Concentrated or sweetened milk and cream market in South America

Earlier Report Observations

The South American market for concentrated or sweetened milk and cream expanded in volume from 2.33 million tons in 2018 to nearly 2.49 million tons in 2021, while its value surged from $6.0 billion to $9.1 billion. This growth was underpinned by robust raw milk production in the region and supportive regulations that facilitated manufacturing. In Argentina, rising domestic demand for dairy products, including flavored milk and dulce de leche, provided additional momentum.

Market volume temporarily contracted to 2.40 million tons in 2022 as dairy farmers in Brazil faced steeply rising feed costs and a shrinking herd, compounded by supply-chain disruptions from the Russia-Ukraine conflict. These pressures elevated production costs, driving the market's value higher to $9.56 billion despite the smaller volume. The following year, physical volume recovered to 2.47 million tons, but the market's value dipped slightly to $9.49 billion. This shift reflected increased imports into Brazil, which eased domestic supply constraints, coupled with weaker consumer purchasing power in Argentina that dampened demand for higher-value dairy items.

Production concentrated or sweetened milk and cream in South America

In kind, 2017-2020, K t

Top producers of concentrated or sweetened milk and cream, 2017-2020

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

South America's production of concentrated or sweetened milk and cream has grown for the third year in a row. In 2020, the region produced 2 550 K t, showing a modest increase of 2.3% from the previous year. Looking at the period from 2017 to 2020, production rose by 5.4%, which translates to an average annual growth rate of 1.8%.

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

In value, 2017-2020, M $ US

South America's production of concentrated or sweetened milk and cream has increased for the second consecutive year. In 2020, the output was valued at 8 764 M $ US, marking a significant jump of 29.1% compared to 2019. Between 2017 and 2020, production grew by 26.6%, with an annualized rate of 8.2%. The lowest value was in 2018 at 6 337 M $ US, which also saw the largest decline of 8.4%.

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

Exports concentrated or sweetened milk and cream from South America

Exports in kind, K t

South America's exports of concentrated or sweetened milk and cream have fallen for the second year in a row. In 2020, exports totaled 337.9 K t, down 7.4% from the previous year. Over the 2017-2020 period, exports increased by 4.1%, with an average annual growth rate of 1.3%. The peak was in 2018 at 432.2 K t, which also recorded the largest increase of 33.1%. The largest decline occurred in 2019, dropping by 15.6%.

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

From 2017 to 2020, South America's exports in kind were spread across many countries. Algeria accounted for 28.1% of exports, Haiti for 9.1%, and the United States for 5.5%, together making up just 42.7% of total flows. No single partner emerged as clearly dominant during this period.

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

In 2020, South America's exports of concentrated or sweetened milk and cream were valued at 1 161 M $ US, up 16.8% from the previous year. Between 2017 and 2020, exports grew by 25.1%, with an annualized rate of 7.7%. The largest decline was in 2019 at 10.2%, while the largest increase was in 2018 at 19.2%.

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

The structure of South America's exports in value terms from 2017 to 2020 shows a diverse range of partners. Algeria made up 33.0% of exports, Russia 4.3%, and China 3.9%, together accounting for only 41.2% of total flows. The remaining 58.8% 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 or sweetened milk and cream to South America

Imports in kind, K t

In 2020, South America's imports of concentrated or sweetened milk and cream reached 253.3 K t, rising 23.3% from 2019. Over the 2017-2020 period, imports decreased by 6%, with an average annual decline of 2.0%. The lowest volume was in 2019 at 205.4 K t, which also saw the largest decline of 28.9%. The peak was in 2018 at 288.9 K t.

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

From 2017 to 2020, South America's imports in kind were sourced from a wide array of markets. The United States accounted for 19.9% of imports, Mexico for 11.5%, and New Zealand for 7.3%, together making up just 38.7% 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

After two years of decline, South America's imports of concentrated or sweetened milk and cream rebounded. In 2020, imports stood at 806 M $ US, showing a sharp increase of 32.7% from the previous year. Between 2017 and 2020, imports grew by 3.3%, with an annualized rate of 1.1%. The lowest value was in 2019 at 607 M $ US, which also recorded the largest decline of 21.5%.

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

The market base for South America's imports in value terms from 2017 to 2020 was broad. The United States accounted for 18.1% of imports, Mexico for 9.9%, and New Zealand for 8.3%, together making up just 36.3% of total flows. The remaining 63.7% was shared by many other countries.

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

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