Milk powder with fat content of ≤1.5% market in Japan

Earlier Report Observations

The Japanese market for milk powder with fat content ≤1.5% expanded from 150.0 thousand tons in 2018 to a peak of 154.7 thousand tons in 2020. This initial growth period was catalyzed by a 2018 regulatory amendment from the Ministry of Health, Labour and Welfare, which standardized liquid infant milk as a food product. This change formally enabled its sale and distribution, encouraging market entry and new product development in the low-fat milk powder segment, while domestic production increased consistently.

Following the peak, the market volume contracted significantly to 110.9 thousand tons by 2023. This decline was driven by a sharp, sustained reduction in imports, which fell from 52.1 thousand tons in 2018 to 8.1 thousand tons in 2023, coupled with the emergence of export shipments that reached 11.4 thousand tons in 2022. Domestic production remained relatively high until 2022 before decreasing in 2023, further contributing to the smaller overall market size.

Production milk powder with fat content of ≤1.5% in Japan

In kind, 2018-2021, K t

Globally, Japan ranked as the 11th largest producer of milk powder with a fat content of ≤1.5% between 2018 and 2021.

Top producers of milk powder with fat content of ≤1.5%, 2018-2021

World map of production of milk powder with fat content of ≤1.5%, 2018-2021

Japan's production of milk powder with a fat content of ≤1.5% increased for the third consecutive year. In 2021, the country produced 119.2 thousand tons, marking a 2.9% rise compared to the previous year. Over the 2018-2021 period, production grew by 21.8%, with a compound annual growth rate of 6.8%.

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

Exports milk powder with fat content of ≤1.5% from Japan

Exports in kind, t

The market showed significant volatility during these years. Exports reached their lowest point in 2019 at just 5 tons, then surged to 1 490 tons in 2021, representing an 8 074.0% increase from 2020. This created a 295-fold difference between the peak in 2021 and the trough in 2019. The largest decline occurred in 2019, when exports fell by 79.4%.

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

Between 2018 and 2021, the main destinations for Japan's milk powder exports with a fat content of ≤1.5% were Singapore (32.5% of exports in volume), Malaysia (28.3%), and South Korea (28.1%). Together, these three markets accounted for 88.9% of total export flows.

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

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

Exports in value, M $ US

Market performance exhibited noticeable fluctuations during this period. Exports bottomed out in 2019 at 0.1 million US dollars, then peaked in 2021 at 4.3 million US dollars, representing a 1 951.4% increase from the previous year. This resulted in a 53-fold difference between the high and low points. The largest decline occurred in 2019, when export value dropped by 60.9%.

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

From 2018 to 2021, three key markets—Singapore, Malaysia, and South Korea—collectively absorbed 80.8% of Japan's total export value for milk powder with a fat content of ≤1.5%.

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

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

Imports milk powder with fat content of ≤1.5% to Japan

Imports in kind, t

Japan's imports of milk powder with a fat content of ≤1.5% declined for the third consecutive year. In 2021, the country imported [value_last_year] tons, representing a sharp decrease of 43.9% from 2020. Over the 2018-2021 period, imports fell by 58.2%, with a compound annual decline rate of 25.2%.

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

Between 2018 and 2021, the principal suppliers of milk powder with a fat content of ≤1.5% to Japan were New Zealand (29.9% of import volume), the United States (21.2%), and Australia (16.3%). Together, these three countries accounted for 67.4% of total imports in volume.

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

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

Imports in value, M $ US

Japan's imports of milk powder with a fat content of ≤1.5% declined for the second consecutive year. In 2021, imports reached 58.7 million US dollars, down 43.4% from the previous year. Between 2018 and 2021, imports decreased by 41.4%, equating to an annualized decline of 16.3%. The highest import value was recorded in 2019 at 104.9 million US dollars, when imports increased by 4.7%.

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

From 2018 to 2021, New Zealand (30.4% of import value), the United States (21.3%), and Australia (16.4%) continued to lead as the main suppliers of milk powder with a fat content of ≤1.5% to Japan, jointly representing 68.1% of total import value.

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

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