Concentrated sweetened milk and cream market in South America

Earlier Report Observations

The market for concentrated sweetened milk and cream in South America expanded from 81 thousand tons in 2018 to 96.1 thousand tons in 2020. This initial growth phase was supported by the implementation of clear technical standards, such as Colombia's NTC 879, which defined quality and composition requirements for the product. Concurrently, investments in packaging modernization, including the shift from metal cans to Tetra Pak cartons at a plant in Firmat, Argentina, improved production efficiency and product appeal. In 2020, increased fresh milk production in Peru, with a significant portion destined for dairy processing, contributed to greater raw material availability for condensed milk.

Market volume reached 101.4 thousand tons in 2021 before contracting to 95.3 thousand tons in 2022 and then surging to 113.5 thousand tons in 2023. The 2022 dip coincided with reported import pressure in Brazil affecting local dairy prices, though domestic production volumes held steady. The subsequent strong recovery in 2023 was bolstered by government measures in Brazil to incentivize dairy activity amid challenging market conditions. Furthermore, the introduction of condensed milk in innovative formats like squeeze tubes with new flavors in other regions signaled evolving consumer preferences that began influencing the South American market.

Production concentrated sweetened milk and cream in South America

In kind, 2017-2020, K t

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

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

South America's production of concentrated sweetened milk and cream has increased for the second consecutive year. In 2020, the region produced 121.1 K t, marking a 6.9% increase compared to 2019. Looking at the period from 2017 to 2020, production grew by 6.9%, which translates to an annualized growth rate of 2.2%. The lowest production level was recorded in 2018 at 113.2 K t, with the largest decline that year being 0.1%.

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 sweetened milk and cream has increased for the second year in a row. In 2020, the output was valued at 264.3 M $ US, reflecting a measured gain of 3.4% compared to 2019. From 2017 to 2020, production increased by 4.1%, equating to an annualized growth rate of 1.3%. The minimum value was recorded in 2018 at 247.7 M $ US, with the largest decline that year being 2.4%.

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

Exports concentrated sweetened milk and cream from South America

Exports in kind, t

After two years of decline, South America's exports of concentrated sweetened milk and cream have increased. In 2020, exports reached 32 642 t, representing a gradual gain of 8.8% compared to the previous year. Over the period from 2017 to 2020, exports decreased by 22.7%, with a compound annual growth rate (CAGR) of -8.2%. The minimum value was recorded in 2019 at 30 003 t, with the largest decline that year being 17.5%.

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

From 2017 to 2020, the United States (37.0% of exports in kind), Costa Rica (9.8% of exports in kind), and Trinidad and Tobago (4.5% of exports in kind) formed the core of South America's exports, together accounting for 51.3% of total flows.

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, K $ US

Following a two-year reduction, South America's exports of concentrated sweetened milk and cream have increased. In 2020, export volume totaled 71 220 K $ US, reflecting a gain of 5.2% year-over-year. Over the period from 2017 to 2020, exports decreased by 24.7%, with a compound annual growth rate (CAGR) of -9.0%. The minimum value was recorded in 2019 at 67 671 K $ US, with the largest decline in 2018 at 15.8%.

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

From 2017 to 2020, the United States (35.8% of exports in value terms), Costa Rica (9.2% of exports in value terms), and Trinidad and Tobago (5.3% of exports in value terms) remained the main buyers of concentrated sweetened milk and cream from South America, jointly forming 50.3% of total exports in value terms.

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 sweetened milk and cream to South America

Imports in kind, t

The market exhibited an unstable trend throughout the timeframe. Imports reached their lowest point in 2018 at 4 262 t and peaked in 2017, with a 2.8-fold difference between these years. In 2020, imports stood at 7 604 t, marking an advance of 4.1% compared to 2019. The largest decline was recorded in 2018 at 64.8%, while the largest increase occurred in 2019 at 71.3%.

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

From 2017 to 2020, imports of concentrated sweetened milk and cream to South America relied on a wide range of partner countries. Malaysia (5.8% of imports in kind), the Netherlands (5.2% of imports in kind), and Mexico (1.2% of imports in kind) together accounted for just 12.3% 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, K $ US

After a two-year drop, foreign supplies of concentrated sweetened milk and cream to South America have increased. In 2020, imports amounted to 32 567 K $ US, up by 38.5% over the past year. Over the period from 2017 to 2020, imports increased by 32.2%, with a compound annual growth rate (CAGR) of 9.7%. The minimum value was recorded in 2019 at 23 521 K $ US, with the largest decline in 2018 at 2.3%.

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

The analysis of imports in value terms from 2017 to 2020 shows a broad distribution across many markets. Malaysia (3.9% of imports in value terms), the Netherlands (3.3% of imports in value terms), and Mexico (1.7% of imports in value terms) together accounted for only 8.9% of total flows, with a significant 91.1% falling on other partners.

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

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