IndexBox has just published a new report: ‘EU – Butter – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2019, after two years of growth, there was a significant decline in the EU butter market, when its value decreased by -10.7% to $9B. Over the period under review, the market hit record highs at $10B in 2018 and then fell in the following year. Given the relatively stable volume of consumption in physical terms, those fluctuations are shaped by price changes.

Consumption by Country

The countries with the highest volumes of butter consumption in 2019 were France (520K tonnes), Germany (446K tonnes) and the UK (186K tonnes), together accounting for 64% of total consumption. Poland, Italy, the Netherlands, Austria, Sweden, Spain and the Czech Republic lagged somewhat behind, together accounting for a further 26%.

From 2013 to 2019, the biggest increases were in Spain, while butter consumption for the other leaders experienced more modest paces of growth.

In value terms, the largest butter markets in the European Union were France ($3.1B), Germany ($2.1B) and the UK ($838M), with a combined 67% share of the total market. Italy, Poland, Austria, the Netherlands, Sweden, Spain and the Czech Republic lagged somewhat behind, together comprising a further 24%.

The countries with the highest levels of butter per capita consumption in 2019 were France (7.91 kg per person), Germany (5.44 kg per person) and Austria (5.23 kg per person).

Production in the EU

In 2019, the production of butter in the European Union totaled 2M tonnes, with an increase of 2.1% against the previous year. Over the period under review, production continues to indicate a relatively flat trend pattern. As a result, production reached the peak volume and is likely to continue growing in the immediate term.

Production by Country

The countries with the highest volumes of butter production in 2019 were Germany (438K tonnes), France (401K tonnes) and Ireland (247K tonnes), with a combined 55% share of total production.

From 2013 to 2019, the most notable rate of growth in terms of butter production, amongst the leading producing countries, was attained by Ireland, while butter production for the other leaders experienced more modest paces of growth.

Exports in the EU

Butter exports rose significantly to 1M tonnes in 2019, with an increase of 7.3% against 2018. The total export volume increased at an average annual rate of +5.3% from 2013 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. In value terms, butter exports declined to $5.1B (IndexBox estimates) in 2019.

Exports by Country

Ireland (257K tonnes) and the Netherlands (238K tonnes) were the largest exporters of butter in 2019, reaching near 25% and 23% of total exports, respectively. It was distantly followed by Germany (135K tonnes), Belgium (112K tonnes), France (71K tonnes), Poland (53K tonnes) and Denmark (51K tonnes), together constituting a 40% share of total exports.

From 2013 to 2019, the biggest increases were in Poland, while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest butter supplying countries in the European Union were Ireland ($1.2B), the Netherlands ($1.1B) and Germany ($624M), with a combined 58% share of total exports.

Among the main exporting countries, Ireland recorded the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The butter export price in the European Union stood at $4,860 per tonne in 2019, dropping by -17.1% against the previous year. In general, the export price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 an increase of 48% against the previous year. Over the period under review, export prices attained the peak figure at $5,865 per tonne in 2018 and then fell significantly in the following year.

Average prices varied somewhat amongst the major exporting countries. In 2019, major exporting countries recorded the following prices: in France ($6,237 per tonne) and Denmark ($5,544 per tonne), while Poland ($4,564 per tonne) and the Netherlands ($4,637 per tonne) were amongst the lowest.

From 2013 to 2019, the most notable rate of growth in terms of prices was attained by France, while the other leaders experienced mixed trends in the export price figures.

Source: IndexBox AI Platform