Lactose and lactose syrup market in South America

Earlier Report Observations

The lactose and lactose syrup market in South America grew from 32 891 tons in 2018 to 45 950 tons in 2023, driven initially by rising demand from the infant food and animal feed industries. Increased consumption of fresh milk and dairy derivatives in Peru further supported market volume growth through 2019, while production margins in Argentina came under pressure from currency devaluation and higher import costs in 2020, a year in which the market still expanded to 42 701 tons.

Market volume reached 44 834 tons in 2021, supported by the reopening and expansion of production plants in the region, such as the Pomar facility in Colombia, and high growth rates in sales of flavored milk in Argentina. However, the market contracted to 41 913 tons in 2022 following a slump in dairy product sales in Argentine supermarkets and wholesale self-service stores, combined with pressure on milk production from devaluation and increased feed costs.

A partial recovery in sales of flavored dairy products in Argentina and continued growth in dairy production and consumption in Peru contributed to the market's rebound to 45 950 tons in 2023.

Production lactose and lactose syrup in South America

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, South America produced 1,211 tons of lactose and lactose syrup, representing a 4.8% increase compared to 2019. Over the period from 2017 to 2020, production grew by 9.2%, which translates to an average annual growth rate of 3.0%. The largest 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 South America in kind, 2017-2020, t

Exports lactose and lactose syrup from South America

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Exports peaked in 2017 and reached their lowest point in 2020, with a 7.7-fold difference between these years. In 2020, South America's export volume of lactose and lactose syrup was 132 tons, down by 66.2% compared to 2019. The largest decline was recorded in 2018, at 79.0%, while the largest increase occurred in 2019, at 82.7%.

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

From 2017 to 2020, the export partner landscape for lactose and lactose syrup was diverse. Nigeria accounted for 10.9% of exports, China for 8.8%, and Panama for 3.8%, together making up only 23.6% of total flows. The remaining 76.4% was distributed among many other countries.

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

The market exhibited volatility during the observed period. Import levels fluctuated significantly, with a 4.7-fold difference between the high in 2017 and the low in 2020. In 2020, cross-border shipments of lactose and lactose syrup in South America reached 332,000 US dollars, showing a drop of 56.0% compared to the previous year. The largest decline was recorded in 2018, at 73.3%, while the largest increase occurred in 2019, at 82.4%.

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

From 2017 to 2020, the market base for exports in value terms was broad. Nigeria contributed 5.9% of exports, China 4.8%, and Panama 3.6%, jointly accounting for just 14.4% of total flows. The remaining 85.6% was shared by numerous other countries.

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 lactose and lactose syrup to South America

Imports in kind, t

Imported volumes of lactose and lactose syrup in South America increased for the third consecutive year. In 2020, South America imported 41,623 tons, showing a 16.5% increase year-over-year. Over the period from 2017 to 2020, imports grew by 43.8%, with a compound annual growth rate of 12.9%.

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

From 2017 to 2020, the United States was the largest source of imports, accounting for 44.9% of the total, followed by the Netherlands at 19.6% and Germany at 9.1%. Together, these three countries comprised 73.6% of total import 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

South America's imports of lactose and lactose syrup increased for the third consecutive year. In 2020, the import volume amounted to 65,547,000 US dollars, corresponding to a solid gain of 15.2% year-over-year. Between 2017 and 2020, imports increased by 30.1%, equating to an annualized growth rate of 9.2%.

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

From 2017 to 2020, the United States remained the main supplier, accounting for 35.2% of imports in value terms, followed by the Netherlands at 23.8% and Germany at 13.1%. Together, these three countries formed 72.2% of total imports in value terms.

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

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