Market Trends of south america dairy Industry
Rising health consciousness among consumers who actively seek protein-rich food products has largely impacted the segment
- The South American dairy market is primarily driven by rising health consciousness among consumers who actively seek protein-rich food products. Factors such as increasing government-run health and wellness campaigns designed to combat obesity-related problems (diabetes, high blood pressure, and heart disease) encourage consumers to purchase healthier products, directly boosting the consumption of dairy products.
- Cheese is one of the highest consumed dairy products due to its widespread usage in sandwiches, burgers, pizzas, pasta, etc., Thus, demand for higher-quality, better-tasting, and healthier, wholesome quality cheese has become a point of concern among consumers. For example, Argentine cheese is by far the most-produced dairy product in the country. Argentina is also the prominent Latin American country that consumes the most cheese. Thus, the per capita consumption of cheese is estimated to increase by 2.87% during 2023-2024.
- Within the South American region, Brazil dominates the overall dairy market with the highest consumption. There are currently an estimated 1,822 dairies in Brazil. In recent years, the production of cheese has increased mainly due to strong demand from household consumers and foodservice/restaurant sectors. In 2023, Brazilians consumed around 6.07 kilograms of cheese per person/year, which is almost more than 30% below the global average (according to the UN Food and Agriculture Organization - FAO), meaning there is much potential for consumption growth.
- The consumption of dairy products in countries like Peru, Paraguay, Ecuador, and Uruguay is expected to increase at a higher rate during the forecast period due to favorable initiatives from the government.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increasing processing units with the projection of domestic demand is plunging the production in South America
- Increased farmgate prices along with high production costs is impacting the milk production
- Increasing demand for cheese in various food service outlets couples with growth in cheese price is influencing the production
