Concentrated milk and cream market in Argentina

Earlier Report Observations

After peaking in 2021 at 10 035 t, the market volume for concentrated milk and cream in Argentina contracted over the next two years, falling to 9 024 t in 2023. The initial period from 2018 to 2021 saw overall growth, interrupted only in 2019 when the adoption of the MERCOSUR technical regulation for milk powder required producer adjustments and contributed to a sharp drop in imports, reducing total market size to 8 434 t.

The regulatory framework for dairy products evolved continuously. In 2018, an update to permitted ingredients for dairy beverages explicitly allowed the use of concentrated milk and cream. In 2022, authorities created a new category for ultra-pasteurized cream with specific labeling rules and established export quotas for concentrated milk and cream to Colombia. The following year, the definition of dairy beverages was refined to require a minimum 51% dairy content, expanding the classification for concentrated products.

Domestic demand showed a 5.8% sales increase in the cream and concentrated milk segment during the first half of 2022. However, the total market volume declined in both 2022 and 2023.

Production concentrated milk and cream in Argentina

In kind, 2017-2020, t

Top producers of concentrated milk and cream, 2017-2020

World map of production of concentrated milk and cream, 2017-2020

Argentina produced 8,664 tonnes of concentrated milk and cream in 2020, marking a 4.6% increase compared to 2019. Over the 2017-2020 period, production grew by 16.4%, with an average annual growth rate of 5.2%. The largest decline occurred in 2019, at 2.7%, while the most significant increase was in 2018, at 14.4%.

Annual dynamics of production in Argentina in kind, 2017-2020, t

Exports concentrated milk and cream from Argentina

The sector overview indicates that Argentina did not export any concentrated milk and cream from 2017 to 2020.

Imports concentrated milk and cream to Argentina

Imports in kind, t

The market showed an unstable trend throughout the period. Imports reached their lowest point in 2019, while the highest volume was recorded in 2017, with a 13-fold difference between these years. In 2020, Argentina imported 210 tonnes of concentrated milk and cream, representing a sharp year-on-year increase of 38.9%. The minimum value was 151 tonnes in 2019, which also saw the largest decline of 82.3%.

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

From 2017 to 2020, Chile was the leading source for Argentina's imports of concentrated milk and cream in kind, accounting for 80.7% of total flows, with the remainder distributed among other partners.

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

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

Imports in value, K $ US

The market exhibited an unstable trend over the timeframe. Imports hit their lowest point in 2019, while the peak was in 2017, with volumes varying by 11.3 times between these years. In 2020, Argentina imported approximately 379,000 US dollars worth of concentrated milk and cream, showing a year-on-year uptick of 29.9%. The minimum value was 292,000 US dollars in 2019, which also experienced the largest decline of 81.7%.

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

During 2017-2020, Chile remained the primary market for Argentina's imports in value terms, holding a 78.0% share of total flows, while the rest was fragmented across numerous other destinations.

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

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