Sweetened Condensed Milk Market Size, Global Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Sweetened Condensed Milk Market


The global sweetened condensed milk market size was valued at USD 7.4 billion in 2018. Product innovation in sweetened condensed milk is a major factor contributing to the growth of this industry. Furthermore, sweetened condensed milk is one of the major ingredients in desserts such as cakes and ice creams owing to its thick texture and sweet taste. Hence, rise in demand for desserts is expected to positively influence market growth during the forecast period.

Quality and longer shelf life are the major preference factors among the consumers, which drives the purchase of food and beverages. Longer shelf life indicates prolonged consumption of the product. As a result, consumers tend to purchase the product in more quantities and store them for future use. This purchasing behavior is expected to drive the sales of sweetened condensed milk. The product lasts for at least a year beyond the printed expiration date if unpacked and for approximately three weeks after it has been opened. This is one of the major attributes of sweetened condensed milk, which is anticipated to drive the market.

In addition to the shelf life, sweetened condensed milk has a thick, paste-like structure owing to the externally added sugar. This makes it a suitable alternative to regular milk in culinary applications like desserts and beverages. Sweetened condensed milk imparts its smooth and creamy texture to rich desserts, which makes the end product tasty and sweet. Additionally, consumption of sweetened condensed milk in tea/coffee is popular in many countries like U.K. and Japan due to its sweet taste, thus masking the bitter taste of coffee beans or tea powder. Similar applications such as fruit toppings and savory dishes are expected to increase product consumption, which will propel market growth during the projected period.

Sweetened condensed milk has an impressive nutritional value when consumed in appropriate quantities. The product includes approximately 60 calories per tablespoon, thereby making it ideal for consumers who are focused on gaining weight. It also contains essential vitamin and minerals like calcium, potassium, magnesium, and Vitamin A, which promotes bone health. Increasing awareness regarding the benefits of the product is expected to increase the demand for the product in the next few years.
Product


Type Insights of Sweetened Condensed Milk Market

Unflavored sweetened condensed milk occupied the largest share of 83.0% in 2018. High availability of the product is the major factor contributing to the growth of this segment. Sweetened condensed milk is produced by heating 60% of the water content in cows milk and adding sugar externally for preservation and increasing shelf life. This presence of sugar makes the product sweet in its original form. As a result, consumers prefer consuming the product in its original form.

Flavored sweetened condensed milk is expected to witness the fastest growth from 2019 to 2025. Due to increasing competition in the industry, manufacturers are focusing on incremental product innovation such as adding additional flavors to increase sales of sweetened condensed milk. According to online dairy blog, a survey was carried out to study preference for flavored milks among kids. The study revealed that 70% of the kids preferred flavored milk and a 35% drop was observed in the consumption of milk when its flavored variant was unavailable. Such surveys have led manufacturers to introduce popular flavors like caramel and chocolate in their sweetened condensed milk products to increase sales. These flavors are popularly used in custards, cakes, and other dessert items.

Packaging


Type Insights of Sweetened Condensed Milk Market

The can packaging type for sweetened condensed milk was the most popular form of packaging, accounting for 74.6% share of the global revenue in 2018. Metal cans are popular among consumers as they are environment friendly and have healthy inner coatings to prevent food spoilage from chemical reactions. Moreover, these cans are seal packed, which prevents food spoilage during transport. These are the major factors anticipated to increase product demand in the coming years.

The tube packaging type is expected to witness the fastest growth in the coming years. These tubes are gaining significant popularity as they are easy to store and dispose. Manufacturers are focusing on introducing this packaging type to the global industry due to the growth of the tube packaging industry. Easy application is a major benefit of tubes. Sweetened condensed milk can be directly used from the tube as an ice cream topping, cake decoration or as a bread spread. Product innovation and attractive labelling are the major strategies employed by manufacturers to improve product sales, which will positively influence the market growth.

Bottles for sweetened condensed milk occupied a significant market share in 2018. Majority of the bottles were made using plastic. As a consequence of the plastic ban in majority of the countries such as U.S., U.K., China, India, and Germany, the plastic bottle industry witnessed a significant decline in production as well as consumption. Moreover, plastic over a long period of time tends to react with the chemicals present in the packed food, thereby causing food degradation. This is expected to affect the sales of sweetened condensed milk bottles during the forecast period, which may hamper market growth.

However, manufacturers are investing in innovative packaging such as pouches, sachets, tetra packs, bag-in-box, and glass containers to improve product sales. Pouches and sachets are more popular among consumers who do not require sweetened condensed milk on a regular basis or consume it in very small portions in the form of preparing savory dishes for important functions. This type of packaging is cost effective as well as the consumer does not have to worry about immediate consumption of the product due to small quantity and long shelf life. This is expected to improve product demand, thereby driving the sweetened condensed milk market in the next few years.

Regional Insights of Sweetened Condensed Milk Market

Europe dominated the market for sweet condensed milk in 2018, accounting for an overall share of 38.0%. Majority of the global sales were driven by Germany and Poland due to improved dairy production in these countries. Moreover, sweetened condensed milk is majorly used in morning beverages such as tea and coffee to decrease bitterness of coffee beans and tea leaves. However, the market demand is expected to decline in the next few years due to high saturated fat content in the product.

Asia Pacific is expected to witness the fastest growth in the coming years owing to mature growth of sweetened condensed milk in Europe and North America. Moreover, increased consumption of the product in major Southeast Asian countries like Vietnam and Malaysia is a key driving factor. The product is used in many traditional dishes, along with other flavors like coconut and cashews in order to improve taste. However, this market is expected to face obstruction owing to high calorie content of the product and increasing prevalence of obesity and heart diseases.

Market Share Insights of Sweetened Condensed Milk Market

The global market is highly concentrated and competitive in nature due to presence of global players engaged in product and packaging innovation strategies. Major conglomerates not related to the global industry are acquiring local players to expand their brand portfolio and provide investments for improving brand awareness. Such initiatives are expected to increase the competition, which will positively influence market growth in the coming years.
Some of the key players operating in the market are Eagle Family Foods Group LLC, Nestle, Fraser & Neave Holdings Bhd (F&NHB), Amul, Vinamilk, The Dutch Lady, Belgorod Dairy Products OJSC, Goya Foods, Borden Magnolia, and Dana Dairy.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Sweetened Condensed Milk Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global sweetened condensed milk market report on the basis of product type, packaging type, and region:

Product Type Outlook (Revenue, USD Million, 2019 - 2030)

  
Flavored
  
Unflavored

Packaging Type Outlook (Revenue, USD Million, 2019 - 2030)

  
Cans
  
Bottles
  
Tubes
  
Other