Butter, dairy spreads and milk fats market in Portugal

Earlier Report Observations

From 2018 to 2019, the Portuguese market for butter, dairy spreads and milk fats remained relatively stable at around 55 000 tonnes annually, with a slight dip in 2019. This period was characterized by established consumer trends favoring healthier alternatives, such as margarines made with vegetable oils, which helped sustain demand. National legislation, including the long-standing Decreto-lei 59/85, continued to set manufacturing and labeling standards for margarine, providing a consistent regulatory framework for the market.

The COVID-19 pandemic in 2020 shifted consumer behavior towards products with longer shelf lives for home use, contributing to a market volume increase to over 57 500 tonnes. The following year, a 1.4% reduction in Portugal's raw milk collection constrained butter production, leading to a market contraction. In 2022, the launch of Vandemoortele's Gold Cup® line of margarines, made with 100% vegetable oils, introduced a significant product innovation aligned with the demand for natural ingredients, although the overall market volume stabilized near 55 150 tonnes due to lower domestic production that year.

The market rebounded strongly in 2023, reaching 60 178 tonnes. This growth was driven by a recovery in domestic butter production, which rose to 63 180 tonnes, aligning with earlier projections for the sector's gradual recovery after the previous milk supply constraints.

Production butter, dairy spreads and milk fats in Portugal

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, Portugal produced 63 K t of butter, dairy spreads, and milk fats, marking a slight contraction of 1.2% compared to 2020. Production reached its lowest point in 2019 at 61 K t, with the largest decline that year of 2.0%. The peak was recorded in 2020 at 64 K t, which saw the largest increase of 4.6%.

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

Exports butter, dairy spreads and milk fats from Portugal

Exports in kind, t

After two years of decline, Portugal's exports of butter, dairy spreads, and milk fats rebounded in 2021. The export volume reached 15 411 t, up 17.6% from 2020. Over the 2018-2021 period, exports grew by 5.8%, with a compound annual growth rate of 1.9%. The lowest export volume was in 2020 at 13 108 t, while the largest decline occurred in 2019 at 9.5%.

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

From 2018 to 2021, the Netherlands, Spain, and France were the largest buyers of butter, dairy spreads, and milk fats from Portugal. The Netherlands accounted for 33.4% of exports in kind, Spain for 16.7%, and France for 15.7%, together making up 65.8% of total exports.

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

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

Exports in value, K $ US

Following a two-year fall, Portugal's exports of butter, dairy spreads, and milk fats in value terms increased in 2021. Exports totaled 75 010 K $ US, a rise of 36.5% compared to the previous year. Between 2018 and 2021, however, exports decreased by 10.2%, equating to an annualized rate of 3.5%. The lowest value was recorded in 2020 at 54 948 K $ US, with the largest decline in 2019 at 30.8%.

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

In the 2018-2021 period, the Netherlands, Spain, and France remained the main destinations for Portugal's butter, dairy spreads, and milk fats exports in value terms. The Netherlands accounted for 32.9% of exports, Spain for 17.3%, and France for 15.7%, together representing 65.9% of total export value.

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

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

Imports butter, dairy spreads and milk fats to Portugal

Imports in kind, t

After a two-year decline, Portugal's imports of butter, dairy spreads, and milk fats in volume terms increased in 2021. Imports totaled 7 579 t, up 10.1% from 2020. Over the 2018-2021 period, imports decreased by 9.8%, with a compound annual growth rate of 3.4%. The lowest import volume was in 2020 at 6 881 t, while the largest decline occurred in 2019 at 13.2%.

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

From 2018 to 2021, Spain, Belgium, and France were the primary sources for Portugal's imports of butter, dairy spreads, and milk fats in kind. Spain accounted for 37.7% of imports, Belgium for 30.7%, and France for 12.1%, together comprising 80.6% of total imports.

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

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

Imports in value, K $ US

Following a two-year decline, Portugal's imports of butter, dairy spreads, and milk fats in value terms rose in 2021. Imports amounted to 30 147 K $ US, an increase of 7.3% compared to 2020. Between 2018 and 2021, imports decreased by 15.7%, equating to an annualized rate of 5.5%. The lowest value was recorded in 2020 at 28 108 K $ US, with the largest decline in 2019 at 19.2%.

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

In the 2018-2021 period, Belgium, Spain, and Germany were the principal sources for Portugal's imports of butter, dairy spreads, and milk fats in value terms. Belgium accounted for 35.5% of imports, Spain for 26.7%, and Germany for 14.2%, jointly making up 76.3% of total import flows.

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

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