Milk and cream market in Southern Asia

Earlier Report Observations

Production and market size for milk and cream in Southern Asia expanded steadily from 273.8 million tonnes in 2018 to 346.6 million tonnes in 2023. The period from 2021 onward saw specific drivers emerge, beginning with a post-pandemic surge in demand as hotels and restaurants reopened, coupled with increased protein intake following COVID-19 infections. This recovery phase was supported by ongoing infrastructure investments by dairy cooperatives in milk testing and chilling facilities, which helped maintain quality and supply.

Growth continued through 2022 and 2023, though the pace was moderated by lumpy skin disease in cattle and rising cattle feed costs. During these years, the market structure evolved significantly with the entry of new players focusing on value-added segments like Greek yogurt, lactose-free dairy, and flavoured milk with natural ingredients. This shift was fueled by changing consumer preferences towards healthier and more specialized products, which encouraged multinational and Indian corporate giants to increase investments beyond raw milk.

Regulatory measures, such as keeping fresh milk under a zero GST rate to ensure affordability, and defined standards for cream fat content and labeling, provided a stable framework. Meanwhile, established cooperatives like Amul and Mother Dairy implemented multiple price increases to reflect higher input costs, yet demand remained robust due to urbanization and dietary shifts. The overall expansion was thus driven by a combination of post-pandemic recovery, product innovation from new entrants, and sustained consumer demand for diverse dairy offerings.

Production milk and cream in Southern Asia

In kind, 2017-2020, M t

Top producers of milk and cream, 2017-2020

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

Southern Asia's milk and cream production has grown for the third year in a row. In 2020, the region produced 303.9 million tonnes, marking a 5.7% increase from the previous year. Looking at the period from 2017 to 2020, production rose by 16.8%, which translates to an average annual growth rate of 5.3%.

Annual dynamics of production in Southern Asia in kind, 2017-2020, M t

Exports milk and cream from Southern Asia

Exports in kind, K t

In 2020, Southern Asia exported 129.0 thousand tonnes of milk and cream, a slight decrease of 0.7% compared to 2019. Over the 2017-2020 period, exports fell by 2.9%, with a compound annual growth rate of -1.0%. The lowest export volume was recorded in 2018 at 120.4 thousand tonnes. That year also saw the largest decline of 9.3%, while the biggest increase occurred in 2019 with a 7.8% rise.

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

From 2017 to 2020, Iraq, Russia, and the United Arab Emirates consistently led the country structure of milk and cream exports from Southern Asia. Iraq accounted for 44.8% of exports in kind, Russia for 4.7%, and the UAE for 2.6%. Together, these three countries represented 52.1% of total export flows.

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

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

Exports in value, M $ US

Milk and cream exports from Southern Asia have declined for the third consecutive year. In 2020, the region exported 118.4 million US dollars' worth of these products, a significant drop of 26.0% from 2019. Between 2017 and 2020, exports decreased by 45%, equating to an average annual decline of 18.1%.

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

Over the 2017-2020 period, Iraq, Russia, and Qatar were the main buyers of milk and cream from Southern Asia in value terms. Iraq accounted for 48.5% of exports, Russia for 7.1%, and Qatar for 1.4%. Combined, these three countries made up 56.9% of total export value.

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

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

Imports milk and cream to Southern Asia

Imports in kind, K t

The market displayed notable volatility during the observed period. Imports reached their lowest point in 2018 at 9.1 thousand tonnes and peaked in 2020 at 41.7 thousand tonnes, representing a 4.6-fold difference between these years. In 2020, imports surged by 308.9% compared to the previous year. The largest decline was recorded in 2018, with a drop of 27.4%.

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

From 2017 to 2020, the United Arab Emirates, Germany, and Australia were the top suppliers of milk and cream to Southern Asia in terms of volume. The UAE and Germany each accounted for 2.6% of imports in kind, while Australia contributed 2.1%. However, their combined share was only 7.2% of total imports, indicating a highly diversified supplier base.

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

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

Imports in value, M $ US

Market behavior was characterized by volatility during these years. Imports hit a low of 11.9 million US dollars in 2018 and soared to 54.1 million US dollars in 2020, showing a 4.6-fold increase between these points. In 2020, import value jumped by 294.4% compared to 2019. The largest decline occurred in 2018, with a 12.8% decrease.

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

Throughout 2017-2020, imports of milk and cream to Southern Asia in value terms were not heavily concentrated. The United Arab Emirates accounted for 5.7% of imports, Germany for 4.0%, and New Zealand for 3.4%. Together, these three countries represented just 13.2% of total import flows, reflecting a broad and varied market structure.

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

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