Imports in kind, t

Imported volumes of butter, dairy spreads, and milk fats in Norway increased for the third consecutive year. In 2021, Norway imported 604.7 t, up by 7.5% compared to the previous year. Over the period from 2018 to 2021, imports grew by 72.7%, averaging an annualized rate of 20.0%.

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

Throughout 2018 to 2021, the Netherlands (23.7% of imports in kind), Ireland (17.0% of imports in kind), and Estonia (16.1% of imports in kind) were the key sources for imports in kind. Together, they accounted for 56.9% of total flows.

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

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

Imports in value, K $ US

Imports of butter, dairy spreads, and milk fats in value terms increased for the second consecutive year. In 2021, Norway imported 3 605 K $ US, marking a 17.2% year-over-year increase. The minimum value was recorded in 2019 at 2 344 K $ US, which also saw the largest decline of 6.3%. In 2020, imports recorded the largest increase of 31.3%. Over the period from 2018 to 2021, imports grew by 44.1%, with a compound annual growth rate of 13.0%.

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

The market base for imports in value terms from 2018 to 2021 was broad. The Netherlands (19.9% of imports in value terms), Denmark (16.5% of imports in value terms), and Ireland (13.4% of imports in value terms) jointly accounted for 49.9% of total flows, while the remaining 50.1% was shared by numerous other countries.

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

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