Butter, dairy spreads and milk fats market in Southern Asia

Earlier Report Observations

The market for butter, dairy spreads, and milk fats in India grew from 11 883 thousand tonnes in 2018 to 13 851 thousand tonnes in 2021. This expansion was supported by the adoption of automation and new processing technologies, which increased production efficiency for fat-rich products like butter and ghee. Rising consumer awareness of health aspects also influenced product trends during this period.

In 2022, market volume stabilized at 13 853 thousand tonnes, as a shortage of fat constrained production while tax incentives for dairy cooperatives helped maintain output. The following year, volume increased to 14 212 thousand tonnes, driven by government infrastructure support and higher milk procurement, which boosted production capacity.

Production butter, dairy spreads and milk fats in Southern 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

Southern Asia has seen butter, dairy spreads, and milk fats production grow for the third year in a row. In 2020, the region produced 12 753 thousand tons, marking a slight increase of 1.1% compared to 2019. Looking at the period from 2017 to 2020, production rose by 11.4%, with an average annual growth rate of 3.7%.

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

In value, 2017-2020, M $ US

For the third consecutive year, Southern Asia's butter, dairy spreads, and milk fats production has increased in value. In 2020, the output was valued at 82 898 million US dollars, showing a solid uptick of 12.2% from the previous year. From 2017 to 2020, production value grew by 46.7%, with a compound annual growth rate of 13.6%.

Annual dynamics of production in Southern Asia in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from Southern Asia

Exports in kind, t

The market experienced noticeable fluctuations during this period. Exports from Southern Asia reached their lowest point in 2019 at 266 tons, then rebounded to 446 tons in 2020, a 67.8% increase from 2019. The peak was recorded in 2018 at 1 315 tons, making the difference between the high and low 4.9 times. The largest decline occurred in 2019, dropping by 79.8%.

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

From 2017 to 2020, the main destinations for Southern Asia's butter, dairy spreads, and milk fats exports in kind were Iraq, accounting for 41.5% of exports, the United States with 6.1%, and Senegal at 3.5%. Together, these three countries represented 51.0% of total export flows.

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

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

Exports in value, M $ US

The market showed an unstable trend over these years. Exports hit their lowest point in 2019 at 1.6 million US dollars, then rose to 2.9 million US dollars in 2020, an 86.1% increase from the previous year. The peak was in 2018 at 6.9 million US dollars, resulting in a 4.5-fold difference between the high and low. The largest decline was in 2019, falling by 77.5%.

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

In value terms, from 2017 to 2020, the primary destinations for Southern Asia's butter, dairy spreads, and milk fats exports were Iraq, with 42.3% of exports, the United States at 11.1%, and Russia with 4.2%. Combined, these three markets made up 57.6% of total export flows.

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

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

Imports butter, dairy spreads and milk fats to Southern Asia

Imports in kind, t

The market displayed volatility during the observed period. Imports into Southern Asia peaked in 2019 at 53 679 tons, then dropped sharply to 12 703 tons in 2020, a 76.3% decline from the previous year. The difference between the high and low was 4.2 times. The largest increase occurred in 2019, rising by 45.4%.

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

Throughout 2017 to 2020, the leading sources for butter, dairy spreads, and milk fats imports into Southern Asia in kind were the United Arab Emirates, contributing 49.1% of imports, Turkey with 25.9%, and New Zealand at 8.0%. Together, these three countries accounted for 83.0% of total import flows.

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

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

Imports in value, M $ US

Volatility characterized the market during these years. Imports reached their highest point in 2019 at 325.6 million US dollars, then fell to 66.3 million US dollars in 2020, a 79.6% decrease from the prior year. The difference between the peak and trough was 4.9 times. The largest increase was in 2019, growing by 38.4%.

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

From 2017 to 2020, the core markets for butter, dairy spreads, and milk fats imports into Southern Asia in value terms were the United Arab Emirates, with 49.8% of imports, Turkey at 28.4%, and New Zealand with 7.6%. Collectively, these three represented 85.9% of total import flows.

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

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