Substitution of commercial milk powders by fluid milk concentrates as ingredients in dairy products, may improve product quality and increase sustainability. This study compared the functional properties of skim milk concentrates made by reverse osmosis (SMC) with standard reconstituted high- and low-heat skim milk powders (POW-SMC). SMC had larger Z-average size values, higher viscosities, wider particle size distributions and lower extent of whey protein denaturation than POW-SMC. During storage, SMC showed no acid-induced gelation, but improved rennet-induced gelation compared with POW-SMC. Emulsification activity improved at 20 compared with 10% solids in all concentrates, while emulsion stability was lowest for SMC. Better foaming was observed for high-heat POW-SMC, except after 30 days, where SMC showed highest overrun. In certain dairy products, SMC can thus replace commercial powders to reduce processing costs and improve functionality. SMC showed to be especially advantageous for rennet-gelled products.