Milk Powder Market

Milk Powder Market Outlook from 2024 to 2034

The milk powder market is estimated to stand at USD 35.26 billion in 2024. The market is forecasted to exceed a valuation of USD 51.89 billion by 2034. The market is projected to experience steady growth through 2034, recording a CAGR of 3.90%. Since milk powder has a longer shelf life than typical regular milk, it is more in demand.

Attributes	Details
Estimated Milk Powder Market Size (2024)	USD 35.26 billion
Forecasted Market Size (2034)	USD 51.89 billion
Projected Value CAGR (2024 to 2034)	3.90%

Milk Powder Market Overview

• Whole milk powder and skim milk powder consumption climbed along with the number of middle-class consumers and consumer health consciousness. Consequently, sales of milk powder are expected to surge to about 1.5 times by 2034.
• Most probably, the market dominance is expected to be in the hands of the United States based on its impressive production capacity, advanced technology adoption, and well-established distribution channel.
• Milk powder manufacturers need to be more innovative and find new ways of adapting to changing consumer preferences, improving quality, and increasing sustainability.

Factors Affecting the Growth of the Global Milk Powder Market

• A key factor that is positively impacting the market is the increase in consumer demand for convenient and long-lasting dairy products.
• Milk powder is gradually becoming more popular as people become more aware of its nutritional advantages, particularly its high protein level.
• The adoption of sustainable food alternatives is increasing and this makes milk powder an excellent choice.
• There is a growing demand for milk powder products from quick-service restaurants, which include cakes, pastries, savory dishes, shakes, and ice cream. It is also expected to accelerate market expansion since it can serve various sectors.
• Milk powder is easier to deal with for consumers and retailers because of its longer shelf life.
• Skimmed milk powder is in demand by individuals who are looking for low-fat variants, while some are looking to add, thus increasing the use of fat-filled milk powder.
• Alterations in the consumers' lifestyles, busy schedules, and increasing demand for on-the-go products, also drive demand for products containing milk powder that can be consumed easily on the go.

Obstacles Compressing the Milk Powder Market Revenue Trends

Government laws and rules about milk powder in each country might slow down market growth. For example, in India, the Ministry of Health and Family Welfare has specific regulations. They say the fat and protein levels in the powder can be adjusted, but the whey protein to casein ratio should stay the same.

The color of powder should be uniform, the taste should be good, and not have any unwanted flavor or foreign substance therein. These strict rules can limit further development of the dairy powder market.

Historical Research on Milk Powder Along with Future Projections

From 2019 to 2023, the milk powder market witnessed sluggish growth, with a 3.66% CAGR. Many challenges disrupted the market growth like broken supply chains, fluctuating prices of raw materials, changing consumer tastes and preferences, and ever-stiffening competition from alternative dairy products.

Despite this, the market continued to expand at the back of continuous efforts of participants in the industry through product innovation, increasing production efficiency, and ever-increasing awareness of the nutrition and health benefits coming from organic milk powder.

Attributes	Quantitative Outlook
Milk Powder Market Size (2023)	USD 31.45 billion
Historical CAGR (2019 to 2023)	3.66%

Short-term Milk Powder Market Analysis

The milk powder market global forecast suggests considerable growth owing to a growing inclination toward consuming naturally sourced and clean-label ingredients. The demand for food and beverages that are grown organically continues to rise at a relentless pace.

Manufacturers are trying to capitalize on this trend, which is likely to potentially lead to market expansion. For example, Valio unveiled Valio Mineval, a brand-new clean-label milk powder designed for baking purposes. With the use of this beneficial milk powder, bakers can produce products with clear labels.

Long-Term Milk Powder Market Analysis

Global trends in the milk powder industry point toward a very dynamic landscape. One of the major trends is the rising consumer preference toward plant-based milk powder. With rising cases of veganism and lactose intolerance, demand for plant-based milk alternatives is on the rise, and this is expected to reflect very positively on global demand for milk powder in the long term.

In addition, milk allergy is comparatively widespread in children; the prevalence of allergy goes up to 10% for children below one year of age. Parents therefore resort to plant-based milk powder for infants. This is fueling the infant milk powder market.

Companies can come up with myriad plant-based milk powders because they have several options available to them, such as almonds, oats, and soy. Plant-based milk powder would not be a new idea anymore. In September 2020, BMS Organics introduced a new line of plant-based milk powders.

Top Opportunities for Milk Powder Manufacturers

Opportunities Available for	Plant-based Milk Powder Producer
Opportunity Available in	India, the United States, the United Kingdom, and Germany

Opportunities Available for	Skimmed Milk Powder Manufacturers
Opportunity Available in	The United States, Germany, France, Italy, and China

Opportunities Available for	Fat-filled Milk Powder Makers
Opportunity Available in	Germany, The United States, Japan, and India

Opportunities Available for	Organic Milk Powder Distributors
Opportunity Available in	Prominently in the United States but also the United Kingdom Japan, India, China

The information suggests that putting money into promotions and marketing can help overcome boundaries. There are plenty of opportunities to focus on milk powder because people are interested in specialized types, like skimmed milk powder and fat-filled milk powder.

Also, millennials and Gen Z are into plant-based food, so producing organic and plant-based milk powder is likely to become a significant source of income in the future.

Demand Analysis of Milk Powder by Region

The North America milk powder industry is expected to grow well. Advances in processing and transportation technologies are predicted to drive considerable growth here. Europe is witnessing continuous and steady growth in demand for milk powders.

The market here is anticipated to advance due to reduced transportation expenses and the deployment of export incentives. The Asia Pacific milk powder industry is likely to make big progress. Here, market development is influenced by shifting lifestyles triggered by globalization and an increase in the working-age population.

Countries	Forecasted CAGR (2024 to 2034)
United States	5.9%
Germany	4.2%
Japan	4.0%
China	4.0%
India	4.3%

Fast Food Frenzy Boosts Fat-filled Milk Powder Popularity in the United States

Demand for milk powder in the United States is set to rise with an anticipated CAGR of 5.9% through 2034. Key factors influencing the milk powder market include:

• People are inclined toward drinking plant-based milk, like soy or almond milk. This is especially true for those who cannot have regular milk (because of lactose) or choose not to eat animal products (like vegans).
• Many people in the country really like fat-filled milk powder. This is because fast food, including cheese, bakery, and sweet treats, is getting more popular. The Grande Cheese Company is a big player in the food service industry. It provides cheese to key pizza chains and restaurants.

Plant-based Milk Powder Surges in Popularity, Fueling Germany's Market Growth

The market in Germany is likely to exhibit a CAGR of 4.2% through 2034. Reasons supporting the growth of the milk powder market in the country include:

• Given the sustainable nature of organic milk powder and its numerous nutritional advantages, many consumers have chosen products that contain organic milk powder. As a result, the market in Germany is growing rapidly with a specific demand for organic milk powder there.
• Germany buys the most plant-based products in Europe, and milk powder is one of them. In 2017, individuals in this country spent more than USD 300 million on plant-based milk products. By 2019, that went up to USD 400 million. Almond milk is the second favorite plant-based milk in Germany, right after soymilk.

Fat-filled Milk Powder Gains Traction in Japan's Ready-to-eat Culture

The Japan milk powder market is expected to surge at a CAGR of 4.0% through 2034. The topmost dynamic forces supporting the milk powder adoption in the country include:

• Japan is really good with technology, and everything in the market feels its effects. Because of this, there are new and trendy products made with milk powder. Manufacturers are using advanced technology, like different drying technologies, to make innovative milk powder.
• Fat-filled milk powder is highly popular in Japan. Its popularity has been fueled by the country's trend toward ready-to-eat meals and convenience foods.

Demand for Organic Milk Powder Increases in China with Growing Health Awareness

It is estimated that milk powder adoption in China is expected to rise at a CAGR of 4% through 2034. People in China are becoming aware of the fact that standard milk is infiltrated with excessive use of fertilizers, pesticides, and bovine growth hormones. This factor is increasing demand for organic milk powder. Many customers are rapidly shifting towards organic and healthier dairy products due to this reason.

Many companies would like to sell organic milk powder in China. New types of milk powder are therefore invented by firms to distinguish themselves from others. In December 2022, Junlebao, based in China and a well-known dairy company, launched "Le Gai" milk powder.

Growing Preference for Convenience Foods Boosts Milk Powder Sales in India

Sales of milk powder in India are estimated to record a CAGR of 4.3% through 2034. The primary factors bolstering the enriched milk powder market size are:

• The demand for packaged and processed meals in India is skyrocketing. This is because customers are opting for convenient food items. Therefore, the market is expanding with the increasing demand for processed foods, including baked goods, confectionary, and snacks.
• In India, 9% of people identify as vegans and 24% as vegetarians. Because of this, there is a tremendous demand in this country for both regular and plant-based milk powders.

Demand Analysis of Milk Powder by Segment

As far as the type of milk powder is concerned, the skimmed milk powder segment is likely to generate significant profit in 2024, holding 46.1% milk powder market share. Similarly, the bakery & confectionary segment is expected to perform better in terms of application, possessing a 44.7% revenue share of milk powder industry in 2024.

Segment	Estimated Market Share in 2024
Skimmed Milk Powder	46.1%
Bakery & Confectionary	44.7%

Health-conscious Trend Elevates Skimmed Milk Powder to Primary Revenue Source

The skimmed milk powder segment is poised to become the primary revenue generator within the market. The growing health consciousness among customers and the increasing preference for milk products with reduced fat content indicate a noteworthy rise of at least 4%, surpassing that of the whole milk business.

Since it contains less saturated fat, both heart patients and diabetics can safely embrace it. In various cooking applications, skim milk powder can be employed as an emulsifier, thickening, color enhancer, and foaming agent.

High-protein Trend Sweeps Bakery & Confectionary Industry, Boosting Milk Powder Demand

The chief position in the market is held by the bakery & confectionary segment. Products with protein and vitamins are in high demand in the baking and confectionery industries. Milk powder is a common component in this business since it gives the appropriate nutritional content while preserving the final product's quality and texture.

Spending on inventive and nutritious bakery, cereal, confectionary, and ice creams is on the rise as customers get more mindful of their diets. As producers concentrate on creating high-protein nutritious goods that appeal to a broad customer base, this trend is driving the demand for milk powder.

Competitive Landscape

Several companies are coming up with inventive plant-based substitutes to satisfy vegans and anyone lactose intolerant. Others take advantage of the growing demand for fast food and the appeal of fattening milk powder.

Some businesses emphasize joint ventures with prominent food service providers, such as pizza chains, to increase their market share. Many use price tactics in competition to draw in cost-conscious consumers.

Recent Developments

• In January 2024, the company that sells Amul and Sagar brands in India, GCMMF, released Sagar Skimmed Milk all over the country. Sagar is a very old brand of GCMMF for milk powder and ghee. The skimmed milk powder from Sagar is the biggest-selling one in India, and now it is also going into the fresh skimmed milk category.
• In October 2023, Nestlé started selling a new instant powder in Central and West Africa. It is the first one it made that is both cheap and good for individual health. The company mixed milk with soy from local farms to give it extra goodness. This powder has important ingredients like protein, fiber, iron, and calcium.
• In April 2023, Valio introduced a new skimmed milk powder for babies called Valio Prime SMP. This special powder is made to be mixed with water to make baby formula. It is made in a way that makes it easy for companies to use when they make baby formula. Plus, it is made to be very clean and safe from bacteria.

Key Milk Powder Market Players

• Nestlé
• Danone
• Groupe Lactalis
• Fonterra
• Royal FrieslandCampina N.V.
• Dean Foods
• Arla Foods
• Dairy Farmers of America
• Kraft Foods
• Saputo
• Parmalat
• The Kraft Heinz Company

Key Coverage in the Milk Powder Market Research Report

• Adjacent Study on the Dried Milk Market and Milk Solids Market
• Emerging Trends in Full Cream Milk Powder
• Opportunities Available in the Infant Milk Powder Market and Full Cream Milk Powder Market
• Market overview of Dairy Powder in North America, Europe, and Asia Pacific
• Market Study on Plant-based Milk Powder
• Updated Trends in Milk Powder Market
• Powdered Milk Industry Analysis

Key Segments Profiled in the Milk Powder Market Survey

By Type:

• Skimmed Milk powder
• Whole Milk Powder
• Fat Filled Milk Powder
• Dairy Whitener
• Other Milk Powder

By Application:

• Bakery & Confectionary
• Nutritional Food
• Infant Formulas
• Others

By Distribution Channel:

• B2B
• B2C
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Specialty Stores
  • Retail Stores
  • Online Retail

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle east and Africa

Frequently Asked Questions

What is the Global Market of Milk Powder?

The market size for milk powder is forecasted to be worth USD 35.26 billion in 2024.

What is the Sales Forecast for Milk Powder?

The milk powder market value is projected to surpass USD 51.89 billion by 2034.

What is the Projected CAGR for the Milk Powder Market?

The CAGR of the milk powder industry is estimated to be around 3.90% through 2034.

What is the Key Market Trend in Milk Powder?

Increased demand for organic plant-based milk powder is the key market trend.

Which Countries Drive the Sales of Milk Powders?

The United States is the key consumers of milk powder as of 2024.

Who is the Largest Producer of Milk Powder?

Nestlé and Danone are milk powder industry leaders.