Concentrated milk and cream market in South-eastern Asia

Earlier Report Observations

The Southeast Asian market for concentrated milk and cream began the period with relative stability, supported in 2018 by the expansion of retail distribution channels for dairy products, such as Kalbe Farma's new outlets in Indonesian shopping malls. This improved accessibility helped maintain market volume near 600 000 t through 2019.

A pronounced upturn followed, with market size climbing from 560 000 t in 2020 to over 707 000 t by 2022. The key driver behind this expansion was rising consumer preference for reconstituted milk products, prized for their convenience and longer shelf life, which stimulated demand across the region.

This growth trajectory was interrupted in 2023 when market volume contracted sharply to 433 000 t, largely due to a substantial drop in domestic production. Concurrently, the market saw a shift in consumer behavior toward locally sourced and organic dairy items, while global supply-chain developments, including expanded U.S. production of milk fat, affected ingredient flows.

Production concentrated milk and cream in South-eastern Asia

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-eastern Asia's concentrated milk and cream production declined for the second year in a row. In 2020, the region produced 629.3 thousand tons, marking a slight decrease of 1.9% compared to 2019. Looking at the period from 2017 to 2020, production grew by 7.2%, with an average annual growth rate of 2.3%. The highest production level was recorded in 2018 at 654.0 thousand tons, which saw an 11.4% increase. The largest decline occurred in 2019, with a drop of 1.9%.

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

In value, 2017-2020, M $ US

South-eastern Asia's concentrated milk and cream production value also fell for the second consecutive year. In 2020, the output was valued at 1 180 million US dollars, representing a significant decrease of 10.2% from the previous year. Over the 2017-2020 period, production value declined by 11.2%, with an average annual decrease of 3.9%. The peak value was in 2018 at 1 566 million US dollars, which saw a 17.8% increase. The sharpest decline was in 2019, with a 16.1% drop.

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

Exports concentrated milk and cream from South-eastern Asia

Exports in kind, K t

After two years of decline, South-eastern Asia's exports of concentrated milk and cream rebounded in 2020. The region exported 102.0 thousand tons, showing a sharp increase of 36.5% compared to 2019. However, from 2017 to 2020, overall exports decreased by 29.9%, translating to an average annual decline of 11.2%. The lowest export volume was in 2019 at 74.7 thousand tons, while the largest decline occurred in 2018 with a 42.9% drop.

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

Between 2017 and 2020, the largest buyers of concentrated milk and cream from South-eastern Asia included Mexico (9.1% of exports in kind), Gambia (3.6%), and Madagascar (3.1%). Together, these three countries accounted for just 15.8% of total exports in kind, highlighting a highly diversified partner base with many smaller markets.

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

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

Exports in value, M $ US

In 2020, South-eastern Asia's concentrated milk and cream exports in value terms reached 134.5 million US dollars, reflecting a moderate increase of 4.7% from 2019. Over the 2017-2020 period, export value grew by 6.4%, with an average annual rate of 2.1%. The highest value was recorded in 2018 at 150.8 million US dollars, which saw a 19.3% rise. The largest decline occurred in 2019, with a 14.8% decrease.

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

From 2017 to 2020, the export structure in value terms remained highly diversified. Mexico (8.6% of exports in value), Gambia (3.2%), and the United Arab Emirates (3.0%) together made up only 14.8% of total flows. The remaining 85.2% was distributed among a wide range of smaller markets.

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

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

Imports concentrated milk and cream to South-eastern Asia

Imports in kind, K t

Following two years of decline, South-eastern Asia's imports of concentrated milk and cream increased in 2020. The region imported 33.4 thousand tons, representing a strong gain of 16.0% compared to 2019. However, from 2017 to 2020, overall imports decreased by 29.3%, equating to an average annual decline of 10.9%. The lowest import volume was in 2019 at 28.8 thousand tons, while the largest drop occurred in 2018 with a 38.1% decrease.

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

During 2017-2020, the geographical structure of imports in kind was highly diversified. Australia (6.1% of imports in kind), France (2.6%), and the United Kingdom (2.3%) together accounted for only 11.0% of total flows. The remaining 89.0% was spread across numerous smaller partner countries.

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

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

Imports in value, M $ US

South-eastern Asia's imports of concentrated milk and cream in value terms declined for the second year in a row. In 2020, imports stood at 100.2 million US dollars, showing a strong contraction of 21.0% from 2019. Over the 2017-2020 period, import value decreased by 3.4%, with an average annual decline of 1.1%. The peak value was in 2018 at 167.7 million US dollars, which saw a 61.6% increase. The largest decline occurred in 2019, with a 24.4% drop.

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

Throughout 2017-2020, imports in value terms were not concentrated on a few key markets. Australia (7.5% of imports in value), France (6.4%), and the United Kingdom (3.6%) jointly accounted for only 17.5% of total flows, indicating a broad distribution among many smaller countries.

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

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