Butter, dairy spreads and milk fats market in United States of America, including Puerto Rico and US Virgin Islands

Earlier Report Observations

The U.S. market for butter, dairy spreads, and milk fats grew from 1 795 thousand tons in 2018 to 1 988 thousand tons in 2020, driven by a sustained consumer shift toward natural and healthy fats. This preference for butter from grass-fed cows, perceived as more nutritious than hydrogenated oils and margarines, increased demand. Technological innovations in dairy production, including robotic milking systems, enhanced manufacturing efficiency, supporting higher output.

Market volume dipped to 1 882 thousand tons in 2021 but stabilized near 1 861 thousand tons in 2022. Despite the slight physical decline, the market value surged to $9 133 million in 2022, propelled by the launch of premium sustainable products like Truly Grass Fed and a broader consumer move toward natural ingredients, which allowed for higher pricing. The entry of international players such as Yili Group with production expansions added to market dynamism.

Volume rebounded to 1 967 thousand tons in 2023, fueled by strong demand for organic butter and innovations in reduced-saturated-fat products. Investments in capacity expansion, including Dairy Farmers of America's facility acquisitions, bolstered supply. Regulatory changes on trans fats and labeling prompted product reformulations, while growing exports to markets like Mexico reflected sustained international interest.

Production butter, dairy spreads and milk fats in United States of America, including Puerto Rico and US Virgin Islands

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

In the United States of America, including Puerto Rico and the US Virgin Islands, butter, dairy spreads, and milk fats production has increased for the third consecutive year. In 2020, production reached 1 969 K t, marking a 7.5% gain compared to 2019. Over the period from 2017 to 2020, production grew by 17%, with a compound annual growth rate (CAGR) of 5.4%.

Annual dynamics of production in United States of America, including Puerto Rico and US Virgin Islands in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After two years of growth, butter, dairy spreads, and milk fats production in the United States of America, including Puerto Rico and the US Virgin Islands, declined in value terms. In 2020, the output was valued at 6 253 M $ US, reflecting a significant decrease of 12.6% compared to 2019. From 2017 to 2020, production value fell by 3.3%, with a CAGR of -1.1%. The peak value was recorded in 2019 at 7 155 M $ US, while the largest increase occurred in 2018 at 9.4%.

Annual dynamics of production in United States of America, including Puerto Rico and US Virgin Islands in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from United States of America, including Puerto Rico and US Virgin Islands

Exports in kind, t

Butter, dairy spreads, and milk fats exports from the United States of America, including Puerto Rico and the US Virgin Islands, declined for the second consecutive year. In 2020, exports totaled 28 582 t, showing a strong decrease of 12.9% compared to 2019. Over the 2017-2020 period, exports dropped by 16.5%, with a CAGR of -5.8%. The highest export volume was in 2018 at 51 874 t, with the largest decline in 2019 at 36.7% and the largest increase in 2018 at 51.5%.

Annual dynamics of product's exports from United States of America, including Puerto Rico and US Virgin Islands in kind, 2017-2020, t

From 2017 to 2020, Canada, Mexico, and Saudi Arabia were the largest buyers of butter, dairy spreads, and milk fats from the United States of America, including Puerto Rico and the US Virgin Islands. Canada accounted for 42.5% of exports in kind, Mexico for 19.0%, and Saudi Arabia for 6.6%, together forming 68.0% of total exports in kind.

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

World map of product's exports from United States of America, including Puerto Rico and US Virgin Islands in kind, 2017-2020

Exports in value, M $ US

Butter, dairy spreads, and milk fats exports from the United States of America, including Puerto Rico and the US Virgin Islands, declined in value for the second consecutive year. In 2020, export value was 103.6 M $ US, which is 16.3% lower than the previous year. Over the 2017-2020 period, exports decreased by 25.5%, with a CAGR of -9.3%. The maximum value was recorded in 2018 at 181.8 M $ US, with the largest decline in 2019 at 31.9% and the largest increase in 2018 at 30.7%.

Annual dynamics of product's exports from United States of America, including Puerto Rico and US Virgin Islands in value, 2017-2020, M $ US

Between 2017 and 2020, three principal markets—Canada, Mexico, and Saudi Arabia—together accounted for 67.2% of the total export value of butter, dairy spreads, and milk fats from the United States of America, including Puerto Rico and the US Virgin Islands.

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

World map of product's exports from United States of America, including Puerto Rico and US Virgin Islands in value, 2017-2020

Imports butter, dairy spreads and milk fats to United States of America, including Puerto Rico and US Virgin Islands

Imports in kind, t

The import market for butter, dairy spreads, and milk fats in the United States of America, including Puerto Rico and the US Virgin Islands, showed volatility over the observed period. Imports peaked in 2019 and reached their lowest point in 2017, with a 1.8-fold difference between these years. In 2020, imports amounted to 47 883 t, showing an abrupt decrease of 29.4% relative to the prior year. The maximum volume was recorded in 2019 at 67 865 t, with the largest increase in 2019 at 70.3%.

Annual dynamics of product's imports to United States of America, including Puerto Rico and US Virgin Islands in kind, 2017-2020, t

From 2017 to 2020, Ireland, New Zealand, and Mexico were the main sources of butter, dairy spreads, and milk fats imports to the United States of America, including Puerto Rico and the US Virgin Islands. Ireland accounted for 48.0% of imports in kind, New Zealand for 15.7%, and Mexico for 15.3%, together absorbing 79.1% of total imports in kind.

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

World map of product's imports to United States of America, including Puerto Rico and US Virgin Islands in kind, 2017-2020

Imports in value, M $ US

After two years of growth, butter, dairy spreads, and milk fats imports to the United States of America, including Puerto Rico and the US Virgin Islands, declined. In 2020, imports amounted to 368.1 M $ US, showing a moderate decline of 9.1% compared to the previous year. Over the 2017-2020 period, imports increased by 50.8%, with a CAGR of 14.7%. The maximum value was recorded in 2019 at 404.9 M $ US, while the largest increase occurred in 2018 at 37.6%.

Annual dynamics of product's imports to United States of America, including Puerto Rico and US Virgin Islands in value, 2017-2020, M $ US

Throughout 2017 to 2020, Ireland, Mexico, and New Zealand formed the core group of markets for butter, dairy spreads, and milk fats imports in value terms to the United States of America, including Puerto Rico and the US Virgin Islands. Ireland accounted for 55.3% of imports in value terms, Mexico for 12.9%, and New Zealand for 12.7%, together representing 81.0% of total import flows.

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

World map of product's imports to United States of America, including Puerto Rico and US Virgin Islands in value, 2017-2020