Concentrated milk and cream market in Sri Lanka

Earlier Report Observations

In 2018, the concentrated milk and cream market in Sri Lanka reached 21,247 tons, with domestic milk production covering only about 40% of national demand, indicating reliance on imports or increased local output. The market contracted to 18,052 tons in 2019 after new food regulations set minimum non-fat solids requirements for dairy products, affecting production standards and coinciding with a sharp rise in exports.

Market volume recovered to 20,506 tons in 2020 and grew further to 20,951 tons in 2021. This expansion aligned with updated customs tariffs and product classifications that specified fat and solids content, influencing trade flows by making imports more accessible while exports also remained high.

From 2022 to 2023, the market stabilized around 20,000 tons, finishing at 19,883 tons in 2023. During this period, consumer preferences began shifting due to online shopping trends, and promotional campaigns for milk powder by local companies like Pelwatte Dairy likely impacted demand for concentrated alternatives. In 2024, additional tariff revisions and purchase restrictions on fortified milk powder continued to frame the regulatory environment.

Production concentrated milk and cream in Sri Lanka

In kind, 2017-2020, t

Top producers of concentrated milk and cream, 2017-2020

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

In 2020, Sri Lanka produced 21 134 tonnes of concentrated milk and cream, marking a 10.9% increase compared to the previous year. Over the period from 2017 to 2020, production grew by 27.1%, with an average annual growth rate of 8.3%. The largest decline occurred in 2019, when production fell by 8.0%, while the most significant increase was recorded in 2018, with a rise of 24.5%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

Exports concentrated milk and cream from Sri Lanka

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Export volumes reached their lowest point in 2018 at 48 tonnes and peaked in 2019 at 1 025 tonnes, representing a 21-fold difference between these years. In 2020, Sri Lanka's exports of concentrated milk and cream totalled 794 tonnes, a decrease of 22.5% from the previous year. The largest decline was recorded in 2018, with a drop of 93.7%, while the most substantial increase occurred in 2019, with growth of 2 042.7%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, the Maldives accounted for nearly all of Sri Lanka's exports of concentrated milk and cream in volume terms, with a share of 90.0% of total flows.

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

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, K $ US

The market showed signs of volatility during the observed period. Export values fluctuated significantly, with a 19-fold difference between the low of 2018 at 111 thousand US dollars and the high of 2020 at 2 155 thousand US dollars. In 2020, the value of concentrated milk and cream exports from Sri Lanka reached 2 155 thousand US dollars, up by 45.8% compared to the previous year. The largest decline was recorded in 2018, with a decrease of 90.8%, while the most significant increase occurred in 2019, with growth of 1 234.2%.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, K $ US

Throughout 2017 to 2020, the Maldives and Canada were the primary markets for Sri Lanka's exports of concentrated milk and cream in value terms, together accounting for 80.4% of total flows, while other destinations had relatively modest shares.

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

World map of product's exports from Sri Lanka in value, 2017-2020

Imports concentrated milk and cream to Sri Lanka

Imports in kind, t

The data reveals irregular changes, pointing to a volatile market environment. Import volumes hit their lowest point in 2019 at 23 tonnes and reached their peak in 2018 at 586 tonnes, showing a 26-fold difference between these years. In 2020, Sri Lanka imported 167 tonnes of concentrated milk and cream, reflecting a dramatic increase of 633.1% compared to 2019. The largest decline was recorded in 2019, with a drop of 96.1%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, three main markets—Singapore, Indonesia, and Malaysia—together absorbed 87.5% of Sri Lanka's total imports of concentrated milk and cream in volume terms.

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

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. Import values varied widely, with an 86-fold difference between the low of 2019 at 22 thousand US dollars and the high of 2018 at 1 901 thousand US dollars. In 2020, the value of concentrated milk and cream imports into Sri Lanka stood at 123 thousand US dollars, representing a steep rise of 453.3% relative to the prior year. The largest decline was recorded in 2019, with a decrease of 98.8%, while the most substantial increase occurred in 2018, with growth of 2 176.1%.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, K $ US

Over the period from 2017 to 2020, Indonesia, Singapore, and Malaysia led as the top suppliers of concentrated milk and cream to Sri Lanka in value terms. Indonesia accounted for 64.3% of imports, Singapore for 13.8%, and Malaysia for 7.3%, with their combined share reaching 85.4% of total imports in value terms.

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

World map of product's imports to Sri Lanka in value, 2017-2020