Milk powder market in Russia

Earlier Report Observations

The production of milk powder in Russia increased from 133.3 thousand tons in 2018 to 160 thousand tons in 2021. This growth was initially driven by the expansion of processing capacities and rising demand for longer-lasting dairy products in 2019. However, in 2020, production dipped slightly due to increased production costs for feed, electricity, and wages, which rose by approximately 30% compared to the previous year. The market recovered in 2021 with the pilot introduction of mandatory labeling for dairy products and a continued push for import substitution, which reduced reliance on imported dry milk and stimulated domestic output.

From 2022 onward, production saw significant gains, reaching 214.7 thousand tons in 2023, before a modest correction in 2024. The imposition of sanctions and the state 'Made in Russia' program encouraged domestic manufacturing and opened new export avenues. Mandatory digital labeling via the 'Chestny ZNAK' system was fully implemented in September 2022, enhancing market transparency. Export volumes surged sixfold in 2023, supported by government incentives and accumulated stocks, although profitability was affected by volatility in raw milk costs. In 2024, inflationary pressure led to higher prices for milk powder, contributing to a production decrease despite the opening of a new plant in Saratov. By 2025, demand remained robust, with production rising again, aided by new labeling requirements for organic products.

Production milk powder in Russia

In kind, 2018-2021, K t

From 2018 to 2021, Russia maintained the 18th position globally in milk powder production volume.

Top producers of milk powder, 2018-2021

World map of production of milk powder, 2018-2021

In 2021, Russia produced 160.0 thousand tons of milk powder, marking a modest 6.5% increase compared to 2020. Over the period from 2018 to 2021, production grew by 20.1%, which translates to an annualized rate of 6.3%. The largest increase occurred in 2019, at 15.8%, while the largest decline was recorded in 2020, at 2.6%.

Annual dynamics of production in Russia in kind, 2018-2021, K t

Exports milk powder from Russia

Exports in kind, K t

Milk powder exports from Russia have risen for the third consecutive year. In 2021, exports reached 2.9 thousand tons, showing a slight gain of 2.6% compared to 2020. From 2018 to 2021, exports surged by 91%, with a compound annual growth rate of 24.1%.

Annual dynamics of product's exports from Russia in kind, 2018-2021, K t

Between 2018 and 2021, Kazakhstan, Belarus, and Armenia were the top buyers of Russian milk powder, accounting for 61.1%, 11.6%, and 8.2% of exports in kind, respectively. Together, they represented 80.9% of total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Russia in kind, 2018-2021

Exports in value, M $ US

Milk powder exports from Russia have increased for the third year in a row. In 2021, exports totaled 8.2 million US dollars, reflecting a strong 16.1% rise from 2020. From 2018 to 2021, exports grew by 166.3%, with a compound annual growth rate of 38.6%.

Annual dynamics of product's exports from Russia in value, 2018-2021, M $ US

From 2018 to 2021, Kazakhstan, Belarus, and Armenia were the leading destinations for Russian milk powder exports in value terms, with shares of 58.9%, 12.9%, and 8.8%, respectively. Combined, they made up 80.6% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Russia in value, 2018-2021

Imports milk powder to Russia

Imports in kind, K t

Imported milk powder volumes in Russia have declined for the second consecutive year. In 2021, imports amounted to 86.7 thousand tons, corresponding to a modest 5.0% decrease compared to 2020. Between 2018 and 2021, imports fell by 25.9%, equating to an annualized rate of 9.5%. The highest import volume was recorded in 2019 at 135.4 thousand tons, which saw the largest increase of 15.8%. The largest decline occurred in 2020, at 32.6%.

Annual dynamics of product's imports to Russia in kind, 2018-2021, K t

From 2018 to 2021, Belarus remained the primary source for milk powder imports in kind, holding a 79.6% share of total flows, while the remaining volume was distributed among various other countries.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Russia in kind, 2018-2021

Imports in value, M $ US

In 2021, Russia's milk powder imports totaled 260.6 million US dollars, up by 6.8% compared to 2020. Between 2018 and 2021, imports increased by 5.1%, with an annualized rate of 1.7%. The lowest value was recorded in 2020 at 244.0 million US dollars, which saw the largest decline of 31.0%. The highest value occurred in 2019 at 353.8 million US dollars, marking the largest increase of 42.7%.

Annual dynamics of product's imports to Russia in value, 2018-2021, M $ US

From 2018 to 2021, Belarus was the key supplier of milk powder to Russia, accounting for 77.6% of total imports in value terms, with the rest coming from a diverse range of other countries.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Russia in value, 2018-2021