Updated Jan 22, 2023 05:03

Dairy Spread Market in the United Kingdom

Market Overview
Please note: Annual data for 2022 are preliminary and subject to revision
For the fifth year in a row, the UK dairy spread market recorded decline in sales value, which decreased by -% to $ in . In general, consumption saw a abrupt setback. Dairy spread consumption peaked at $ in 2010; however, from 2011 to , consumption remained at a lower figure.

In value terms, dairy spread production declined modestly to $ in estimated in export price. Over the period under review, production saw a abrupt shrinkage. The most prominent rate of growth was recorded in 2017 when the production volume increased by % against the previous year. Dairy spread production peaked at $ in 2007; however, from 2008 to , production remained at a lower figure.


Consumption
Please note: Annual data for 2022 are preliminary and subject to revision
For the seventh year in a row, the UK recorded decline in consumption of dairy spreads, which decreased by -% to tons in . Over the period under review, consumption showed a perceptible descent. Over the period under review, consumption attained the peak volume at tons in 2010; however, from 2011 to , consumption failed to regain momentum.

The size of the dairy spread market in the UK fell to $ in , declining by -% 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). In general, consumption recorded a abrupt decline. Over the period under review, the market attained the maximum level at $ in 2010; however, from 2011 to , consumption failed to regain momentum.


Market Forecast
Please note: Annual data for 2022 are preliminary and subject to revision
Depressed by shrinking demand for dairy spread in the UK, the market is expected to continue its downward consumption trend over the next eight-year period. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Please note: Annual data for 2022 are preliminary and subject to revision
In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
Please note: Annual data for 2022 are preliminary and subject to revision
The UK remains a net importer of dairy spread; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.