Evaporated Milk Market Size, Share & Trends Analysis Report By Distribution Channel (Online, Offline), By Type (Skimmed, Whole), By Region, Competitive Landscape, And Segment Forecasts, 2019 - 2025

Report Overview

The global evaporated milk market size to be valued at USD 5.8 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 2.3% during the forecast period. Market growth can be attributed to factors such as wide scope in the downstream application industry, high nutrition value, long shelf life, and affordable price. Evolving culinary trends are also boosting demand for evaporated milk in household applications.

Also called dehydrated milk, evaporated milk has numerous health benefits over the regular kind. While approximately 60% of the milk’s water content is removed during the preparation of this product, all other nutritional benefits are retained. The product is then homogenized, canned, and sterilized, while also fortifying it by adding nutrients like vitamin D. Evaporated milk also contains iron, calcium, and vitamin C and A, rendering it more nutritious than other variants, such as fresh, powdered, or condensed milk.  

Market growth is also attributed to demand for milk in countries where product supply is insufficient and not of adequate quality. In regions where refrigeration is not reliable, evaporated milk serves as a good alternative to the regular variant as there is no risk of spoilage or illness that is generally caused by the consumption of expired dairy products. The evaporated variants are also cheaper than dairy whiteners and as a result, are favored by consumers as well as foodservice operators.

Evaporated milk is also a convenient option while traveling, trekking, and camping. Primarily, this product does not need to be refrigerated and has a much longer shelf life. Moreover, it is easier to transport as it is light, is not messy, and does not require any special container packaging. On the downside, however, considering evaporated milk is a by-product of regular milk, any fluctuations in the price of the upstream product will affect the cost of production of evaporated milk. This can act as a major restraint on market growth.

Evaporated Milk Market Trends

Unsweetened condensed milk, often known as evaporated milk, is a shelf-stable product prepared from canned cow's milk. This milk has 60% of its water removed. It comes in liquid and has a storability of about 1.5 to 2 years. The greater nutritious value of this milk in comparison to ordinary milk is expected to drive the market.

The requirement for evaporated milk in the worldwide evaporated milk industry is increasing for domestic reasons. The food and beverage industries are also seeing an increase in demand for this milk. Evaporated milk is often used in the food industry and the production of milk-based beverages. The makers are introducing new evaporated milk products in response to the growing demand for organic products. To meet the needs of a diverse customer base, this milk is available in a variety of container types. These factors are expected to drive the market.

The volatility of normal milk pricing is expected to hinder industry growth. In addition, evaporated milk also contains more protein and lactose per volume than ordinary milk. As a result, lactose-intolerant persons cannot consume it. This further limits market expansion.

With the increasing veganism trend in developed and developing countries, global demand for dairy-free evaporated milk is expanding. Therefore, creating opportunities to increase industry demand.

Type Insights

By type, the market is segmented into skimmed and whole. Whole evaporated milk accounted for the largest share of just over 58.0% in 2018. This variant is widely used in the confectionery industry. It is often used in gravies, soups, quiches, béchamel sauce, and other products as it has a creamy texture and taste without the sweetness of condensed milk. Rising demand for low-sugar confectionery products among health-conscious consumers spurs preference for whole milk over skimmed. The skimmed evaporated product segment is expected to exhibit the highest CAGR of 2.5% over the forecast period. It is generally used as an alternative to regular milk in the production of dairy products like ice cream, yogurt, and other frozen desserts.  

Distribution Channel Insights

The evaporated milk market is bifurcated into online and offline platforms by distribution channel. Offline distribution channels accounted for the largest share of more than 74.0% in 2018. High dependency of consumers on retail channels, a large number of consumers, and easy availability of the product in these stores is driving the offline channel. Developed countries have a high density of grocery retail stores as well as small independent grocers where the products are easily available. The rising number of organized retailing outlets like hypermarkets, supermarkets, convenience stores, and mixed retailers is expected to boost segment growth.

Online distribution channels are estimated to emerge as the fastest-growing segment with a CAGR of 2.7% over the forecast period. Factors such as an increase in consumer awareness regarding companies’ online presence, widespread penetration of the internet across the globe, availability of various discounts and offers, and access to product information, specifications, and usage tutorials are driving online sales of evaporated milk. A booming e-commerce sector, especially in developing economies, is supporting the growth of this segment.

Regional Insights

Europe is the largest regional market for evaporated milk and accounted for a share of over 31.0% in 2018 and is expected to register a CAGR of 2.4% over the forecast period owing to a growing demand for dairy products with low sugar and fat content. This is driven by mandatory controls on unhealthy food as laid down by the British Retail Consortium (BRC). The U.K. is the largest as well as the fastest-growing market in the region and accounted for close to 12.0% of the market in 2018. Growing concerns among consumers regarding sugar content in food and beverage products, supported by the government’s move to tax high sugar foods have compelled manufacturers of confectionery products and dairy desserts to reduce sugar content in their products, creating an opportunity for market growth in the region over the forecast period.

Asia Pacific is estimated to be the fastest-growing regional market with a CAGR of 2.7%. This can be attributed to the high demand for milk alternatives from developing countries such as Malaysia and Thailand. Growing consumption of evaporated milk as an alternative to the regular kind in tea and coffee is a key factor boosting demand. Apart from these, factors like changing dietary patterns, economic growth, growing confectionery industry, and supportive government regulations are expected to boost regional growth through 2025.

Key Companies & Market Share Insights

Major market players include Nestle, Arla, DANA Dairy, Fraser and Neave, Friesland Campina, Delta Food Industries FZC, Alaska Milk, Yotsuba Milk Products, Alokozay Group, and Eagle Family Foods. New product launches and the establishment of a strong supply chain by means of strategic partnerships with distributors are expected to remain crucial success factors. Rising concerns over the price of milk on account of fluctuating climate patterns and reducing cattle yield are projected to remain a crucial challenge to producers of evaporated milk in the near future.

Recent Developments

• In May 2022, Arla foods, an international dairy company made a huge dairy investment by inaugurating a new plant at Pronsfeld dairy, Germany. This investment has been done to meet the international demand for affordable, sustainable, and nutritious dairy products.

• In May 2022, Friesche Vlag, a subsidiary of FrieslandCampina launched a new product, Barista Oat, the first plant-based beverage of the company which is a substitute for dairy-based beverages. This is done due to the growing demand of customers for plant-based alternatives.

Evaporated Milk Market Report Scope

Global Evaporated Milk Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global evaporated milk market report on the basis of type, distribution channel, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)

  • Skimmed

  • Whole

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • U.S.

  • Europe

    • France

    • U.K.

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • UAE