Table of Contents
Introduction
The global evaporated milk market is poised for steady growth, projected to increase from USD 6.6 billion in 2023 to around USD 8.3 billion by 2033, with a compound annual growth rate (CAGR) of 2.3%.
This growth can be attributed to several factors, including the versatility of evaporated milk in culinary applications and its extended shelf life, which offers convenience to consumers. The product’s ability to be stored without refrigeration, until opened, makes it attractive in regions where refrigeration is less accessible.
However, the market faces challenges such as competition from fresh milk and non-dairy alternatives, perceptions about the freshness of evaporated milk, and the rising consumer preference for healthier, low-fat, and organic dairy products.
For instance, there is a growing demand for skimmed evaporated milk variants that cater to health-conscious consumers looking to reduce fat intake while still enjoying the benefits of dairy.
Recent developments in the market include strategic expansions and product innovations by key players to capture a larger market share and adapt to consumer preferences. Companies like Nestlé and Arla Foods are expanding their production capacities and introducing new products that are fortified with vitamins and minerals, appealing to a broader demographic seeking healthier dairy options.
Moreover, the market’s expansion is supported by the increasing inclusion of evaporated milk in various recipes and food products, from desserts to savory dishes, which underscores its integral role in both household and commercial food preparations.
In 2023, Nestlé made several strategic moves, including acquiring a majority stake in a premium Brazilian chocolate company, divesting its Palforzia business, and forming a joint venture for frozen pizza in Europe. Additionally, Nestlé introduced a jalapeño-flavored Carnation Evaporated Milk in a limited run, aiming to innovate within its dairy products line.
Key Takeaways
- The global evaporated milk market is set to reach USD 8.3 billion by 2033, growing at a 2.3% CAGR from its 2023 valuation of USD 6.6 billion.
- In 2023, whole evaporated milk held a leading market position with over 55.6% share, valued for its rich taste and creaminess.
- Cans, known for durability, dominated the market in 2023, holding a robust share, while Tetra Packs gained ground for eco-friendly packaging.
- In 2023, offline sales dominated with over 68.5% share, but the rising influence of online platforms signals a changing distribution landscape.
- Europe led with over 33.5% revenue share in 2023, driven by regulatory restrictions on unhealthy foods and growing concerns about sugar content.
Evaporated Milk Statistics
Essential Nutrients in Evaporated Milk
- Evaporated milk, known in some countries as “unsweetened condensed milk”, is a shelf-stable canned cow’s milk product for which approximately 60% of the water has been removed from fresh milk.
- Evaporated milk consumes half the space of its nutritional equivalent in fresh milk. When the liquid product is mixed with a proportionate amount of water (150%), evaporated milk becomes the rough equivalent of fresh milk.
- Evaporated milk in Canada is defined to be milk from which water has been evaporated and contains at least 25% milk solids and 7.5% milk fat. It may contain added vitamin C if a daily intake of the product contains between 60 and 75 milligrams, and may also contain vitamin D in an amount no less than 300 international units and no more than 400 international units.
- all three types of evaporated milk have over 50% of the Daily Value (DV) for calcium, 15% of the DV for magnesium, and 18% of the DV for zinc, while fresh milk packs 21%, 6%, and 8%, respectively.
- Evaporated milk is the liquid food obtained by partial removal of water only from milk. It contains not less than 6.5 percent by weight of milk fat, not less than 16.5 percent by weight of milk solids not fat, and not less than 23 percent by weight of total milk solids.
Evaporated Milk Production Insights
- EnNutrica Evaporated Milk is manufactured from 99.9% Farm fresh Cow Milk, Grade A, pasteurized, skimmed milk / Whole Milk.
- California dairy farm families have a multi-generational legacy of producing quality milk. Even today, 99% of California farms are family-owned. The state also exports about one-third of its total milk production, which equates to more than $1.8 billion.
- To improve the heat stability of concentrated product and for imparting optimum viscosity to the finished product the fluid milk is preheated before it is condensed. Milk may be preheated either at 95-1000 C for a few minutes (5-10) or at 140-1450 C with no holding time.
- The cooled milk is then sterilized by heating it to temperatures between 240-245°F (115-118°C) for approximately 15 minutes. This process kills bacteria and their spores, ensuring the product’s safety and extending its shelf life.
- The typical addition rate for sodium bicarbonate in evaporated milk production is about 0.25% of the total volume of milk. This means that for every 100 liters of milk, approximately 250 grams of sodium bicarbonate is used to achieve optimal stabilization.
Emerging Trends
- Growth of Plant-Based Options: As consumer preferences shift towards vegan and lactose-free diets, the market has responded with plant-based evaporated milk alternatives. This trend is part of a wider movement towards plant-based nutrition, reflecting changing dietary habits.
- Enhanced Nutritional Profiles: To meet consumer demand for healthier food choices, manufacturers are fortifying evaporated milk with essential vitamins and minerals. Products enhanced with vitamins A and D3 are becoming more common, providing significant nutritional benefits without altering the taste.
- Long Shelf Life and Practicality: Evaporated milk’s popularity continues due to its convenience and extended shelf life, making it an ideal choice for areas with limited fresh milk access. It’s increasingly used across various cuisines globally and remains a pantry staple.
- Flavor Innovation and Premium Offerings: The evaporated milk sector is seeing an influx of new and indulgent flavors, moving beyond traditional tastes to include options like vanilla, caramel, and spicy variations. This strategy aims to appeal to a wider range of consumers seeking premium experiences.
- Eco-Friendly Packaging: In response to environmental concerns, the industry is moving towards more sustainable packaging solutions. Recyclable materials and Tetra packs are being adopted to help reduce the ecological footprint while preserving product integrity and shelf life.
Use Cases
- Macaroni and Cheese: Upgrade your macaroni and cheese by integrating evaporated milk for a smoother, richer cheese sauce without the fuss of making a roux. Simply blend it with pasta water and your preferred cheeses for a delightful creamy texture.
- Decadent Desserts: Utilize evaporated milk to achieve luxurious textures in desserts such as fudge or flan. Its creamy consistency helps produce velvety custards for flan and adds depth to the chewy delight of fudge.
- Enhancing Savory Recipes: Evaporated milk is excellent for adding creaminess to savory dishes. It works well in soups, creating a thicker base, or in mashed potatoes, where it adds creaminess without the need for heavy cream.
- Baking Delights: Incorporate evaporated milk in your baking for moister, richer cakes. It’s especially perfect for moist cakes like tres leches, imparting a luxurious texture and enhancing the overall flavor profile.
- Beverage Booster: Add a splash of evaporated milk to your beverages, such as coffee or smoothies, to enrich them with a creamy texture without significantly diluting their flavors, as regular milk might.
Major Challenges
- Fluctuating Raw Material Costs: The price of milk can vary widely due to environmental changes affecting cattle production. These fluctuations challenge evaporated milk producers to maintain stable prices and protect profit margins without passing costs onto consumers.
- Health-Conscious Consumer Trends: As more consumers opt for healthier diets, there’s a growing demand for low-fat and calorie-reduced dairy options. This shift compels producers to constantly evolve their product lines to meet these new dietary preferences, enhancing offerings like skimmed evaporated milk.
- Rising Demand for Plant-Based Substitutes: With more people adopting vegan and plant-based diets, evaporated milk faces stiff competition from dairy-free alternatives. This scenario forces traditional dairy producers to either innovate within their dairy lines or expand into plant-based products to keep market share.
- Complex Supply Chain Management: Managing a seamless supply chain from production to distribution remains intricate for evaporated milk producers. They must ensure efficient logistics to maintain product quality, from storage conditions to transportation methods.
- Navigating Regulatory Challenges: Producers must contend with stringent regulations across different markets, from food safety to packaging standards. Compliance with these regulations is crucial to avoid legal issues and facilitate market entry.
Market Growth Opportunities
- Health-Focused Variants: The rising preference for healthier dietary choices is boosting the demand for evaporated milk varieties with reduced fat and lower calories. Companies can capitalize on this trend by broadening their product lines to include these healthier options.
- Enhanced Packaging Solutions: As lifestyles become busier, there is a growing appeal for convenient and user-friendly packaging. Single-use and easy-open formats, which are both portable and practical for on-the-go consumption, could meet consumer needs more effectively.
- Growth in New Markets: With demographic and economic growth in regions like Asia and Africa, there is a burgeoning demand for evaporated milk products. Tailoring products and marketing strategies to fit the unique cultural and economic landscapes of these areas could unlock new revenue streams.
- Plant-Based Options: Aligning with the trend towards veganism and addressing lactose intolerance, there’s a significant opportunity to develop and market non-dairy evaporated milk. Such innovations could attract a broader base of consumers looking for plant-based dairy alternatives.
- Localized Flavors and Nutritional Enhancement: Offering new flavor profiles and nutritionally enhanced products can appeal to specific local preferences and nutritional requirements. Fortifying evaporated milk with vitamins and minerals could particularly address health concerns in regions with specific dietary deficiencies.
Key Players Analysis
- Nestlé’s Carnation brand plays a significant role in the evaporated milk sector, providing a variety of dairy products that enhance the flavor and texture of both sweet and savory dishes. Notably, Nestlé has expanded its facilities to increase the production of Carnation Evaporated Milk, emphasizing its commitment to this staple ingredient used widely in cooking and baking.
- Arla Foods has reinforced its presence in the Nigerian evaporated milk market by launching two new products, Dano Cool Cow and Dano Full Cream Evaporated Milk. This initiative is part of Arla’s strategy to offer high-quality, nutritious dairy products in Nigeria, highlighting its commitment to enhancing the dairy sector and providing value to Nigerian consumers.
- Fraser and Neave have significantly boosted their presence in the evaporated milk market by focusing on innovation and quality. The company has maintained its leadership in the condensed and evaporated milk categories, particularly in Malaysia and Thailand, ensuring its products meet high standards of taste and nutrition.
- FrieslandCampina is heavily involved in the evaporated milk sector, with significant investments in state-of-the-art facilities to enhance its production efficiency and sustainability. The company has developed a fully automated factory in Leeuwarden that focuses on producing a variety of evaporated milk products, ensuring high standards of quality and sustainability in its operations.
- Marigold has made a significant impact in the evaporated milk sector with its versatile range of products, well-regarded for adding a rich flavor and creamy texture to both beverages and dishes. Known for its nutritional benefits, Marigold’s evaporated milk is fortified with vitamins A and D, catering to a wide range of culinary needs, from enhancing local beverages to improving the richness of desserts and savory dishes.
- DMK Group actively participates in the evaporated milk sector by leveraging its extensive expertise in dairy processing to produce high-quality evaporated milk products. The group utilizes state-of-the-art technology to ensure the sustainability and efficiency of its operations, aligning with its broader goals for environmental responsibility and innovation in dairy production.
- Eagle Family Foods has been a key player in the evaporated milk sector since it was spun off from The J.M. Smucker Company in 2015. The company markets a range of canned milk products including Eagle Brand® Sweetened Condensed Milk and Evaporated Milk. Their products are distributed widely across the U.S., available in various retail and food service channels.
- O-AT-KA Milk Products is a prominent player in the evaporated milk sector, holding the position as the largest producer of private-label evaporated milk in the United States. They offer a variety of evaporated milk products, including regular, filled, and fat-free options. These products are available in different sizes and are distributed across both retail and food service channels, demonstrating their significant role in the industry.
- Alokozay Group offers evaporated milk that is light and creamy, ideal for tea, coffee, and various recipes. This product, made from high-quality cow’s milk sourced from Germany, boasts a long shelf life and nutritional richness, providing a wholesome alternative to regular milk.
- DANA Dairy produces evaporated milk made from fresh cow milk, packaged in tin cans to ensure a long shelf life. The process involves removing a significant portion of the water content through heating, making it a concentrated form of milk that can be restored to regular milk by adding water. This product is suitable for use in various culinary applications or as a dairy additive in tea and coffee.
- Delta Food Industries FZC produces evaporated milk in the UAE, offering high-quality products in tin cans of various sizes. Their evaporated milk is enriched with nutrients, providing a tasty option for enhancing dishes or beverages. This product is part of a diverse food range that the company rigorously tests to ensure safety and quality.
- Yotsuba Milk Products, renowned for their use of fresh Hokkaido milk, concentrates raw milk to double its original density for their evaporated milk, enhancing its rich flavor and creaminess, making it ideal for confectioneries and culinary uses. This product, made from 100% Hokkaido milk, offers a notable depth of flavor and can be stored refrigerated for extended freshness before opening.
- Nutricima, a dairy company established in Nigeria in 2005, was known for its range of dairy products including evaporated milk, under the brand names like Nunu. However, in 2020, FrieslandCampina WAMCO acquired Nutricima’s dairy business, including its production facilities and brands, to expand its production capacity and meet the increasing local demand for dairy products in Nigeria.
- Gloria is a prominent brand in the Peruvian evaporated milk market, known for its rich and nutritious milk products that are enhanced with vitamins A, C, and D. Their evaporated milk is fortified with essential nutrients like calcium, iron, and B-complex vitamins, making it a beneficial choice for supporting physical and intellectual development, particularly in children.
- Holland Dairy Foods, known for its “Dutch Lady” brand, produces evaporated milk that is rich and creamy, made from high-quality Dutch cow’s milk. This evaporated milk is fortified with essential nutrients such as calcium and vitamin D3 and comes in convenient tin packaging with an 18-month shelf life. It’s suitable for a variety of uses, including in tea, coffee, baking, and cooking.
Conclusion
The evaporated milk market is poised for robust growth, particularly in the Asia Pacific region, driven by an expanding population and rising disposable incomes. This region is seeing increased adoption of dairy alternatives, which bodes well for the market’s expansion.
Additionally, innovations in packaging and product diversification, such as low-fat and plant-based options, are tapping into the health-conscious segment of consumers. These trends indicate a promising future for evaporated milk as both a culinary staple and a convenient option in various global markets
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