Concentrated milk and cream market in Chile

Earlier Report Observations

From 2018 to 2021, the market volume for concentrated milk and cream in Chile grew steadily, peaking at 26 407 tons in 2021. However, in 2022 the market contracted by a third to 17 212 tons, largely due to a prolonged drought that limited pasture production and led to a 2.2% drop in milk output. In 2023, the market recovered to 23 156 tons, supported by improved weather conditions that boosted feed production and increased domestic demand for cream and evaporated milk.

The market has long been highly concentrated, with five major plants processing over 80% of raw milk, and key players including Colun, Nestlé, Prolesur, Watt’s, and Soprole. In November 2022, New Zealand’s Fonterra sold all its Chilean assets to Peruvian company Gloria Foods, changing the ownership structure in the sector. Condensed milk became the most valuable export product, shipped to 39 countries, including new markets such as Jamaica and Qatar.

Production concentrated milk and cream in Chile

In kind, 2018-2021, t

On a global scale, Chile ranked as the 23rd largest producer of concentrated milk and cream between 2018 and 2021.

Top producers of concentrated milk and cream, 2018-2021

World map of production of concentrated milk and cream, 2018-2021

In 2021, Chile produced 40 700 tonnes of concentrated milk and cream, marking a 12.6% year-on-year decline. Production reached its lowest point in 2019 at 39 030 tonnes, while peaking in 2020 at 46 590 tonnes. The most significant increase occurred in 2020, with a 19.4% rise.

Annual dynamics of production in Chile in kind, 2018-2021, t

In value, 2018-2021, K $ US

In 2021, the output of concentrated milk and cream in Chile was valued at 74 920 thousand US dollars, showing a moderate decrease of 5.1% compared to 2020. Over the period from 2018 to 2021, production increased by 9.4%, with a compound annual growth rate of 3.1%. The lowest value was recorded in 2019 at 65 160 thousand US dollars, while the highest was in 2020 at 78 969 thousand US dollars. The largest increase took place in 2020, with a 21.2% rise.

Annual dynamics of production in Chile in value, 2018-2021, K $ US

Exports concentrated milk and cream from Chile

Exports in kind, t

In 2021, Chile exported 23 327 tonnes of concentrated milk and cream, experiencing a strong contraction of 20.5% year-on-year. Between 2018 and 2021, exports decreased by 19.1%, equating to an annualized rate of 6.8%. The highest export volume was recorded in 2020 at 29 348 tonnes, with the largest increase that year at 13.6%.

Annual dynamics of product's exports from Chile in kind, 2018-2021, t

From 2018 to 2021, the United States, Peru, and Costa Rica were the top contributors to Chile's exports of concentrated milk and cream in volume terms. The United States accounted for 45.3% of exports, Peru for 18.8%, and Costa Rica for 14.9%, together making up 79.0% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Chile in kind, 2018-2021

Exports in value, K $ US

In 2021, Chile's exports of concentrated milk and cream were valued at 42 939 thousand US dollars, which is 13.7% lower than in 2020. Between 2018 and 2021, exports decreased by 12.5%, with an annualized rate of 4.3%. The highest value was recorded in 2020 at 49 744 thousand US dollars, and the largest increase occurred that year at 15.4%.

Annual dynamics of product's exports from Chile in value, 2018-2021, K $ US

Between 2018 and 2021, the United States, Peru, and Costa Rica were the main destinations for Chile's exports of concentrated milk and cream in value terms. The United States represented 44.2% of exports, Peru 18.6%, and Costa Rica 14.4%, collectively accounting for 77.2% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Chile in value, 2018-2021

Imports concentrated milk and cream to Chile

Imports in kind, t

Chile's imports of concentrated milk and cream increased for the third consecutive year. In 2021, imports amounted to 9 033 tonnes, which is 6.1% higher than the previous year. Between 2018 and 2021, imports grew by 36.7%, equating to an annualized rate of 11.0%.

Annual dynamics of product's imports to Chile in kind, 2018-2021, t

From 2018 to 2021, Peru, Brazil, and the Netherlands were the primary sources for Chile's imports of concentrated milk and cream in volume terms. Peru accounted for 54.0% of imports, Brazil for 17.3%, and the Netherlands for 9.1%, together representing 80.3% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Chile in kind, 2018-2021

Imports in value, K $ US

Chile's imports of concentrated milk and cream increased for the third consecutive year. In 2021, imports totalled 12 462 thousand US dollars, indicating a modest rise of 5.1% from the year before. Between 2018 and 2021, imports surged by 67.3%, with an annualized rate of 18.7%.

Annual dynamics of product's imports to Chile in value, 2018-2021, K $ US

Between 2018 and 2021, Peru, Brazil, and Mexico were the main sources in the geographical breakdown of Chile's imports of concentrated milk and cream in value terms. Peru accounted for 47.9% of imports, Brazil for 24.7%, and Mexico for 8.6%, collectively making up 81.3% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Chile in value, 2018-2021