Butter, dairy spreads and milk fats market in Western Europe

Earlier Report Observations

The market volume for butter, dairy spreads and milk fats in Western Europe increased from 1 575 thousand tonnes in 2018 to 2 240 thousand tonnes in 2023. This growth was not steady; after rising to 1 861 thousand tonnes in 2020, the market contracted to 1 707 thousand tonnes in 2021 before recovering and surging in 2023. In value terms, the market declined from $15.7 billion in 2018 to $13.1 billion in 2021, then rebounded sharply to reach $25.4 billion in 2023.

By 2024, consumer preferences and regulatory changes were key market drivers. Health concerns about saturated fats led some consumers to choose plant-based alternatives, while others favored natural dairy butter over margarine. The WHO REPLACE initiative, aiming to eliminate industrial trans fats by 2025, forced margarine producers to reformulate their products. Major companies like NMGK Group responded by launching a new spreadable margarine line without partially hydrogenated oils, and Anchor Food Professionals introduced 100% recyclable mini butter portions.

Global supply conditions also influenced the market. EU butter production was forecast to decline due to limited milk availability and higher demand for cheese. Rising global butter prices, driven by strong demand and weather-related supply disruptions, affected local prices and availability. Product innovation continued with blends such as butter with rapeseed oil and sustainable packaging, catering to consumer demand for convenience and environmental responsibility.

Production butter, dairy spreads and milk fats in Western Europe

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

Western Europe's production of butter, dairy spreads, and milk fats has grown for the second year in a row. In 2020, the region produced 1,790 thousand tons, a modest 2.0% increase from 2019. Looking at the period from 2017 to 2020, production rose by 12.5%, with an average annual growth rate of 4.0%. The lowest output was in 2018 at 1,569 thousand tons, which saw a 1.4% decline. The most significant growth occurred in 2019, with an 11.8% increase.

Annual dynamics of production in Western Europe in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Western Europe's production value for butter, dairy spreads, and milk fats has declined for the second consecutive year. In 2020, the output was valued at 20,125 million US dollars, reflecting a moderate 9.6% drop compared to the previous year. Over the 2017-2020 period, production value decreased by 10.2%, with an average annual decline of 3.5%. The peak value was recorded in 2018 at 24,767 million US dollars, which saw a 10.5% increase. The largest decline occurred in 2019, with a 10.1% decrease.

Annual dynamics of production in Western Europe in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from Western Europe

Exports in kind, K t

In 2020, Western Europe exported 428.1 thousand tons of butter, dairy spreads, and milk fats, representing a measured 5.1% decrease from the previous year. From 2017 to 2020, exports fell by 18.3%, with an average annual decline of 6.5%. The lowest export volume was in 2018 at 420.4 thousand tons, which experienced a 19.7% drop. The largest increase was in 2019, with a 7.2% rise.

Annual dynamics of product's exports from Western Europe in kind, 2017-2020, K t

The export structure for butter, dairy spreads, and milk fats in kind from 2017 to 2020 was diversified. Italy accounted for 6.8% of exports, the United Kingdom for 3.6%, and Poland for 2.9%, together making up just 13.3% of total flows. No single country held a clearly dominant position in the market.

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

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

Exports in value, M $ US

Western Europe's export value for butter, dairy spreads, and milk fats has declined for the second year in a row. In 2020, exports totaled 3,295 million US dollars, a drop of 10.9% compared to the prior year. Between 2017 and 2020, exports decreased by 16%, with an average annual rate of 5.7%. The highest value was in 2018 at 4,226 million US dollars, which saw a 7.7% increase. The largest decline occurred in 2019, with a 12.5% decrease.

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

The export structure in value terms from 2017 to 2020 was diversified. Italy contributed 7.2% of exports, the United Kingdom 4.0%, and Poland 3.0%, collectively accounting for just 14.2% of total flows. No country emerged as a clearly dominant player in the market.

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

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

Imports butter, dairy spreads and milk fats to Western Europe

Imports in kind, K t

Western Europe's imports of butter, dairy spreads, and milk fats in kind have increased for the second consecutive year. In 2020, imports reached 499.3 thousand tons, up 15.7% from 2019. The lowest import volume was in 2018 at 426.9 thousand tons, which saw a 13.7% decline.

Annual dynamics of product's imports to Western Europe in kind, 2017-2020, K t

The import market for butter, dairy spreads, and milk fats in kind from 2017 to 2020 had a wide base. Ireland accounted for 23.8% of imports, the United Kingdom for 5.0%, and Poland for 3.7%, together making up 32.5% of total flows. The remaining 67.5% was distributed among numerous other countries.

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

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

Imports in value, M $ US

Western Europe's import value for butter, dairy spreads, and milk fats has declined for the second year in a row. In 2020, imports amounted to 2,955 million US dollars, marking a substantial 12.1% decrease year-over-year. Between 2017 and 2020, imports fell by 16.1%, with an average annual decline of 5.7%. The peak value was in 2018 at 4,147 million US dollars, which saw a 17.7% increase. The largest drop occurred in 2019, with an 18.9% decrease.

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

The import market in value terms from 2017 to 2020 was broad-based. Ireland accounted for 21.9% of imports, the United Kingdom for 5.4%, and Poland for 3.6%, collectively representing 30.9% of total flows. The remaining 69.1% was shared by many other countries.

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

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