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LATAM (Latin America) Dairy Market Aided by the Increased Global Dairy Demand, Expected to Grow by 2.5% p.a. till 2020

According to a new report by EMR titled, ‘Latin America Dairy Market Report and Forecast 2022-2027’, the Latin America dairy market is aided by the increase in the demand for dairy, particularly in emerging economies. The global dairy demand is expected to witness a rise of 2.5% per annum till 2020.

The Latin America dairy market is being driven by the growing milk production in the region. The milk production in South America increased slightly by 1.1% in 2018, as compared to the previous year to attain 64 million tonnes. The milk output in the region is expected to witness an increase in the forecast period of 2022-2027 too with the maximum increase in output expected to occur in Argentina, Colombia, Chile, and Uruguay.

Argentina, a major dairy producer saw a significant decline in its milk production in 2016 due to the adverse weather conditions caused by the 2016 El Niño. Its milk output is recovering with slight growth of 2% in 2017 and 2018, as compared to the previous years. In the coming years, the production of milk is expected to increase annually by 1.3%. While the cow herd size has been decreasing since 2012, it is being balanced by the higher yields per cow. Argentina dairy exports witnessed a 7% increase in 2018, from 2017, to reach 10.8 million tons despite the drought conditions in the early 2018.

Brazil is the leading market for dairy in the Latin America region, and the demand and consumption is expected to remain high in the coming years. The consumers in the Brazil dairy market are more likely to check for the nutritional content and taste of the dairy product before purchasing over other dairy markets in the region like Argentina. They are also more conscious about the sugar, fat and protein content in the dairy products. While the demand for dairy products in the country is high, the dairy market growth is expected to be slow in the forecast period. The Brazil market for dairy was affected by the trucker’s strike in May 2018, which led to a disruption in the feed delivery and collection of milk. Thus, this resulted in the decrease in its milk output in 2018 by 1.1%, as compared to 2017, attaining 34.9 million tonnes.

Market Analysis by Types and Regions:

  • Fluid/UHT/flavoured milk, cream, butter, anhydrous milk fat (AMF), skimmed milk powder, whole milk powder, whey protein (powder and concentrate), lactose, casein, cheese, yoghurt, ice-cream, and probiotic dairy products are the significant dairy products in the Latin America dairy market.
  • The major regional markets in the Latin America considered in the EMR reports are Brazil, Argentina, and Colombia.

Key Findings of the Report:

  • Expanding distribution channels for dairy aided by the growing supermarkets and hypermarkets in the region are driving the Latin America dairy market.
  • Cheese, milk and yoghurt are the leading dairy products in the Latin America area, with milk being a staple food for consumers across various income groups. 
  • In 2018, the cheese trade in South America witnessed an increase of 5.7%, as compared to 2017.
  • Dairy exports from Uruguay and Argentina is projected to increase in the forecast period.
  • Growing demand for traditional dairy products like requeijão cheese in Brazil is aiding the rising demand for processed cheese in the country.

Key Offerings of the Reports:

  • The EMR report offers a detailed analysis of the global as well as Latin America dairy markets for the periods (2017-2021) and (2022-2027).
  • The report gives the historical (2017-2021) and forecasted (2022-2027) market for the various dairy products in Latin America. 
  • It also provides an in-depth look into the regional market as well as price trends for the historical (2017-2021) and future (2022-2027) time periods.
  • It analyses the trade data of the global dairy market for the year 2018, looking into the value and volume of the major exporting and importing countries.

SanCor Cooperativas Unidas Limitada, Mastellone Hermanos SA, Nestle S.A., Lactalis Group, Alpina SA, Lacteos Betania SA are the key players in the Latin America dairy market as identified by EMR. The report by EMR takes a detailed look into their market share, capacity, and latest developments like expansions in capacity, plant turnarounds, and mergers and expansions.

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Expert Market Research (EMR) is a leading market research and business intelligence company, ensuring its clients remain at the vanguard of their industries by providing them with exhaustive and actionable market data through its syndicated and custom market reports, covering over 15 major industry domains. The company's expansive and ever-growing database of reports, which are constantly updated, includes reports from industry verticals like chemicals and materials, food and beverages, energy and mining, technology and media, consumer goods, pharmaceuticals, agriculture, and packaging.

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