Milk and cream market in Japan

Earlier Report Observations

From 2018 to 2021, the market volume for milk and cream in Japan grew steadily from 8 697 thousand tons to 9 326 thousand tons. This expansion was primarily driven by a shift in consumer preferences toward healthier options, which increased demand for unstandardized milk. Concurrently, government subsidies for raw milk used in cream production helped stabilize supply. The introduction of lactose-free functional milk fortified with collagen and probiotics in 2020, particularly targeting elderly consumers, broadened the customer base and stimulated additional consumption.

Market volume continued to rise in 2022, reaching 9 391 thousand tons, supported by the spread of single-serve packaging catering to urban households and sustained interest in clean-label products. However, the market value began to decline due to rising raw material costs, partly influenced by U.S. tariff measures. In 2023, physical volume fell to 8 891 thousand tons while value stabilized at 17 029 million US dollars, as tariff impacts on import costs led producers to adjust sourcing strategies and focus on diversifying into functional dairy products and the growing dairy blends segment.

Production milk and cream in Japan

In kind, 2018-2021, K t

From 2018 to 2021, Japan held the 21st position globally in milk and cream production.

Top producers of milk and cream, 2018-2021

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

Japan's milk and cream production volume grew for the third consecutive year. In 2021, the country produced 9 333 K t of milk and cream, marking a 2.2% increase year-over-year. Between 2018 and 2021, production rose by 7.3%, which translates to an annualized growth rate of 2.4%.

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

In value, 2018-2021, M $ US

Japan's milk and cream production value also increased for the third year in a row. In 2021, the output was valued at 20 258 M $ US, reflecting a 1.1% improvement compared to the previous year. From 2018 to 2021, production value grew by 10.6%, equivalent to an annualized rate of 3.4%.

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

Exports milk and cream from Japan

Exports in kind, t

After two years of growth, Japan's milk and cream export volume declined in 2021. The country exported 7 966 t, down by 1.4% year-over-year. Over the 2018-2021 period, exports increased by 55.2%, with a compound annual growth rate (CAGR) of 15.8%. The peak volume was recorded in 2020 at 8 081 t, which also saw the largest increase of 30.5%.

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

From 2018 to 2021, Hong Kong was the primary market for Japan's milk and cream exports in volume terms, accounting for 74.1% of the total. Other destinations made up the remaining share.

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

Following a two-year rise, Japan's milk and cream export value decreased in 2021. Exports totaled 17 290 K $ US, a 2.4% drop from the previous year. Between 2018 and 2021, export value grew by 60.1%, with a CAGR of 17.0%. The highest value was in 2020 at 17 716 K $ US, which also experienced the largest increase of 32.2%.

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

Throughout 2018-2021, Hong Kong dominated Japan's milk and cream exports in value terms, holding a 71.7% share of total flows. Other markets accounted for the remainder.

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

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

Imports milk and cream to Japan

Imports in kind, t

In 2021, Japan's milk and cream imports reached 156 t, up by 51.4% compared to the previous year. From 2018 to 2021, imports increased by 20.6%, equating to an annualized rate of 6.5%. The lowest volume was in 2020 at 103 t, which also saw the largest decline of 21.4%.

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

Between 2018 and 2021, three key markets—Germany, Brazil, and the United Kingdom—collectively accounted for 88.6% of Japan's total milk and cream imports in volume terms.

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

Japan's milk and cream import value grew for the third consecutive year. In 2021, imports amounted to 804 K $ US, a sharp increase of 84.5% compared to 2020. Over the 2018-2021 period, import value surged by 145.9%, with a CAGR of 35.0%.

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

From 2018 to 2021, the United Kingdom (46.5% of import value), Germany (17.5%), and the United States (12.4%) were the main sources for Japan's milk and cream imports in value terms, together representing 76.4% of total flows.

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

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