Butter, dairy spreads and milk fats market in Pakistan

Earlier Report Observations

The market for butter, dairy spreads, and milk fats in Pakistan showed consistent growth from 2.19 million metric tons in 2018 to 2.54 million metric tons in 2023. The implementation of standardized food labeling rules in July 2019 provided a regulatory framework that supported product transparency and consumer confidence.

After a slight contraction in 2020, production volumes resumed their upward trajectory, aided by a shift in consumer preferences toward natural and organic butter products. This demand was met through the dairy sector's overall expansion and technological partnerships, such as cooperation with Italian firms to improve processing efficiency.

By 2024, the industry navigated economic challenges including high inflation and currency volatility, yet maintained momentum through strong domestic consumption and new export initiatives. Ongoing consumer interest in healthier, additive-free dairy fats continued to shape product offerings, while the sector worked to increase formal processing capacity.

Production butter, dairy spreads and milk fats in Pakistan

In kind, 2017-2020, K t

From 2017 to 2020, Pakistan ranked as the world's second-largest 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

After two years of growth, butter, dairy spreads, and milk fats production in Pakistan saw a decline. In 2020, production reached 2 322 thousand tonnes, marking a slight reduction of 2.2% compared to the previous year. Over the period from 2017 to 2020, production increased by 9.1%, which translates to an annualized growth rate of 3.0%. The highest production level was recorded in 2019 at 2 373 thousand tonnes, with the largest annual increase of 8.4% also occurring that year.

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

Exports butter, dairy spreads and milk fats from Pakistan

Exports in kind, t

Butter, dairy spreads, and milk fats exports from Pakistan have grown for the third year in a row. In 2020, exports amounted to 96 tonnes, representing a 20.0% increase over the previous year. From 2017 to 2020, exports surged by 132%, with a compound annual growth rate of 32.4%.

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

Between 2017 and 2020, the United States, Hong Kong, and Australia were the top buyers of butter, dairy spreads, and milk fats from Pakistan. The United States accounted for 43.4% of exports in volume, Hong Kong for 32.6%, and Australia for 8.5%. Together, these three markets made up 84.5% of Pakistan's total exports in kind.

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

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

Exports in value, K $ US

In 2020, Pakistan's butter, dairy spreads, and milk fats exports reached 627 thousand US dollars, showing a sharp increase of 59.1% compared to 2019. From 2017 to 2020, exports grew by 154.1%, with a compound annual growth rate of 36.5%. The largest decline occurred in 2019 at 1.6%, while the highest increase was in 2018 at 62.3%.

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

From 2017 to 2020, the United States, Hong Kong, and Australia were the primary destinations for Pakistan's butter, dairy spreads, and milk fats exports in value terms. The United States represented 45.6% of export value, Hong Kong 30.3%, and Australia 9.8%. Collectively, these three markets absorbed 85.7% of total export value.

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

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

Imports butter, dairy spreads and milk fats to Pakistan

Imports in kind, t

Pakistan's imports of butter, dairy spreads, and milk fats have decreased for the third consecutive year. In 2020, imports stood at 261 tonnes, down by 26.1% from 2019. Between 2017 and 2020, imports fell by 74.1%, equating to an annualized decline of 36.2%.

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

From 2017 to 2020, Denmark, New Zealand, and France were the main sources of butter, dairy spreads, and milk fats imports to Pakistan, together accounting for 80.1% of total imports in volume.

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

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

Imports in value, K $ US

Imports of butter, dairy spreads, and milk fats into Pakistan have declined for the third year in a row. In 2020, imports totaled 978 thousand US dollars, a decrease of 4.4% compared to the prior year. Over the period from 2017 to 2020, imports dropped by 69.8%, with an annualized rate of decline of 32.9%.

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

Between 2017 and 2020, Denmark, New Zealand, and France consistently led as the top sources for Pakistan's butter, dairy spreads, and milk fats imports in value terms. Denmark accounted for 53.1% of import value, New Zealand for 21.2%, and France for 6.7%. Together, these three countries made up 81.0% of total import flows.

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

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