Dairy spreads market in Hungary

Earlier Report Observations

The dairy spreads market in Hungary saw a sustained contraction in volume from 5 162 т in 2018 to 3 172 т in 2023. This decline was initially driven by a drought in the EU in 2018 which tightened raw milk supply and raised costs, compounded by increased exports to China in 2019 due to the indirect effects of African swine fever on Asian demand for European dairy. The COVID-19 pandemic in 2020 further pressured consumption, though the dairy sector's flexible response mitigated a steeper drop.

Rising global dairy product prices in 2021, particularly for butter, milk powder, and cheese, led to higher domestic costs and import values, which supported market value growth to 13.9 million USD even as physical volume fell by 10%. This trend continued with a weakening forint in 2023, making imports more expensive and contributing to higher consumer prices for cheeses, yogurts, and butter, while overall volume demand continued to shrink. Concurrently, strong growth in consumer health awareness accelerated demand for reduced-sugar, lactose-free, and vegan dairy segments, reshaping the product mix away from traditional spreads.

A modest recovery in market volume to 3 256 т occurred in 2024, alongside a slight decrease in market value to 13.3 million USD. This stabilization in production volume was supported by high milk yields, even as raw milk procurement volumes shrank due to a smaller domestic market and reduced raw milk exports.

Production dairy spreads in Hungary

In value, 2018-2021, K $ US

Hungary's dairy spreads production increased in 2021 after two years of decline. The output was valued at 15 155 K $ US, marking a slight increase of 1.3% compared to 2020. Over the period from 2018 to 2021, production decreased by 13.2%, with a compound annual growth rate of 4.6%. The lowest value was recorded in 2020 at 14 965 K $ US, while the largest decline occurred in 2019, with a drop of 7.6%.

Annual dynamics of production in Hungary in value, 2018-2021, K $ US

In kind, 2018-2021, t

Hungary's dairy spreads production declined for the third consecutive year. In 2021, the country produced 4 280 t of dairy spreads, representing a modest drop of 5.2% compared to the previous year. Between 2018 and 2021, production decreased by 20.6%, equating to an annualized rate of 7.4%.

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

Exports dairy spreads from Hungary

Exports in kind, t

Hungary's dairy spreads export volume declined for the second consecutive year. In 2021, the country exported 546.8 t of dairy spreads, marking a moderate decrease of 4.4% compared to 2020. The maximum value was recorded in 2019 at 626.7 t, with the largest decline occurring in 2020 at 8.7% and the largest increase in 2019 at 16.2%.

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

From 2018 to 2021, Serbia, Romania, and Bosnia and Herzegovina were the top buyers of dairy spreads from Hungary. Serbia accounted for 41.4% of exports in kind, Romania for 36.6%, and Bosnia and Herzegovina for 19.5%. Together, these three countries represented 97.5% of total exports in kind.

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

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

Exports in value, K $ US

In 2021, dairy spreads deliveries from Hungary amounted to 2 237 K $ US, which is 1.4% above the 2020 level. Over the period from 2018 to 2021, exports increased by 13.5%, with a compound annual growth rate of 4.3%. The maximum value was recorded in 2019 at 2 394 K $ US, with the largest decline in 2020 at 7.9% and the largest increase in 2019 at 21.4%.

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

From 2018 to 2021, Serbia, Romania, and Bosnia and Herzegovina were the principal destinations for Hungary's dairy spreads exports in value terms. Serbia accounted for 40.4% of exports, Romania for 39.0%, and Bosnia and Herzegovina for 17.7%. Collectively, these three countries made up 97.1% of total export flows.

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

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

Imports dairy spreads to Hungary

Imports in kind, t

Hungary's dairy spreads import volume increased for the third consecutive year. In 2021, imports totalled 460.3 t, constituting a strong gain of 19.6% compared to 2020. Between 2018 and 2021, imports increased by 49.3%, equating to an annualized rate of 14.3%.

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

From 2018 to 2021, Slovakia played a leading role in imports in kind of dairy spreads to Hungary, with a share of 71.3% of total flows. The remainder was distributed across other trading partners.

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

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

Imports in value, K $ US

Hungary's dairy spreads import volume increased for the second consecutive year. In 2021, imports reached 1 010 K $ US, equivalent to a gain of 20.9% over the past year. Between 2018 and 2021, imports increased by 60.2%, equating to an annualized rate of 17.0%. The minimum value was recorded in 2019 at 628 K $ US, with the largest decline in 2019 at 0.4% and the largest increase in 2020 at 33.1%.

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

From 2018 to 2021, Slovakia, Poland, and France were the main suppliers of dairy spreads to Hungary in value terms. Slovakia accounted for 39.1% of imports, Poland for 16.2%, and France for 15.6%. Together, these three countries comprised 70.9% of total imports in value terms.

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

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