Asia-Pacific Evaporated Milk Market Outlook, 2030

The Asia Pacific evaporated milk market has been experiencing steady growth, driven by a combination of rising urbanization, increasing disposable incomes, and evolving dietary preferences across major economies such as China, India, Japan, South Korea, and Southeast Asia. The demand for evaporated milk in the region is particularly strong due to its long shelf life and versatility in use across beverages, desserts, and baby food. Consumers in countries like China and India, where tea and coffee consumption is widespread, prefer evaporated milk as a convenient and nutritious additive. Similarly, in Southeast Asia, evaporated milk is a staple ingredient in many traditional dishes and drinks.

The growing middle class, along with a rising trend of home cooking and convenience-based food consumption, is fueling the demand further. From a production standpoint, countries like Malaysia, Singapore, and Vietnam lead in manufacturing evaporated milk, contributing significantly to the region’s output. Malaysia, in particular, has established itself as a key production hub due to strong dairy processing infrastructure and export orientation. However, not all Asia Pacific countries have the raw material base i.e., fresh milk availability required for large-scale production. Nations such as Japan and South Korea, with limited domestic dairy resources, rely heavily on imports or high-cost local procurement. This reliance on imports is reflected in the growing trade volumes, with the Philippines, Indonesia, and China among the top importers of evaporated and condensed milk in the region. Supply chain disruptions and transportation delays during the pandemic led to temporary shortages and increased volatility in pricing, yet also highlighted the importance of localized production and efficient distribution systems.

According to the research report, "Asia Pacific Evaporated Milk Market Outlook, 2030,", the Asia Pacific Evaporated Milk market c The growing café culture and expansion of the foodservice industry have further strengthened its usage. In addition to consumer demand, industrial usage is also climbing due to its application in processed foods and culinary innovations. Vietnam and Australia have also emerged as fast-growing production zones, registering high year-on-year growth in production volumes. However, raw material availability remains a challenge in many parts of the region.

Countries like Japan and South Korea struggle with limited dairy farming, making them reliant on imports of either raw milk or finished evaporated milk products. This has led to increased imports by countries such as the Philippines, China, and Indonesia, all of which have shown strong double-digit growth in evaporated milk imports over the last few years. Health-conscious reforms are pushing producers to innovate with sugar-reduced, lactose-free, and nutrient-enhanced products to meet evolving consumer expectations and regulatory benchmarks. India, for instance, is ramping up its local dairy sector through government support and public-private partnerships, aiming to reduce dependency on imports and boost domestic supply.

Market Drivers

• Rapid Urbanization and Growing Middle-Class Population: One of the strongest drivers of the evaporative milk market in Asia-Pacific is the rapid pace of urbanization combined with the expansion of the middle-class population. Countries like China, India, Indonesia, and Vietnam are experiencing economic growth and increased household incomes, which is changing dietary patterns and driving demand for convenient, packaged food products. As urban consumers increasingly seek shelf-stable dairy options for daily use in tea, coffee, desserts, and cooking, evaporative milk offers a practical and affordable alternative to fresh milk, which may be less accessible or more expensive in some regions.
• Expansion of Retail and Foodservice Channels: Another significant driver is the expanding retail infrastructure and foodservice industry across Asia-Pacific. The growth of supermarkets, hypermarkets, and convenience stores in both urban and semi-urban areas has significantly improved the visibility and availability of evaporated milk. At the same time, the booming foodservice sector including cafes, bakeries, restaurants, and quick-service chains relies on evaporated milk for consistency and shelf-life benefits in beverages and dishes. In countries like Thailand, the Philippines, and Malaysia, evaporated milk is commonly used in both local and fusion cuisine, particularly in milk teas, curries, and desserts, further contributing to market growth.

Market Challenges

• Strong Competition from Fresh and Powdered Milk: Despite rising demand, the Asia-Pacific evaporative milk market faces stiff competition from both fresh and powdered milk. In many parts of the region, especially in India and China, fresh milk is widely consumed and readily available through local dairy cooperatives and vendors. Similarly, powdered milk is often favored in rural areas due to its affordability, longer shelf life, and ability to be stored in bulk. This competition limits the growth potential of evaporated milk, particularly in price-sensitive or traditional markets where familiarity with other milk forms is stronger.
• Limited Cold Chain Infrastructure in Emerging Markets: Although evaporated milk has the advantage of being shelf-stable, the broader dairy supply chain in many emerging Asia-Pacific countries still suffers from underdeveloped logistics and cold chain infrastructure. This limitation affects the overall quality and reliability of dairy inputs used in evaporated milk production. Additionally, inconsistent distribution and storage conditions in rural or underdeveloped areas can lead to product spoilage or stockouts. While this is more pronounced in remote regions, it remains a bottleneck to wider market penetration and consumer trust, especially where brand reputation and product consistency are crucial.

Market Trends

• Surge in Demand for Sweetened Evaporated Milk in Beverages: A notable trend in Asia-Pacific is the increasing use of sweetened evaporated milk in traditional and modern beverages. Milk tea, iced coffee, Thai tea, Vietnamese iced coffee, and halo-halo are just a few examples of popular drinks across the region that rely on the rich, sweet flavor of evaporated milk. This trend is especially strong in Southeast Asia and is gaining momentum in East Asian urban centers through street food culture and café menus.
• Localization and Product Customization by Global Brands: Another emerging trend is the localization of evaporated milk offerings by multinational dairy brands to suit regional tastes and preferences. Companies are tailoring products in terms of sweetness levels, fat content, and packaging sizes to meet the unique needs of consumers in countries like India, China, and Indonesia. For instance, small sachets or single-use cans are being introduced to target price-sensitive consumers and small households. Additionally, halal-certified and fortified variants (e.g., with vitamins and minerals) are gaining traction in countries like Malaysia and Indonesia.

Whole type is leading in the Asia Pacific evaporative milk industry due to strong consumer preference for full-cream dairy in traditional diets, culinary applications, and its perception as a more nutritious and tastier option.

The dominance of whole evaporative milk in the Asia Pacific region stems largely from deep-rooted cultural preferences for rich, full-fat dairy products, especially in countries like India, China, Thailand, and Indonesia. In these nations, evaporated whole milk is widely used not just as a beverage component, but also as a staple ingredient in traditional cooking, desserts, and beverages like tea, coffee, and sweets. The full-cream nature of whole evaporated milk aligns well with local culinary requirements where richness, texture, and flavor are critical.

Additionally, in many rural and semi-urban parts of Asia, whole milk is culturally associated with strength, health, and energy attributes that resonate strongly with consumers across socio-economic classes. Nutritional beliefs around the benefits of fat in milk, especially for children and the elderly, also contribute to its popularity. Unlike in Western regions where skimmed or low-fat variants have gained momentum due to health trends, Asia Pacific markets have shown a slower shift toward low-fat alternatives, primarily because full-fat options are still viewed as more wholesome. Furthermore, evaporated whole milk offers a cost-effective and shelf-stable substitute to fresh milk in regions with inconsistent cold supply chains, making it an ideal solution in both urban and rural settings. The rapid urbanization in countries like India and Vietnam has also boosted demand through packaged food sectors, where whole evaporated milk is used in ready-to-eat meals, bakery products, and processed foods. Moreover, the rise in middle-class income across Asia Pacific has led to increased spending on premium and traditional dairy products, further supporting the growth of the whole milk segment.

Offline distribution is leading in the Asia Pacific evaporative milk industry due to the strong presence of traditional retail infrastructure, consumer reliance on local grocery stores, and limited digital penetration in rural and semi-urban areas.

In many Asia Pacific countries including India, Indonesia, the Philippines, and Vietnam millions of consumers continue to depend on neighborhood kirana stores, wet markets, supermarkets, and hypermarkets for daily grocery shopping, including dairy products like evaporated milk. These retail formats offer familiarity, trust, and convenience, particularly in communities where personal relationships with shopkeepers influence purchasing decisions. Offline channels also provide instant product availability without the need for internet access, which is a critical factor in many rural and semi-urban regions where digital infrastructure remains underdeveloped or unreliable.

Moreover, consumers often prefer to physically inspect packaged goods like evaporated milk for brand authenticity, expiration dates, and packaging integrity before making a purchase an experience difficult to replicate online. Additionally, cultural tendencies toward cash-based transactions and the absence of digital payment systems in smaller towns make offline retail more practical and accessible. From a supply chain perspective, manufacturers and distributors also favor offline networks due to their deep market penetration, logistical ease, and ability to handle bulk deliveries efficiently. Retailers benefit from attractive shelf arrangements, in-store promotions, and point-of-sale marketing that influence impulsive buying behavior a key driver of evaporative milk sales in retail spaces. Despite the rise of e-commerce in urban centers, the online channel’s contribution to overall evaporated milk sales remains comparatively modest. Furthermore, in countries like China, while e-commerce is growing, traditional retail continues to command a significant share, especially for food items with regular consumption patterns.

China is leading in the Asia Pacific evaporative milk industry due to its massive consumer base, growing demand for convenient and shelf-stable dairy products, and strong investments in domestic dairy processing capabilities.

China has emerged as the leading country in the Asia Pacific evaporative milk industry, primarily because of its vast population, rising urbanization, and the increasing shift toward packaged and shelf-stable dairy products. As more Chinese consumers move to cities and adopt fast-paced lifestyles, there is growing demand for convenient food options that fit into modern cooking and consumption habits. Evaporated milk, with its long shelf life, ease of storage, and versatility in applications, has gained popularity in Chinese households, especially for use in milk tea, coffee, desserts, and cooking.

Furthermore, China's traditional consumption of milk-based drinks and the booming tea café culture have driven large-scale adoption of evaporated milk among foodservice providers and beverage manufacturers. To meet this rising demand, the Chinese government and private sector have heavily invested in modernizing the domestic dairy industry, expanding local production of evaporated milk and reducing dependence on imports. Leading Chinese dairy companies, such as Yili and Mengniu, have incorporated evaporated milk into their diversified product portfolios and leveraged their extensive distribution networks across hypermarkets, convenience stores, and e-commerce platforms to expand reach. In parallel, China’s focus on improving food security and self-sufficiency in dairy has led to supportive policies, subsidies, and partnerships to boost domestic milk production and processing. The rise of the middle class and an increasing awareness of nutritional needs have further boosted the consumption of dairy-based products, with evaporated milk gaining traction for its calcium and protein content. Innovations in product formulation, including low-fat and sugar-free variants, have also broadened its appeal to health-conscious and elderly consumers