Milk powder with fat content of ≤1.5% market in Eastern Europe (including Northern Asia)

Earlier Report Observations

The market for milk powder with a fat content of ≤1.5% in Eastern Europe grew to 407 thousand tons in 2019, supported by stricter labeling requirements that enhanced transparency and rising consumer interest in healthy, low-fat products. However, market volume fell to 370 thousand tons in 2020 as pandemic-related supply chain disruptions and the implementation of mandatory dairy product labeling temporarily hampered trade flows.

The decline continued into 2021, with the market shrinking to 331 thousand tons as adaptation to the new labeling rules continued to constrain imports. In 2022, despite sanctions and shifts in international trade, the domestic market expanded to 365 thousand tons after authorities adjusted minimum export prices, encouraging producers to retain more goods for local consumption. By 2023, the market volume decreased again to 324 thousand tons amid rising milk fat prices, which increased production costs and made exports more attractive, reducing domestic availability.

Regulatory pressure intensified in 2024 with the extension of mandatory labeling to farm enterprises from September, and the Ministry of Agriculture raised minimum export prices. Consumer demand continued to shift toward products with low fat and sugar content, including lactose-free options, sustaining focus on this segment.

Production milk powder with fat content of ≤1.5% in Eastern Europe (including Northern Asia)

In kind, 2017-2020, K t

Top producers of milk powder with fat content of ≤1.5%, 2017-2020

World map of production of milk powder with fat content of ≤1.5%, 2017-2020

In Eastern Europe, including Northern Asia, milk powder production with a fat content of 1.5% or less remained stable in 2020, reaching 486.9 thousand tons. This figure was virtually unchanged from the previous year. Looking back, production hit its lowest point in 2018 at 483.9 thousand tons, followed by a peak in 2019 at 488.2 thousand tons. The most significant decline occurred in 2018, with a drop of 0.7%, while the largest increase was recorded in 2019, rising by 0.9%.

Annual dynamics of production in Eastern Europe (including Northern Asia) in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Milk powder production with a fat content of 1.5% or less in Eastern Europe, including Northern Asia, grew for the second consecutive year. In 2020, the output was valued at 1 216 million US dollars, marking a 4.8% increase compared to 2019. Over the period from 2017 to 2020, production rose by 8.5%, with a compound annual growth rate of 2.8%. The lowest value was recorded in 2018 at 955 million US dollars, which saw the largest decline of 14.8%. In contrast, the most substantial increase occurred in 2019, with a jump of 21.5%.

Annual dynamics of production in Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

Exports milk powder with fat content of ≤1.5% from Eastern Europe (including Northern Asia)

Exports in kind, K t

Exports of milk powder with a fat content of 1.5% or less from Eastern Europe, including Northern Asia, declined for the second year in a row. In 2020, the region exported 264.6 thousand tons, down by 0.6% from the previous year. From 2017 to 2020, exports overall increased by 10%, with a compound annual growth rate of 3.2%. The highest export volume was recorded in 2018 at 283.1 thousand tons, which also saw the largest increase of 17.7%. The most significant drop occurred in 2019, with a decrease of 5.9%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020, K t

Between 2017 and 2020, milk powder with a fat content of 1.5% or less from Eastern Europe, including Northern Asia, was exported to a diverse range of markets. Even the top destinations—Algeria, Kazakhstan, and China—collectively accounted for only 28.3% of total exports in volume terms.

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

World map of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020

Exports in value, M $ US

Cross-border shipments of milk powder with a fat content of 1.5% or less from Eastern Europe, including Northern Asia, increased for the third consecutive year. In 2020, exports were valued at 660.9 million US dollars, rising by 4.4% year-over-year. From 2017 to 2020, exports grew by 19.5%, equating to an annualized rate of 6.1%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

From 2017 to 2020, milk powder with a fat content of 1.5% or less from Eastern Europe, including Northern Asia, was traded with numerous countries. The largest destinations—Algeria, Kazakhstan, and China—together represented just 27.7% of total exports in value terms.

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

World map of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020

Imports milk powder with fat content of ≤1.5% to Eastern Europe (including Northern Asia)

Imports in kind, K t

In 2020, imports of milk powder with a fat content of 1.5% or less into Eastern Europe, including Northern Asia, totaled 147.1 thousand tons. This represented a sharp decrease of 20.3% compared to 2019. Between 2017 and 2020, imports fell by 20.6%, with an annualized decline of 7.4%. The largest increase was recorded in 2019, rising by 21.2%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020, K t

From 2017 to 2020, the supplier base for milk powder with a fat content of 1.5% or less to Eastern Europe, including Northern Asia, was broad. Germany, Lithuania, and the Netherlands contributed 15.5%, 4.3%, and 3.4% of imports in volume, respectively, but together they accounted for only 23.2% of total imports. Many other countries held smaller but notable shares.

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

World map of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020

Imports in value, M $ US

In 2020, imports of milk powder with a fat content of 1.5% or less into Eastern Europe, including Northern Asia, amounted to 383.0 million US dollars, marking a significant fall of 13.7% compared to 2019. Between 2017 and 2020, imports decreased by 12.4%, with an annualized rate of decline of 4.3%. The lowest value was recorded in 2018 at 319.8 million US dollars, which saw the largest drop of 26.9%. In contrast, the highest value occurred in 2019 at 443.7 million US dollars, with the most substantial increase of 38.7%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

Between 2017 and 2020, milk powder with a fat content of 1.5% or less was imported into Eastern Europe, including Northern Asia, from a wide array of markets. Germany, Lithuania, and the Netherlands accounted for 15.8%, 3.8%, and 3.5% of imports in value, respectively, but together they made up only 23.1% of total imports. The remaining 76.9% came from numerous smaller destinations.

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

World map of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020