Dairy products and alternatives in 2025: The big picture
The country’s GDP is expected to climb 3.6% in 2025, placing it among the strongest economies in the region. In this regard, the World Bank (WB) updated its global economic projections and placed Paraguay as the second-fastest-growing economy in 2025, behind Argentina. Consequently, income levels will rise and living standards will improve once more, resulting in the further expansion of the middle class and a further erosion of poverty.
Key trends in 2025
Dairy products and alternatives is set to have a good year in 2025 on the back of a positive economic scenario. These products are set to see a solid rebound after a steep decline suffered by Ades production in 2024. Other plant-based milk is set to see a considerable increase in popularity, although this will be from a small base. Despite the availability of several flavours such as oat, coconut or peanuts, almond is by far the most popular option among Paraguayans.
Competitive Landscape
Cooperativa La Holanda Ltda, with its brand Lactolanda, is set to retain its lead in sales of dairy products and alternatives in 2025. The company has a solid and strong presence in the country compared to the rest of the competitors. Capitalising on the solid position of its Lactolanda brand in both modern grocery retailers and small local grocers, the company is increasing its prices well below those of its competitors and investing in marketing activities in leading supermarkets, such as Super 6. Over the review period, the company also inaugurated its third powder milk factory, tripling its production capacity. With an investment around USD20 million, the new factory will be focused on external markets rather than domestic. Moreover in 2025, 400 dairy producers, grouped together in the La Holanda Cooperative in the Caaguazú Department, Campo 9, making multimillion-dollar investments to shift from a traditional production model to a fully technological one.
Channel developments
Sales of dairy products and alternatives are mostly driven by small local grocers, where these products are often bought for weekly consumption. The majority of these sales are undertaken in despensas (small local grocers) which have a wide presence in urban centres as well in the interior of the country, while those consumers buying dairy alternatives in convenience stores usually acquire mid-priced or premium brands. Most of the population visits small local grocers to buy daily supplies. In turn, most small local grocers buy their supplies from outdoor markets and remain important to consumers because they offer goods on credit to people they know well.
What next for dairy products and alternatives?
The expansion of GDP in 2025 and for the remainder of the forecast period, together with low inflation rates, will play a key role in the consumption of dairy products and alternatives over the forecast period. Purchasing power and employment are set to rise while increased urbanisation should enable more of the population to afford products beyond their primary necessities. Sales of dairy products and alternatives are therefore set to increase over the forecast period, although macroeconomic growth could slow compared to the review period. Per capita consumption of dairy products is low in Paraguay compared with Latin America and there is still plenty of room for growth.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Paraguay with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Paraguay, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Paraguay report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Paraguay?
- Which are the leading brands in Dairy Products and Alternatives in Paraguay?
- How are products distributed in Dairy Products and Alternatives in Paraguay?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Paraguay?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Paraguay
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Key Data Findings
2025 Developments
Moderate sales growth of baby food on the back of increasing penetration of milk formula
La Quimica Farmaceutica (Danone) retains the lead but loses ground to Nestlé
Health and beauty specialists retains strong lead though supermarkets gains ground
Prospects and Opportunities
Forecast period growth of baby food is in line with economic development
Greater product segmentation, diversification and potential for fortified/functional baby food
Intensifying competition leads to ongoing dynamism of baby food
Category Data
Key Data Findings
2025 Developments
Moderate growth of dairy driven by the popularity of fresh milk and cheese
Cooperativa La Holanda’s leadership threatened by Cooperativa Chortitzer Ltda acquisition
Small local grocers retains the outright lead but loses ground to supermarkets
Prospects and Opportunities
Continuous forecast period sales growth benefits from a reduction in illegal sales
New launches with fortified or functional benefits prove increasingly popular
Retail e-commerce remains nascent in Paraguay for sales of dairy over the forecast period
Category Data
Key Data Findings
2025 Developments
Sales grow at high speed thanks to strong rebound of the Ades brand
Paraguay Refrescos SA (Coca-Cola) retains the outright lead thanks to the strength of the Ades line
Modern grocers lead on the back of strong price promotional activity
Prospects and Opportunities
Strong forecast period growth of plant-based dairy, though from a low base
Stronger competition makes prices more accessible to medium and low income social groups
Plant-based yoghurt and plant-based cheese remain negligible
Category Data
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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