Argentina's Dulce de Leche: A National Treasure with Global Opportunities

Introduction

Dulce de leche, a staple of Argentine cuisine, is not only a local favorite but also a product that is gradually making its mark worldwide. Despite its increasing popularity, the lack of a protected designation of origin poses challenges and opportunities for growth in international markets.

Production and Export

Argentina produces between 125,000 and 130,000 tons of dulce de leche annually, with exports averaging 4,000 to 4,300 tons mainly for industrial use. The product brought in approximately $7.7 million in 2023, accounting for 0.4% of Argentina's dairy exports.

Market Dynamics

The absence of a protected designation of origin for dulce de leche allows for imitations to be made and sold globally under different names such as arequipe in Venezuela and Colombia, and manjar in Chile and Peru. This situation presents both a threat and an opportunity for Argentine manufacturers in the global market.

International Presence

Companies like San Ignacio lead Argentine exports, reaching countries such as Japan and Vietnam, where they have no local competitors. The company emphasizes educational marketing strategies to introduce dulce de leche to new consumers.

Challenges and Opportunities

The global market for dulce de leche is considered premium, with growth potential in industrial and domestic consumption segments. However, high logistics costs, low competitiveness, and export taxes of 4.5% are significant hurdles for expanding into new markets.

Conclusion

While dulce de leche faces challenges due to the lack of a designation of origin, it remains one of Argentina's most treasured culinary exports. The potential for growth is significant, provided that producers can navigate the complexities of international markets and educate consumers about its unique qualities.