Concentrated milk and cream market in Mexico

Earlier Report Observations

The Mexican concentrated milk and cream market saw regulatory foundations laid in the late 2010s with the introduction of NOM-222-SCFI/SAGARPA-2018, which established updated specifications and created a new regulated category for 'retentado de leche' (milk retentate) obtained by ultrafiltration. This, alongside the earlier NMX-F-731-COFOCALEC-2017 standard that set product system requirements for creams and concentrated dairy, provided clarity and stimulated production. As a result, output grew steadily from 196.9 thousand tons in 2018 to 205.8 thousand tons in 2020, even though total market volume dipped to 179.7 thousand tons in 2020 due to a surge in exports.

From 2021 onward, the market expanded robustly, reaching 208.5 thousand tons in 2023. Imports dwindled to near zero, while exports retreated from their 2020 peak. A key driver in 2022 was the modification of front-of-pack labeling rules (NOM-051-SCFI/SSA1-2010), mandating black octagons for products high in sugars, fats, or sodium, which prompted manufacturers to reformulate concentrated milk and cream products with added sugars. Simultaneously, the updated NOM-222 standard and the CANILEC 2022 report highlighted increased procurement by state-owned enterprises like Liconsa under enhanced quality and traceability norms, further bolstering domestic production and market size.

Production concentrated milk and cream in Mexico

In kind, 2018-2021, K t

From 2018 to 2021, Mexico maintained the 8th position globally in terms of concentrated milk and cream production volume.

Top producers of concentrated milk and cream, 2018-2021

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

Concentrated milk and cream production in Mexico increased for the third consecutive year. In 2021, Mexico produced 216.7 K t of concentrated milk and cream, which is 5.3% higher than in 2020. Between 2018 and 2021, production grew by 10%, representing an annualized growth rate of 3.2%.

Annual dynamics of production in Mexico in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Concentrated milk and cream production in Mexico increased for the second consecutive year. In 2021, the output was valued at 401.1 M $ US, marking a 15.5% increase compared to 2020. Between 2018 and 2021, production rose by 2.2%, with an annualized growth rate of 0.7%. The lowest value was recorded in 2019 at 332.2 M $ US, which also saw the largest decline of 15.4%.

Annual dynamics of production in Mexico in value, 2018-2021, M $ US

Exports concentrated milk and cream from Mexico

Exports in kind, t

After two years of growth, concentrated milk and cream exports from Mexico declined. In 2021, Mexico exported 23 017 t of concentrated milk and cream, representing a 14.7% year-over-year decrease. Between 2018 and 2021, exports increased by 109.8%, with a compound annual growth rate of 28.0%. The highest volume was recorded in 2020 at 26 984 t, while the largest increase occurred in 2019 at 67.3%.

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

From 2018 to 2021, exports of concentrated milk and cream from Mexico were heavily concentrated on the United States, which accounted for 87.2% of total flows, with other countries making up the remaining share.

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

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

Exports in value, K $ US

After two years of growth, concentrated milk and cream exports from Mexico declined. In 2021, Mexico exported 42 611 K $ US of concentrated milk and cream, showing a 6.4% year-over-year decrease. Between 2018 and 2021, exports increased by 94.8%, with an annualized growth rate of 24.9%. The highest value was recorded in 2020 at 45 544 K $ US, which also saw the largest increase of 52.5%.

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

Throughout 2018 to 2021, the United States remained the primary destination for exports in value terms, accounting for 88.7% of total flows, while the remaining share was distributed among various smaller markets.

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

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

Imports concentrated milk and cream to Mexico

Imports in kind, t

Foreign supplies of concentrated milk and cream to Mexico declined for the third consecutive year. In 2021, imports reached 121 t, representing a dramatic 87.5% decrease compared to 2020. Between 2018 and 2021, imports decreased by 91%, with a compound annual decline rate of 55.2%.

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

From 2018 to 2021, the United States remained the overwhelmingly dominant supplier of concentrated milk and cream to Mexico, accounting for 100.0% of total imports in kind.

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

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

Imports in value, K $ US

Mexico's volume of concentrated milk and cream imports declined for the third consecutive year. In 2021, Mexico imported a total of 633 K $ US of concentrated milk and cream, equivalent to a 68.1% drop compared to the previous year. Between 2018 and 2021, imports decreased by 77.5%, with an annualized decline rate of 39.1%.

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

From 2018 to 2021, the United States clearly dominated the list of suppliers of concentrated milk and cream to Mexico, accounting for 100.0% of total imports in value terms.

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

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