Milk market in South-eastern Asia

Earlier Report Observations

From 2018 to 2020, the milk market volume in South-eastern Asia increased from 6 964 thousand tonnes to 7 404 thousand tonnes. This growth was driven by ongoing urbanization and rising disposable incomes, which boosted demand for milk as a health-conscious choice. Even in 2020, despite supply chain disruptions from the COVID-19 pandemic, consumer interest in healthy and sustainable dairy products supported continued consumption growth.

In 2021, the market contracted to 7 257 thousand tonnes. This decline coincided with the implementation of stricter labeling and traceability regulations in several Southeast Asian countries, as well as changes in market access policies for imported products that constrained supply. Additionally, the entry of new players into the plant-based milk alternative market created further competition. However, by 2022, market volume recovered to 7 429 thousand tonnes, fueled by investments in production technology efficiency and the rising popularity of specialized segments like A2 milk and functional dairy products.

By 2023, market growth stabilized at 7 414 thousand tonnes. Increased competition from new producers and the launch of large-scale production facilities, coupled with inflationary pressure on input costs, balanced supply and demand. Consumer preferences continued shifting toward organic, low-lactose, and fortified options, shaping the market structure without significantly expanding total volume.

Production milk in South-eastern Asia

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Milk production in South-eastern Asia has grown for the second year in a row. In 2020, the region produced 6 194 K t of milk, marking a 2.3% increase from the previous year. The lowest production level was recorded in 2018 at 5 903 K t, which represented a 6.6% decline. Production then rebounded in 2019 with a 2.5% increase.

Annual dynamics of production in South-eastern Asia in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of decline, milk production in South-eastern Asia saw an upturn. In 2020, the output was valued at 22 276 M $ US, rising by 13.8% compared to the prior year. The lowest value occurred in 2019 at 19 575 M $ US, after a 9.6% drop in 2018.

Annual dynamics of production in South-eastern Asia in value, 2017-2020, M $ US

Exports milk from South-eastern Asia

Exports in kind, K t

Milk exports from South-eastern Asia have increased for the second consecutive year. In 2020, exports reached 383 K t, surging by 47.2% year-over-year. Over the 2017-2020 period, exports grew by 16%, with a compound annual growth rate of 5.1%. The lowest export volume was in 2018 at 230 K t, which reflected a 30.5% decline.

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

From 2017 to 2020, milk exports from South-eastern Asia were not highly concentrated. Japan accounted for 11.9% of exports in kind, Iraq for 4.0%, and Mexico for 3.7%, with these three countries together making up only 19.6% of total flows.

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

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

Exports in value, M $ US

In 2020, the value of milk exports from South-eastern Asia amounted to 672 M $ US, showing a 19.8% rise compared to 2019. Over the 2017-2020 period, exports increased by 13%, with a compound annual growth rate of 4.1%. The lowest value was recorded in 2019 at 561 M $ US, which saw a 7.1% decline.

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

Data from 2017 to 2020 indicate that milk exports in value terms from South-eastern Asia were not focused on just a few key destinations. Japan represented 14.9% of exports in value terms, Iraq 7.0%, and Sudan 3.7%, with these three countries jointly accounting for only 25.7% of total flows.

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

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

Imports milk to South-eastern Asia

Imports in kind, K t

Milk imports into South-eastern Asia have risen for the third year in a row. In 2020, import volume stood at 1 593 K t, up by 14.7% from 2019. Over the 2017-2020 period, imports increased by 27%, with a compound annual growth rate of 8.3%.

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

Between 2017 and 2020, New Zealand, the United States, and Australia were the main sources for milk imports into South-eastern Asia. New Zealand accounted for 30.0% of imports in kind, the United States for 16.6%, and Australia for 14.0%, together representing 60.6% of total imports.

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

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

Imports in value, M $ US

Milk imports into South-eastern Asia have grown for the third consecutive year. In 2020, imports were recorded at 3 443 M $ US, indicating a 14.4% increase relative to the prior year. Between 2017 and 2020, imports rose by 23.7%, equating to an annualized rate of 7.3%.

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

Throughout 2017 to 2020, New Zealand, the United States, and Australia remained the primary markets for milk imports in value terms into South-eastern Asia. New Zealand accounted for 38.7% of imports in value terms, the United States for 17.8%, and Australia for 10.0%, jointly taking 66.5% of total flows.

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

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