The global buttermilk powder market is estimated to be worth USD 2.7 billion in 2024 and is projected to reach a value of USD 3.8 billion by 2034, expanding at a CAGR of 3.5% over the assessment period.
Buttermilk powder is obtained from liquid buttermilk after the removal of water. Dry buttermilk must have a protein content of not less than 30%. Manufacturers are focusing on certifications and claims such as Kosher, ISO, and Halal, etc., which help them gain the trust of consumers. The clean-label and certified packaging are helping to make dry buttermilk powder a promising product for consumers.
Dry buttermilk has end-use applications as a substitute for skimmed milk. It is added to enhance the quality, taste, flavor, texture, and appearance of food products. Dry buttermilk also increases the nutritional properties, freshness, and shelf life of ready-to-cook and processed products.
It is a rich source of phosphorus, which helps in building RNA & DNA. Owing to its multiple health benefits, the use of dry buttermilk is rising in the food and beverage, sports and dietary supplements, and animal feed industries.
| Attributes | Description |
|---|---|
| Estimated Buttermilk Powder Market Size (2024E) | USD 2.7 billion |
| Projected Buttermilk Powder Market Value (2034F) | USD 3.8 billion |
| Value-based CAGR (2024 to 2034) | 3.5% |
Buttermilk powder is an essential ingredient in the food industry, known for its versatility and functional properties. This analysis delves into key industry trends, drivers, and opportunities influencing the cultured milk powder category, emphasizing its applications, health benefits, and sustainability factors.
Changing lifestyles and rising urbanization have influenced prevailing trends as consumers select either ready-to-use or finished products. The demand for semi-processed products is less as consumers prefer not to waste time cooking.
Ready-to-go products are in high demand, especially among the working demographic. Thus, the demand for processed food is high as consumers increasingly demand products that are innovative as well as nutritious.
The rapid growth of the middle-class population, especially in Asia, offers a great opportunity for food processing manufacturers. Moreover, the working population has become more aware of health and wellness, due to which they prefer nutritious and healthy ready-to-cook products.
Dry buttermilk helps enhance the nutritional properties and shelf life of ready-to-cook products. The rising demand for ready-to-cook products helps boost the growth rate of the dry buttermilk industry.
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Soaring Demand from Bakery & Confectionery Industry to Propel Dry Buttermilk Sales
According to a report published by World Bread and Bakery Products, the consumption of bread and bakery products is increasing, having gone from 122,000 tons in 2007 to 129,000 tons in 2016.
The usage of dry buttermilk is increasing in bakery and confectionery products, as it is important to enhance the texture, color, flavor, and aroma of various bakery and confectionery products. Dry buttermilk is used as an emulsifier and flavor enhancer for bakery and confectionery products.
Health-conscious consumers are increasing rapidly across the globe, due to which they prefer low-fat and nutritious products. Dry buttermilk is a low-fat product and is also used for nutritional enrichment. Due to its nutritional properties, the use of dry buttermilk is rising in bakery and confectionery products.
Growing Demand in the Food and Beverage Industry
The increasing use of buttermilk powder in various food and beverage applications is a significant industry trend. Its functional properties make it a valuable ingredient in recombined milk, UHT milk, dairy spreads, growing-up milk (infant formula), desserts, bakery products, soups, sauces, flavored milk, and ready-to-drink milk.
The rising consumer demand for ready-to-eat and convenience foods is propelling the buttermilk powder market growth. Its ability to enhance flavor, texture, and nutritional value makes it an attractive choice for food manufacturers. The bakery and confectionery segments, in particular, are seeing increased use of cultured milk powder due to its emulsification properties and creamy flavor.
Further innovations in food processing and the development of new product formulations present opportunities for buttermilk powder manufacturers. For instance, the growth of the plant-based food sector could lead to the creation of hybrid products that combine dairy and plant-based ingredients, offering a unique category niche.
Technological Advancements in Production
Advances in production technology are improving the quality and efficiency of cultured milk powder manufacturing. These innovations are leading to products with better heat stability, emulsification properties, and nutritional profiles.
The adoption of advanced spray drying techniques and quality control measures ensures the production of high-quality buttermilk powder. This not only meets stringent food safety standards but also caters to the specific needs of different applications, such as high-heat-stable and UHT-grade products.
Investing in research and development to enhance production processes can yield significant benefits. Innovations in drying technology, for instance, can lead to the creation of new product variants with tailored functionalities, opening up new category segments.
Sustainability and Ethical Sourcing of Raw Material
Sustainability is becoming a crucial factor in consumer purchasing decisions. There is a growing demand for products that are ethically sourced and produced with minimal environmental impact.
Initiatives such as the Bord Bia Origin Green scheme and ISO50001 accreditation highlight the industry's commitment to sustainable practices. Consumers are increasingly looking for transparency in sourcing and production, favoring products that support sustainable dairy farming and energy management.
By emphasizing their sustainability credentials, cultured milk powder producers can differentiate themselves in the industry. This includes sourcing milk from farms adhering to sustainable dairy assurance schemes, reducing greenhouse gas emissions, and promoting animal welfare. Marketing these efforts can enhance brand reputation and attract eco-conscious consumers.
Global buttermilk powder market growth progressed at a CAGR of 3.3% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on buttermilk powder is set to rise at a 3.5% CAGR.
This growth is driven by several factors, including the rising demand for convenient and shelf-stable dairy products, the expanding application of cultured milk powder in various food and beverage sectors, and increasing consumer awareness of its nutritional benefits.
The industry is also expected to benefit from advancements in production technologies and the growing emphasis on sustainable and ethically sourced ingredients. Additionally, the burgeoning food processing industry in emerging markets and the increasing adoption of buttermilk powder in bakery and confectionery products are anticipated to further bolster industry expansion.
Enhanced focus on health and wellness trends, coupled with the versatility of cultured milk powder in functional food applications, will likely sustain its demand and foster steady category growth through 2034.
Rapid demand growth for cultured milk powders can also be attributed to several external factors such as shifts in consumer demographics and evolving consumer preferences, which also play a huge part in this business space.
Urbanization is another factor behind changing lifestyles; long working hours and fewer physical activities are making it difficult for the younger population to follow appropriate diet management.
Growing industry reach, supported by the increase in disposable income and an expanding middle-class population, helps in industry expansion and penetration. Digital health platforms are expected to push the utilization of cultured milk powders.
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The buttermilk powder market is characterized by its tiered structure, comprising both organized and unorganized players. The organized segment accounts for 40% of industry sales, dominated by multinational corporations (MNCs) with annual revenues exceeding 5 million USD. Leading firms are at the forefront, leveraging their extensive production capabilities, sophisticated technological infrastructure, and comprehensive product portfolios to maintain a significant industry presence.
These organized players are adept at meeting stringent regulatory standards and sustaining robust distribution networks, enabling them to capture substantial market share globally. Their advanced research and development facilities further drive innovation, allowing them to introduce a wide array of plant-based ingredients that cater to the evolving preferences of health-conscious and environmentally aware consumers.
On the other hand, the unorganized segment, which constitutes 60% of industry sales, is composed of local players with annual revenues of less than 5 million USD. These smaller firms, while lacking the global reach of their larger counterparts, play a crucial role in specific regions. They focus on niche industries, offering specialized products that cater to localized demands and specific dietary needs. This segment's flexibility and agility enable these companies to quickly adapt to key trends and consumer preferences, often leading to unique and innovative product offerings.
The coexistence of both large and small companies within the industry ensures a dynamic and competitive landscape. This diversity fosters continuous advancements and a broad spectrum of product choices, meeting the diverse needs and preferences of consumers globally. As a result, the buttermilk industry is well-positioned for sustained growth, driven by innovation and the increasing consumer shift toward healthier and more sustainable food options.
This section offers a comprehensive evaluation of three interrelated categories: the global milk powder category, the global yogurt powder market, and the global fat-filled milk powder industry. It dissects the distinctive characteristics of each category, encompassing their respective CAGRs and sales in 2024, while also delving into the pivotal factors that exert influence on their growth trajectories.
Milk Powder Industry Assessment:
Whole milk powder and skim milk powder consumption climbed along with the number of middle-class consumers and consumer health consciousness. Consequently, there is likely to be around a 1.5X surge in milk powder sales by 2034.
The United States is likely to maintain its supremacy in the category as it continues to demonstrate robust production capabilities, advanced technology adoption, and a well-established distribution network.
Milk powder producers need to think outside the box and explore innovative strategies to adapt to changing consumer preferences, improve product quality, and enhance sustainability practices.
| Attributes | Description |
|---|---|
| Related Category | Milk Powder Market |
| CAGR (2024 to 2034) | 3.9% |
| Growth Factor | The category growth is significantly influenced by increasing consumer demand for convenient and long-lasting dairy products |
| Opportunity | The longer shelf life of milk powder makes it a practical solution for consumers and retailers, contributing to category expansion |
| Key Trend | Milk powder's non-perishable and lightweight characteristics improve supply chain efficiency by lowering transportation costs and guaranteeing its availability in multiple locations |
Yogurt Powder Industry Assessment:
A shelf-stable product, yogurt powder is gaining immense popularity, especially in the food and beverage sector. This can be attributed to its high convenience, versatility, extended shelf life, and other advantages.
The growing adoption of powdered yogurt in various culinary applications, including baking and smoothies, is set to fuel demand. This dry yogurt form is widely used in muffins, cakes, cookies, snacks, sauces, stews, soups, dips, and other food products, leading to high demand.
Robust growth in the food processing sector, especially in developing and developed regions, is forecasted to create growth opportunities for powdered yogurt manufacturers. Food manufacturers are increasingly using curd powder as a flavoring agent, nutritional supplement, or thickening agent in several products.
| Attributes | Description |
|---|---|
| Related Category | Yogurt Powder Market |
| CAGR (2024 to 2034) | 6.8% |
| Growth Factor | Yogurt powder offers convenience to consumers without having them to care about perishability as can be easily stored for long periods |
| Opportunity | Consumers across the world are becoming aware of the health benefits of yogurt and yogurt-based products, particularly high probiotic content |
| Key Trend | Leading companies are looking to create powdered yogurt from plant-based milks like soy and almond |
Fat Filled Milk Powder Industry Assessment:
Fat-filled milk powder is easy to handle and store, making it a convenient option for manufacturers. It can be transported and stored without refrigeration, reducing logistics costs. Additionally, it can be easily reconstituted by simply adding water, making it a convenient ingredient for food and beverage manufacturers.
Busy lifestyles and the need for quick and easy meal solutions are driving the demand for convenience foods, including fat-filled milk powder. This is leading to the development of new product formats, such as single-serve sachets and ready-to-drink beverages.
Manufacturers are also exploring new distribution channels, such as eCommerce platforms and vending machines, to make fat-filled milk powder products more accessible to consumers.
| Attributes | Description |
|---|---|
| Related Category | Fat Filled Milk Powder Market |
| CAGR (2024 to 2034) | 6% |
| Growth Factor | Increasing demand for affordable dairy alternatives in emerging countries is driving the fat-filled milk powder adoption. |
| Opportunity | Fortifying fat-filled milk powder with vitamins and minerals can attract health-conscious consumers |
| Key Trend | Sustainable and traceable sourcing of ingredients is becoming a key trend in the fat-filled milk powder category |
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The following table shows the estimated growth rates of the top five countries. The United States, Japan, and Germany are set to exhibit high consumption, recording CAGRs of 4.7%, 7.4%, and 8.9%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 4.7% |
| Germany | 8.9% |
| Japan | 7.4% |
| China | 3.5% |
| India | 8.5% |
The buttermilk powder market in the United States are projected to exhibit a CAGR of 4.7% during the assessment period. This growth can be attributed to several key factors. Firstly, the increasing consumer preference for high-protein, functional food ingredients is driving the demand for buttermilk powder, given its rich nutritional profile.
The booming bakery and confectionery industry in the United States significantly contribute to the sales expansion, as cultured milk powder is a vital ingredient in enhancing the texture and flavor of baked goods. The rise in health-conscious consumers seeking low-fat dairy alternatives is fostering the growth of cultured milk powder sales.
The trend toward clean label products, where consumers prefer minimally processed and additive-free ingredients, also benefits sales, given cultured milk powder's natural and wholesome properties. The robust distribution network and the presence of major food and beverage manufacturers in the United States ensure a steady supply and widespread availability of cultured milk powder, supporting its sales dominance.
The growing awareness and demand for sustainable and ethically produced food products are also playing a crucial role. Many United States-based producers are focusing on sustainable sourcing and production practices, aligning with consumer preferences and enhancing sales growth.
With these factors combined, the United States is set to maintain its leading position in global buttermilk powder sales throughout the forecast period.
The buttermilk powder market in Germany is calculated to rise at a value CAGR of 8.9% during the forecast period. By 2034, Germany is expected to account for 17.9% of buttermilk powder sales in Europe. This impressive growth can be attributed to several factors, including the country's strong dairy tradition and the rising consumer awareness regarding the health benefits of cultured milk powder.
German consumers are increasingly seeking high-quality, functional food ingredients that support a balanced diet and healthy lifestyle. Buttermilk powder, with its high protein content and versatile applications, meets these demands effectively. Furthermore, the expanding bakery and confectionery sector in Germany is a significant driver, as cultured milk powder is a key ingredient in many traditional and modern recipes, enhancing texture and flavor.
The emphasis on sustainability and traceability in food production is also fueling demand. German consumers prioritize products that are ethically sourced and produced with minimal environmental impact. This aligns with the broader European trend towards sustainability, and cultured milk powder producers in Germany are responding by adopting eco-friendly practices.
The increasing popularity of clean-label products in Germany is contributing to the industry's growth. Consumers are opting for foods with simple, recognizable ingredients, and cultured milk powder, being a natural product, fits well into this category. The robust distribution channels and advanced food processing industry in Germany further support the growing demand for cultured milk powder.
With these factors combined, Germany is poised to become a key player in the European cultured milk powder industry, significantly influencing the region's sales and trends throughout the forecast period.
The industry in Japan has grown a lot because people there like it and want convenient food. In Japan, more people are busy and want easy and cheap food. They buy packaged and processed foods, like buttermilk powder, because they are easy to use. Also, more Japanese people are living in smaller homes, so they want food that's ready to eat.
The food industry in Japan is growing because people want easy and long-lasting dairy products. Cultured milk powder lasts a long time, is easy to keep, and is easy to use. In 2021, Japan's food industry made a lot of money, especially from hotels and restaurants.
Cultured milk powder became popular in Japan because more people started eating convenient foods and ready-to-eat meals a few years ago. It's also popular in homes and restaurants because it's affordable for people who are careful with their money, like customers and food makers.
The demand for cultured milk powder in Japan has gone up because it's needed for many types of cooking, like baking, cooking, and making drinks. It's a useful ingredient in Japanese cooking because it makes food taste better, feel nicer, and be healthier.
This section of the buttermilk powder market analyzes projections for the industry's top segments. In terms of product type, the spray dried segment is estimated to dominate, holding a share of 76.4% in 2024. By sales channel, the B2B category is projected to fortify its position as the champion, obtaining a share of 56.7% in 2024.
| Segment | Product Type (Spray Dried) |
|---|---|
| Value Share (2024) | 76.4% |
Spray dried buttermilk powder is preferred and holds a significant industry share compared to atmospheric roller-dried buttermilk powder due to several key advantages. This method produces powder with a fine, uniform particle size and consistent quality, ensuring excellent solubility and ease of reconstitution.
The lower temperatures used in spray drying help preserve natural flavors and nutritional content, resulting in a product with a more authentic taste and higher retention of essential nutrients. Its superior functional properties, such as better emulsification and heat stability, are crucial for various applications, including baked goods, dairy spreads, and beverages.
The low moisture content achieved through spray drying extends the shelf life of the product, making it convenient for storage and transportation. The powder's versatility allows it to be easily incorporated into a wide range of food products, enhancing texture, flavor, and nutritional profile.
Growing demand for high-quality, functional food ingredients drives the preference for spray dried powder, supported by advancements in spray drying technology that ensure consistent quality and efficiency. These factors collectively contribute to its dominance in the industry.
| Segment | B2B (Sale Channel) |
|---|---|
| Value Share (2024) | 56.7% |
B2B (business-to-business) sales play a crucial role in leading buttermilk powder sales, significantly shaping the industry dynamics. In the B2B segment, cultured milk powder is primarily sold to food and beverage manufacturers, bakeries, confectioneries, and the dairy industry.
These businesses leverage cultured milk powder's functional properties to enhance their product offerings, including baked goods, dairy spreads, soups, sauces, and ready-to-drink beverages. The bulk purchasing power of B2B customers enables suppliers to achieve economies of scale, leading to cost efficiencies and more competitive pricing. This, in turn, encourages large-scale procurement of cultured milk powder.
The stringent quality and safety standards demanded by B2B customers ensure that suppliers maintain high production standards, fostering trust and long-term business relationships. The B2B industry benefits from the growing trend of customized product solutions.
Manufacturers often require specific formulations of cultured milk powder to meet unique product requirements, such as high heat stability or low spore content. Suppliers who can offer tailored solutions gain a competitive edge, further driving B2B sales.
Technological advancements in food processing and the increasing focus on sustainable and traceable supply chains also support the growth of B2B cultured milk powder sales. Businesses are increasingly prioritizing suppliers that adhere to sustainable practices, ensuring that their products meet the evolving preferences of eco-conscious consumers.
Overall, the B2B segment's demand for high-quality, functional, and customizable cultured milk powder continues to lead industry sales, highlighting the importance of business partnerships and large-scale industrial applications in driving industry growth.
The buttermilk powder market is highly consolidated, dominated by a handful of major players who control the majority of the production and supply. These key players leverage advanced production technologies, extensive distribution networks, and strong brand recognition to maintain their industry leadership. Companies such as Tipperary Co-op and other prominent dairy producers have established themselves as the primary manufacturers, driving innovation and setting industry standards.
In contrast, numerous smaller companies and regional players primarily engage in the procurement and rebranding of cultured milk powder. These companies typically source buttermilk powder from the leading manufacturers, reformulate it to meet specific industry needs, and rebrand it under their own labels. This approach allows smaller players to offer a diverse range of cultured milk powder products without the significant investment required for production facilities.
The competitive landscape of the buttermilk powder market is further characterized by strategic partnerships and collaborations between large manufacturers and smaller companies. By leveraging the strengths of both parties, such as production capabilities and industry reach, these partnerships help expand industry presence and drive sales. Additionally, the increasing demand for customized and specialty cultured milk powder formulations has led to a rise in private-label offerings, catering to niche markets and specific consumer preferences.
Despite the dominance of a few key players, competition remains robust due to constant innovation and evolving consumer demands. The focus on sustainable sourcing, quality assurance, and functional product attributes drives manufacturers to continuously improve their offerings. This competitive environment encourages leading companies to invest in research and development, enhancing the overall quality and variety of cultured milk powder available in the industry.
As per product type, the industry has been categorized into atmospheric roller dried and spray dried.
Different sales channels include B2B (hotels, restaurants, cafes) and B2C (hypermarkets /supermarkets, convenience stores, mom and pop Stores, discount stores, food & drink specialty stores, independent small groceries, online retail and others retail formats)
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
The industry is estimated at a value of USD 2.7 billion in 2024.
Sales of buttermilk powders increased at a 3.3% CAGR between 2019 and 2023.
Hoogwegt Group, All American Foods, Contenental Dairy Facilities, LLC, Agropur, Fonterra and Co-operative Group Limited, are some of the leading players.
North America is projected to hold a revenue share of 31.4%.
Europe holds 27.8% share of the global sales.
1. Executive Summary 2. Industry Introduction, Including Taxonomy and Market Definition 3. Market Trends and Success Factors, Including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Product Type 6.2. Sales Channel 6.3. Region 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product Type 7.1. Atmospheric Roller Dried 7.2. Spray Dried 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Sales Channel 8.1. B2B 8.1.1. Hotels 8.1.2. Restaurants 8.1.3. Cafes 8.2. B2C 8.2.1. Hypermarkets /Supermarkets 8.2.2. Convenience Stores 8.2.3. Mom and Pop Stores 8.2.4. Discount Stores 8.2.5. Food & Drink Specialty Stores 8.2.6. Independent Small Groceries 8.2.7. Online Retail 8.2.8. Others Retail Formats 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia 9.6. Oceania 9.7. Middle East and Africa 10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Oceania Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Product Type, Sales Channel for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. Hoogwegt Group 19.2. All American Foods 19.3. Contenental Dairy Facilities, LLC 19.4. Agropur 19.5. Fonterra Co-operative Group Limited 19.6. DFA Ingredients solutions 19.7. IPS-Ingredis 19.8. North Cork Creameries 19.9. Lactalis Ingredients 19.10. NOW Health Group 19.11. Dairygold Deutschland Handels GmbH 19.12. California Dairies, Inc 19.13. Westland Milk Products 19.14. Valio Ltd. 19.15. Uelzena Group 19.16. Numidia BV 19.17. ACE International LLP 19.18. Bempresa 19.19. Michigan Milk Producer Association
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