Butter, dairy spreads and milk fats market in Thailand

Earlier Report Observations

The butter, dairy spreads, and milk fats market in Thailand saw its volume reach 18 thousand tonnes in 2018, with the market's value growing 5.4% to THB 2.025 billion. Volume dipped to 16.8 thousand tonnes in 2019 before rising to 17.6 thousand tonnes in 2020. The COVID-19 pandemic altered consumer patterns and disrupted raw milk imports, which constrained domestic production but was offset by higher butter imports, supporting overall market volume.

Market volume expanded strongly to 20.5 thousand tonnes in 2021 and further to 23 thousand tonnes in 2022. This growth was primarily driven by increased consumer adoption of butter in bakery items, desserts, and savory dishes, alongside the recovery and expansion of the domestic bakery segment. Although volatile oil and raw material prices from 2022 onward raised production costs, demand remained robust.

In 2023, market volume fell to 19.6 thousand tonnes, coinciding with a consumer trend toward moderate animal fat consumption and sustained input cost volatility. For 2024, hot weather conditions have reduced domestic raw milk output, while state-owned player Thai-Denmark has launched new lactose-free and omega-plus UHT milk products, targeting broader consumption occasions such as coffee shops.

Production butter, dairy spreads and milk fats in Thailand

In kind, 2017-2020, 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

Thailand's production of butter, dairy spreads, and milk fats has declined for the second year in a row. In 2020, the country produced 6,005 tonnes, marking a slight decrease of 2.4% from 2019. Over the 2017-2020 period, production grew by 27.3%, with an average annual growth rate of 8.4%. The highest output was recorded in 2018 at 6,284 tonnes, which also saw the largest increase of 33.2%.

Annual dynamics of production in Thailand in kind, 2017-2020, t

Exports butter, dairy spreads and milk fats from Thailand

Exports in kind, t

Thailand's exports of butter, dairy spreads, and milk fats have fallen for the third consecutive year. In 2020, export volume reached 479 tonnes, showing minimal change from the previous year. From 2017 to 2020, exports dropped by 69.6%, with an average annual decline of 32.8%.

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

Between 2017 and 2020, Laos, Myanmar, and Cambodia were the primary destinations for Thailand's butter, dairy spreads, and milk fats exports, accounting for 76.7% of the total volume. Laos led with 29.8%, followed by Myanmar at 24.8%, and Cambodia at 22.1%.

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

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

Exports in value, K $ US

Thailand's export value of butter, dairy spreads, and milk fats has decreased for the third year in a row. In 2020, exports totaled 1,416 thousand US dollars, down 16.0% from the previous year. Over the 2017-2020 period, export value fell by 56.6%, with an average annual decline of 24.3%.

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

From 2017 to 2020, Laos, Cambodia, and Myanmar remained the top buyers of Thailand's butter, dairy spreads, and milk fats in value terms, collectively making up 63.1% of total exports. Laos accounted for 27.8%, Cambodia for 21.3%, and Myanmar for 14.1%.

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

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

Imports butter, dairy spreads and milk fats to Thailand

Imports in kind, t

Thailand's imports of butter, dairy spreads, and milk fats totaled 12,119 tonnes in 2020, an increase of 8.4% from 2019. Over the 2017-2020 period, imports decreased by 2.5%, with an average annual decline of 0.8%. The lowest volume was recorded in 2019 at 11,175 tonnes, while the highest was in 2018 at 12,787 tonnes. The largest drop occurred in 2019 with a 12.6% decrease.

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

Between 2017 and 2020, New Zealand dominated Thailand's imports of butter, dairy spreads, and milk fats in volume, holding a 79.6% share of total flows, with the rest spread across various other markets.

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

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

Imports in value, K $ US

Thailand's import value of butter, dairy spreads, and milk fats has declined for the second consecutive year. In 2020, imports amounted to 61,202 thousand US dollars, down 3.3% from 2019. Over the 2017-2020 period, import value fell by 16.5%, with an average annual decline of 5.8%. The peak was in 2018 at 82,613 thousand US dollars, which also saw the largest increase of 12.7%. The sharpest drop occurred in 2019 with a 23.4% decrease.

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

From 2017 to 2020, New Zealand was the leading supplier of butter, dairy spreads, and milk fats to Thailand in value terms, accounting for 77.6% of total imports, while a diverse group of other countries made up the remainder.

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

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