Milk powder market in Europe

Earlier Report Observations

From 2018 to 2020, the milk powder market volume in Europe declined, primarily due to logistical disruptions caused by the COVID-19 pandemic in 2020, which hampered supply chains and reduced imports. In 2021, the market stabilized at around 1.4 million tons as the economy began to adapt. Then, in 2022, market volume surged to 2.0 million tons, driven by geopolitical shocks such as the war in Ukraine, which led to decreased exports and increased imports despite inflationary pressures.

Throughout the period, consumer preferences shifted toward organic, fortified, and lactose-free milk powder products, fueled by growing health awareness. This spurred the entry of new functional products and investments by major dairy conglomerates like Arla Foods and Nestlé to expand production capacities. Simultaneously, consolidation in the dairy sector reduced the number of farms while increasing their average size, enhancing production efficiency.

European and national regulatory changes, including adjustments to labeling, traceability requirements, and quality standards, were implemented to improve product transparency and safety. These measures, along with government support for dairy farms and price stabilization, helped ensure supply stability. In 2023, following the previous spike, market volume fell to 1.8 million tons, reflecting a normalization after the geopolitically driven surge.

Production milk powder in Europe

In kind, 2017-2020, K t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Europe's milk powder production rebounded after a two-year decline. In 2020, production reached 2 819 K t, marking a 0.7% increase from 2019. Over the 2017-2020 period, production decreased by 8.4%, with a compound annual growth rate of 2.9%. The lowest production level was recorded in 2019 at 2 799 K t, while the largest decline occurred in 2018 with a 5.0% drop.

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

In value, 2017-2020, M $ US

Europe's milk powder production value increased for the second consecutive year. In 2020, output was valued at 10 099 M $ US, reflecting a 4.9% rise compared to 2019. From 2017 to 2020, production value grew by 6.8%, with a compound annual growth rate of 2.2%. The lowest value was recorded in 2018 at 8 243 M $ US, which also saw the largest decline of 12.8%. The most significant increase occurred in 2019 with a 16.8% jump.

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

Exports milk powder from Europe

Exports in kind, K t

Europe exported 1 878 K t of milk powder in 2020, representing a 2.7% increase from 2019. The lowest export volume was recorded in 2019 at 1 828 K t, while the highest was in 2018 at 1 947 K t. The largest decline occurred in 2019 with a 6.1% drop.

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

Between 2017 and 2020, Europe's milk powder exports in kind showed limited concentration. Algeria accounted for 6.4% of exports, China for 6.3%, and Egypt for 2.4%, with these three countries together representing just 15.1% of total export flows.

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

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

Exports in value, M $ US

Europe's milk powder export value increased for the second consecutive year. In 2020, exports amounted to 6 726 M $ US, a 6.9% rise from the previous year. From 2017 to 2020, export value grew by 14.7%, equating to an annualized rate of 4.7%. The lowest value was recorded in 2018 at 5 489 M $ US, which also saw the largest decline of 6.4%. The most significant increase occurred in 2019 with a 14.6% jump.

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

Between 2017 and 2020, Europe's milk powder export value was widely distributed across partner countries. China accounted for 7.9% of exports, Algeria for 6.0%, and Oman for 2.4%, with these three countries together representing only 16.3% of total export flows.

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

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

Imports milk powder to Europe

Imports in kind, K t

Europe's milk powder import volume declined for the second consecutive year. In 2020, imports amounted to 490 K t, indicating a 25.5% decrease from 2019. From 2017 to 2020, import volume fell by 28.6%, equating to an annualized decline of 10.6%. The highest import volume was recorded in 2018 at 796 K t, which also saw the largest increase of 16.0%.

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

Throughout 2017-2020, Uruguay and New Zealand held the top positions in Europe's milk powder import structure in kind, jointly accounting for 1.5% of total import flows.

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

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

Imports in value, M $ US

Europe's milk powder import value increased for the second consecutive year. In 2020, imports were recorded at 2 870 M $ US, up 0.6% from 2019. Over the 2017-2020 period, import value grew by 9.6%, with a compound annual growth rate of 3.1%. The lowest value was recorded in 2018 at 2 471 M $ US, which also saw the largest decline of 5.7%. The most significant increase occurred in 2019 with a 15.5% jump.

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

Between 2017 and 2020, Uruguay accounted for 1.1% of Europe's milk powder import value, New Zealand for 0.9%, and Argentina for 0.5%. These three suppliers led the ranking, with their combined share reaching 2.5% of total import value.

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

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