Market Overview

The evaporated milk market has experienced significant growth in recent years, driven by various factors such as increasing consumer preference for convenient and long-shelf-life dairy products. Evaporated milk is a form of concentrated milk with about 60% of the water removed through evaporation. This process enhances the milk’s shelf life and allows it to be stored without refrigeration until it is opened.

Meaning

Evaporated milk is a type of milk product that is created by heating regular milk to remove a significant portion of its water content. The result is a thick, concentrated liquid that has a longer shelf life compared to regular milk. It is commonly used in various culinary applications and is an essential ingredient in many recipes.

Executive Summary

The evaporated milk market has witnessed steady growth in recent years, driven by the increasing demand for convenient and long-lasting dairy products. The market is characterized by the presence of both global and regional players, offering a wide range of evaporated milk products to cater to diverse consumer preferences. Evaporated milk is gaining popularity due to its versatility and extended shelf life, making it an attractive choice for consumers and foodservice providers.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

1. Growing Consumer Demand: The demand for evaporated milk is rising due to the convenience it offers, especially in regions with limited access to refrigeration. The long shelf life of evaporated milk makes it an ideal choice for consumers who want to have dairy products readily available.
2. Increasing Application in Food and Beverage Industry: Evaporated milk finds extensive usage in the food and beverage industry, particularly in the preparation of desserts, bakery products, and coffee. It provides a rich and creamy texture to these products, enhancing their taste and appeal.
3. Rising Health Consciousness: Evaporated milk is preferred by health-conscious consumers as it is a good source of protein and essential nutrients. It offers an alternative to regular milk and cream, especially for individuals looking for lower-fat options.

Market Drivers

1. Convenience and Extended Shelf Life: The primary driver for the evaporated milk market is the convenience it offers to consumers. With its long shelf life, it eliminates the need for immediate refrigeration, making it a practical choice for households and foodservice providers.
2. Growing Demand for Ready-to-Use ingredients: The increasing demand for ready-to-use ingredients in the food industry is driving the market for evaporated milk. It saves preparation time and ensures consistent quality in recipes.
3. Urbanization and Changing Lifestyles: Rapid urbanization and changing lifestyles have led to an increase in demand for convenient and time-saving food products. Evaporated milk fulfills this need by providing a versatile ingredient that can be used in various culinary applications.

Market Restraints

1. Availability of Substitutes: The availability of substitutes such as condensed milk, powdered milk, and fresh milk can pose a challenge to the growth of the evaporated milk market. Consumers may opt for these alternatives based on their specific requirements and preferences.
2. Price Volatility of Raw Materials: The fluctuating prices of raw materials, such as milk, can impact the overall production cost of evaporated milk. This volatility in input costs can affect the pricing of the final product and pose a challenge to market growth.
3. Regulatory Constraints: Evaporated milk production is subject to various regulations and quality standards imposed by regulatory authorities. Compliance with these standards adds to the production costs and may pose challenges for small-scale manufacturers.

Market Opportunities

1. Product Innovation and Expansion: Manufacturers can explore opportunities for product innovation by introducing new flavors, organic variants, and fortified evaporated milk products. Expanding the product portfolio can attract a broader consumer base and drive market growth.
2. Emerging Markets: The evaporated milk market holds significant potential in emerging economies where the demand for convenient and affordable dairy products is rising. Manufacturers can focus on expanding their presence in these markets and tailoring their products to suit local preferences.
3. Online Retail Channels: The growing popularity of e-commerce platforms provides an opportunity for manufacturers to reach a wider consumer base. Online retail channels offer convenience and accessibility, allowing consumers to purchase evaporated milk from the comfort of their homes.

Market Dynamics

The evaporated milk market is highly competitive, with the presence of both global and regional players. Market players are focusing on product innovation, expanding their distribution networks, and engaging in strategic partnerships to gain a competitive edge. The market is driven by factors such as convenience, changing consumer preferences, and the increasing demand for ready-to-use ingredients. However, challenges such as the availability of substitutes and price volatility of raw materials need to be addressed to ensure sustained market growth.

Regional Analysis

The evaporated milk market can be segmented into various regions, including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America and Europe hold significant shares in the market due to the high consumption of dairy products in these regions. Asia Pacific is expected to witness substantial growth, driven by the increasing population, urbanization, and changing dietary patterns. Latin America and the Middle East and Africa are also emerging markets with considerable growth potential.

Competitive Landscape

Leading Companies in the Evaporated Milk Market:

1. Nestlé S.A.
2. Arla Foods amba
3. FrieslandCampina N.V.
4. Dean Foods (a subsidiary of Dairy Farmers of America, Inc.)
5. Saputo Inc.
6. Eagle Family Foods Group LLC
7. Fraser and Neave Holdings Bhd
8. Marigold HL Milk (a subsidiary of Fraser and Neave Holdings Bhd)
9. Parmalat S.p.A. (a subsidiary of Lactalis Group)
10. Gloria S.A.

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The evaporated milk market can be segmented based on product type, packaging type, distribution channel, and end-use application.

1. By Product Type:
   • Skimmed Evaporated Milk
   • Whole Evaporated Milk
2. By Packaging Type:
   • Cans
   • Tetra Packs
   • Pouches
3. By Distribution Channel:
   • Supermarkets and Hypermarkets
   • Convenience Stores
   • Online Retail
   • Others
4. By End-use Application:
   • Food Industry (Bakery, Confectionery, Desserts, etc.)
   • Beverage Industry (Coffee, Tea, etc.)
   • HoReCa (Hotels, Restaurants, Cafes)
   • Residential

Category-wise Insights

1. Skimmed Evaporated Milk: Skimmed evaporated milk is gaining popularity among health-conscious consumers due to its low-fat content. It is widely used in the preparation of healthy desserts, beverages, and as a milk substitute in various recipes.
2. Whole Evaporated Milk: Whole evaporated milk is preferred for its rich and creamy texture. It is commonly used in traditional recipes, bakery products, and as a topping for hot beverages.
3. Cans Packaging: Canned evaporated milk offers convenience and ease of storage. It is widely used in households and foodservice establishments.
4. Tetra Packs Packaging: Tetra packs provide a convenient and portable option for consumers who prefer smaller servings of evaporated milk. It is popular among on-the-go consumers and for individual consumption.
5. Supermarkets and Hypermarkets: Supermarkets and hypermarkets are major distribution channels for evaporated milk, offering a wide range of brands and packaging options to consumers.
6. Online Retail: The online retail channel is gaining traction in the evaporated milk market due to its convenience and accessibility. Online platforms offer a wide range of choices and doorstep delivery options.

Key Benefits for Industry Participants and Stakeholders

1. Increased Revenue and Market Share: The growing demand for evaporated milk presents an opportunity for industry participants to increase their revenue and market share by catering to consumer preferences and expanding their product portfolios.
2. Diversification of Product Offerings: Manufacturers can diversify their product offerings by introducing new flavors, organic variants, and fortified evaporated milk products. This allows them to cater to the evolving needs of consumers and gain a competitive advantage.
3. Expansion into Emerging Markets: Emerging markets offer untapped potential for industry participants. By expanding their presence in these regions and tailoring their products to suit local preferences, companies can establish a strong foothold and gain a competitive edge.
4. Collaborations and Partnerships: Collaborations and partnerships with retailers, distributors, and foodservice providers can enhance the distribution network and increase market reach. By forging strategic alliances, industry participants can leverage the strengths of each partner to achieve mutual growth.

SWOT Analysis

1. Strengths:
   • Extended shelf life and convenience of use
   • Versatility in culinary applications
   • High nutritional value
2. Weaknesses:
   • Availability of substitutes
   • Price volatility of raw materials
   • Regulatory constraints
3. Opportunities:
   • Product innovation and expansion
   • Emerging markets
   • Online retail channels
4. Threats:
   • Intense competition among key players
   • Changing consumer preferences and dietary patterns
   • Fluctuating raw material prices

Market Key Trends

1. Rising Demand for Plant-based Evaporated Milk: With the increasing popularity of plant-based diets, there is a growing demand for plant-based alternatives to traditional dairy products. Manufacturers are introducing evaporated milk made from plant sources such as soy, almond, and coconut to cater to this demand.
2. Clean Label and Organic Variants: Consumers are becoming more conscious of the ingredients used in their food products. Manufacturers are responding to this trend by introducing clean label and organic variants of evaporated milk that are free from additives, preservatives, and synthetic ingredients.
3. Premium and Gourmet Offerings: There is a rising demand for premium and gourmet food products, including evaporated milk. Manufacturers are introducing high-quality variants, often sourced from specific regions or produced using traditional methods, to cater to discerning consumers.

Covid-19 Impact

The Covid-19 pandemic has had a mixed impact on the evaporated milk market. While there has been an increased demand for essential food items, including dairy products, the market has also faced challenges due to disruptions in the supply chain and changing consumer behavior. Panic buying and stockpiling led to temporary spikes in demand, but the closure of foodservice establishments and disruptions in the retail sector affected the overall consumption of evaporated milk. However, as the situation stabilizes and economies reopen, the market is expected to regain its momentum.

Key Industry Developments

1. Product Launches: Several key players in the evaporated milk market have launched new products to meet the evolving consumer demands. These product launches have focused on introducing innovative flavors, organic variants, and products with specific nutritional benefits.
2. Strategic Partnerships and Collaborations: Companies have entered into strategic partnerships and collaborations to strengthen their market presence and expand their distribution networks. These partnerships have aimed at leveraging the strengths of each partner to enhance product availability and reach a wider consumer base.
3. Investments in Research and Development: Manufacturers are investing in research and development activities to explore new processing technologies, enhance product quality, and improve the nutritional profile of evaporated milk. These investments aim to address consumer preferences and offer innovative solutions to market challenges.

Analyst Suggestions

1. Focus on Product Innovation: Manufacturers should invest in product innovation to meet the changing consumer demands. This can include introducing new flavors, organic variants, and functional variants of evaporated milk to cater to specific dietary needs.
2. Enhance Distribution Channels: Companies should strengthen their distribution channels, especially in emerging markets, to ensure widespread availability of evaporated milk. This can be achieved through partnerships with retailers, distributors, and online platforms.
3. Address Price Volatility: Manufacturers should explore strategies to mitigate the impact of price volatility in raw materials. This can include establishing long-term contracts with suppliers, implementing efficient supply chain management practices, and exploring alternative sourcing options.
4. Marketing and Promotional Activities: Companies should invest in marketing and promotional activities to create awareness about the benefits of evaporated milk and educate consumers about its various culinary applications. This can help drive consumer demand and increase market penetration.

Future Outlook

The evaporated milk market is expected to witness steady growth in the coming years. The increasing demand for convenient and long-shelf-life dairy products, coupled with the rising popularity of plant-based alternatives, will drive market expansion. Manufacturers will focus on product innovation, expanding into emerging markets, and strengthening their distribution networks to capitalize on the growing opportunities in the sector.

Conclusion

The evaporated milk market presents significant growth opportunities driven by consumer preferences for convenient and long-lasting dairy products. Despite challenges such as the availability of substitutes and price volatility of raw materials, industry participants can leverage product innovation, expansion into emerging markets, and strategic collaborations to gain a competitive edge. With the evolving consumer trends and increasing demand for plant-based alternatives, the future outlook for the evaporated milk market is promising.