Processed liquid milk market in Italy

Earlier Report Observations

Between 2018 and 2020, the Italian processed liquid milk market showed initial growth, with volume reaching 4 022 thousand tons in 2018, supported by a recovery in the dairy sector led by strong cheese segment demand. It expanded further to 4 416 thousand tons in 2019 before contracting to 4 220 thousand tons in 2020, as geopolitical uncertainty, tighter environmental constraints, and commodity price volatility introduced risk and suppressed activity.

A sharp drop to 2 833 thousand tons occurred in 2021, directly linked to soaring production costs, feed supply difficulties, and declining domestic consumption of dairy products. Recovery began in 2022, with volume rising to 3 006 thousand tons despite the Russia-Ukraine war's impact on energy and raw material expenses. This turnaround was aided by shifting consumer preferences toward health-oriented products like lactose-free and extended-shelf-life milk, alongside the expansion of major processors. Growth continued to 3 332 thousand tons in 2023, driven by strong Italian dairy exports at higher unit prices and easing feed costs due to ample global stocks. The market reached 3 716 thousand tons in 2024, fueled by ongoing sector restructuring and investments aimed at improving milk producer remuneration.

Production processed liquid milk in Italy

In value, 2017-2020, M $ US

In Italy, the output value of processed liquid milk reached $2,499 million in 2019, marking the highest point in the period. However, by 2020, this value had declined significantly to $2,060 million, representing a 17.6% decrease compared to the previous year. Over the entire 2017-2020 period, production value fell by 17.1%, with an average annual decline of 6.1%. The largest increase occurred in 2019, when production value rose by 4.9%.

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

In kind, 2017-2020, K t

Processed liquid milk production in Italy grew for the second consecutive year in 2020, reaching 2,960 thousand tons, which represents a 3.2% increase from 2019. The lowest production volume was recorded in 2018 at 2,593 thousand tons, marking an 8.7% decline from the previous year. Production then rebounded strongly in 2019 with a 10.6% increase. Overall, between 2017 and 2020, production increased by 4.2%, translating to an average annual growth rate of 1.4%.

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

Exports processed liquid milk from Italy

Exports in kind, K t

After declining for two consecutive years, Italy's processed liquid milk exports showed a modest recovery in 2020, reaching 48 thousand tons, which represents a 2.9% year-over-year increase. The lowest export volume was recorded in 2019 at 47 thousand tons. The most significant decline occurred in 2018, when exports fell by 30.5%. Over the 2017-2020 period, exports decreased by 40.5%, with an average annual decline of 15.9%.

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

Between 2017 and 2020, Libya accounted for 52.3% of Italy's processed liquid milk exports by volume, followed by Albania with 8.0% and Malta with 7.0%. Together, these three countries represented 67.4% of Italy's total export flows during this period.

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

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

Exports in value, M $ US

Following two years of decline, Italy's processed liquid milk exports in value terms showed a slight recovery in 2020, reaching $35.4 million, which represents a 1.4% increase compared to 2019. The lowest export value was recorded in 2019 at $34.9 million. The most significant decline occurred in 2018, when export value fell by 23.3%. Over the 2017-2020 period, exports decreased by 35.6%, with an average annual decline of 13.6%.

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

From 2017 to 2020, Libya was the dominant destination for Italy's processed liquid milk exports in value terms, accounting for 51.1% of total exports. China followed with 7.9%, and Albania with 7.8%. Together, these three markets represented 66.8% of Italy's total export value during this period.

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

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

Imports processed liquid milk to Italy

Imports in kind, K t

Italy's processed liquid milk imports declined significantly in 2020, reaching 1,308 thousand tons, which represents a 17.9% decrease compared to 2019. The highest import volume was recorded in 2019 at 1,594 thousand tons, marking a 7.3% increase from the previous year. Over the 2017-2020 period, imports decreased by 14.1%, with an average annual decline of 5.0%.

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

Between 2017 and 2020, Germany was the largest supplier of processed liquid milk to Italy, accounting for 33.3% of imports by volume. France followed with 23.0%, and Austria with 19.3%. Together, these three countries supplied 75.6% of Italy's total import volume during this period.

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

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

Imports in value, M $ US

Italy's processed liquid milk imports in value terms declined substantially in 2020, reaching $531.6 million, which represents a 16.2% decrease compared to 2019. The highest import value was recorded in 2019 at $634.5 million, marking a 9.8% increase from the previous year. Over the 2017-2020 period, imports decreased by 14.1%, with an average annual decline of 4.9%.

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

Throughout the 2017-2020 period, Germany, France, and Austria remained the three largest sources of processed liquid milk imports to Italy in value terms, together accounting for 74.9% of total import flows.

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

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