Raw milk prices likely up 4-5%
CRISIL Ratings expects raw milk production growth to slow to 4% due to El Niño and high fodder costs. Higher production costs will push milk prices up 4-5% this fiscal, with dairy companies passing costs to consumers.
Cream Price Trend Analysis 2026: Supply Demand Analysis, Price Drivers, Market Insights, Latest News & Historical Prices
Written BySiddharth David
Latest Development
Whey Protein Shortage Drives Up Prices
Surge in protein demand, especially from GLP-1 drug users and fitness trends, has caused U.S. whey protein inventories to fall by half since 2023. Prices have reached $14 per pound. Dairy Farmers of America is among large players expected to invest in new processing capacity. Analyst predicts price moderation over a few years but no crash.
Cream Price Trend 2025
Europe
The European cream price graph witnessed mixed trends during 2025. Supply constraints in the early months, compounded by disease-related disruptions in parts of continental Europe, kept cream values firm and limited the choice of suppliers for buyers. As the year progressed into the warmer months, seasonal reductions in milk fat content continued to support prices, with demand from butter and dairy fat processors maintaining market tightness. However, as the second half of the year unfolded, an increase in milk production across north-west Europe added to available cream volumes. This shift in supply dynamics placed progressive downward pressure on cream prices, which declined considerably toward year-end, reaching levels not seen in several years. By the close of 2025, cream and butter prices had converged to an unusually narrow range, reflecting the extent of the supply surplus.
North America
Cream prices in North America experienced a fluctuating trajectory throughout 2025. Milk production grew ahead of expectations, driven by herd expansion, improved per-cow output, and advances in milkfat genetics. The expansion of cheese processing capacity diverted cream away from butter churning, contributing to an oversupply of milkfat across all major regions. Cream multiples fell to historically low levels, squeezing producer returns despite higher output volumes. Prices remained depressed for much of the year, with only modest seasonal support during peak demand periods.
Analyst Insight
According to Procurement Resource, cream prices are expected to remain under pressure in the near term as milk production growth continues to outpace demand recovery across both regions.
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Europe
In 2024, the cream market in Europe experienced significant price increases, primarily due to tight supply conditions. The region faced reduced milk production, which led to a constrained cream supply. At the same time, demand remained strong, especially in industries like butter production and other dairy products, further exacerbating the supply-demand imbalance.
As the year progressed, the scarcity of fresh dairy liquids, along with higher costs for cream, led to sustained price hikes. This trend was also influenced by logistical disruptions, making it difficult to secure consistent supply, which in turn kept prices elevated throughout the year.
North America
In North America, the cream market saw a somewhat more fluctuating price pattern. While there was a noticeable uptick in prices due to production challenges, particularly during the mid-year, the market was less volatile than in Europe. Disruptions such as hurricanes and labour shortages impacted supply, but consistent demand from industries such as ice cream production and confectionery helped stabilize the market. Cream prices, though higher than the previous year, didn’t experience the same level of escalation as in Europe, with the market eventually finding some balance towards the latter half of the year.
About Cream
Cream is a well-known dairy product that is composed of the higher-fat layer skimmed from the top of milk before homogenisation. In un-homogenised milk, the fat, that is less dense, eventually rises to the top. In the commercial production of cream, this method is accelerated by using centrifuges called "separators".
Cream Product Detail
Industrial Uses
Dessert, Dairy dessert, Fresh cheese spread, Ice cream, Dishes
Supplier Database
Nestlé SA, FrieslandCampina, Mother Dairy Fruit & Vegetable Pvt. Ltd, Saputo Inc, Danone, Dean Foods
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Cream Production process
- Production of Cream via Centrifugation Process
In this process, globules of fats are eliminated while centrifuging milk to finally derive desired fat content through standardisation, thus, producing Cream. For this process, proper centrifuges are utilised. The extracted cream undergoes various industrial processes such as pasteurisation and others before its commercial use.
Our Price Analysis Methodology
About the Author
Siddharth David
Manager - Market Research
Delivering market research and procurement intelligence at Procurement Resource with a focus on economic forecasting, commodity analysis, and client advisory to help sourcing teams make data-backed purchasing decisions.
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Other Related Reports
Cream Production from Centrifugation
This report provides the cost structure of cream production from the centrifugation process. Fat globules are separated from milk using centrifuges.
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