Milk powder market in Germany

Earlier Report Observations

From 2018 to 2020, the German milk powder market volume grew from 126 thousand tonnes to 210 thousand tonnes, peaking in 2020. A sharp contraction followed in 2021, bringing the market down to 134 thousand tonnes, before it recovered to 180 thousand tonnes in 2022 and 205 thousand tonnes in 2023.

The market's rise to 205 thousand tonnes in 2023 occurred alongside a slight dip in domestic production to 459 thousand tonnes, while imports increased to 117 thousand tonnes and exports fell to 371 thousand tonnes. This dynamic was influenced by a 1.7% decline in the EU-27 dairy cow herd that year, which tightened raw milk supply. Concurrently, the expansion of lactose-free milk powder portfolios, such as Arla Foods' range, stimulated demand for specialized products.

In 2024, new regulations took effect, including an extended deposit scheme for dairy products in single-use plastic bottles from January 1 and a revised milk product law, altering packaging and distribution requirements. Additionally, an outbreak of Bluetongue disease reduced milk deliveries in Germany, while major manufacturers like Danone and Nestlé launched new fortified and hybrid milk powder products, reflecting growing consumer interest in functional and plant-based alternatives.

Production milk powder in Germany

In kind, 2017-2020, K t

From 2017 to 2020, Germany ranked as the world's fourth-largest producer of milk powder.

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Germany's milk powder production grew for the second year in a row. In 2020, the country produced 527 K t of milk powder, marking a modest increase of 4.9% compared to the previous year. Over the 2017-2020 period, production overall decreased by 6.7%, with an average annual decline of 2.3%. The lowest production volume was in 2018 at 499 K t, which also saw the largest drop of 11.7%.

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

Exports milk powder from Germany

Exports in kind, K t

Germany's milk powder exports declined for the second consecutive year. In 2020, exports totaled 429.1 K t, down 8.7% from the previous year. Over the 2017-2020 period, exports fell by 8.2%, with an average annual decrease of 2.8%. The highest export volume was in 2018 at 473.7 K t, which also experienced the largest increase of 1.3%.

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

From 2017 to 2020, Germany's milk powder export destinations were quite diverse. The Netherlands accounted for 22.2% of exports, Italy for 9.1%, and Poland for 6.7%, together making up only 37.9% of total export flows.

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

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

Exports in value, M $ US

Germany's milk powder exports in value terms increased for the second year in a row. In 2020, export value reached 1 203 M $ US, up 7.6% from the previous year. Over the 2017-2020 period, exports grew by 5.8%, with an average annual increase of 1.9%. The lowest value was in 2018 at 997 M $ US, which saw the largest decline of 12.4%, while 2019 recorded the largest increase of 12.2%.

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

From 2017 to 2020, Germany's milk powder export value was highly diversified geographically. The Netherlands contributed 19.8% of export value, Italy 9.7%, and Poland 6.5%, together accounting for just 36.0% of total flows. The remaining 64.0% was spread across numerous smaller partner countries.

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

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

Imports milk powder to Germany

Imports in kind, K t

Germany's milk powder imports increased for the second consecutive year. In 2020, imports amounted to 111.9 K t, rising 5.8% compared to the prior year. Over the 2017-2020 period, imports grew by 9.2%, with an average annual increase of 3.0%. The lowest import volume was in 2018 at 100.6 K t, which also saw the largest decline of 1.8%.

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

From 2017 to 2020, the Netherlands was the top supplier of milk powder to Germany, accounting for 35.6% of imports, followed by France at 14.3% and Ireland at 9.4%. Together, these three countries made up 59.3% of total import volume.

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

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

Imports in value, M $ US

Germany's milk powder imports in value terms increased for the second year in a row. In 2020, import value reached 300 M $ US, up 17.9% year-over-year. Over the 2017-2020 period, imports grew by 23.3%, with an average annual increase of 7.2%. The lowest value was in 2018 at 221 M $ US, which also experienced the largest decline of 9.1%.

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

From 2017 to 2020, the Netherlands led Germany's milk powder imports in value terms with a 33.4% share, followed by France at 15.4% and Poland at 9.5%. These three markets together accounted for 58.3% of total import flows.

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

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