Concentrated or sweetened milk and cream market in Chile

Earlier Report Observations

Between 2018 and 2023, the market for concentrated or sweetened milk and cream in Chile contracted from 166,000 tons to 127,000 tons. The decline accelerated after a temporary peak in 2020, primarily due to prolonged drought conditions and persistently high production costs that constrained national milk reception from 2021 onward. A concurrent shift in consumer preferences away from traditional dairy products toward plant-based beverages further reduced domestic consumption volumes from 2022.

The market remained highly concentrated among a few major processors, while regulatory developments shaped its structure. New labeling laws for dairy products, debated since 2018, and the 2022 mandate to fortify liquid and powdered milk with Vitamin D3 added new compliance dimensions. The sector also saw a change in international players with the sale of Fonterra's local assets in 2023, even as exports diversified to over 39 countries under the ChileMilk brand.

By 2024, the industry's focus had shifted toward adding value and expanding its international footprint, with preparations to host the IDF World Dairy Congress in 2025. While domestic market volume stabilized near 127,000 tons in 2023, rising export volumes for products like condensed milk and milk powder indicated a reorientation of production toward foreign markets.

Production concentrated or sweetened milk and cream in Chile

In kind, 2018-2021, t

Chile ranked 29th globally in the production of concentrated or sweetened milk and cream from 2018 to 2021.

Top producers of concentrated or sweetened milk and cream, 2018-2021

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

In 2021, Chile produced 153,992 tonnes of concentrated or sweetened milk and cream, representing an 11.7% decrease compared to the previous year. Over the 2018-2021 period, production fell by 10.5%, with a compound annual growth rate (CAGR) of -3.6%. The highest production level was recorded in 2020 at 174,399 tonnes, which also saw the largest increase of 7.9%.

Annual dynamics of production in Chile in kind, 2018-2021, t

In value, 2018-2021, M $ US

In 2021, the output of concentrated or sweetened milk and cream in Chile was valued at 308.1 million US dollars, showing a slight reduction of 2.1% from the year before. Between 2018 and 2021, production decreased by 9.3%, equivalent to an annualized rate of -3.2%. The lowest value was recorded in 2019 at 300.6 million US dollars, which experienced the largest decline of 11.5%. In contrast, 2020 saw the largest increase of 4.7%.

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

Exports concentrated or sweetened milk and cream from Chile

Exports in kind, t

In 2021, Chile's cross-border shipments of concentrated or sweetened milk and cream amounted to 25,986 tonnes, marking a 17.7% decrease year-over-year. From 2018 to 2021, exports fell by 24.2%, with an annualized rate of -8.8%. The largest increase occurred in 2020, at 6.1%.

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

From 2018 to 2021, the United States (40.0% of exports in kind), Peru (17.3%), and Costa Rica (13.1%) were the primary destinations for Chile's exports of concentrated or sweetened milk and cream, collectively accounting for 70.4% of total flows.

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

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

Exports in value, K $ US

In 2021, Chile's exports of concentrated or sweetened milk and cream reached 51.994 million US dollars, reflecting a modest reduction of 8.7% compared to 2020. Between 2018 and 2021, exports decreased by 23.2%, equating to an annualized rate of -8.4%. The largest decline was recorded in 2019 at 18.3%, while the largest increase occurred in 2020 at 3.0%.

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

Over the 2018-2021 period, the United States (35.3% of exports in value terms), Peru (15.9%), and Costa Rica (11.4%) together absorbed 62.6% of Chile's total exports of concentrated or sweetened milk and cream, making them the key markets.

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

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

Imports concentrated or sweetened milk and cream to Chile

Imports in kind, t

In 2021, Chile imported 24,246 tonnes of concentrated or sweetened milk and cream, down by 16.9% from the previous year. Over the 2018-2021 period, imports decreased by 7.5%, with a CAGR of -2.6%. The lowest import volume was recorded in 2019 at 24,246 tonnes, while the highest was in 2020 at 31,642 tonnes, which also saw the largest increase of 30.5%.

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

Throughout 2018-2021, the United States (41.5% of imports in kind), Peru (15.8%), and Argentina (10.3%) were the main partners for Chile's imports of concentrated or sweetened milk and cream, together accounting for 67.6% of total flows.

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

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

Imports in value, K $ US

In 2021, Chile's imports of concentrated or sweetened milk and cream totaled 66.420 million US dollars, showing a decrease of 13.0% from a year earlier. Over the 2018-2021 period, imports increased by 10.4%, with a CAGR of 3.4%. The lowest value was recorded in 2019 at 50.277 million US dollars, which experienced the largest decline of 16.4%. The highest value was in 2020 at 76.308 million US dollars, which saw the largest increase of 51.8%.

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

From 2018 to 2021, the United States (43.0% of imports in value terms), Argentina (14.3%), and Uruguay (11.2%) were the largest suppliers of concentrated or sweetened milk and cream to Chile, collectively forming 68.5% of total imports in value terms.

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

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