Sri Lanka: Lactose Market 2024

Lactose Market Size in Sri Lanka

The Sri Lankan lactose market fell modestly to $X in 2022, which is down by -4.2% 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). Overall, consumption showed a mild decline. As a result, consumption reached the peak level of $X. From 2021 to 2022, the growth of the market failed to regain momentum.

Lactose Exports

Exports from Sri Lanka

In 2022, approx. X kg of lactose and lactose syrup were exported from Sri Lanka; with a decrease of -91.7% compared with the year before. In general, exports showed a abrupt descent. The pace of growth appeared the most rapid in 2020 when exports increased by 172%. Over the period under review, the exports reached the maximum at X tons in 2013; however, from 2014 to 2022, the exports failed to regain momentum.

In value terms, lactose exports shrank significantly to $X in 2022. Over the period under review, exports saw a drastic downturn. The pace of growth appeared the most rapid in 2020 when exports increased by 161% against the previous year. As a result, the exports attained the peak of $X. From 2021 to 2022, the growth of the exports remained at a lower figure.

Exports by Country

France (X kg) was the main destination for lactose exports from Sri Lanka, with a 69% share of total exports. Moreover, lactose exports to France exceeded the volume sent to the second major destination, the UK (X kg), threefold.

From 2012 to 2022, the average annual growth rate of volume to France amounted to +20.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: the UK (-5.9% per year) and Maldives (+3.4% per year).

In value terms, France ($X) emerged as the key foreign market for lactose and lactose syrup exports from Sri Lanka, comprising 67% of total exports. The second position in the ranking was taken by the UK ($X), with a 28% share of total exports.

From 2012 to 2022, the average annual growth rate of value to France amounted to +26.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: the UK (+2.0% per year) and Maldives (-8.7% per year).

Export Prices by Country

The average lactose export price stood at $X per ton in 2022, dropping by -32.7% against the previous year. Over the period under review, export price indicated a mild increase from 2012 to 2022: its price increased at an average annual rate of +1.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, lactose export price decreased by -42.5% against 2019 indices. The most prominent rate of growth was recorded in 2019 when the average export price increased by 76% against the previous year. As a result, the export price attained the peak level of $X per ton. From 2020 to 2022, the average export prices remained at a lower figure.

There were significant differences in the average prices for the major foreign markets. In 2022, amid the top suppliers, the country with the highest price was the UK ($X per ton), while the average price for exports to Maldives ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Qatar (+17.4%), while the prices for the other major destinations experienced more modest paces of growth.

Lactose Imports

Imports into Sri Lanka

Lactose imports into Sri Lanka declined markedly to X tons in 2022, with a decrease of -25.5% against the year before. In general, imports continue to indicate a pronounced shrinkage. The pace of growth was the most pronounced in 2020 when imports increased by 161%. As a result, imports reached the peak of X tons. From 2021 to 2022, the growth of imports remained at a lower figure.

In value terms, lactose imports totaled $X in 2022. Overall, imports recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 when imports increased by 176%. As a result, imports reached the peak of $X. From 2021 to 2022, the growth of imports failed to regain momentum.

Imports by Country

The Netherlands (X tons), Canada (X tons) and Germany (X tons) were the main suppliers of lactose imports to Sri Lanka, with a combined 52% share of total imports. India, New Zealand, Italy, France and the United States lagged somewhat behind, together comprising a further 47%.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +30.7%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the Netherlands ($X), Germany ($X) and India ($X) appeared to be the largest lactose suppliers to Sri Lanka, together accounting for 67% of total imports.

In terms of the main suppliers, India, with a CAGR of +24.0%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average lactose import price stood at $X per ton in 2022, jumping by 34% against the previous year. In general, import price indicated a noticeable increase from 2012 to 2022: its price increased at an average annual rate of +3.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, lactose import price increased by +113.6% against 2017 indices. The most prominent rate of growth was recorded in 2018 an increase of 35% against the previous year. The import price peaked in 2022 and is expected to retain growth in years to come.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was the United States ($X per ton), while the price for Canada ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Italy (+23.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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