Updated Mar 9, 2023 01:27

Market for Sweetened Condensed And Evaporated Milk in Argentina

Market Overview
In , the Argentinian market for condensed or evaporated milk (sweetened) increased by % to $, rising for the third consecutive year after two years of decline. Over the period under review, consumption posted pronounced growth. Over the period under review, the market attained the peak level at $ in 2017; however, from 2018 to , consumption remained at a lower figure.

In value terms, sweetened condensed and evaporated milk production amounted to $ in estimated in export price. In general, production, however, saw a pronounced curtailment. The pace of growth appeared the most rapid in 2013 when the production volume increased by %. Over the period under review, production reached the maximum level at $ in 2008; however, from 2009 to , production remained at a lower figure.


Consumption
For the fourth year in a row, Argentina recorded growth in consumption of condensed or evaporated milk (sweetened), which increased by % to tons in . Overall, consumption enjoyed resilient growth. Sweetened condensed and evaporated milk consumption peaked at tons in 2017; however, from 2018 to , consumption stood at a somewhat lower figure.

The value of the market for condensed or evaporated milk (sweetened) in Argentina skyrocketed to $ in , jumping by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption recorded moderate growth. Sweetened condensed and evaporated milk consumption peaked at $ in 2017; however, from 2018 to , consumption failed to regain momentum.


Market Forecast
Driven by increasing demand for condensed or evaporated milk (sweetened) in Argentina, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Sweetened condensed and evaporated milk market in Argentina remained dependent on supplies from foreign countries. In , the share of imports in total consumption was % in value terms and % in physical terms. Affected by an intensive growth in domestic production, which will gradually displace imported products from the market, the share of imports decreased from % in 2007 to % in . Argentina domestic supply is expected to continue its growth.


Trade Balance
Argentina remains a net exporter of sweetened condensed and evaporated milk; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.