Market Size of south america dairy Industry
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 54.12 Billion |
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Market Size (2029) | USD 70.45 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 5.42 % |
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Largest Share by Country | Brazil |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
South America Dairy Market Analysis
The South America Dairy Market size is estimated at 54.12 billion USD in 2024, and is expected to reach 70.45 billion USD by 2029, growing at a CAGR of 5.42% during the forecast period (2024-2029).
54.12 Billion
Market Size in 2024 (USD)
70.45 Billion
Market Size in 2029 (USD)
3.89 %
CAGR (2017-2023)
5.42 %
CAGR (2024-2029)
Largest Market by Category
37.12 %
value share, Milk, 2023
The milk market in South America is largely been impacted by the support from the government of different countries in the region, by encouraging investment from foreign multinational companies.
Largest Market by Country
62.01 %
value share, Brazil, 2023
The increased retail purchases of milk, cheese, butter, and other dairy products and increased domestic production, have entitled Brazil as the major dairy consuming country in the region
Fastest-growing Market by Category
6.27 %
Projected CAGR, Yogurt, 2024-2029
With the advent of functional products, and the emphasis on low-calorie, low-sugar, digestive products, the yogurt segment is anticipated to be the fastest segment in the forecasted period.
Fastest-growing Market by Country
5.63 %
Projected CAGR, Argentina, 2024-2029
Favorable weather, healthy herds, and improved performance of Argentinian dairy farms boosted milk production thereby, impacting the availability and consumption in the country.
Leading Market Player
6.35 %
market share, Nestlé SA, 2022
The active market activities such as product innovations, strategic moves applied by the company along with the growing portfolio is enabling company to grow in the market.
Widespread adoption of distribution channels, led by remarkable sales through supermarkets and hypermarkets is propelling the growth
- The off-trade segment dominates the distribution channels of the South American dairy market. In the off-trade segment, consumers prefer buying dairy products majorly from convenience stores, as people get discount coupons for bulk shopping. As a result, convenience stores are considered the primary sales channel for the sales of dairy products, as they hold more than 48.5% of the overall sales across the country.
- Supermarkets and hypermarkets are the second most widely preferred off-trade distribution channels after convenience stores for purchasing dairy products in South America. In 2022, supermarkets and hypermarkets accounted for 43.9% of the value share.
- Different supermarket and hypermarket chains like Grupo Exito, Carrefour, Walmart, and Jumbo offer different loyalty benefits to retain consumers. The growth of these retail formats, along with factors like business expansion and the increase in supermarkets and hypermarkets, has positively impacted the purchase of dairy products in South America. In 2021, Grupo Exito stood in the top place with more than 2,600 locations across South America. Carrefour stood in second place and operated more than 1,200 outlets across the region.
- Dairy products are commonly used in South American restaurants and foodservice channels, which is further boosting the market growth. Major restaurant chains in South America add milk, yogurt, and cheese to their menus. Dairy sales in the on-trade channel are anticipated to grow by 9% in 2025 compared to 2022. The growth is expected to be aided by consumers preferring dining out or ordering takeout.
Understand The Key Trends Shaping This Market
Brazil and Argentina are the major dairy producing countries of the South America which boost the overall region's volume sales
- The dairy industry in South America witnessed a growth of 3.24% in 2022. The growth was due to the rising consciousness about health, as dairy products offer a significant volume of essential nutrients. One cup of milk offers 3.4 grams of protein, 5 grams of carbohydrates, 0.6 grams of saturated fat, and other nutrients. This has led to an increased interest in dairy products as people seek to maintain a healthy diet. Thus, the dairy industry is expected to grow by 3.51% during the forecast period.
- Brazil holds the major share in the South American dairy industry. The rise of long-life milk has transformed the fresh milk industry in Brazil. Nowadays, rather than buying fresh milk every day, consumers purchase 12-liter packs and store them. The fact that many places in Brazil lack refrigeration has also boosted the geographical distribution of long-life milk across the country. In 2021, Brazil imported whey, milk albumin, and casein products worth USD 149 million. However, due to the challenges like high production costs and unpredictable weather and economic conditions, the dairy industry may face some hindrances during the forecast period.
- Demand for healthy dairy variants such as no or reduced sugar, low-fat content, grass-fed, and organic is anticipated to drive market growth in the region during the forecast period. Between 2018 and 2022, fresh dairy product consumption in Brazil rose by around 7%, reaching almost 76.8 kg per person in 2021. High production of raw milk, rising consumer preference for quality dairy products and adequate industry regulation to facilitate the manufacturing of these products are identified as the key driving factors.
South America Dairy Industry Segmentation
Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel. Argentina, Brazil are covered as segments by Country.
- The off-trade segment dominates the distribution channels of the South American dairy market. In the off-trade segment, consumers prefer buying dairy products majorly from convenience stores, as people get discount coupons for bulk shopping. As a result, convenience stores are considered the primary sales channel for the sales of dairy products, as they hold more than 48.5% of the overall sales across the country.
- Supermarkets and hypermarkets are the second most widely preferred off-trade distribution channels after convenience stores for purchasing dairy products in South America. In 2022, supermarkets and hypermarkets accounted for 43.9% of the value share.
- Different supermarket and hypermarket chains like Grupo Exito, Carrefour, Walmart, and Jumbo offer different loyalty benefits to retain consumers. The growth of these retail formats, along with factors like business expansion and the increase in supermarkets and hypermarkets, has positively impacted the purchase of dairy products in South America. In 2021, Grupo Exito stood in the top place with more than 2,600 locations across South America. Carrefour stood in second place and operated more than 1,200 outlets across the region.
- Dairy products are commonly used in South American restaurants and foodservice channels, which is further boosting the market growth. Major restaurant chains in South America add milk, yogurt, and cheese to their menus. Dairy sales in the on-trade channel are anticipated to grow by 9% in 2025 compared to 2022. The growth is expected to be aided by consumers preferring dining out or ordering takeout.
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South America Dairy Market Size Summary
The South American dairy market is experiencing a robust expansion, driven by increasing health consciousness among consumers who are actively seeking protein-rich food products. The market is predominantly characterized by the off-trade distribution channels, with convenience stores leading the sales due to their attractive bulk purchase discounts. Supermarkets and hypermarkets also play a significant role, offering various loyalty benefits to retain customers. The growth of these retail formats, alongside the rising demand for dairy products in restaurants and foodservice channels, is contributing to the market's upward trajectory. Brazil stands out as the dominant player in the region, with a significant shift towards long-life milk products, which cater to the lack of refrigeration in many areas. The demand for healthier dairy variants, such as low-fat and organic options, is further propelling market growth, as consumers increasingly prioritize quality and nutritional value.
The South American dairy industry is marked by a fragmented market structure, with major players like Danone SA, Groupe Lactalis, and Nestlé SA holding significant shares. The market's growth is supported by favorable government initiatives in countries like Peru, Paraguay, Ecuador, and Uruguay, which are expected to see higher rates of dairy consumption. Cheese remains one of the most consumed dairy products, with Argentina leading in production and consumption. The increasing production of cheese in Brazil, driven by strong demand from both household and foodservice sectors, highlights the potential for further consumption growth. Despite challenges such as high production costs and economic fluctuations, the market is poised for continued expansion, supported by strategic acquisitions and sustainable practices adopted by key industry players.
South America Dairy Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)
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1.1 Category
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1.1.1 Butter
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1.1.1.1 By Product Type
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1.1.1.1.1 Cultured Butter
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1.1.1.1.2 Uncultured Butter
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1.1.2 Cheese
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1.1.2.1 By Product Type
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1.1.2.1.1 Natural Cheese
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1.1.2.1.2 Processed Cheese
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1.1.3 Cream
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1.1.3.1 By Product Type
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1.1.3.1.1 Double Cream
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1.1.3.1.2 Single Cream
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1.1.3.1.3 Whipping Cream
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1.1.3.1.4 Others
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1.1.4 Dairy Desserts
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1.1.4.1 By Product Type
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1.1.4.1.1 Cheesecakes
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1.1.4.1.2 Frozen Desserts
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1.1.4.1.3 Ice Cream
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1.1.4.1.4 Mousses
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1.1.4.1.5 Others
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1.1.5 Milk
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1.1.5.1 By Product Type
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1.1.5.1.1 Condensed milk
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1.1.5.1.2 Flavored Milk
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1.1.5.1.3 Fresh Milk
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1.1.5.1.4 Powdered Milk
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1.1.5.1.5 UHT Milk
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1.1.6 Sour Milk Drinks
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1.1.7 Yogurt
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1.1.7.1 By Product Type
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1.1.7.1.1 Flavored Yogurt
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1.1.7.1.2 Unflavored Yogurt
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1.2 Distribution Channel
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1.2.1 Off-Trade
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1.2.1.1 Convenience Stores
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1.2.1.2 Online Retail
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1.2.1.3 Specialist Retailers
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1.2.1.4 Supermarkets and Hypermarkets
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1.2.1.5 Others (Warehouse clubs, gas stations, etc.)
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1.2.2 On-Trade
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1.3 Country
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1.3.1 Argentina
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1.3.2 Brazil
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1.3.3 Rest of South America
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South America Dairy Market Size FAQs
How big is the South America Dairy Market?
The South America Dairy Market size is expected to reach USD 54.12 billion in 2024 and grow at a CAGR of 5.42% to reach USD 70.45 billion by 2029.
What is the current South America Dairy Market size?
In 2024, the South America Dairy Market size is expected to reach USD 54.12 billion.
