Concentrated milk and cream market in South America

Earlier Report Observations

The market for concentrated milk and cream in South America expanded steadily from 543 thousand tonnes in 2018 to 679 thousand tonnes in 2021. This growth was underpinned by a consistent annual increase in domestic milk production of around 4%, which boosted the raw material supply for processed dairy products. The market's high concentration among three vertically integrated companies—Gloria, Nestlé, and Laive—which controlled over 90% of the dairy sector, also supported stable output and distribution.

After reaching its peak in 2021, the market volume contracted to 672 thousand tonnes in 2022 and further to 651 thousand tonnes in 2023. A primary driver of this decline was the rapid emergence of plant-based dairy alternatives, whose sales multiplied tenfold between 2022 and 2024, diverting consumer demand away from traditional concentrated milk products. Concurrent shifts in dietary habits toward healthier options and greater protein awareness further reshaped consumption patterns within the dairy aisle.

Looking at recent developments, regional authorities in 2024 actively promoted milk production through the introduction of high-yield dairy cattle breeds and campaigns to boost consumption, particularly among children. While full-year market size data is not yet available, trade flows for 2024 showed imports of 13.8 thousand tonnes against exports of 54.7 thousand tonnes, indicating the region maintained a strong net export position for concentrated milk and cream.

Production concentrated milk and cream in South America

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

South America's production of concentrated milk and cream has grown for the third year in a row. In 2020, the region produced 671.5 thousand tonnes, marking a slight increase of 1.0% compared to 2019. Looking at the period from 2017 to 2020, production rose by 2.9%, which translates to an average annual growth rate of 0.9%.

Annual dynamics of production in South America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

The value of concentrated milk and cream production in South America has increased for the second consecutive year. In 2020, output was valued at 1 220 million US dollars, showing an advance of 8.7% compared to the previous year. Between 2017 and 2020, production value grew by 18.7%, equating to an annualized rate of 5.9%. The lowest value was recorded in 2018 at 1 022 million US dollars. The largest decline occurred in 2018 with a drop of 0.7%, while the largest increase was in 2019 with a rise of 9.8%.

Annual dynamics of production in South America in value, 2017-2020, M $ US

Exports concentrated milk and cream from South America

Exports in kind, K t

Exports of concentrated milk and cream from South America have declined for the third consecutive year. In 2020, the region exported 79.3 thousand tonnes, representing a strong decrease of 10.1% from the previous year. Over the period from 2017 to 2020, exports fell by 34.1%, with a compound annual growth rate of -13.0%.

Annual dynamics of product's exports from South America in kind, 2017-2020, K t

From 2017 to 2020, Haiti, the United States, and Costa Rica were the main destinations for concentrated milk and cream exports from South America. Haiti accounted for 32.1% of exports in kind, the United States for 19.5%, and Costa Rica for 3.8%, together making up 55.3% of total exports.

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

World map of product's exports from South America in kind, 2017-2020

Exports in value, M $ US

The value of concentrated milk and cream exports from South America has declined for the third consecutive year. In 2020, exports totalled 144.2 million US dollars, showing a modest reduction of 3.2% compared to the previous year. Between 2017 and 2020, export value decreased by 24%, equating to an annualized rate of -8.7%.

Annual dynamics of product's exports from South America in value, 2017-2020, M $ US

The structure of exports in value terms from 2017 to 2020 reveals a diversified set of partners. Haiti accounted for 24.1% of exports in value, the United States for 21.5%, and Costa Rica for 4.3%, jointly representing 49.9% of total flows. The remaining 50.1% was distributed among numerous smaller markets.

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

World map of product's exports from South America in value, 2017-2020

Imports concentrated milk and cream to South America

Imports in kind, K t

Import volumes of concentrated milk and cream in South America showed significant volatility during these years. The lowest point was in 2018 at 6.1 thousand tonnes, while the peak was in 2020 at 18.7 thousand tonnes, resulting in a 3.1-fold difference between these years. In 2020, imports rose by 40.0% compared to the previous year. The largest decline occurred in 2018 with a drop of 61.8%, and the largest increase was in 2019 with a rise of 119.0%.

Annual dynamics of product's imports to South America in kind, 2017-2020, K t

From 2017 to 2020, imports of concentrated milk and cream to South America were widely dispersed across partner countries. Germany accounted for 7.2% of imports in kind, the Netherlands for 4.7%, and Malaysia for 3.4%, together representing only 15.2% of total flows.

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

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

Imports in value, M $ US

In 2020, the value of concentrated milk and cream imports to South America reached 55.9 million US dollars, up by 47.5% year-on-year. Between 2017 and 2020, import value increased by 49%, equating to an annualized rate of 14.2%. The largest decline was recorded in 2019 with a drop of 5.7%.

Annual dynamics of product's imports to South America in value, 2017-2020, M $ US

The structure of imports in value terms from 2017 to 2020 can be described as diversified. Germany accounted for 6.9% of imports in value, the Netherlands for 3.5%, and Malaysia for 2.4%, together making up just 12.9% of total flows, with no single country holding a clearly dominant position.

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

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