Milk powder market in Mexico

Earlier Report Observations

From 2018 to 2020, the Mexican milk powder market experienced notable swings. Market volume rose to 496 thousand tons in 2019, supported by steady consumer demand for low-fat and flavored dairy products. The following year, the COVID-19 pandemic disrupted global supply chains, pushing up prices and reducing imports, which cut the market size to 435 thousand tons.

In 2021, the market contracted further to 330 thousand tons, a year that saw record-high import values for skimmed milk powder from the United States even as physical import volumes declined. By 2022, the market rebounded to 454 thousand tons, partly due to investments in new dairy processing plants across states like Jalisco and Chihuahua, which boosted domestic production. Yet in 2023, market volume fell again to 350 thousand tons, despite a 1.7% increase in the country's raw milk output.

Throughout the period, Mexico remained heavily reliant on milk powder imports from the U.S., which consistently supplied over 99% of imports. Consumer preferences increasingly shifted toward healthier and functional dairy items, spurring product launches such as Grupo Lala's organic milk and driving growth in segments like yogurt and fortified powders.

Production milk powder in Mexico

In kind, 2018-2021, K t

From 2018 to 2021, Mexico ranked as the 15th largest producer of milk powder globally.

Top producers of milk powder, 2018-2021

World map of production of milk powder, 2018-2021

Mexico's milk powder production increased for the third consecutive year. In 2021, the country produced 168.8 K t of milk powder, marking a 5.8% rise compared to 2020. Over the 2018-2021 period, production grew by 9.1%, with an average annual growth rate of 2.9%.

Annual dynamics of production in Mexico in kind, 2018-2021, K t

Exports milk powder from Mexico

Exports in kind, K t

The market displayed volatility during the observed period. Export volumes reached their lowest point in 2021 and peaked in 2018, with a 7.7-fold difference between these years. In 2021, Mexico's foreign milk powder supplies stood at 9.6 K t, a 26.3% decrease from the previous year. The largest decline occurred in 2019 at 83.6%, while the largest increase was recorded in 2020 at 7.8%.

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

Between 2018 and 2021, Venezuela and the United States were the leading destinations for Mexico's milk powder exports in volume terms, together accounting for 90.8% of total flows. The remaining share was distributed among other countries.

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

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

Exports in value, M $ US

The market showed an unstable trend throughout the timeframe. Export volumes in value terms hit their lowest in 2021 and peaked in 2018, with a top-to-bottom ratio of 3.7 times. In 2021, milk powder exports from Mexico totaled 38.2 M $ US, representing a significant 15.3% drop compared to 2020. The largest decline was in 2019 at 70.5%, while the largest increase occurred in 2020 at 8.5%.

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

From 2018 to 2021, Venezuela and the United States served as the core markets for Mexico's milk powder exports in value terms, jointly making up 86.9% of total flows. Other destinations held comparatively smaller shares.

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

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

Imports milk powder to Mexico

Imports in kind, K t

Mexico's milk powder import volume declined for the second consecutive year. In 2021, the country imported 170.9 K t of milk powder, which is 40.7% less than the previous year. Over the 2018-2021 period, imports decreased by 50.8%, with an average annual decline of 21.0%. The highest volume was recorded in 2019 at 350.2 K t, with the largest increase that year at 0.9%.

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

Throughout 2018-2021, the United States dominated Mexico's milk powder imports in volume terms, holding a 98.6% share of total flows.

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

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

Imports in value, M $ US

Mexico's imported milk powder volumes in value terms fell for the second year in a row. In 2021, imports amounted to 490.8 M $ US, a sharp 37.4% decrease year-over-year. Between 2018 and 2021, imports dropped by 29.2%, equating to an average annual rate of 10.9%. The peak value was in 2019 at 802.7 M $ US, with the largest increase that year at 15.9%.

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

From 2018 to 2021, nearly all of Mexico's milk powder imports in value terms were linked to the United States, which accounted for 98.6% of total flows.

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

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