Lactose and lactose syrup market in Latin America and the Caribbean

Earlier Report Observations

The market volume for lactose and lactose syrup in Latin America and the Caribbean expanded significantly from around 58 000 tonnes in 2018 to over 88 000 tonnes in 2023. This growth was primarily fueled by rising imports, which increased from 58 000 tonnes to 88 000 tonnes over the period. The development of dairy production clusters across several countries enhanced regional milk output, providing a foundation for lactose availability. Concurrently, ongoing urbanization and higher disposable incomes boosted demand for dairy products and derivatives, supporting market expansion.

Market volume experienced notable fluctuations, declining in 2020 and 2022. The 2020 drop coincided with the rising popularity of lactose-free products, driven by greater health awareness, which reduced demand for conventional lactose-containing items. Additionally, a spike in exports that year diverted supply from the domestic market. In 2022, increased prevalence of lactose intolerance in key markets like Brazil and Chile further dampened consumption, contributing to another contraction. Climate factors such as El Niño events also periodically affected milk production and regional supply chains.

Recovery and growth resumed in 2021 and 2023. Technological advances in enzymes and precision fermentation improved the quality of lactose-free products, stimulating innovation in the dairy sector. The reopening of Pomar's production and storage plant in Cajicá, Colombia, with a substantial investment, added local processing capacity in 2023. Significant regional investments in dairy processing infrastructure, alongside the stable presence of major multinational and state-owned companies, provided a basis for market resilience and expansion throughout the period.

Production lactose and lactose syrup in Latin America and the Caribbean

In kind, 2017-2020, t

Top producers of lactose and lactose syrup, 2017-2020

World map of production of lactose and lactose syrup, 2017-2020

In Latin America and the Caribbean, production of lactose and lactose syrup reached 1 211 tonnes in 2020, marking a 4.8% increase from the previous year. Over the period from 2017 to 2020, production grew by 9.2%, which translates to an average annual growth rate of 3.0%. The most significant production decline occurred in 2019, with a drop of 2.9%, while the largest increase was recorded in 2018, at 7.3%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, t

Exports lactose and lactose syrup from Latin America and the Caribbean

Exports in kind, t

The market exhibited volatility during the observed period. Export levels from Latin America and the Caribbean showed substantial fluctuations, with a 13.5-fold difference between the low of 571 tonnes in 2019 and the high of 7 737 tonnes in 2020. In 2020, exports surged by 1,254.3% compared to 2019. The most significant decline was recorded in 2019, at 59.9%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, t

From 2017 to 2020, the United States remained the dominant export partner for lactose and lactose syrup from Latin America and the Caribbean, accounting for 78.6% of total export flows. Other markets contributed to a long tail of smaller shares.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

After two consecutive years of decline, the value of lactose and lactose syrup exports from Latin America and the Caribbean increased in 2020. Exports reached 1.7 million US dollars that year, representing a 41.8% gain compared to 2019. However, over the full period from 2017 to 2020, exports decreased by 34.7%, with a compound annual growth rate of -13.2%. The lowest value was recorded in 2019 at 1.2 million US dollars, with the largest decline of 52.3% also occurring in that year.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

Between 2017 and 2020, the main cluster of markets for exports in value terms consisted of the United States (41.8% of exports), Nigeria (2.2%), and China (1.8%). Together, these three countries accounted for 45.9% of total export flows.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports lactose and lactose syrup to Latin America and the Caribbean

Imports in kind, t

Import volumes of lactose and lactose syrup in Latin America and the Caribbean increased for the second consecutive year in 2020, reaching 74 934 tonnes, which is 4.6% higher than in 2019. From 2017 to 2020, imports grew by 24.5%, equivalent to an average annual rate of 7.6%. The lowest import volume was recorded in 2018 at 58 206 tonnes, with the largest decline of 3.3% also in that year. The most significant increase occurred in 2019, at 23.1%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, t

During the 2017–2020 period, the largest suppliers of lactose and lactose syrup to Latin America and the Caribbean were the United States (63.9% of imports in kind), the Netherlands (12.6%), and Germany (9.1%). Together, these three countries formed 85.6% of total imports in kind.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

In 2020, the value of imported lactose and lactose syrup in Latin America and the Caribbean was recorded at 112.3 million US dollars, reflecting a slight year-on-year drop of 1.5%. Over the period from 2017 to 2020, imports increased by 8.9%, with a compound annual growth rate of 2.9%. The minimum value was 99.9 million US dollars in 2018, while the maximum was 114.0 million US dollars in 2019. The largest decline of 3.1% occurred in 2018, and the largest increase of 14.1% was recorded in 2019.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, the United States (57.6% of imports in value terms), the Netherlands (14.6%), and Germany (11.4%) consistently served as the main sources for imports in value terms. Collectively, they accounted for 83.7% of total import flows.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020