Milk powder market in Eastern Asia

Earlier Report Observations

Between 2018 and 2021, the milk powder market in Eastern Asia expanded significantly, with volume rising from 943 thousand tons to over 1.5 million tons. This growth was initially driven by the entry of major dairy companies, such as Maeil Dairy, into the adult protein supplement segment, which increased demand for milk powder as a raw material. The COVID-19 pandemic in 2020 further reshaped trade flows, reducing exports and supporting domestic market volume, while a sustained consumer shift toward premium products helped maintain value growth even as birth rates declined.

The market entered a contraction phase from 2022, with volume dropping to 973 thousand tons in 2023. Two key developments contributed to this decline: the approval and rapid launch of liquid milk formula products, which began to substitute traditional powder forms, and ongoing industry consolidation that saw mid- and low-tier brands exit the market. Concurrently, import volumes fell sharply, reflecting both global supply chain adjustments and stronger competition from domestic premium brands.

In 2024, the regulatory landscape evolved with the implementation of new national standards for infant formula, leading to the elimination of hundreds of product recipes and further concentration among leading brands. This move reinforced the market's premiumization trend, where high-end products accounted for nearly three-quarters of sales, and prompted major manufacturers to diversify into nutrition products for all age groups.

Production milk powder in Eastern Asia

In kind, 2017-2020, K t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

In 2020, Eastern Asia produced 204.3 thousand tons of milk powder, representing a 14.9% increase compared to the previous year. Between 2017 and 2020, production grew by 16.1%, which translates to an annualized growth rate of 5.1%. The largest decline occurred in 2019, when production fell by 6.3%.

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

In value, 2017-2020, M $ US

In 2020, the value of milk powder production in Eastern Asia reached 711.1 million US dollars, marking a 16.0% rise from the year before. Over the period from 2017 to 2020, production value increased by 19%, with a compound annual growth rate of 6.0%. The most significant drop was recorded in 2019, when production value decreased by 4.1%.

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

Exports milk powder from Eastern Asia

Exports in kind, K t

Milk powder exports from Eastern Asia declined for the second year in a row. In 2020, the region exported 144 thousand tons, which was 48.4% lower than in 2019. Between 2017 and 2020, exports decreased by 35%, corresponding to an annualized decline of 13.4%. The peak export volume was recorded in 2018 at 301 thousand tons, which also saw the largest increase of 35.8%.

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

From 2017 to 2020, Myanmar was the top destination for Eastern Asia's milk powder exports in volume terms, accounting for 0.6% of total export flows.

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

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

Exports in value, M $ US

Eastern Asia's milk powder exports declined for the second consecutive year. In 2020, export value amounted to 502 million US dollars, reflecting a sharp drop of 47.9% compared to the previous year. Between 2017 and 2020, export value decreased by 33.3%, equating to an annualized decline of 12.6%. The highest value was recorded in 2018 at 1 014 million US dollars, which also experienced the largest increase of 34.8%.

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

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

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

Imports milk powder to Eastern Asia

Imports in kind, K t

After two years of growth, Eastern Asia's milk powder import volume declined. In 2020, imports totaled 1 147 thousand tons, marking an 11.2% decrease from the year before. Between 2017 and 2020, imports increased by 25.1%, corresponding to an annualized growth rate of 7.7%. The peak import volume was recorded in 2019 at 1 292 thousand tons, which also saw the largest increase of 22.6%.

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

From 2017 to 2020, the leading sources for milk powder imports to Eastern Asia in volume terms were New Zealand, which accounted for 66.1% of imports, Australia with 7.9%, and the United States with 3.9%. Together, these three countries made up 77.8% of total import flows.

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

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

Imports in value, M $ US

After a two-year rise, Eastern Asia's milk powder import value declined. In 2020, imports reached 4 338 million US dollars, reflecting a modest decrease of 9.7% compared to the previous year. Between 2017 and 2020, import value increased by 19.9%, equating to an annualized growth rate of 6.2%. The highest value was recorded in 2019 at 4 805 million US dollars, which also experienced the largest increase of 18.1%.

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

From 2017 to 2020, the top sources for milk powder imports to Eastern Asia in value terms were New Zealand, which accounted for 54.1% of imports, the Netherlands with 12.6%, and Australia with 10.0%. Collectively, these three countries represented 76.7% of total import flows.

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

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