Sri Lanka: Market for Butter And Dairy Spreads 2024

Market Size for Butter And Dairy Spreads in Sri Lanka

The Sri Lankan butter and dairy spreads market shrank sharply to $X in 2022, waning by -30.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption showed a deep contraction. As a result, consumption reached the peak level of $X. From 2017 to 2022, the growth of the market remained at a somewhat lower figure.

Exports of Butter And Dairy Spreads

Exports from Sri Lanka

In 2022, the amount of butter and dairy spreads exported from Sri Lanka declined markedly to X tons, shrinking by -33.7% compared with 2021. Over the period under review, exports, however, showed a notable increase. The pace of growth appeared the most rapid in 2017 with an increase of 136% against the previous year. Over the period under review, the exports hit record highs at X tons in 2021, and then shrank notably in the following year.

In value terms, butter and dairy spreads exports shrank notably to $X in 2022. In general, exports, however, recorded a strong increase. The most prominent rate of growth was recorded in 2017 with an increase of 126%. The exports peaked at $X in 2021, and then reduced notably in the following year.

Exports by Country

Maldives (X tons) was the main destination for butter and dairy spreads exports from Sri Lanka, accounting for a 92% share of total exports. Moreover, butter and dairy spreads exports to Maldives exceeded the volume sent to the second major destination, the UK (X kg), more than tenfold.

From 2012 to 2022, the average annual growth rate of volume to Maldives totaled +2.5%.

In value terms, Maldives ($X) remains the key foreign market for butter and dairy spreads exports from Sri Lanka, comprising 91% of total exports. The second position in the ranking was taken by the UK ($X), with a 9.2% share of total exports.

From 2012 to 2022, the average annual growth rate of value to Maldives amounted to +6.4%.

Export Prices by Country

In 2022, the average butter and dairy spreads export price amounted to $X per ton, increasing by 20% against the previous year. Overall, export price indicated a tangible expansion from 2012 to 2022: its price increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter and dairy spreads export price decreased by -18.5% against 2020 indices. The most prominent rate of growth was recorded in 2020 an increase of 59%. As a result, the export price attained the peak level of $X per ton. From 2021 to 2022, the average export prices remained at a lower figure.

Average prices varied noticeably for the major overseas markets. In 2022, amid the top suppliers, the country with the highest price was the UK ($X per ton), while the average price for exports to Maldives stood at $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Maldives (+3.9%), while the prices for the other major destinations experienced mixed trend patterns.

Imports of Butter And Dairy Spreads

Imports into Sri Lanka

In 2022, approx. X tons of butter and dairy spreads were imported into Sri Lanka; which is down by -30.2% compared with 2021. Overall, imports continue to indicate a deep setback. The most prominent rate of growth was recorded in 2016 when imports increased by 89%. As a result, imports attained the peak of X tons. From 2017 to 2022, the growth of imports failed to regain momentum.

In value terms, butter and dairy spreads imports dropped rapidly to $X in 2022. Over the period under review, imports recorded a deep reduction. The growth pace was the most rapid in 2016 when imports increased by 84% against the previous year. As a result, imports reached the peak of $X. From 2017 to 2022, the growth of imports remained at a lower figure.

Imports by Country

In 2022, New Zealand (X tons) constituted the largest butter and dairy spreads supplier to Sri Lanka, with a 45% share of total imports. Moreover, butter and dairy spreads imports from New Zealand exceeded the figures recorded by the second-largest supplier, Australia (X tons), threefold. The third position in this ranking was held by Denmark (X tons), with a 16% share.

From 2012 to 2022, the average annual growth rate of volume from New Zealand stood at -14.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (-14.2% per year) and Denmark (+13.1% per year).

In value terms, New Zealand ($X), Denmark ($X) and Australia ($X) constituted the largest butter and dairy spreads suppliers to Sri Lanka, together accounting for 76% of total imports. India, the UK, Malaysia and France lagged somewhat behind, together accounting for a further 19%.

Among the main suppliers, the UK, with a CAGR of +297.1%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average butter and dairy spreads import price stood at $X per ton in 2022, almost unchanged from the previous year. In general, import price indicated a pronounced increase from 2012 to 2022: its price increased at an average annual rate of +4.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter and dairy spreads import price increased by +28.4% against 2020 indices. The most prominent rate of growth was recorded in 2017 an increase of 42% against the previous year. Over the period under review, average import prices reached the peak figure at $X per ton in 2021, and then declined modestly in the following year.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was the UK ($X per ton), while the price for Malaysia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the UK (+24.0%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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