Concentrated milk and cream market in Japan

Earlier Report Observations

From 2018 to 2021, the Japanese market for concentrated milk and cream expanded steadily, with volume rising from 37 316 tons to 45 605 tons. This growth was primarily supported by the government's 'Processing Raw Milk Producer Subsidy' system, which was extended to cream in 2018 and provided price support and supply stability. The Ministry of Health's Milk Ordinance simultaneously tightened the definition of 'cream' to require at least 18% milk fat and no vegetable fats or additives, clarifying labeling standards and reshaping product offerings.

The COVID-19 pandemic in 2020 disrupted global logistics and raised supply chain costs for dairy, contributing to higher raw material prices. Despite this, domestic production increased. In 2021, revised Food Labeling Standards mandated changes to font size and expiration date formats on packaging, requiring manufacturers to update their packages. By 2022, subsidies for cream producers were expanded and their rates increased, further incentivizing supply, while a revised Milk Ordinance unified maximum storage temperature requirements at 10°C or below, enforcing stricter cold chain management in distribution and retail.

After peaking in 2021, the market volume stabilized at 45 523 tons in 2022 and then contracted to 40 977 tons in 2023. The strengthened subsidy framework from 2022 aimed to support production, but the market adjusted in the following year.

Production concentrated milk and cream in Japan

In kind, 2018-2021, t

From 2018 to 2021, Japan ranked 24th globally in the production of concentrated milk and cream.

Top producers of concentrated milk and cream, 2018-2021

World map of production of concentrated milk and cream, 2018-2021

Japan's production of concentrated milk and cream grew for the third year in a row. In 2021, the country produced 43 575 tonnes, a 2.5% increase compared to 2020. Over the 2018-2021 period, production rose by 23%, with an average annual growth rate of 7.2%.

Annual dynamics of production in Japan in kind, 2018-2021, t

In value, 2018-2021, M $ US

After two years of growth, Japan's production of concentrated milk and cream in value terms declined. In 2021, output was valued at 309.4 million US dollars, a slight drop of 2.9% from the previous year. From 2018 to 2021, production increased by 36.2%, with an average annual growth rate of 10.9%. The highest value was recorded in 2020 at 318.8 million US dollars, following the largest increase of 26.9% that year.

Annual dynamics of production in Japan in value, 2018-2021, M $ US

Exports concentrated milk and cream from Japan

Exports in kind, t

Japan's exports of concentrated milk and cream in volume terms rose for the third consecutive year. In 2021, exports reached 167 tonnes, a strong increase of 16.6% compared to 2020. Over the 2018-2021 period, exports grew by 59.4%, with an average annual growth rate of 16.8%.

Annual dynamics of product's exports from Japan in kind, 2018-2021, t

From 2018 to 2021, Asia, not elsewhere specified, and Hong Kong together accounted for 88.9% of Japan's total exports in volume terms, while the remaining flows were distributed thinly across other markets.

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

World map of product's exports from Japan in kind, 2018-2021

Exports in value, K $ US

Japan's exports of concentrated milk and cream in value terms increased for the third year in a row. In 2021, exports totaled 1 183 thousand US dollars, a robust rise of 10.4% from the previous year. Over the 2018-2021 period, exports expanded by 76.5%, with an average annual growth rate of 20.9%.

Annual dynamics of product's exports from Japan in value, 2018-2021, K $ US

From 2018 to 2021, Asia, not elsewhere specified, and Hong Kong concentrated the majority of Japan's exports in value terms, while other markets formed a less significant portion.

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

World map of product's exports from Japan in value, 2018-2021

Imports concentrated milk and cream to Japan

Imports in kind, t

In 2021, Japan's imports of concentrated milk and cream in volume terms stood at 2 197 tonnes, showing a sudden advance of 30.9% year-over-year. Over the 2018-2021 period, imports increased by 9.6%, with an average annual growth rate of 3.1%. The lowest volume was recorded in 2020 at 1 679 tonnes, following the largest decline of 33.3% that year, while the highest volume was in 2019 at 2 518 tonnes.

Annual dynamics of product's imports to Japan in kind, 2018-2021, t

From 2018 to 2021, Australia, Germany, and the Netherlands remained the leading sources for Japan's imports in volume terms, with shares of 52.4%, 20.4%, and 16.1%, respectively. Together, they accounted for 89.0% of total imports.

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

World map of product's imports to Japan in kind, 2018-2021

Imports in value, K $ US

In 2021, Japan's imports of concentrated milk and cream in value terms were recorded at 11 126 thousand US dollars, a 32.6% increase year-over-year. The lowest value was in 2020 at 8 390 thousand US dollars, following the largest decline of 29.0% that year, while the highest value was in 2019 at 11 817 thousand US dollars.

Annual dynamics of product's imports to Japan in value, 2018-2021, K $ US

From 2018 to 2021, Australia, Germany, and the Netherlands were the main markets for Japan's imports in value terms, with shares of 52.9%, 16.7%, and 15.9%, respectively. Together, they accounted for 85.5% of total imports.

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

World map of product's imports to Japan in value, 2018-2021