Concentrated milk and cream market in Eastern Asia

Earlier Report Observations

From 2018 to 2021, the concentrated milk and cream market in Eastern Asia expanded, with production rising steadily from 144.2 thousand tons to 172.2 thousand tons. This growth was primarily driven by state policies supporting the dairy industry, such as the '14th Five-Year Plan for Dairy Industry Competitiveness Improvement' and related capacity enhancement projects, which encouraged supply chain development and quality upgrades. Environmental rectification led to the closure of some non-compliant farms, but industry modernization efforts helped offset supply constraints and boost output.

The market contracted in 2020 as the COVID-19 pandemic disrupted operations and dampened demand, reducing market volume to 221.2 thousand tons. Recovery followed in 2021, but from 2022 onward, persistently weak consumer demand for dairy products and a shift in import patterns—with cream and cheese gaining share over bulk milk powder—contributed to a gradual decline in market size, which fell to 233.0 thousand tons by 2023. In 2024, high retail prices and consumer preference for affordable milk continued to limit consumption growth, while dairy companies focused on launching functional and premium products like A2 protein and organic milk to capture niche segments.

Throughout the period, the government implemented stricter quality and safety standards, including updated liquid milk regulations and clearer labeling for reconstituted milk, which aimed to boost fresh milk consumption. The dairy cow inventory recovered to around 10 million heads by 2023, supporting larger-scale farming and higher yields, in line with national goals for industry self-sufficiency and green development.

Production concentrated milk and cream in Eastern Asia

In kind, 2017-2020, K t

Top producers of concentrated milk and cream, 2017-2020

World map of production of concentrated milk and cream, 2017-2020

Eastern Asia's concentrated milk and cream production has grown for the third year in a row. In 2020, the region produced 162.5 thousand tonnes, marking a significant increase of 10.5% compared to 2019. Looking at the period from 2017 to 2020, production rose by 15.4%, which translates to an average annual growth rate of 4.9%.

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

In value, 2017-2020, M $ US

Following two years of growth, concentrated milk and cream production in Eastern Asia saw a decline. In 2020, the output was valued at 297.3 million US dollars, down by 5.9% from 2019. Over the 2017-2020 period, production increased by 21.2%, with a compound annual growth rate of 6.6%. The highest value was recorded in 2019 at 316.0 million US dollars, which also saw the largest increase of 14.3%.

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

Exports concentrated milk and cream from Eastern Asia

Exports in kind, t

After two years of decline, concentrated milk and cream exports from Eastern Asia rebounded. In 2020, exports reached 13 311 tonnes, showing a sharp increase of 36.2% compared to 2019. From 2017 to 2020, exports decreased by 8.1%, with a compound annual growth rate of -2.8%. The lowest point was in 2019 at 9 772 tonnes, while the largest drop occurred in 2018 with a 22.6% decline.

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

Between 2017 and 2020, key buyers of concentrated milk and cream from Eastern Asia included the United States (17.0% of exports in kind), Asia, not elsewhere specified (9.5%), and Canada (4.9%). Together, these three markets accounted for 31.4% of total exports in kind, with the remaining 68.6% distributed among numerous other trading partners.

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

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

Exports in value, M $ US

Following two years of decline, Eastern Asia's concentrated milk and cream exports increased. In 2020, exports were valued at 24.3 million US dollars, up by 15.9% from 2019. Over the 2017-2020 period, exports fell by 3.4%, with a compound annual growth rate of -1.2%. The lowest value was recorded in 2019 at 21.0 million US dollars, and the largest decrease happened in 2018 with a 14.7% drop.

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

From 2017 to 2020, the value of concentrated milk and cream exports from Eastern Asia was relatively evenly distributed. The United States (14.5% of exports in value terms), Asia, not elsewhere specified (11.6%), and Canada (4.8%) together made up only 30.9% of total export flows.

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

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

Imports concentrated milk and cream to Eastern Asia

Imports in kind, t

After two years of growth, concentrated milk and cream imports into Eastern Asia declined. In 2020, the region imported 89 342 tonnes, a decrease of 19.5% compared to 2019. Between 2017 and 2020, imports fell by 14.3%, equating to an average annual decline of 5.0%. The peak was in 2019 at 89 342 tonnes, which also saw the largest increase of 5.3%.

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

Throughout 2017-2020, the main sources for concentrated milk and cream imports into Eastern Asia were the Netherlands (40.7% of imports in kind), Malaysia (16.2%), and Australia (15.6%). These three countries together accounted for 72.5% of total import flows.

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

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

Imports in value, M $ US

Following two years of increase, Eastern Asia's concentrated milk and cream imports decreased. In 2020, imports were valued at 119.9 million US dollars, down by 16.2% year-over-year. From 2017 to 2020, imports dropped by 14.2%, with an average annual decline of 5.0%. The highest value was in 2019 at 143.1 million US dollars, while the largest increase occurred in 2018 at 1.9%.

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

Over the 2017-2020 period, the primary suppliers of concentrated milk and cream to Eastern Asia were the Netherlands (44.9% of imports in value terms), Australia (16.3%), and Malaysia (10.8%). Collectively, these three suppliers represented 72.0% of total imports in value terms.

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

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