Milk and cream market in Italy

Earlier Report Observations

The Italian milk and cream market expanded significantly from 4 247 thousand tons in 2018 to 5 849 thousand tons in 2019. This growth coincided with the enforcement of mandatory origin labeling for raw materials, introduced by the Ministerial Decree of December 9, 2016, which required clear indication of the milk's origin on packaging. The labeling rule likely boosted consumer confidence in domestic products, supporting both local production and imports.

Market volume then contracted to 3 093 thousand tons by 2021. During this period, the European Union's Regulation (EU) 2018/775 on primary ingredient origin labeling took effect in April 2020, replacing the national decree. Simultaneously, the national origin labeling obligation was set to expire at the end of 2021, creating regulatory uncertainty that may have dampened production and import activities.

Recovery began in 2022, with volume reaching 4 089 thousand tons in 2024. The market in 2022 was affected by the Russia-Ukraine war, which increased raw material and energy costs across the dairy supply chain, leading to a sharp rise in market value despite modest volume growth. The subsequent years saw continued gradual expansion in both volume and value.

Production milk and cream in Italy

In value, 2017-2020, M $ US

In 2020, Italy's milk and cream production was valued at 2,494 million US dollars, marking a significant 16.1% decline compared to the previous year. Over the period from 2017 to 2020, production decreased by 17.6%, with a compound annual growth rate of 6.2%. The largest increase occurred in 2019, at 5.8%.

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

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

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

In 2020, Italy produced 3,207 thousand tonnes of milk and cream, representing a substantial 24.2% drop from 2019. From 2017 to 2020, overall production increased by 4.9%, with a compound annual growth rate of 1.6%. The lowest production level was recorded in 2018 at 2,751 thousand tonnes, while the peak was in 2019 at 4,229 thousand tonnes. The largest increase occurred in 2019, with a 53.7% rise.

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

Exports milk and cream from Italy

Exports in kind, K t

After two consecutive years of decline, Italy's milk and cream export volume saw an uptick. In 2020, exports reached 69 thousand tonnes, a 6.0% increase compared to the previous year. Between 2017 and 2020, exports decreased by 32%, equating to an annualized rate of 12.1%. The lowest export volume was recorded in 2019 at 65 thousand tonnes, while the largest decline occurred in 2018, with a 27.4% drop.

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

From 2017 to 2020, Libya, South Korea, and Greece were the top contributors to Italy's milk and cream exports in volume terms. Libya accounted for 39.4% of exports, South Korea for 11.3%, and Greece for 6.8%, collectively representing 57.5% of total export flows.

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

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

Exports in value, M $ US

Following a two-year reduction, Italy's milk and cream export value increased. In 2020, exports amounted to 87.4 million US dollars, a moderate 7.2% year-on-year rise. Over the period from 2017 to 2020, exports decreased by 14.4%, with a compound annual growth rate of 5.0%. The lowest value was recorded in 2019 at 81.5 million US dollars, and the largest decline occurred in 2019, with a 14.6% drop.

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

Throughout 2017 to 2020, South Korea, Libya, and Belgium formed the key group of partners for Italy's milk and cream exports in value terms. South Korea accounted for 24.2% of exports, Libya for 23.6%, and Belgium for 7.8%, together representing 55.5% of total export flows.

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

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

Imports milk and cream to Italy

Imports in kind, K t

In 2020, Italy's milk and cream imports were recorded at 1,387 thousand tonnes, showing a robust 17.7% contraction compared to the previous year. From 2017 to 2020, imports decreased by 13.5%, with a compound annual growth rate of 4.7%. The highest import volume was in 2019 at 1,685 thousand tonnes, and the largest increase occurred in 2019, with a 7.3% rise.

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

From 2017 to 2020, Germany, France, and Austria were the core markets for Italy's milk and cream imports in volume terms. Germany accounted for 33.3% of imports, France for 22.6%, and Austria for 18.5%, collectively making up 74.4% of total import flows.

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

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

Imports in value, M $ US

In 2020, Italy imported milk and cream valued at 826.8 million US dollars, down by 17.1% compared to the previous year. Between 2017 and 2020, imports decreased by 15.9%, equating to an annualized rate of 5.6%. The highest import value was recorded in 2019 at 826.8 million US dollars, and the largest increase occurred in 2019, with a 3.0% rise.

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

Over the period from 2017 to 2020, Germany, France, and Austria led as the top suppliers of milk and cream to Italy in value terms. Germany accounted for 29.8% of imports, France for 23.1%, and Austria for 16.4%, with their combined share reaching 69.3% of total imports.

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

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