Evaporated Milk Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Evaporated Milk Market is projected to expand from USD 5.93 Billion in 2025 to USD 6.97 Billion by 2031, reflecting a CAGR of 2.73%. This concentrated dairy staple is produced by eliminating roughly 60% of fresh milk's water content before undergoing homogenization and sterilization. The market’s growth is anchored by the product's extended shelf life and stability without refrigeration, features that are indispensable in areas with inadequate cold chain logistics, while its widespread use in bakery, confectionery, and beverage applications continues to fuel global demand.

Recent industry metrics suggest a rebound in production levels following prior declines. According to the International Dairy Federation, global condensed milk production rose by 1.4% in 2024 compared to the preceding year, with the United States and European Union comprising nearly 50% of the total market share. Nevertheless, the sector encounters significant headwinds due to evolving consumer preferences favoring fresh milk and plant-based substitutes, a trend that threatens to hinder market growth in developed economies.

Market Drivers

The growth of the global bakery, confectionery, and beverage sectors acts as a primary propellant for the evaporated milk market, largely due to the product's ability to enhance flavor and texture. It is increasingly adopted as a creamy, economical alternative to fresh milk and cream, finding extensive application in Asian cuisines for custards, soups, and milk tea preparations. This strong commercial adoption is highlighted by Fraser & Neave, Limited; in their 'Annual Report 2024' published in December 2024, the company noted that its TEAPOT brand recorded a 40% growth rate for the fiscal year, significantly outpacing the broader category through strategic partnerships with beverage and bakery operators.

Concurrently, the need for non-perishable dairy options in areas lacking robust cold chain infrastructure remains a crucial driver of market demand. In many developing nations across Southeast Asia and Latin America, evaporated milk serves as an essential nutritional source that resists spoilage under ambient conditions. According to the USDA Foreign Agricultural Service's 'Food Processing Ingredients Annual' report for Peru in March 2025, evaporated and condensed milk comprise nearly 45% of the country’s total dairy market. Furthermore, the USDA Foreign Agricultural Service’s 'Philippines: Dairy and Products Annual' report from November 2025 projects total dairy demand to rise by 1.5% to 3.5 million metric tons in 2026, emphasizing the enduring reliance on these products in import-dependent regions.

Market Challenges

A significant obstacle to the Global Evaporated Milk Market is the growing consumer preference for fresh milk and plant-based alternatives, especially within developed regions. As shoppers increasingly prioritize items viewed as fresher, less processed, or more environmentally friendly, the appetite for shelf-stable dairy concentrates has diminished. In mature markets, consumers are replacing traditional evaporated milk in culinary and coffee applications with fresh liquid milk or plant-derived options such as almond and oat beverages, transforming the product from a daily staple into an infrequent baking ingredient and thereby limiting volume growth.

This shift in consumption has led to a noticeable stagnation in manufacturing output across key dairy sectors. According to the European Dairy Association, production of condensed milk in the European Union leveled off at 1.000 million tonnes in 2024, exhibiting no growth relative to the prior year. Such stagnation in a major market highlights how changing dietary patterns are directly counteracting expansion initiatives, effectively imposing a ceiling on industry performance despite progress in other geographical areas.

Market Trends

The industry is currently undergoing a significant transformation regarding packaging, shifting towards sustainable and resealable formats as manufacturers transition from traditional metal cans to lower-carbon alternatives. Major dairy corporations are actively adopting renewable, fiber-based cartons to align with strict environmental goals and consumer preferences for eco-friendly goods. This transition reduces the supply chain's carbon footprint and introduces convenient features like resealable caps, resolving the storage issues associated with single-use tins. According to Tetra Pak's 'Sustainability Report FY24' from June 2025, the company realized a 25% decrease in greenhouse gas emissions across its value chain compared to its 2019 baseline, a result driven largely by the sector's adoption of resource-efficient packaging solutions.

At the same time, the market is being revitalized by the introduction of value-added fortified product lines designed to meet specific nutritional needs and health-conscious trends. Manufacturers are differentiating their offerings by enriching evaporated milk with vitamins, minerals, and essential proteins, elevating the product from a standard commodity to a functional wellness ingredient. This premiumization approach enables brands to secure higher margins and counter the commoditization of basic dairy concentrates. According to Arla Foods' 'Half-year report 2025' released in August 2025, the company's ingredients division saw revenue surge by 53.7%, fueled by robust global demand for functional formulations and value-added dairy proteins that support these advanced products.

Key Players Profiled in the Evaporated Milk Market

• Nestle 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

Report Scope

In this report, the Global Evaporated Milk Market has been segmented into the following categories:

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
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Evaporated Milk Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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