Concentrated or sweetened milk and cream market in Mexico

Earlier Report Observations

The market for concentrated or sweetened milk and cream in Mexico experienced significant fluctuations from 2018 to 2023, with volume peaking at 887 thousand tons in 2019 before dropping to 741 thousand tons in 2021 and recovering to 875 thousand tons in 2022. The initial growth in 2019 was driven by a sharp reduction in exports, which fell from 84 thousand tons to 30 thousand tons, allowing more production to remain domestically. However, the market contracted in 2020 and 2021 primarily due to the COVID-19 pandemic, which disrupted import supply chains and reduced the inflow of dairy products, particularly from the United States. Imports fell from 351 thousand tons in 2019 to 171 thousand tons in 2021, outweighing steady growth in domestic production.

Underlying these shifts were structural factors such as the oligopolistic market dominated by Grupo Lala and Alpura, which influenced pricing and distribution. Consumer preferences increasingly shifted toward healthier, low-sugar, and low-fat dairy products, prompting innovation and product diversification. The state-owned company LICONSA played a key role in distributing subsidized powdered milk to vulnerable populations, affecting demand patterns. Regulatory standards like NOM-243-SSA1-2010 ensured sanitary controls but also shaped production costs. Despite rising input expenses and inflationary pressures, domestic milk output expanded consistently, reaching 626 thousand tons in 2023, though it remained insufficient to meet total demand, maintaining reliance on imports.

Technological advancements in animal genetics and reproductive management, along with regional concentration of production in states like Jalisco and Coahuila, supported gradual productivity gains. The industry adapted to trade liberalization under NAFTA, which facilitated imports but also exposed local producers to international competition. By 2023, Mexico ranked as the world’s eighth-largest milk producer, yet the market volume settled at 784 thousand tons, reflecting the ongoing balance between domestic capacity and import dependency.

Production concentrated or sweetened milk and cream in Mexico

In kind, 2018-2021, K t

Mexico was among the world's top producers of concentrated or sweetened milk and cream from 2018 to 2021, ranking 10th globally by production volume.

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

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

Mexico's production of concentrated or sweetened milk and cream grew for the third consecutive year. In 2021, the country produced 602.2 thousand tons, marking a moderate increase of 5.4% compared to 2020. Over the 2018-2021 period, production rose by 9.8%, with an average annual growth rate of 3.2%.

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

In value, 2018-2021, M $ US

In 2021, the output of concentrated or sweetened milk and cream in Mexico was valued at 1.493 billion US dollars, showing a significant increase of 15.3% from the previous year. From 2018 to 2021, production value grew by 41.2%, with an average annual growth rate of 12.2%. The largest increase occurred in 2019 at 25.8%, while the largest decline was in 2020 at 2.6%.

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

Exports concentrated or sweetened milk and cream from Mexico

Exports in kind, K t

In 2021, Mexico's exports of concentrated or sweetened milk and cream totaled 32.6 thousand tons, which is 18.5% lower than in 2020. Between 2018 and 2021, exports decreased by 61.4%, equating to an annualized decline of 27.2%. The lowest volume was recorded in 2019 at 30.4 thousand tons, with the largest decline that year at 64.0%, while the largest increase occurred in 2020 at 31.5%.

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

From 2018 to 2021, Mexico's exports of concentrated or sweetened milk and cream in volume terms were primarily directed to the United States and Venezuela, which together accounted for 89.3% of total flows, with other destinations playing a minor role.

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, M $ US

In 2021, the value of Mexico's exports of concentrated or sweetened milk and cream reached 80.8 million US dollars, showing a decline of 10.8% compared to the previous year. Over the 2018-2021 period, export value decreased by 50.3%, with an average annual decline of 20.8%. The lowest value was recorded in 2019 at 71.4 million US dollars, with the largest decline that year at 56.1%, while the largest increase occurred in 2020 at 26.9%.

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

Throughout 2018-2021, the United States and Venezuela remained the main destinations for Mexico's exports of concentrated or sweetened milk and cream in value terms, jointly accounting for 87.6% of total flows, while other partners each held significantly smaller shares.

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 or sweetened milk and cream to Mexico

Imports in kind, K t

Mexico's imports of concentrated or sweetened milk and cream declined for the second consecutive year. In 2021, imports reached 171.0 thousand tons, indicating a sharp fall of 40.8% from 2020. Between 2018 and 2021, imports decreased by 50.9%, equating to an annualized decline of 21.1%. The highest volume was recorded in 2019 at 351.4 thousand tons, with the largest increase that year at 0.9%.

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

From 2018 to 2021, the United States dominated Mexico's imports of concentrated or sweetened milk and cream in volume terms, accounting for 98.7% of total flows.

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, M $ US

Mexico's imports of concentrated or sweetened milk and cream from abroad declined for the second consecutive year. In 2021, import value was recorded at 491.4 million US dollars, which is 37.5% lower than the previous year. Between 2018 and 2021, imports decreased by 29.3%, equating to an annualized decline of 10.9%. The highest value was recorded in 2019 at 805.0 million US dollars, with the largest increase that year at 15.7%.

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

Over the 2018-2021 period, virtually all imports of concentrated or sweetened milk and cream to Mexico in value terms were associated with the United States, which accounted for 98.6% of total flows.

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

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