Concentrated sweetened milk and cream market in Sri Lanka

Earlier Report Observations

Between 2018 and 2023, the market volume for concentrated sweetened milk and cream in Sri Lanka fluctuated, declining from 21,058 tons in 2018 to 19,883 tons in 2023. The initial drop to 18,050 tons in 2019 coincided with a food regulation that required milk bread to contain at least 4% milk non-fat solids, which may have diverted some dairy ingredients toward the bakery sector, potentially affecting availability for concentrated dairy production.

A partial recovery in 2020–2021 was followed by another contraction in 2022 after the Customs Department updated tariffs and classifications for dairy products, including sweetened concentrated milk and cream. The revised duties likely increased costs for imported inputs or finished goods, influencing overall market volume. In 2023, a public awareness campaign on imported milk powder, led by the GMOA, could have shifted consumer preferences, contributing to a slight decrease in consumption.

Throughout the period, the structural constraint of low domestic milk production—covering only about 40% of demand—persisted, maintaining reliance on imports. However, significant export volumes, peaking at 1,163 tons in 2021, indicate that production was also oriented toward external markets, which may have impacted domestic supply.

Production concentrated sweetened milk and cream in Sri Lanka

In kind, 2017-2020, t

From 2017 to 2020, Sri Lanka maintained the 19th position globally in terms of production volume for concentrated sweetened milk and cream.

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

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

In 2020, Sri Lanka produced 21 134 tonnes of concentrated sweetened milk and cream, marking a 10.9% increase compared to 2019. Over the 2017-2020 period, production grew by 27.1%, with an average annual growth rate of 8.3%. The largest decline occurred in 2019, at 8.0%, while the largest increase was in 2018, at 24.5%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

Exports concentrated sweetened milk and cream from Sri Lanka

Exports in kind, t

The data shows irregular changes, reflecting a volatile market environment. Exports reached their lowest point in 2018 at 30 tonnes and peaked in 2019 at 1 025 tonnes, representing a 34-fold difference between these years. In 2020, Sri Lanka's exports of concentrated sweetened milk and cream amounted to 792 tonnes, a 22.8% decrease from the previous year. The largest decline was recorded in 2018 at 96.1%, while the largest increase occurred in 2019 at 3 333.5%.

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

From 2017 to 2020, the Maldives dominated the export partner structure in kind, consistently accounting for 90.1% of total flows.

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

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

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Export values hit their lowest point in 2018 at 80 thousand US dollars and reached their highest in 2020 at 2 144 thousand US dollars, showing a 27-fold fluctuation. In 2020, Sri Lanka's exports of concentrated sweetened milk and cream in value terms totaled 2 144 thousand US dollars, a sharp increase of 45.1% from the previous year. The largest decline was in 2018 at 93.3%, while the largest increase was in 2019 at 1 745.8%.

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

From 2017 to 2020, the Maldives and Canada were the leading partners in export value terms, together accounting for 80.7% of total flows, with the remainder distributed among other countries.

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

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

Imports concentrated sweetened milk and cream to Sri Lanka

Imports in kind, t

The market exhibited volatility during the observed period. Imports reached their lowest point in 2019 at 21 tonnes and peaked in 2018 at 379 tonnes, an 18-fold swing. In 2020, Sri Lanka's imports of concentrated sweetened milk and cream stood at 166 tonnes, a significant rise of 701.9% from the previous year. The largest decline was recorded in 2019 at 94.5%.

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

From 2017 to 2020, three main markets—Indonesia, Malaysia, and Singapore—collectively absorbed 84.1% of Sri Lanka's total imports in kind of concentrated sweetened milk and cream.

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

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

Imports in value, K $ US

The data shows irregular changes, pointing to a volatile market environment. Import values bottomed in 2019 at 20 thousand US dollars and peaked in 2018 at 1 777 thousand US dollars, differing by an 89-fold multiple. In 2020, Sri Lanka's imports of concentrated sweetened milk and cream in value terms came to 121 thousand US dollars, a 506.7% increase from a year earlier. The largest decline was in 2019 at 98.9%, while the largest increase was in 2018 at 2 051.1%.

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

From 2017 to 2020, Indonesia (68.4% of imports in value terms), Singapore (8.5%), and Malaysia (7.7%) together accounted for 84.7% of total imports in value terms, remaining the primary sources for concentrated sweetened milk and cream to Sri Lanka.

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

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