Evaporated Milk Market Overview, 2025-30

The global evaporated milk market has witnessed steady growth in recent years, driven by rising demand for shelf-stable dairy products across both developed and emerging economies. The highest demand is concentrated in North America and Europe due to long-standing culinary uses and well-established distribution systems, while Asia-Pacific, is showing the fastest growth, fueled by expanding urbanization, rising incomes, and growing awareness of evaporated milk’s nutritional benefits. The availability of raw materials primarily fresh cow’s milk is a vital component of the production process, with nearly 60% of water removed from raw milk to create evaporated milk.

However, raw milk supply can be volatile due to factors such as fluctuating feed prices, droughts, disease outbreaks, and seasonal production shifts, all of which affect pricing and availability. Arla Foods amba, a cooperative owned by dairy farmers, also offers a variety of evaporated milk products. Their product portfolio includes high-quality evaporated milk used in numerous food applications, such as baking, cooking, and as an ingredient in ready-to-eat meals. The COVID-19 pandemic had a dual impact on the market. Initially, there was a sharp drop in demand from the foodservice sector due to lockdowns and restaurant closures, while supply chains were disrupted due to transport restrictions and workforce shortages. However, the household segment experienced a surge in demand as consumers turned to long-life pantry staples during lockdowns, resulting in increased retail sales of evaporated milk. The industry responded by shifting focus to e-commerce channels and single-serve packaging formats. 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.

According to the research report "Global Evaporated Milk Market Overview, 2030,", the Global Evaporated Milk market was valued at more than USD 5.90 Billion in 2030.The rising demand for shelf stable dairy products, especially in regions with limited refrigeration facilities, is a major driver. Evaporated milk, with its extended shelf life, offers a convenient alternative to fresh milk, making it popular in both household and commercial applications. Additionally, the increasing consumption of ready-to-eat and convenience foods, where evaporated milk is a common ingredient, supports market growth.

Furthermore, manufacturers are concentrating on clean-label formulations and eco-friendly packaging to aid in attaining campaign goals and public expectations. In the foodservice industry, evaporated and condensed milk continue to be mainstays due to their consistent composition. Businesses and retailers are improving focused market access by e-commerce as well as the growth of supermarket chains in urban and semi urban areas. the evolving consumer lifestyle, marked by rising urbanization, dual-income households, and busier schedules, all of which have created a strong appetite for convenient, ready-to-use ingredients like evaporated milk that can be easily added to tea, coffee, desserts, and savory dishes. The market has also benefited from expanding applications across various sectors including food processing, bakery and confectionery, infant nutrition, and foodservice. In response to this demand, manufacturers have launched new product lines such as low fat, lactose free, fortified, and organic evaporated milk to cater to health-conscious consumers, thereby broadening the market’s appeal. In May 2022, a new product, Barista Oat, the first plant based beverage of the corporation and a replacement for dairy based beverages, was introduced by Friesche Vlag, a FrieslandCampina affiliate. Customers' increasing need for plant-based substitutes is the reason for this.

Market Drivers

• Rising Demand for Shelf-Stable Dairy Products: The primary drivers of the global evaporative milk market is the increasing consumer demand for shelf-stable dairy products. In many developing and rural areas with limited access to refrigeration and cold chain infrastructure, evaporated milk provides a practical and safe alternative to fresh milk. Its long shelf life and ease of storage without refrigeration make it an ideal choice for households, food service establishments, and emergency food supply chains. Moreover, the rise in global urbanization and busy lifestyles has further amplified demand for ready-to-use, long-lasting dairy products. Consumers appreciate the convenience of evaporative milk in culinary applications such as baking, dessert preparation, and as a creamer substitute, boosting its adoption worldwide.
• Growth of the Food and Beverage Processing Industry: Another significant driver is the expansion of the food and beverage processing sector, particularly in emerging markets. Evaporated milk is widely used as an ingredient in processed food products, including confectionery, baked goods, beverages, sauces, and ready-to-eat meals. The growth of these industries has propelled demand for versatile dairy ingredients like evaporated milk that enhance texture, flavor, and nutritional content. Additionally, food manufacturers prefer evaporated milk due to its cost-effectiveness, consistent quality, and longer shelf life, which reduces waste and storage costs.

Market Challenges

• Growing Preference for Plant-Based Alternatives: One of the major challenges confronting the evaporative milk market is the rising popularity of plant-based and dairy-free alternatives. Health-conscious consumers, vegans, and lactose-intolerant individuals are increasingly shifting toward non-dairy milk options such as almond, soy, oat, and coconut milk. These alternatives are often perceived as healthier, more sustainable, and better aligned with animal welfare concerns. Traditional dairy products like evaporative milk face stiff competition in retail shelves and foodservice menus. This trend threatens to slow growth in regions with high health awareness and strong plant-based food movements, especially in North America and parts of Europe.
• Volatility in Raw Milk Prices and Supply Chain Disruptions: The global evaporative milk industry is heavily dependent on the consistent availability and pricing of raw cow’s milk. Fluctuations in milk prices, caused by changing weather patterns, feed costs, government regulations, and international trade dynamics, can significantly impact production costs and profitability. In addition, global supply chain disruptions such as those caused by the COVID-19 pandemic, geopolitical tensions, or shipping bottlenecks can hinder the timely availability of raw materials, packaging, and finished goods. These challenges not only affect manufacturers’ operational efficiency but can also lead to price instability in the market.

Market Trends

• Rising Demand for Clean Label and Fortified Products: A growing trend in the evaporative milk market is the increasing demand for clean label and nutritionally enriched products. Consumers are becoming more conscious of ingredient transparency and nutritional content, prompting manufacturers to innovate with fortification (e.g., vitamins A & D, calcium, protein) and remove additives, preservatives, or artificial ingredients. Clean-label evaporated milk appeals especially to health-focused consumers and parents looking for safe, natural nutrition for their families. This trend is pushing companies to reformulate their products while maintaining taste, texture, and shelf life, thereby opening up opportunities for product differentiation.
• E-commerce Expansion and Direct-to-Consumer Sales: Another key trend transforming the evaporative milk market is the expansion of e-commerce and digital retail platforms. With increasing internet penetration and consumer comfort with online shopping, evaporative milk brands are leveraging direct-to-consumer (D2C) models and online grocery stores to reach broader audiences. This trend accelerated post-pandemic and is especially notable in urban markets where convenience and doorstep delivery are highly valued. Online platforms also enable product variety, subscription-based deliveries, and access to niche brands that may not be widely available in physical stores, enhancing market reach and competition.

The growing preference for low-fat and health-conscious dairy options is driving the demand for skimmed evaporative milk in the global evaporative milk industry.

The rising popularity of skimmed evaporative milk globally is primarily fueled by a significant shift in consumer dietary habits toward healthier and lower-fat food products. In an age where lifestyle-related health issues such as obesity, cardiovascular diseases, and high cholesterol are increasingly prevalent, consumers are making more informed dietary choices. Skimmed evaporative milk, with its reduced fat content compared to whole milk, offers a desirable alternative for health-conscious individuals without compromising on nutritional value. It retains essential nutrients like protein, calcium, and vitamins while minimizing saturated fat intake.

This makes it especially appealing to consumers managing weight, heart health, or specific dietary needs, including those on low-fat or calorie-controlled diets. Moreover, food manufacturers and the foodservice industry are also leveraging skimmed evaporative milk in various product formulations such as bakery items, ready meals, confectionery, and beverages where reduced-fat ingredients are preferred for health labeling. The clean-label movement and growing demand for fortified, functional food products have further supported this trend, as skimmed milk is often enriched with additional nutrients like vitamin D or A to enhance its health benefits. Additionally, rising urbanization and higher disposable incomes in emerging economies have expanded access to packaged, shelf-stable dairy products, including skimmed evaporative milk. Increased awareness through digital health platforms, nutrition campaigns, and wellness influencers is reinforcing positive perceptions of low-fat dairy globally. Meanwhile, regulatory recommendations and dietary guidelines by health organizations encouraging lower saturated fat consumption also promote the adoption of skimmed variants over full-fat ones.

The rising consumer preference for convenience, coupled with increasing internet penetration and digital retail infrastructure, is driving the growth of online distribution in the global evaporative milk industry.

The expansion of online distribution in the global evaporative milk industry is being propelled by a confluence of digital transformation, changing consumer behaviors, and logistical advancements. As consumers increasingly seek convenient, time-saving shopping experiences, e-commerce platforms have become vital channels for purchasing everyday essentials, including dairy products like evaporative milk. The surge in smartphone usage, improved access to high-speed internet and the proliferation of user-friendly grocery apps and websites have made it easier than ever for consumers to shop from the comfort of their homes.

This shift became even more pronounced during and after the COVID-19 pandemic, when health and hygiene concerns prompted many to switch to online grocery shopping, reinforcing a lasting behavioral change. For evaporative milk, which is shelf-stable and non-perishable, online channels offer a perfect match products can be stored, transported, and delivered without complex cold chain logistics, making inventory management simpler and more cost-effective for e-retailers. Moreover, online platforms allow manufacturers to showcase a wider range of product variants (such as whole, skimmed, or flavored evaporative milk), offer discounts, bundle deals, and reach targeted consumer segments more effectively through digital marketing. Subscriptions and auto-refill options have also gained traction, especially in urban areas, where busy lifestyles and rising demand for convenience have led to recurring online purchases of household staples. Global players and regional dairy brands alike are investing in omnichannel strategies, integrating their direct-to-consumer (DTC) websites and listings on e-commerce giants like Amazon, Walmart, and Alibaba to tap into this growing demand.

The Asia Pacific region is growing in the global evaporative milk industry primarily due to rising demand for shelf-stable dairy products driven by expanding urban populations, increasing middle-class income levels, and evolving food consumption habits.

The Asia Pacific region has emerged as a significant growth contributor in the global evaporative milk industry due to a combination of demographic, economic, and lifestyle factors. One of the central drivers is the rapid urbanization taking place across key countries such as India, China, Indonesia, and Vietnam, where millions of people are moving into cities and adopting more modern food consumption habits. In urban areas where fresh milk availability may be inconsistent or expensive, evaporative milk serves as a convenient, long-shelf-life alternative that does not require refrigeration until opened.

This has made it especially attractive for middle-income families and working professionals seeking ready-to-use dairy ingredients for beverages, desserts, and everyday cooking. Rising disposable incomes in the region have also allowed more consumers to access packaged and value-added dairy products, which were previously considered niche or luxury items. Moreover, traditional cuisines in many Asia Pacific cultures already incorporate dairy in forms that are compatible with evaporated milk, such as milk-based sweets in India or milk tea in Southeast Asia, further facilitating its integration into daily consumption patterns. The growing retail infrastructure, including the expansion of supermarkets, convenience stores, and e-commerce platforms, is increasing the accessibility of evaporated milk across both metropolitan and semi-urban areas. Simultaneously, food manufacturers and bakeries are increasingly using evaporated milk as a cost-effective and consistent dairy ingredient in processed food products, desserts, and beverages. Health-conscious trends have also played a role, with some manufacturers offering low-fat or fortified evaporated milk variants targeting parents and children.

• In October 2024, Arla Foods introduced two new products under its Dano brand: Dano Full Cream and Dano Cool Cow evaporated milk. This aims to meet Nigeria's increasing demand for healthy dairy options.
• In June 2024, Nestlé's Carnation brand introduced Carnation Kickin' Jalapeño Flavored Evaporated Milk, an innovation to enhance mac and cheese. Developed in collaboration with TikTok chef Tini Younger, this limited-edition product will be available just ahead of National Mac and Cheese Day.
• In May 2022, F&N Dairies (Thailand) Limited introduced a new sweet potato-flavored variant of its Teapot Sweetened Condensed Milk in a tube format, aimed at home chefs for dessert preparation. This launch follows earlier releases of the TEAPOT product in strawberry, matcha, and mango flavors.