Global Milk Powder Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Non-Fat Dry Milk/Skim Milk Powder, Whole Milk Powder, Buttermilk Powder), By End-User (Household, Commercial, Industrial), By Distribution Channel (Online, Supermarkets/Hypermarkets, Convenience Stores, Others), And By Geography - Forecasts From 2023 To 2028

The global milk powder market is estimated to grow at a CAGR of 3.62%, reaching USD41.797 billion in 2030 from USD34.988 billion in 2025.

Worldwide consumption of milk powder is a result of various nutrients, including vitamin B12, thiamin, and significant protein content. Additionally, milk powder has a longer shelf life than ordinary milk, which increases demand for it over milk. Skim milk powder is also a healthy and abundant source of protein. In addition to being a good source of calcium, it is also a rich source of selenium, phosphorus, magnesium, potassium, and zinc, among other important minerals. It is also low in cholesterol and promotes weight loss, making it the perfect product for those who have obesity and heart disease.

Further, the investment in the market by prominent market players is expected to create opportunities for the growth of the market in the years to come as they venture into the development of newer and more technologically advanced milk powder products that align with the changes in consumer preference. These have involved a number of health benefits, including an increased nutritional value, such as the addition of vitamins, minerals, and probiotics to boost immunity and well-being. Companies are also looking to diversify their portfolios of products, such as those that are lactose-free, plant-based, or organic milk powders. Manufacturers are also using sophisticated technologies to improve production processes, yielding better taste, solubility, and shelf life, hence appealing to a broader spectrum of consumers, especially health-conscious people and families who need convenient and nutritious dairy alternatives.

For instance, in November 2023, Nestle revealed it has created N3 milk. It is extracted from cow's milk. N3 milk contains the nutrient properties found in milk. Some of these include proteins, vitamins, and minerals. Also, it has a certain percentage of prebiotic fibers, a reduced content of lactose, and has over 15% less calorie count. The company released its first products in a new portfolio of powdered milks for the China market under the N3 brand. This offers a complete cream and a skimmed milk version that is high in protein to support the wholesome diet of the entire family.

Diversified Product Offerings

People are becoming more interested in milk powder consumption because of the development of cutting-edge technologies that enable the nutritional milk content even after the drying process and extremely trace amounts of fat that make it low in calories. Additionally, due to its abundance in complete proteins, which helps in the development and maintenance of lean muscles, athletes have increased their use of it.

Further, countries all around the world have been importing milk powder to satisfy the rising demand for the product. According to the US Department of Agriculture, in 2021, China's milk output increased by an average rate of 4% because of greater productivity. Consumer demand in the nation drives the import of milk powder. In the fiscal year 2021, India exported roughly 17,000 metric tonnes of milk powder, according to the Department of Animal Husbandry and Dairying. There was an increase compared to 2021. By the end of the fiscal year 2022, it was estimated that 37 thousand MT of milk powder had been shipped.

Additionally, India's MY 2023 production of skimmed milk powder (SMP) is predicted by Foreign Agricultural Services (FAS) to be 740,000 metric tonnes (MT), up about 6% from the USDA's official estimate for 2022. This increase is projected because of 2023's strong export demand and high prices.  The growth is ascribed to increased domestic demand brought on by rising incomes.

In addition, the companies are targeting their marketing towards launching new products with the labels of natural or organic. The participants focus on the unique selling propositions to enhance sales of their products. The businesses are also introducing fortified milk powders, providing customers with more nutrients and appealing to health-conscious consumers and families.

Furthermore, brands are using digital marketing and e-commerce channels to reach out and interact with consumers directly in the competitive market. The participants of the market are also investing in scaling up the production of milk powder to achieve economies of scale, increasing their profitability, and ensuring consistent supply to meet growing global demand.

The United States is anticipated to hold significant market share in the coming years.

Milk powder is a versatile ingredient that can be used in a variety of bakery and confectionery products, such as cakes, cookies, pastries, ice cream, and yogurt. The increasing demand for these products is expected to drive the growth of the milk powder market in the US.

Moreover, as reported by the Good Food Institute, there are an estimated 65 million lactose intolerant people and 5 million dairy allergic people in the United States. These consumers are looking for plant-based milk powder as a lactose-free and dairy-free alternative to dairy milk. Consequently, in April 2023, Danone launched a new line of plant-based milk powders. The powders are made from a blend of pea, oat, and rice milk. They are lactose-free, gluten-free, and vegan. Also, milk powder is a good source of protein, calcium, and other essential nutrients. The growing popularity of milk powder as a nutritional supplement is expected to boost the market growth.

Furthermore, the rising disposable income and changing dietary habits of consumers are expected to drive the demand for milk powder in the US. For instance, in May 2023, Lactalis Ingredients launched a new organic whole milk powder. The powder is made from milk that comes exclusively from French dairy farms that comply with the specifications for organic farming. It is free from neutralizing agents, antibiotics, preservatives, and other additives.

Moreover, with rising product launches and increasing government approvals the market for milk powder is anticipated to propel in the United States. For instance, in July 2024, Yili Group opened its first US flagship store in Los Angeles, California, as the company received FDA approval for various dairy products. The store is located in 99 Ranch Market, which is one of the largest Asian supermarket chains in the US. The FDA-approved products include: AMBPOMIAL, Youngfun liquid dairy products, Chocliz, Bitter Coffee, and Yili Ranch.

Segmentation:

• By Type
  • Non-fat dry Milk/Skim Milk Powder
  • Whole Milk Powder
  • Buttermilk Powder
• By End-User
  • Household
  • Commercial
  • Industrial
• By Distribution Channel
  • Online
  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits for the Stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Supplier

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. GLOBAL MILK POWDER MARKET BY TYPE

5.1. Introduction

5.2. Non-Fat Dry Milk/Skim Milk Powder

5.3. Whole Milk Powder

5.4. Buttermilk Powder

6. GLOBAL MILK POWDER MARKET BY END-USER

6.1. Introduction

6.2. Household

6.3. Commercial

6.4. Industrial

7. GLOBAL MILK POWDER MARKET BY DISTRIBUTION CHANNEL

7.1. Introduction

7.2. Online

7.3. Supermarkets/Hypermarkets

7.4. Convenience Stores

7.5. Others

8. GLOBAL MILK POWDER MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Type

8.2.2. By End-User

8.2.3. By Distribution Channel

8.2.4. By Country

8.2.4.1. United States

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Type

8.3.2. By End-User

8.3.3. By Distribution Channel

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Type

8.4.2. By End-User

8.4.3. By Distribution Channel

8.4.4. By Country

8.4.4.1. France

8.4.4.2. Germany

8.4.4.3. Italy

8.4.4.4. Spain

8.4.4.5. United Kingdom

8.4.4.6. Others

8.5. Middle East and Africa

8.5.1. By Type

8.5.2. By End-User

8.5.3. By Distribution Channel

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. Israel

8.5.4.3. UAE

8.5.4.4. Others

8.6. Asia Pacific

8.6.1. By Type

8.6.2. By End-User

8.6.3. By Distribution Channel

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Australia

8.6.4.6. Indonesia

8.6.4.7. Malaysia

8.6.4.8. Thailand

8.6.4.9. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Arla Foods amba

10.2. Dairy Farmers of America

10.3. Olam International

10.4. Dana Dairy Group

10.5. Darigold

10.6. Fonterra Co-operative Group

10.7. Lactalis Ingredients

10.8. Nestlé

10.9. Royal FrieslandCampina N.V.

10.10. Gujarat Cooperative Milk Marketing Federation (Amul)

Arla Foods amba

Dairy Farmers of America

Olam International

Dana Dairy Group

Darigold

Fonterra Co-operative Group

Lactalis Ingredients

Nestlé

Royal FrieslandCampina N.V.

Gujarat Cooperative Milk Marketing Federation (Amul)