Concentrated milk and cream market in Latin America and the Caribbean

Earlier Report Observations

From 2018 to 2020, the Latin American market for concentrated milk and cream expanded from 894 thousand tons to 944 thousand tons. This growth was primarily driven by improving regional economic conditions, which increased consumer purchasing power and boosted demand for dairy products. Even in 2020, despite the COVID-19 pandemic, the market continued to grow, supported by a rising consumer interest in functional and organic dairy options.

After peaking in 2020, market volume dipped to 926.9 thousand tons in 2021. It recovered slightly to 941.9 thousand tons in 2022, largely due to increased imports, particularly from Argentina to Brazil, which augmented domestic supply. However, in 2023, the market contracted to 914.2 thousand tons as demand weakened amid persistent economic and political uncertainties across the region.

Structural shifts also influenced the market throughout the period. The industry saw increased concentration, with small producers exiting and larger firms strengthening their position. New product segments emerged, such as UHT cream with varying fat content, catering to diverse consumer profiles. Additionally, regulatory changes in countries like Argentina, including the suspension of export tariffs, affected trade flows and market competitiveness.

Production concentrated milk and cream in Latin America and the Caribbean

In kind, 2017-2020, K t

Top producers of concentrated milk and cream, 2017-2020

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

Latin America and the Caribbean saw concentrated milk and cream production rise for the third year in a row. In 2020, the region produced 902.3 K t, marking a 1.6% increase from the previous year. From 2017 to 2020, production grew by 3.2%, with an average annual growth rate of 1.1%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of concentrated milk and cream output in Latin America and the Caribbean reached 3 427 M $ US, up 19.0% year-over-year. Between 2017 and 2020, production value increased by 24.4%, translating to an annualized rate of 7.5%. The most significant drop occurred in 2019, with a 4.1% decline.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, M $ US

Exports concentrated milk and cream from Latin America and the Caribbean

Exports in kind, K t

Latin America and the Caribbean experienced a third consecutive year of declining concentrated milk and cream export volumes. In 2020, exports totaled 55.5 K t, down 7.8% from the previous year. Over the 2017-2020 period, exports fell by 19.9%, with a compound annual growth rate of -7.1%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, concentrated milk and cream exports from Latin America and the Caribbean were widely distributed across markets. The United States accounted for 25.0% of exports in kind, Gambia for 2.0%, and Libya for 1.4%, together making up just 28.4% of total flows.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

In 2020, the value of concentrated milk and cream exports from Latin America and the Caribbean was 210.7 M $ US, an 8.0% increase from 2019. However, over the 2017-2020 period, export value decreased by 3.5%, with a compound annual growth rate of -1.2%. The lowest value was recorded in 2019 at 195.0 M $ US, while the peak was in 2018 at 222.8 M $ US. The sharpest decline occurred in 2019, with a 12.4% drop.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

Between 2017 and 2020, the export market in value terms was highly diversified. The United States represented 27.7% of exports in value terms, Libya 1.6%, and Gambia 1.5%, together constituting only 30.8% of total flows. The remaining 69.2% was distributed among many other countries.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports concentrated milk and cream to Latin America and the Caribbean

Imports in kind, K t

Following a two-year decline, imports of concentrated milk and cream into Latin America and the Caribbean rebounded. In 2020, imports reached approximately 97.2 K t, a sharp 29.7% increase year-over-year. From 2017 to 2020, imports rose by 15.4%, equivalent to an annualized rate of 4.9%. The lowest volume was in 2019 at 75.0 K t, with the largest decline occurring in 2018 at 6.0%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, the supplier base for concentrated milk and cream imports into Latin America and the Caribbean was broad. The Netherlands contributed 6.6% of imports in kind, Malaysia 6.4%, and the United States 3.3%, together accounting for only 16.2% of total imports. Many other countries held smaller but notable shares.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

In 2020, the value of concentrated milk and cream imports into Latin America and the Caribbean stood at 200.8 M $ US, reflecting a solid 18.1% year-over-year improvement. Between 2017 and 2020, import value increased by 14.5%, equating to an annualized rate of 4.6%. The lowest value was recorded in 2019 at 170.0 M $ US, with the largest decline that year at 7.0%.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

The import market in value terms from 2017 to 2020 was characterized by a wide base. The Netherlands accounted for 7.2% of imports in value terms, the United States for 5.3%, and Malaysia for 4.4%, together making up just 17.0% of total flows. The remaining 83.0% was shared among numerous other countries.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020