Butter, dairy spreads and milk fats market in South-eastern Asia

Earlier Report Observations

Between 2018 and 2023, the market volume for butter, dairy spreads, and milk fats in South-eastern Asia showed significant volatility. It increased slightly from 222.6 thousand tons in 2018 to 225.2 thousand tons in 2019, then contracted sharply to 147.0 thousand tons in 2020. A partial recovery to 158.0 thousand tons occurred in 2021, followed by a gradual decline to 153.2 thousand tons in 2022 and 146.3 thousand tons in 2023.

In 2024, the market environment was influenced by several key factors. Global butter, milk, and cheese prices fell due to substantial production increases worldwide, altering supply dynamics in the region. Consumer trends shifted towards greater demand for product transparency, animal welfare certifications, and free-from options like gluten-free and dairy-free alternatives. Rising affluence in markets such as Singapore supported a move towards premium products, while palm oil-based specialty fats gained use as milk fat replacers in food formulations.

Production butter, dairy spreads and milk fats in South-eastern Asia

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

After two years of growth, butter, dairy spreads, and milk fats production in South-eastern Asia declined. In 2019, production reached its peak at 107.5 thousand tonnes, marking a 4.1% increase from the previous year. However, by 2020, output fell sharply to 42.1 thousand tonnes, reflecting a 60.8% year-on-year decrease. Over the period from 2017 to 2020, production dropped by 58.5%, with a compound annual growth rate of -25.4%.

Annual dynamics of production in South-eastern Asia in kind, 2017-2020, K t

Exports butter, dairy spreads and milk fats from South-eastern Asia

Exports in kind, K t

Butter, dairy spreads, and milk fats exports from South-eastern Asia declined for the third consecutive year. In 2020, exports totaled 7.0 thousand tonnes, a 5.9% decrease compared to 2019. From 2017 to 2020, exports fell by 32.2%, equating to an annualized decline of 12.2%.

Annual dynamics of product's exports from South-eastern Asia in kind, 2017-2020, K t

Between 2017 and 2020, butter, dairy spreads, and milk fats exports from South-eastern Asia were distributed across numerous markets. Japan accounted for 16.3% of exports in kind, the United Arab Emirates for 6.5%, and Asia, not elsewhere specified, for 3.3%. Together, these three markets represented only 26.2% of total export flows.

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

World map of product's exports from South-eastern Asia in kind, 2017-2020

Exports in value, M $ US

Butter, dairy spreads, and milk fats exports from South-eastern Asia in value terms declined for the second consecutive year. In 2018, exports peaked at 52.6 million US dollars, with a 4.9% increase from the previous year. By 2020, exports dropped to 37.2 million US dollars, a 21.8% decrease compared to 2019. Over the period from 2017 to 2020, exports decreased by 25.9%, with an annualized decline of 9.5%.

Annual dynamics of product's exports from South-eastern Asia in value, 2017-2020, M $ US

The partner structure for butter, dairy spreads, and milk fats exports in value terms from 2017 to 2020 was fragmented. Japan accounted for 19.8% of exports in value terms, the United Arab Emirates for 8.8%, and Asia, not elsewhere specified, for 3.5%. Combined, these three markets made up only 32.1% of total flows, with no single country holding a dominant share.

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

World map of product's exports from South-eastern Asia in value, 2017-2020

Imports butter, dairy spreads and milk fats to South-eastern Asia

Imports in kind, K t

Butter, dairy spreads, and milk fats imports into South-eastern Asia declined for the second consecutive year. In 2018, imports reached their highest point at 127.3 thousand tonnes, with a 4.2% increase from the previous year. By 2020, imports fell to 111.9 thousand tonnes, a 10.6% decrease compared to 2019. From 2017 to 2020, imports decreased by 8.4%, with an annualized decline of 2.9%.

Annual dynamics of product's imports to South-eastern Asia in kind, 2017-2020, K t

From 2017 to 2020, the partner structure for butter, dairy spreads, and milk fats imports in kind was heavily concentrated on New Zealand, which accounted for 72.9% of total import flows. Other markets played a much smaller role.

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

World map of product's imports to South-eastern Asia in kind, 2017-2020

Imports in value, M $ US

Butter, dairy spreads, and milk fats imports into South-eastern Asia in value terms declined for the second consecutive year. In 2018, imports peaked at 804.7 million US dollars, with a 15.8% increase from the previous year. By 2020, imports dropped to 575.3 million US dollars, a 19.6% decrease compared to 2019. Over the period from 2017 to 2020, imports fell by 17.2%, with a compound annual growth rate of -6.1%.

Annual dynamics of product's imports to South-eastern Asia in value, 2017-2020, M $ US

Between 2017 and 2020, New Zealand was the primary source for butter, dairy spreads, and milk fats imports into South-eastern Asia, accounting for 71.7% of total imports in value terms. Other destinations contributed significantly less.

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

World map of product's imports to South-eastern Asia in value, 2017-2020