Concentrated sweetened milk and cream market in CIS

Earlier Report Observations

The concentrated sweetened milk and cream market in the CIS expanded significantly from 59 thousand tons in 2018 to 99 thousand tons in 2019. This surge was primarily driven by the entry of new players and the expansion of production capacities in the cream and milk segment, which increased product availability. In the initial year, the market was supported by state policies aimed at developing the dairy industry, including measures to support producers.

Market volume contracted to 83 thousand tons in 2020 due to rising costs of raw milk and finished products, caused by increased prices for feed and energy. Government purchases of processed milk and cream under laws 44-FZ and 223-FZ provided some demand stabilization. A recovery to 86 thousand tons in 2021 was supported by a more than 1.5-fold increase in cream production. However, in 2022, intensified competition for dairy fat due to limited raw material supply and climatic factors led to a decline to 80 thousand tons.

The market rebounded to 88 thousand tons in 2023, fueled by a 21% growth in cream production. Throughout the period, structural shifts were observed, such as the emergence of lactose-free dairy segments and the implementation of new labeling requirements for dairy products, starting in 2019. Additionally, changes in organic product labeling legislation were prepared, with rules announced for implementation from 2025.

Production concentrated sweetened milk and cream in CIS

In kind, 2017-2020, t

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

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

In 2019, production of concentrated sweetened milk and cream in the CIS reached its peak at 99 432 tonnes, with the largest annual increase of 13.5% recorded that year. However, by 2020, output had fallen to 86 982 tonnes, marking a significant 12.5% decline from the previous year. Over the period from 2017 to 2020, production decreased by 4.1%, which translates to an average annual decline of 1.4%.

Annual dynamics of production in CIS in kind, 2017-2020, t

In value, 2017-2020, M $ US

The value of concentrated sweetened milk and cream production in the CIS peaked in 2019 at 209.0 million US dollars, with the largest annual increase of 8.3% observed that year. In 2020, output dropped to 175.2 million US dollars, reflecting a 16.2% decrease compared to 2019. From 2017 to 2020, production value fell by 11.3%, corresponding to a compound annual growth rate of -3.9%.

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

Exports concentrated sweetened milk and cream from CIS

Exports in kind, t

Exports of concentrated sweetened milk and cream from the CIS have grown for two consecutive years. In 2018, volumes hit their lowest point at 36 386 tonnes, with the largest annual decline of 12.0% recorded that year. By 2019, exports rebounded sharply, increasing by 19.7% to reach higher levels. In 2020, exports amounted to 50 568 tonnes, up 16.1% from 2019. Over the 2017-2020 period, export volumes rose by 22.3%, averaging an annual growth rate of 6.9%.

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

From 2017 to 2020, Ukraine and Georgia were the top destinations for exports of concentrated sweetened milk and cream from the CIS in volume terms, together accounting for 7.9% of total flows.

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

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

Exports in value, M $ US

The value of concentrated sweetened milk and cream exports from the CIS has increased for two years in a row. In 2018, export value was at its minimum of 80.2 million US dollars, with the largest annual decline of 11.0% occurring that year. By 2019, exports surged by 14.2% to higher levels. In 2020, exports reached 101.9 million US dollars, up 11.2% compared to 2019. Between 2017 and 2020, export value grew by 13.1%, equating to an average annual increase of 4.2%.

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

From 2017 to 2020, Ukraine and Georgia stood out as key buyers of concentrated sweetened milk and cream from the CIS in value terms, jointly representing 7.8% of total exports.

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

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

Imports concentrated sweetened milk and cream to CIS

Imports in kind, t

Imports of concentrated sweetened milk and cream into the CIS showed volatility during the observed period. In 2018, volumes were at their lowest at 8 094 tonnes, with the largest annual decline of 81.0% recorded that year. By 2019, imports skyrocketed by 428.4% to much higher levels. In 2020, imports reached 47 012 tonnes, marking a 9.9% increase year-over-year. From the trough in 2018 to the peak in 2020, imports multiplied by 5.8 times.

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

From 2017 to 2020, Ukraine was the central destination for imports of concentrated sweetened milk and cream into the CIS in volume terms, with a share of 6.7% of total flows.

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

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

Imports in value, M $ US

Imports of concentrated sweetened milk and cream into the CIS have risen for two consecutive years. In 2018, import value was at its minimum of 72.5 million US dollars, with the largest annual decline of 18.2% occurring that year. By 2019, imports jumped by 21.8% to higher levels. In 2020, imports amounted to 101.9 million US dollars, showing a modest 7.4% increase over the previous year. Over the 2017-2020 period, import value increased by 7.0%, with a compound annual growth rate of 2.3%.

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

From 2017 to 2020, Ukraine remained the primary and most stable destination for imports of concentrated sweetened milk and cream into the CIS in value terms, accounting for 5.4% of total flows.

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

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