Milk powder market in Chile

Earlier Report Observations

The milk powder market in Chile reached its peak volume of 102 129 tons in 2020, recovering from the previous year's level. This growth was driven by increased consumption of dairy products and the expansion of the market for milk-based beverages and dairy substitutes, which boosted demand for milk powder as a raw material, supported by regulatory standards defining minimum milk content in final products.

After 2020, the market volume consistently contracted, falling to 64 480 tons by 2023. Production constraints became the primary driver: severe droughts in 2022 and 2023 reduced raw milk output, raised costs, and led to higher prices. Concurrently, Fonterra's exit from the Chilean market following the sale of Soprole altered supply dynamics, while international demand—particularly from the United States facing infant formula shortages—diverted production toward exports, reducing domestic availability.

By 2023, persistent drought continued to pressure milk production, and market concentration—with three large firms holding 65% of dairy output—combined with a 40% annual increase in retail milk powder prices affected affordability and consumption. Although higher imports were anticipated to meet demand, the overall market volume continued to decline.

Production milk powder in Chile

In kind, 2018-2021, t

Chile was among the world's leading producers of milk powder from 2018 to 2021, ranking 21st globally by production volume during this period.

Top producers of milk powder, 2018-2021

World map of production of milk powder, 2018-2021

Chile's milk powder production volume declined for the third consecutive year. In 2021, 72 592 tonnes of milk powder were produced in Chile, marking a 10.6% decrease compared to the previous year. Between 2018 and 2021, production fell by 20.7%, equating to an annualized decline rate of 7.4%.

Annual dynamics of production in Chile in kind, 2018-2021, t

In value, 2018-2021, M $ US

In 2021, the output of milk powder in Chile was valued at 247.1 million US dollars, which is 6.2% lower than a year earlier. Between 2018 and 2021, production decreased by 20.9%, with an annualized rate of 7.5%. The largest decline occurred in 2019 at 16.7%, while the largest increase was recorded in 2020 at 1.3%.

Annual dynamics of production in Chile in value, 2018-2021, M $ US

Exports milk powder from Chile

Exports in kind, t

After a two-year decline, exported milk powder volumes from Chile increased in 2021. Exports were recorded at 2 660 tonnes, reflecting a significant rise of 20.0% compared to 2020. Between 2018 and 2021, exports decreased by 51.4%, equating to an annualized decline rate of 21.4%. The minimum value was recorded in 2020 at 2 216 tonnes, with the largest decline also occurring in that year at 43.4%.

Annual dynamics of product's exports from Chile in kind, 2018-2021, t

From 2018 to 2021, Brazil (33.7% of exports in kind), China (18.4% of exports in kind), and Venezuela (13.9% of exports in kind) were the main buyers of milk powder from Chile, together comprising 66.0% of total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Chile in kind, 2018-2021

Exports in value, K $ US

After a two-year drop, exported milk powder volumes from Chile increased in 2021. Chile exported 9 055 thousand US dollars worth of milk powder, reflecting a sharp improvement of 26.0% compared to 2020. Between 2018 and 2021, exports decreased by 51.5%, equating to an annualized decline rate of 21.4%. The minimum value was recorded in 2020 at 7 189 thousand US dollars, with the largest decline also occurring in that year at 41.0%.

Annual dynamics of product's exports from Chile in value, 2018-2021, K $ US

From 2018 to 2021, Brazil (30.9% of exports in value terms), Venezuela (21.0% of exports in value terms), and China (16.6% of exports in value terms) formed the main cluster of markets for exports in value terms, with a combined share of 68.5% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Chile in value, 2018-2021

Imports milk powder to Chile

Imports in kind, t

Chile imported a total of 17 254 tonnes of milk powder in 2021, indicating a reduction of 25.4% year-over-year. Over the period 2018 to 2021, imports decreased by 20.9%, with a compound annual growth rate (CAGR) of -7.5%. The minimum value was recorded in 2019 at 16 212 tonnes, while the maximum value was recorded in 2020 at 23 126 tonnes. The largest decline occurred in 2019 at 25.6%, and the largest increase was recorded in 2020 at 42.6%.

Annual dynamics of product's imports to Chile in kind, 2018-2021, t

Throughout 2018 to 2021, the United States (58.5% of imports in kind), Argentina (14.1% of imports in kind), and New Zealand (10.9% of imports in kind) formed the core of imports in kind, together accounting for 83.5% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Chile in kind, 2018-2021

Imports in value, K $ US

In 2021, foreign milk powder supplies to Chile were recorded at 53 959 thousand US dollars, marking a robust decrease of 16.3% compared to 2020. Over the period 2018 to 2021, imports increased by 2.4%, with a compound annual growth rate (CAGR) of 0.8%. The minimum value was recorded in 2019 at 41 229 thousand US dollars, while the maximum value was recorded in 2020 at 64 452 thousand US dollars. The largest decline occurred in 2019 at 21.8%, and the largest increase was recorded in 2020 at 56.3%.

Annual dynamics of product's imports to Chile in value, 2018-2021, K $ US

Throughout 2018 to 2021, the United States (51.3% of imports in value terms), Argentina (16.7% of imports in value terms), and Uruguay (13.4% of imports in value terms) remained the main markets for imports in value terms of milk powder to Chile, jointly accounting for 81.4% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Chile in value, 2018-2021