Evaporated Milk Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Product Type (Skimmed, Whole), By Sales Channel (Supermarket/Hypermarket, Convenience Stores, Online, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.93 Billion
CAGR (2026-2031)	2.73%
Fastest Growing Segment	Online
Largest Market	Europe
Market Size (2031)	USD 6.97 Billion

Market Overview

The Global Evaporated Milk Market will grow from USD 5.93 Billion in 2025 to USD 6.97 Billion by 2031 at a 2.73% CAGR. Evaporated milk is a concentrated, shelf-stable dairy product manufactured by removing approximately 60% of the water content from fresh milk, followed by homogenization and sterilization. The market’s expansion is fundamentally supported by the product's longevity and lack of refrigeration requirements, which are critical in regions with developing cold chain infrastructures. Furthermore, the versatile application of evaporated milk in the bakery, confectionery, and beverage sectors continues to drive steady demand globally.

Recent data indicates a recovery in production volumes following previous contractions. According to the International Dairy Federation, in 2024, global production of condensed milk increased by 1.4% during the preceding year, with the European Union and the United States representing nearly half of the total market. However, the industry faces a significant challenge regarding the shifting consumer preference toward fresh milk and plant-based alternatives, which could impede future market expansion in mature economies.

Key Market Drivers

The expansion of the global bakery, confectionery, and beverage industries serves as a primary catalyst for the evaporated milk market, driven by the product's critical role in enhancing texture and flavor. Evaporated milk is increasingly utilized as a creamy, cost-effective substitute for fresh milk and cream in culinary preparations, particularly in the production of custards, soups, and milk-based teas prevalent in Asian markets. This robust commercial uptake is evident in recent industry performance; according to Fraser & Neave, Limited, December 2024, in the 'Annual Report 2024', the company’s TEAPOT brand achieved a 40% growth rate during the fiscal year, significantly outperforming the broader category due to targeted engagement with beverage and bakery operators.

Simultaneously, the necessity for shelf-stable dairy in regions with limited cold chain infrastructure remains a critical determinant of market demand. In many developing economies across Latin America and Southeast Asia, evaporated milk acts as a vital source of dairy nutrition that withstands ambient storage conditions, thereby mitigating spoilage risks associated with inadequate refrigeration. Highlighting this reliance, according to the USDA Foreign Agricultural Service, March 2025, in the 'Food Processing Ingredients Annual' report for Peru, evaporated and condensed milk collectively account for almost 45% of the country’s total dairy market share. Furthermore, broader regional demand continues to rise; according to the USDA Foreign Agricultural Service, November 2025, in the 'Philippines: Dairy and Products Annual' report, total dairy demand is projected to increase by 1.5% to reach 3.5 million metric tons in 2026, underscoring the sustained consumption of dairy products in key import-dependent markets.

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Key Market Challenges

The shifting consumer preference toward fresh milk and plant-based alternatives poses a substantial barrier to the growth of the Global Evaporated Milk Market, particularly in developed regions. As consumers increasingly prioritize products perceived as fresher, less processed, or more environmentally sustainable, the demand for shelf-stable dairy concentrates has waned. Shoppers in mature economies are substituting traditional evaporated milk in coffee and cooking with fresh liquid milk or plant-derived options like oat and almond beverages. This behavioral change reduces the frequency of purchase for evaporated milk, relegating it from a daily necessity to an occasional baking ingredient, thereby stalling volume growth in high-value markets.

This trend has resulted in a tangible plateau in manufacturing output within major dairy sectors. According to the European Dairy Association, in 2024, the production of condensed milk in the European Union remained stagnant at 1.000 million tonnes, showing no growth compared to the previous year. This stagnation in such a pivotal market underscores how evolving dietary habits are directly neutralizing expansion efforts, effectively creating a ceiling for the industry's performance despite gains in other regions.

Key Market Trends

The Transition to Sustainable and Resealable Packaging Formats is fundamentally reshaping manufacturing priorities as producers move away from traditional metal cans to lower carbon alternatives. Leading dairy companies are aggressively adopting renewable, fiber-based cartons to meet stringent environmental targets and consumer demand for eco-friendly products. This shift not only reduces the overall carbon footprint of the supply chain but also introduces user-friendly features like resealable caps, addressing the storage limitations of single-use tins. The scale of this industrial pivot is evident in recent environmental performance metrics; according to Tetra Pak, June 2025, in the 'Sustainability Report FY24', the company achieved a 25% reduction in greenhouse gas emissions across its value chain compared to its 2019 baseline, driven largely by the widespread implementation of resource-efficient processing and packaging solutions in the dairy sector.

Simultaneously, the Adoption of Value-Added Fortified Product Lines is revitalizing the sector by catering to health-conscious demographics and specialized nutritional needs. Manufacturers are increasingly differentiating their portfolios by enriching evaporated milk with essential proteins, vitamins, and minerals, moving the product beyond a basic commodity to a functional wellness ingredient. This premiumization strategy allows brands to capture higher margins and combat the commoditization of standard dairy concentrates. The financial impact of this strategic focus is significant; according to Arla Foods, August 2025, in the 'Half-year report 2025', the company’s ingredients division achieved a revenue increase of 53.7%, driven by surging global demand for value-added dairy proteins and functional formulations that underpin these next-generation fortified products.

Segmental Insights

The Online segment is identified as the fastest-growing distribution channel within the Global Evaporated Milk Market, primarily driven by the increasing consumer demand for convenience and efficient home delivery services. Widespread internet penetration and high smartphone usage have enabled shoppers to easily access a broader range of domestic and international dairy brands that are often limited in physical retail stores. Furthermore, substantial investments in e-commerce logistics by major retailers ensure product availability and competitive pricing, thereby accelerating the structural shift from traditional brick-and-mortar outlets to digital marketplaces.

Regional Insights

Europe maintains a leading position in the Global Evaporated Milk Market, primarily driven by its mature dairy infrastructure and substantial demand from the food processing sector. The region's dominance is underpinned by the extensive utilization of evaporated milk in the production of bakery items, confectionery, and ready-to-eat meals. Additionally, deep-rooted culinary traditions in key markets like the United Kingdom and Germany sustain consistent household consumption. This strong market foundation is reinforced by stringent quality control standards enforced by the European Food Safety Authority, which ensure product safety and foster high consumer confidence in European dairy manufacturing.

Recent Developments

• In May 2025, Promasidor Ghana officially expanded its footprint in the Global Evaporated Milk Market with the launch of "Cowbell Evaporated Milk." The new product was introduced to provide a creamy and fortified milk option suitable for various culinary applications, including tea, coffee, and baking. During the launch event, the Managing Director of Promasidor Ghana emphasized the company's dedication to innovation and its goal to offer affordable, high-quality dairy nutrition to Ghanaian families. This strategic expansion aimed to leverage the strong brand equity of Cowbell to capture significant market share in the regional evaporated milk category and complement its existing powder offerings.
• In November 2024, FrieslandCampina announced a strategic partnership with Hochwald, a German dairy cooperative, to optimize production networks within the Global Evaporated Milk Market. Under this multi-year agreement, FrieslandCampina committed to producing evaporated milk at its Leeuwarden facility for Hochwald. In return, Hochwald agreed to manufacture sweetened condensed milk for FrieslandCampina at its Bolsward plant starting in mid-2026. This collaboration allowed both companies to enhance operational efficiency and sustainability by consolidating specific production lines. The move was designed to secure their competitiveness in the dairy industry while ensuring a stable and high-quality supply of evaporated milk products for their respective markets.
• In October 2024, Arla Foods strengthened its position in the Global Evaporated Milk Market by introducing two new variants under its Dano brand in Nigeria. The launch featured "Dano Cool Cow" and "Dano Full Cream Evaporated Milk," which were unveiled at a major event in Lagos attended by industry stakeholders and trade partners. The Managing Director of Arla Foods Nigeria highlighted that these products were meticulously crafted to meet the specific nutritional needs and taste preferences of local consumers. This strategic move aimed to deepen the company's penetration in the competitive West African evaporated milk sector and drive future growth.
• In June 2024, Nestlé Carnation expanded its presence in the Global Evaporated Milk Market by launching a new flavored variant designed to appeal to spicy food enthusiasts. The company introduced the "Kickin’ Jalapeño Flavored Evaporated Milk," marking the brand's first-ever flavor innovation in this specific category. This limited-edition product was developed in collaboration with a popular social media chef and was specifically marketed to enhance mac and cheese recipes. The launch included special kits sold exclusively online, capitalizing on digital engagement trends to revitalize the classic evaporated milk market and attract younger consumers to the brand's established portfolio.

Key Market Players

• Nestlé S.A.
• Dana Dairy Group LTD
• Arla Foods amba
• Fraser and Neave, Limited
• Alaska Milk Corporation
• Yotsuba Milk Products Co., Ltd.
• Royal FrieslandCampina N.V
• Delta Food Industries FZC
• Alokozay Group
• Eagle Family Foods Group LLC

By Product Type	By Sales Channel	By Region
Skimmed Whole	Supermarket/Hypermarket Convenience Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Evaporated Milk Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Evaporated Milk Market, By Product Type:

• Skimmed
• Whole

• Evaporated Milk Market, By Sales Channel:

• Supermarket/Hypermarket
• Convenience Stores
• Online
• Others

• Evaporated Milk Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE