Sweet Condensed Milk Market Share, Growth & Forecast [2030]

Report Description

Sweet Condensed Milk Market Market Outlook:

The global sweet condensed milk market was estimated at USD 6,814.9 Million in 2021 and is anticipated to reach USD 8,853.7 Million by 2030, expanding at a CAGR of 3.2% during the forecast period.

Sweet condensed milk provides nutritional benefits when consumed in appropriate quantities. Additionally, it contains important vitamins and minerals, such as calcium, potassium, magnesium, and Vitamin A, which improves the health of bones. Consumption of sweet condensed milk in tea and coffee is popular in many countries, such as the UK and Japan.

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Sweet condensed milk is a popular ingredient in a wide variety of pastries, candies, and creamy drinks. Cow's milk is first concentrated by eliminating the water to create sweetened condensed milk, which is then sweetened with sugar, producing a highly sweet, thick substance that is off-white in color.

Sweet condensed milk is a product which is made by gently heating whole milk until about 60% of the water has evaporated, followed by the addition of sugar to around 45% (by weight) of the remaining milk. The product is a thick, sweet combination that is used to make a variety of dishes, including marinades, baked products, candies, desserts, and drinks.

Macro-economic Factors

Purchasing Power of Consumers

The purchasing power of a currency is the number of goods or services purchased by one unit of money. Purchasing power is determined by real income, which is income adjusted for inflation. Per capita income or an individual’s income is directly associated with the consumer’s purchasing power. The higher the income, the higher is the purchasing power. High purchasing power of consumers encourages them to spend on high-quality confectionary with improved taste and texture, such as sweet condensed milk.

Spending on Bakery Products

Condensed milk is a popular product for the preparation of desserts and beverages, as it has a thick, paste-like consistency. Sweet condensed milk imparts a smooth and creamy texture to rich desserts, which makes the end product tasty and sweet. Several people prefer consuming milk-based desserts for satisfying their sugar cravings. The average expenditure on bakery products in the US households amounts to USD 462. The average annual expenditure on bakery products rose by USD 70 dollars from 2018. High demand for desserts is expected to fuel the market during the forecast period.

Import & Export Scenario

Sweet condensed milk is gaining popularity in terms of its trade value, due to its ability to elevate taste and shelf life. In 2020, the key exporters of concentrated milk were New Zealand (USD 5.92B), the US (USD 2.18B), Germany (USD 1.71B), the Netherlands (USD 1.64B), and France (USD 1.13B). Key importers of concentrated milk were China (USD 3.37B), Algeria (USD 1.11B), the Netherlands (USD 949M), Mexico (USD 780M), and Saudi Arabia (USD 764M) with an approximate percentage of 15.7%, 5.1%, 4.4%, 3.6%, and 3.5% respectively for these countries  The import and export scenario of sweet condensed milk reflects the positive growth of the market.

E-Commerce Retail Sales

E-commerce (or electronic commerce) is used for the online sale and purchase of goods and services. It includes a wide range of information, processes, and tools for online buyers and sellers, such as mobile shopping and online payment encryption. The number of online retailers has been growing consistently.

This growth is primarily attributed to the COVID-19 pandemic, which encouraged consumers to make online purchases instead of going to retail stores. Factors driving the e-commerce industry are low prices of goods, comprehensive product assortment, convenient transactions, and availability of a wide variety of products on online platforms.

Market Dynamics

Market Driver- Growing demand for desserts and beverages

The demand for desserts and beverages, such as ice creams, cakes, fudges, and truffles, is rising every year. Sweet condensed milk is used to make traditional truffles, known as brigadeiro, in Brazil. In the US and the UK, it is a vital ingredient in key lime pie and is often used to make fudge. In Southeast Asia, sweetened condensed milk is added to hot and cold coffee to enhance its flavor.

Most sweets receive their smooth, creamy texture from sweetened condensed milk, which enhances the flavor and sweetness of the end product. A majority of people prefer consuming milk-based desserts to satisfy their sugar cravings. Thus, the growing demand for desserts and beverages, especially those made with sweet condensed milk, is expected to drive the market.

Market Driver- Changing consumer dynamics for sweet condensed milk

The preference of people keeps changing with time in terms of food. People prefer bakery products with high nutritional value along with the high quality and taste of the particular product. Sweet condensed milk is one of the most popular products for elevating the taste of any confectionary or traditional food. Consumers tend to look at the label and packaging of products while making purchases.

The market in Asia Pacific is boosted by the increased consumption of sweet condensed milk. China and India dominate the market within this region, with the US and Europe as the major exporters of sweet condensed milk to this region. Countries such as Indonesia, the Philippines, and Vietnam are the major importers of sweet condensed milk from the US, due to the high domestic demand for sweet condensed milk in these countries. These factors are boosting the global sweet condensed milk market.

Market Restraint- Unsuitable for people with lactose intolerance

Lactose, the natural sugar in milk, cannot be fully absorbed by those who have lactose intolerance. Lactose intolerance is also known as lactose malabsorption and is typically not harmful. People with lactose intolerance suffer from diarrhea, gas, and bloating as a result of consuming dairy products.

Sweetened condensed milk includes both lactose and milk proteins, as it is prepared from cow's milk. Sweetened condensed milk is unsuitable for consumers if they are lactose-intolerant or allergic to milk proteins. A tiny amount of lactose dispersed throughout the day is tolerated by certain lactose-intolerant people. Sweetened condensed milk has a large amount of lactose, even in small amounts.

Market Opportunity- Innovations in traditional product packaging

Product packaging needs to be compatible with a broad range of processors. Additionally, the packaging must be compatible with the technological demands of the production facilities. Sterilized steel cans and drums are common packaging options for sweetened condensed milk. Various bag-in-box systems (BIB), such as one-way and reusable containers with capacities of up to 1,000 kg or small cartons with capacities of up to 25 kg, are becoming popular.

New solutions, including compact BIBs with a capacity of 5 kg or more, are in high demand among users. These solutions are bridging the gap between conventional consumer cans and standard bulk industrial containers.

Scope of Sweet Condensed Milk Market Report  

The report on the global sweet condensed milk market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Sweet Condensed Milk Market Segmental Outlook

Based on type, the sweet condensed milk market is segmented into flavored and unflavored. The flavored segment is expected to register high growth during the forecast period, owing to the increasing competition in the industry. Manufacturers are emphasizing on product innovations, such as adding flavors to increase the sales of sweet condensed milk. The high availability of unflavored condensed milk in the market is a key factor contributing to the growth of the unflavored segment.

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On the basis of packaging form, the market is fragmented into pouch, tetra pack, bottle, can, and tube. The can segment is projected to expand at a significant rate during the forecast period. Metal cans are environmentally friendly and have inner coatings to prevent food spoilage from chemical reactions. Cans are seal packed, which prevents food spoilage during transport. This factor is anticipated to increase the product demand in the near future.

In terms of packaging size, the global sweet condensed milk market is classified into below 300 g, 301-400 g, 401-500 g, 501-1000 g, and more than 1000 g. The 301-400 g segment is projected to expand at a considerable CAGR during the forecast period. The rising demand for 301-400 g sweet condensed milk for household consumption and as a suitable alternative to regular milk in culinary applications such as desserts and beverages is driving the segment.

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On the basis of application, the global sweet condensed milk market is segmented into household, restaurant & cafes, infant food producers, bakery, and confectionary. The bakery segment is projected to expand at a considerable CAGR during the forecast period. Bakeries use sweet condensed milk as one of the primary ingredients in various food items such as cookies and cupcakes. The consumption of bakery products is increasing, owing to its cost-effectiveness, health benefits, and convenience. These factors are anticipated to fuel the bakery segment during the forecast period.

On the basis of distribution channel, the global sweet condensed milk market is classified into wholesalers/distributors, supermarkets & hypermarkets, departmental stores, convenience stores, and online retailing. The online retailing segment is projected to expand at a considerable rate during the forecast period. Online retailing has increased consumer reach and has evolved as a key source of revenue for many companies. Supermarkets offer products at relatively low prices by using their buying power to buy goods from manufacturers at lower prices than retail stores.

Regional Outlook

Based on region, the market is separated into five regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The market in North America is projected to expand at a significant rate during the forecast period. The demand for sweet condensed milk products in desserts and confectioneries is increasing in the US and Canada.

The market in Europe is expected to expand at a significant growth rate, due to the improved dairy products in countries such as Germany and Poland.

The market in Asia Pacific is expected to grow at a rapid pace during the forecast period. The product is used in many traditional dishes in Asia Pacific.

Latin America is anticipated to hold a considerable share of the global market, owing to the increasing interest of millennials in the preparation of cakes and desserts.

The market in the Middle East & Africa is projected to expand at a substantial pace, due to the high demand for sweet condensed milk by desserts and confectioneries manufacturers.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Sweet Condensed Milk Market
• Historical, Current, and Projected Market Size in terms of Value
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Sweet Condensed Milk Market Performance