Lactose and lactose syrup market in MERCOSUR

Earlier Report Observations

From 2018 to 2021, the lactose and lactose syrup market volume in MERCOSUR expanded from 26 635 t to 33 244 t. This growth was primarily fueled by rising demand from the food, pharmaceutical, and animal feed industries, where lactose is used as an excipient in drug formulations and as a functional ingredient. Increased investment in product innovation, including high-protein and probiotic dairy items, further supported market expansion.

In 2022, market volume declined by 8.4% to 30 461 t, largely due to persistent climatic risks that disrupted dairy production, particularly in rain-fed grazing systems. The following year saw a sharp recovery, with volume jumping 19.4% to 36 354 t in 2023. This rebound was supported by price stabilization for liquid milk and the dominant role of organized off-trade channels, including supermarkets and e-commerce, which improved product accessibility.

Throughout the period, shifting consumer preferences toward lactose-free and organic dairy products prompted major players like Lactalis and Arla to expand their lactose-free lines. Concurrently, urbanization across MERCOSUR countries sustained demand for dairy derivatives, while multinational processors invested in processing capacity to accelerate innovation in high-protein and lactose-free segments.

Production lactose and lactose syrup in MERCOSUR

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 2020, MERCOSUR produced 1 211 tonnes of lactose and lactose syrup, marking a 4.8% increase compared to 2019. Over the 2017-2020 period, production grew by 9.2%, with an average annual growth rate of 3.0%. The largest decline occurred in 2019, when production fell by 2.9%, while the most significant increase was recorded in 2018 at 7.3%.

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

Exports lactose and lactose syrup from MERCOSUR

Exports in kind, t

The market for lactose and lactose syrup exports from MERCOSUR experienced notable fluctuations during this period. Exports reached their lowest point in 2018 at 70 tonnes and peaked in 2017, showing a 13.9-fold difference between these years. In 2020, exports amounted to 115 tonnes, representing a 66.9% decrease year-over-year. The largest decline was recorded in 2018 at 92.8%, while the most substantial increase occurred in 2019, rising by 395.1%.

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

From 2017 to 2020, exports of lactose and lactose syrup from MERCOSUR were not heavily concentrated. The top destinations—Nigeria (12.8% of exports in kind), China (10.3%), and Free Zones (1.2%)—together accounted for only 24.3% of total export flows.

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

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

Exports in value, K $ US

The value of lactose and lactose syrup exports from MERCOSUR showed irregular changes, reflecting a volatile market environment. Exports hit their lowest point in 2018 at 147 thousand US dollars and peaked in 2017, with a 9.8-fold gap between these years. In 2020, export value was recorded at 227 thousand US dollars, indicating a 65.4% decrease compared to the previous year. The largest decline occurred in 2018 at 89.7%, while the most significant increase was in 2019, rising by 347.1%.

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

During 2017-2020, the leading destinations for lactose and lactose syrup exports from MERCOSUR in value terms were Nigeria (7.3% of exports in value), China (6.0%), and Free Zones (3.7%). Together, these markets represented 17.1% of total export flows.

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

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

Imports lactose and lactose syrup to MERCOSUR

Imports in kind, t

Imports of lactose and lactose syrup into MERCOSUR increased for the third consecutive year. In 2020, imports reached 30 283 tonnes, showing a substantial 10.5% rise year-over-year. Over the 2017-2020 period, imports grew by 57.5%, with an average annual growth rate of 16.3%.

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

From 2017 to 2020, the United States (42.9% of imports in kind), the Netherlands (24.7%), and Germany (8.8%) formed the key group of partners for lactose and lactose syrup imports into MERCOSUR. Together, they accounted for 76.4% of total import flows.

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

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

Imports in value, K $ US

MERCOSUR's imports of lactose and lactose syrup in value terms increased for the third consecutive year. In 2020, imports amounted to 49 984 thousand US dollars, indicating a solid 16.3% increase compared to the previous year. Over the 2017-2020 period, imports grew by 35.5%, with an average annual growth rate of 10.7%.

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

Over 2017-2020, the United States (32.1% of imports in value terms), the Netherlands (30.2%), and Germany (13.4%) stood out as the main markets for lactose and lactose syrup imports into MERCOSUR. Together, they represented 75.6% of total import flows.

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

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