Dairy products and alternatives in 2025: The big picture
The outlook for dairy sales in Uruguay is positive, supported by a strong macroeconomic environment following the administration of former President Lacalle Pou and the inauguration of Yamandú Orsi in March 2025. According to IMF estimates, the Uruguayan economy is expected to grow by 3%. After overcoming the severe impact of the Argentine crisis, the economy regained momentum in 2024, with simultaneous growth in wages and employment. A further boost to the local industry came in March 2024 when Argentina significantly appreciated its official exchange rate, leading to an immediate increase in prices and improving the competitiveness of Uruguayan products.
Key trends in 2025
The decline in liquid milk is driven by a decline of fresh milk, as consumers switch to a shelf stable milk due to a reduced-price gap between the two milk types, as well as increased consumption of yoghurt and chocolate milk. The health and wellness trend is increasing in the country, along with interest in plant-based milk due to health, sustainability and animal welfare concerns. Almond, oat, and rice milk are growing strongly, although they are only affordable for higher-income consumers.
Competitive Landscape
The national company Conaprole (Cooperativa Nacional de Productores de Leche) continues to dominate dairy products and alternatives, capturing nearly half of all sales in 2025. Conaprole leads several categories, including butter and spreads, drinking milk products, yoghurt and sour milk products, and cheese and other dairy products, albeit with slightly lower penetration in some areas. As a long-established player with a robust distribution network, Conaprole has secured a strong position in Uruguay’s dairy products and alternatives market. The company has increased its investment in premium probiotic dairy options, such as Vital+ and Bio Transit, and with Low Col, which offers cholesterol-lowering benefits. It is noteworthy that Conaprole is diversifying its businesses outside of dairy, with significant growth in frozen hamburgers and fries (Simplot), frozen desserts, and frozen bread.
Channel developments
Small local grocers, including mom and pop stores and a wide range of kiosks, remain the leading distribution channel for dairy products and alternatives in Uruguay in 2025 due to their widespread presence in both key cities and small towns in the interior of the country. In order to attract consumers and compete with modern grocery retailers, small local grocers are expected to partner with delivery apps in the short term.
What next for dairy products and alternatives?
Over the forecast period, the dairy products and alternatives market in Uruguay is expected to experience moderate growth in both volume and value terms. This outlook reflects a more cautious economic forecast following the election of Yamandu Orsi as Uruguay’s new president in March 2025. The political shift - from the pro-market government of former president Luis Lacalle Pou to the left-wing Frente Amplio coalition - is significant.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Uruguay 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 Uruguay, 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 Uruguay 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 Uruguay?
- Which are the leading brands in Dairy Products and Alternatives in Uruguay?
- How are products distributed in Dairy Products and Alternatives in Uruguay?
- 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 Uruguay?
- 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 Uruguay
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
Baby Food in Uruguay
KEY DATA FINDINGS
Parents prefer not to feed their children industrially processed foods
Nestlé de Uruguay dominates with its strong Nestum and Nan brands
E-commerce gaining ground
Adverse demographic trends and more mothers breastfeeding dampen demand
Multinationals set to maintain their lead
Hybrid working impacts further growth of milk formula
Butter and Spreads in Uruguay
KEY DATA FINDINGS
Bolstered butter demand
Conaprole leads thanks to its strong presence in butter
Expansion of modern grocery retailers
Diversification to cater to evolving consumer tastes and preferences
Cooking fats will remain insignificant
Anticipated launch of ghee
Cheese in Uruguay
KEY DATA FINDINGS
Growth driven by improved purchasing power and decline in cross-border shopping
Conaprole leads a fragmented category
Small local grocers lose ground to modern grocery retailers
Cheese sales to benefit from a decline in cross-border shopping
Spreadable cheese growth driven by innovation
Private label expansion expected
Drinking Milk Products in Uruguay
KEY DATA FINDINGS
Growing demand for lactose-free options
Conaprole leads, while Parmalat strengthens its position with the acquisition of Granja La Pocha
Supermarket expansion impacts traditional retail stores
Shift toward more premium and convenient options
Lactose-free drinking milk and products enriched with protein to gain ground
Trend toward consolidation
Yoghurt and Sour Milk Products in Uruguay
KEY DATA FINDINGS
Growth supported by price increases below cost levels
Conaprole’s leadership may weaken as Danone grows
Supermarkets gain ground, acquiring mom and pop stores
Rising demand for functional products
Plain yoghurt as a healthy alternative to cream and a nutritious snack
Drinking yoghurt benefits from its low price
Other Dairy in Uruguay
KEY DATA FINDINGS
Growth driven by flavoured condensed milk (dulce de leche)
Conaprole leads despite losing ground as Claldy recovers
Small local grocers lose ground to expanding supermarkets
Health trends curtail growth
Home-cooking trends sustain demand for cream and flavoured condensed milk
Health consciousness and limited options impact coffee whiteners
Plant-Based Dairy in Uruguay
KEY DATA FINDINGS
Rising consumer interest and range expansion fuel dynamic growth
Ades re-enters the market in March 2025
Supermarkets lead, supported by a well-developed refrigeration infrastructure
Strong growth potential of an underdeveloped market
Greater inclusion of plant-based products in foodservice menus
Modern grocery retailers to drive growth of new categories
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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