Milk powder market in Western Europe

Earlier Report Observations

The milk powder market in Western Europe saw its value increase from $2.8 billion in 2018 to $5.2 billion in 2022, before declining to $4.2 billion in 2023. The initial growth was fueled by rising consumer demand for specialized products like organic and fortified milk powders, coupled with investments by major manufacturers to expand production capacity and achieve economies of scale.

The sharp market value surge in 2022 to $5.2 billion was primarily driven by high inflation, rising energy and milk prices, and geopolitical tensions that disrupted global supply chains, pushing overall costs higher. This price increase outweighed a noted dip in demand for organic milk powder due to consumer budget constraints.

In 2023, the market value corrected to $4.2 billion. Consumer preferences continued to shift towards clean-label and functional milk powder variants, supporting underlying demand, but the overall market valuation decreased from the previous year's peak.

Production milk powder in Western Europe

In kind, 2017-2020, K t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Western Europe's milk powder production has increased for the second consecutive year. In 2020, the region produced 1 475 K t of milk powder, representing a moderate 3.8% rise compared to 2019. Looking at the period from 2017 to 2020, overall production decreased by 4.5%, with a compound annual growth rate (CAGR) of 1.5%. The lowest production level was recorded in 2018 at 1 404 K t, which also saw the largest decline of 9.1% during this timeframe.

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

In value, 2017-2020, M $ US

Following a two-year decline, milk powder production in Western Europe has rebounded. In 2020, the output was valued at 5 315 M $ US, marking a substantial 34.9% increase over the previous year. Over the 2017-2020 period, production grew by 15.9%, with a CAGR of 5.0%. The lowest value was recorded in 2019 at 3 939 M $ US, while the largest decline occurred in 2018 with a 9.5% drop.

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

Exports milk powder from Western Europe

Exports in kind, K t

In 2020, Western Europe's milk powder exports totaled 1 119 K t, showing a significant 15.2% decrease compared to 2019. Over the 2017-2020 period, exports declined by 9%, with a CAGR of 3.1%. The lowest export volume was recorded in 2018 at 1 115 K t, while the peak occurred in 2019 with 1 319 K t, which also saw the largest increase of 18.2%.

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

From 2017 to 2020, milk powder exports from Western Europe were distributed across numerous markets. The top three destinations—Algeria (6.8% of exports in kind), Italy (6.5%), and China (5.0%)—collectively accounted for only 18.3% of total export flows.

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

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

Exports in value, M $ US

Western Europe's milk powder exports in value terms have increased for the second consecutive year. In 2020, exports reached 4 033 M $ US, indicating a 10.2% rise compared to the previous year. Between 2017 and 2020, exports grew by 10.4%, equating to an annualized rate of 3.4%. The lowest value was recorded in 2018 at 3 296 M $ US, which also experienced the largest decline of 9.7%. The largest increase occurred in 2019 with an 11.0% growth.

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

During 2017-2020, the partner landscape for milk powder exports in value terms was diverse. The top three markets—Algeria (6.3% of exports in value terms), China (6.2%), and Italy (6.2%)—together formed only 18.8% of total flows, while the remaining 81.2% was distributed among many other countries.

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

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

Imports milk powder to Western Europe

Imports in kind, K t

Milk powder imports into Western Europe have declined for the second consecutive year. In 2020, the region imported 1 363 K t of milk powder, representing a 2.7% decrease compared to the previous year. Over the 2017-2020 period, imports increased by 6.9%, with a CAGR of 2.3%. The highest import volume was recorded in 2018 at 376 K t, which also saw the largest increase of 17.7%. The largest decline occurred in 2019 with a 6.6% drop.

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

From 2017 to 2020, the partner structure for milk powder imports in kind was balanced rather than concentrated. The top three sources—Ireland (10.9% of imports in kind), the United Kingdom (7.2%), and Poland (4.4%)—jointly represented 22.5% of total import flows, with many other countries accounting for the remaining 77.5%.

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

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

Imports in value, M $ US

Milk powder imports into Western Europe in value terms have increased for the third consecutive year. In 2020, imports were recorded at 1 363 M $ US, constituting a gradual 6.3% increase year-over-year. Between 2017 and 2020, imports grew by 20.8%, equating to an annualized rate of 6.5%.

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

During 2017-2020, milk powder was supplied to Western Europe from many different markets. Even the largest sources—Ireland, the United Kingdom, and Poland—together represented only 23.0% of total imports in value terms.

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

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