Butter, dairy spreads and milk fats market in the United Kingdom

Earlier Report Observations

The UK market for butter, dairy spreads and milk fats experienced a period of substantial growth from 2018 to 2021, with total volume rising by over 100 thousand tonnes to reach 433 thousand tonnes. This expansion was primarily driven by a consistent increase in domestic production, which grew by more than 40%, while import volumes gradually declined. The market's peak in 2021 reflected this strengthened domestic supply chain.

Following the 2021 peak, market volume underwent a correction over the next two years, settling at 406 thousand tonnes in 2023. During this period, the UK government introduced draft guidance in February 2022 aimed at restricting the labeling of plant-based alternatives to dairy, which altered the competitive landscape for spreads and fats. Imports and exports continued their gradual downward trend through 2025, indicating a market increasingly supplied by domestic production.

Production butter, dairy spreads and milk fats in the United Kingdom

In kind, 2018-2021, K t

From 2018 to 2021, the United Kingdom held the 12th position globally in the production of butter, dairy spreads, and milk fats.

Top producers of butter, dairy spreads and milk fats, 2018-2021

World map of production of butter, dairy spreads and milk fats, 2018-2021

Butter, dairy spreads, and milk fats production in the United Kingdom grew for the third year in a row. In 2021, the country produced 428 K t of these products, marking a 7.1% increase compared to the previous year. Over the 2018-2021 period, production rose by 40.9%, with a compound annual growth rate of 12.1%.

Annual dynamics of production in the United Kingdom in kind, 2018-2021, K t

Exports butter, dairy spreads and milk fats from the United Kingdom

Exports in kind, t

Butter, dairy spreads, and milk fats exports from the United Kingdom fell for the second consecutive year. In 2021, the UK exported 52 056 t of these goods, representing a 15.2% decrease from the prior year. Between 2018 and 2021, exports dropped by 16.6%, with a compound annual decline of 5.9%. The highest export volume was recorded in 2019 at 69 002 t, which also saw the largest increase of 10.6%.

Annual dynamics of product's exports from the United Kingdom in kind, 2018-2021, t

From 2018 to 2021, Belgium, the Netherlands, and Ireland were the top buyers of butter, dairy spreads, and milk fats from the United Kingdom, accounting for 31.9%, 20.4%, and 12.0% of exports in kind, respectively. Together, they made up 64.2% of total exports in kind.

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

World map of product's exports from the United Kingdom in kind, 2018-2021

Exports in value, M $ US

After two years of decline, the United Kingdom's butter, dairy spreads, and milk fats export value increased. In 2021, export value reached 252.7 M $ US, a 4.6% rise compared to 2020. However, between 2018 and 2021, exports decreased by 31.1%, equating to an annualized rate of 11.7%. The lowest value was recorded in 2020 at 241.6 M $ US, which also experienced the largest decline of 26.3%.

Annual dynamics of product's exports from the United Kingdom in value, 2018-2021, M $ US

From 2018 to 2021, Belgium, the Netherlands, and Italy remained the principal buyers of butter, dairy spreads, and milk fats from the United Kingdom in value terms, with shares of 32.9%, 21.9%, and 8.8%, respectively. Collectively, they accounted for 63.5% of total exports in value terms.

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

World map of product's exports from the United Kingdom in value, 2018-2021

Imports butter, dairy spreads and milk fats to the United Kingdom

Imports in kind, t

In 2021, butter, dairy spreads, and milk fats imports into the United Kingdom totaled 57 080 t, a sharp drop of 27.9% compared to 2020. Between 2018 and 2021, imports decreased by 32%, equating to an annualized rate of 12.1%. The largest increase was recorded in 2020 at 0.5%.

Annual dynamics of product's imports to the United Kingdom in kind, 2018-2021, t

Throughout 2018-2021, Ireland, the Netherlands, and Denmark were the key sources for imports in kind of butter, dairy spreads, and milk fats into the United Kingdom, with shares of 57.7%, 14.2%, and 9.8%, respectively. Together, they represented 81.7% of total import flows.

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

World map of product's imports to the United Kingdom in kind, 2018-2021

Imports in value, M $ US

Butter, dairy spreads, and milk fats import values into the United Kingdom declined for the third consecutive year. In 2021, imports amounted to 290.3 M $ US, which is 6.7% less than the previous year. Over the 2018-2021 period, imports decreased by 39.8%, with a compound annual decline of 15.5%.

Annual dynamics of product's imports to the United Kingdom in value, 2018-2021, M $ US

From 2018 to 2021, Ireland, the Netherlands, and France were the main markets for imports in value terms of butter, dairy spreads, and milk fats into the United Kingdom, accounting for 54.0%, 15.4%, and 10.6%, respectively. Together, they made up 80.0% of total import flows.

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

World map of product's imports to the United Kingdom in value, 2018-2021