Processed liquid milk market in Denmark

Earlier Report Observations

The processed liquid milk market in Denmark saw initial expansion in the sustainable segment with Arla's launch of 15 new organic dairy products, including drinking milk, in 2018. The implementation of EU regulations on trade and labeling for dairy products in Danish law in 2020 altered export-import procedures, contributing to a rise in domestic market volume despite a drop in production that year.

Extreme price volatility for raw milk and dairy products emerged in 2022 due to international uncertainty, rising commodity prices, and the war in Ukraine, leading to historically high market prices that stimulated production growth. Following this period of turbulence, the market stabilized in 2023 with normalized parameters and continued global demand from Asia supporting export opportunities.

By 2024, structural consolidation in the Danish dairy sector reduced the number of dairy companies to 24 with 49 production sites, which contributed to a decline in overall production volume. Concurrently, Arla's major investment in its Esbjerg dairy center aimed at premium milk drinks and the government's long-term goal to double the organic farmland share by 2030 signal a shift toward value-added and sustainable production.

Production processed liquid milk in Denmark

In value, 2018-2021, M $ US

After two years of decline, Denmark's processed liquid milk production showed an increase. In 2021, output was valued at 383.7 million US dollars, marking a 0.7% rise compared to 2020. The lowest point in this period was recorded in 2020 at 381.2 million US dollars, which also saw the largest decline of 3.3%. Overall, from 2018 to 2021, production decreased by 5.6%, translating to an annualized rate of 1.9%.

Annual dynamics of production in Denmark in value, 2018-2021, M $ US

In kind, 2018-2021, K t

Denmark's processed liquid milk production volume fell for the third year in a row. In 2021, the country produced 491.7 thousand tonnes, down 1.1% from 2020. Over the period from 2018 to 2021, production dropped by 8.1%, which corresponds to an annualized decrease of 2.8%.

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

Exports processed liquid milk from Denmark

Exports in kind, K t

In 2021, Denmark's processed liquid milk exports reached 258.4 thousand tonnes, growing by 9.8% year-over-year. The highest export volume was recorded in 2019 at 297.2 thousand tonnes, with the largest increase that year of 33.2%. However, exports saw a significant decline of 20.8% in 2020. From 2018 to 2021, exports overall increased by 15.8%, averaging an annual growth rate of 5.0%.

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

Between 2018 and 2021, Germany was the dominant market for Denmark's processed liquid milk exports in volume terms, accounting for 90.2% of total shipments.

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

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

Exports in value, M $ US

In 2021, Denmark's processed liquid milk exports were valued at 145.1 million US dollars, up 24.2% compared to the previous year. The peak value occurred in 2019 at 148.4 million US dollars, while the lowest was in 2020 at 116.8 million US dollars, which also experienced the largest decline of 21.3%. Over the 2018-2021 period, exports increased by 5.9%, with an annualized growth rate of 1.9%.

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

From 2018 to 2021, Germany led in value terms for Denmark's processed liquid milk exports, holding an 81.8% share of total flows, while the remaining portion was distributed among other trading partners.

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

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

Imports processed liquid milk to Denmark

Imports in kind, K t

Denmark's processed liquid milk imports declined for the third consecutive year. In 2021, imports totaled 31.5 thousand tonnes, showing a sharp contraction of 15.3% from the previous year. Over the 2018-2021 period, imports decreased by 48.4%, with a compound annual growth rate of -19.8%.

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

During 2018-2021, Germany was the primary source for Denmark's processed liquid milk imports in volume, absorbing 90.6% of the total.

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

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

Imports in value, M $ US

Denmark's processed liquid milk imports fell for the third year in a row. In 2021, imports were recorded at 27.9 million US dollars, representing a moderate decrease of 7.9% from 2020. From 2018 to 2021, imports dropped by 32.8%, with a compound annual growth rate of -12.4%.

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

Over the 2018-2021 period, Germany consistently accounted for 87.6% of Denmark's processed liquid milk imports in value, highlighting a high concentration on this market, with the rest shared among other countries.

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

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