Concentrated sweetened milk and cream market in Colombia

Earlier Report Observations

The market volume for concentrated sweetened milk and cream in Colombia declined from 2 993 t in 2018 to 2 861 t in 2020. This contraction occurred alongside a significant informal milk trade, which captured over 34% of total milk sales in 2018, diverting demand from the formal market. From mid-2020, the La Niña weather phenomenon brought excessive rainfall that restricted pasture availability, raising raw milk production costs and pressuring the supply base for processors.

Market volume rebounded in 2021 and 2022, peaking at 3 329 t in 2022, a 10.4% annual increase. This growth period coincided with the passage of Law 2277 in 2022, which established a tax on ultra-processed sugary beverages and foods, including sweetened dairy products, scheduled to take effect in November 2023. Anticipatory purchasing ahead of the tax likely supported demand. Simultaneously, global events such as the Russia-Ukraine conflict increased fertilizer and supply chain costs, further elevating production expenses across the dairy sector.

In 2023, the market volume contracted by 4.0% to 3 195 t. The implementation of the sugary products tax in November 2023, combined with the lingering effects of La Niña and a 12% rise in consumer milk prices, dampened demand. National milk production also fell to 7.097 billion liters in 2023, reducing the raw material base for concentrated dairy products.

Production concentrated sweetened milk and cream in Colombia

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

Colombia's production of concentrated sweetened milk and cream has grown for the third year in a row. In 2020, the country produced 3,300 tonnes, showing a modest year-on-year increase of 3.6%. Looking at the period from 2017 to 2020, production rose by 7.1%, which translates to an average annual growth rate of 2.3%.

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

In value, 2017-2020, K $ US

In 2020, the value of concentrated sweetened milk and cream output in Colombia reached $10,777,000, marking a solid 21.2% increase compared to the previous year. From 2017 to 2020, production value grew by 16.3%, equivalent to an annualized rate of 5.2%. The lowest value was recorded in 2019 at $8,894,000, which also saw the largest decline of 15.4%.

Annual dynamics of production in Colombia in value, 2017-2020, K $ US

Exports concentrated sweetened milk and cream from Colombia

Exports in kind, t

Colombia's exports of concentrated sweetened milk and cream have increased for the second consecutive year. In 2020, exports totaled 523.5 tonnes, representing a significant 60.3% rise from the year before. Over the 2017-2020 period, exports grew by 14.4%, with an average annual growth rate of 4.6%. The lowest volume was in 2018 at 280.9 tonnes, which also experienced the largest decline of 38.6%.

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

From 2017 to 2020, the main buyers of concentrated sweetened milk and cream from Colombia were Peru (34.7% of exports in volume), Costa Rica (26.9%), and Ecuador (24.0%). Together, these three countries accounted for 85.7% of Colombia's total exports in this category.

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

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

Exports in value, K $ US

The export market showed volatility during the observed period. In 2019, exports hit their lowest point at $912,000, while 2020 saw the highest value at $1,710,000, reflecting a 1.9-fold difference. The 2020 figure represents an 87.4% increase compared to 2019. The largest decline occurred in 2018, with a drop of 32.4%.

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

Between 2017 and 2020, Peru (40.2% of export value), Ecuador (24.1%), and Costa Rica (22.6%) were the primary destinations for Colombia's concentrated sweetened milk and cream exports in value terms. Combined, they made up 86.9% of total export flows.

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

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

Imports concentrated sweetened milk and cream to Colombia

Imports in kind, t

After two years of decline, Colombia's imports of concentrated sweetened milk and cream increased in 2020. Imports reached 84.5 tonnes, up 9.4% from the previous year. However, over the 2017-2020 period, imports fell by 59%, with an average annual decline of 25.7%. The lowest volume was recorded in 2019 at 77.2 tonnes, while the largest drop of 50.8% occurred in 2018.

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

From 2017 to 2020, Peru and Brazil were the dominant suppliers of concentrated sweetened milk and cream to Colombia, together accounting for 84.1% of total imports in volume. Other sources each held relatively small shares.

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

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

Imports in value, K $ US

Colombia's imports of concentrated sweetened milk and cream in value terms declined for the third year in a row. In 2020, imports amounted to $159,000, a 3.4% decrease from 2019. Over the 2017-2020 period, imports dropped by 58.4%, with an average annual decline of 25.3%.

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

During 2017-2020, Peru and Brazil dominated Colombia's imports of concentrated sweetened milk and cream in value terms, together representing 86.0% of total flows. Other destinations contributed smaller individual amounts.

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

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