Concentrated sweetened milk and cream market in South-eastern Asia

Earlier Report Observations

Between 2018 and 2020, the market volume for concentrated sweetened milk and cream in South-eastern Asia first stabilized then contracted. The launch of novel cream-sweetened condensed milk products like Milk Stix by Fraser & Neave in Malaysia and ongoing brand expansions helped maintain market activity. However, in 2020, widespread supply chain disruptions caused by the COVID-19 pandemic affected regional production and distribution, contributing to a market decline to 386 thousand tons despite increased household demand for shelf-stable dairy items during lockdowns.

The market rebounded strongly over the next two years, reaching 487 thousand tons in 2022. This growth was primarily driven by significant investments in dairy processing capacity across the region, notably by Fraser & Neave, which expanded output to meet rising confectionery demand. Concurrently, product innovation accelerated, with manufacturers introducing reduced-sugar variants to cater to health-conscious consumers, while the growth of e-commerce improved product accessibility and market reach.

In 2023, market volume fell to 369 thousand tons. During this period, major players like Nestlé launched new lines of reduced-sugar sweetened condensed milk, and Fraser & Neave continued its capacity expansion, indicating a focus on long-term portfolio development. Moving forward, the product remains integral to the region's café culture and foodservice sector, with new segments emerging among small cafes and street vendors that rely on its utility in beverages and desserts.

Production concentrated sweetened milk and cream in South-eastern Asia

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

Southeast Asia's production of concentrated sweetened milk and cream declined for the second year in a row. In 2020, the region produced 430.0 thousand tons, marking a slight decrease of 2.1% from 2019. Looking at the 2017-2020 period, production grew by 8.6%, with an average annual growth rate of 2.8%. The highest output was recorded in 2018 at 450.9 thousand tons, which saw the largest increase of 13.9%. In contrast, 2019 experienced the most significant decline of 2.6%.

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

In value, 2017-2020, M $ US

The value of concentrated sweetened milk and cream production in Southeast Asia fell for the second consecutive year. In 2020, output was valued at 1 076 million US dollars, down 7.0% from the previous year. Over the 2017-2020 period, production value increased by 11.4%, with an average annual growth rate of 3.7%. The peak value occurred in 2018 at 1 299 million US dollars, which saw the largest increase of 34.5%. The most substantial decline was in 2019, with a drop of 10.9%.

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

Exports concentrated sweetened milk and cream from South-eastern Asia

Exports in kind, K t

After two years of decline, Southeast Asia's exports of concentrated sweetened milk and cream rebounded. In 2020, export volume reached 71.3 thousand tons, a sharp increase of 47.5% from 2019. However, over the 2017-2020 period, exports decreased by 45.6%, with an average annual decline of 18.4%. The lowest volume was recorded in 2019 at 48.3 thousand tons, while the largest drop occurred in 2018, falling by 54.8%.

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

From 2017 to 2020, exports of concentrated sweetened milk and cream from Southeast Asia were relatively evenly distributed among partners. Mexico accounted for 11.7% of exports in kind, Madagascar for 4.1%, and Togo for 2.3%, with these three countries together making up only 18.1% of total flows.

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

World map of product's exports from South-eastern Asia in kind, 2017-2020

Exports in value, M $ US

In 2020, Southeast Asia's exports of concentrated sweetened milk and cream were valued at 103.3 million US dollars, showing a slight rise of 2.1% year-on-year. The lowest value was in 2019 at 101.1 million US dollars, while the highest was in 2018 at 123.8 million US dollars. The largest decline occurred in 2019, dropping by 18.3%, and the largest increase was in 2018, up by 21.7%.

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

The partner structure for exports in value terms from 2017 to 2020 remained fragmented. Mexico represented 10.7% of exports in value terms, Madagascar 3.5%, and Angola 3.3%, with these three countries together accounting for just 17.5% of total flows. No single country held a dominant share.

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

World map of product's exports from South-eastern Asia in value, 2017-2020

Imports concentrated sweetened milk and cream to South-eastern Asia

Imports in kind, K t

Following two years of decrease, imports of concentrated sweetened milk and cream into Southeast Asia rose. In 2020, imports reached 27.1 thousand tons, up 36.4% from 2019. Over the 2017-2020 period, imports fell by 33.7%, with an average annual decline of 12.8%. The lowest volume was in 2019 at 19.9 thousand tons, and the largest drop was in 2018, decreasing by 49.7%.

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

From 2017 to 2020, Australia, the United Kingdom, and France were the key partners for imports in kind of concentrated sweetened milk and cream into Southeast Asia. Australia accounted for 5.2% of imports in kind, the United Kingdom for 2.7%, and France for 1.6%, together representing 9.5% of total flows.

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

World map of product's imports to South-eastern Asia in kind, 2017-2020

Imports in value, M $ US

The market showed an unstable trend throughout the period. In 2020, the value of concentrated sweetened milk and cream imports into Southeast Asia was 87.9 million US dollars, down 18.5% from the previous year. The highest value was recorded in 2018 at 144.9 million US dollars, which saw the largest increase of 71.4%. The lowest value was in 2017, with the largest decline occurring in 2019, falling by 25.6%. The difference between the peak in 2018 and the trough in 2017 was 1.7 times.

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

From 2017 to 2020, concentrated sweetened milk and cream imports into Southeast Asia came from a broad set of markets. Australia accounted for 5.3% of imports in value terms, the United Kingdom for 4.2%, and France for 3.9%, with these three countries together making up only 13.4% of total imports. Many smaller destinations contributed the remaining 86.6%.

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

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