Asia Pacific Milk Powder Market Size & Forecast 2025–2033

The Asia Pacific milk powder market is on track for impressive growth, projected to reach US$ 18.25 billion by 2033, up from US$ 11.54 billion in 2024, expanding at a CAGR of 5.22% from 2025 to 2033, according to Renub Research.

The region is witnessing a structural shift in dairy consumption, fuelled by rapid urbanization, growing infant population, expanding retail ecosystems, rising disposable incomes, and preference for long-shelf-life nutritional products. Milk powder, once merely a pantry staple, has evolved into a nutrition powerhouse for infants, adults, bakery manufacturers, snack brands, and the health-conscious consumer.

Why Milk Powder Is Enjoying a Massive Resurgence in Asia Pacific

Milk powder holds a unique advantage in a region where refrigeration infrastructure is still expanding across many rural areas. Unlike liquid milk, powdered milk doesn’t require a cold chain, lasts longer, and maintains most nutrients — which makes it cost-efficient for manufacturers, retailers, and end consumers alike.

“Milk powder is not just a dairy substitute today; it’s a strategic nutrition product shaping infant diets, food manufacturing, and future-ready dairy consumption.”

Let’s break down the key reasons driving the market in a Hinglish style that truly connects with the region:

1. Convenience = King

Fresh milk has limited shelf life. Lekin powdered milk months tak chal jaata hai without spoiling. For countries like India, Indonesia, Vietnam, and the Philippines, jaha electricity reliability aur refrigeration facilities uneven ho sakti hain, milk powder is a practical, safe, and economical choice.

2. Baby Boom + Nutrition Awareness

Asia holds some of the world’s largest child populations. China, India, and Southeast Asia have millions of newborns each year. Powdered formula isn’t just a supplement anymore — it’s becoming the primary source of infant nutrition for working parents and urban families.

To put things into perspective:

China recorded a birth rate of 6.77 per 1,000 in 2024, showing a 0.38 increase vs last year.

Governments across APAC are pushing child nutrition programs, further boosting demand for fortified and premium milk powder.

3. E-Commerce + Modern Retail = Sales Explosion

The growth of online grocery, quick commerce, and supermarket expansion is reshaping dairy purchase behavior.

Consumers now enjoy:

✅ Easy price comparison

✅ Subscription-based monthly deliveries

✅ Discount bundles

✅ Wider access to international brands

Especially post-pandemic, milk powder online sales have skyrocketed across platforms like Tmall (China), BigBasket (India), Shopee, Lazada, and Amazon.

4. Bakery, Confectionery, and FMCG Dependence

Milk powder is not just for home consumption. It’s a core raw material in:

Infant formula

Biscuits & bakery products

Ice cream, chocolates & candies

Creamers for tea & coffee

Protein shakes & nutrition supplements

As Asia Pacific’s food processing sector expands, milk powder demand grows with it.

Challenges Holding the Industry Back

Even in a high-growth market, not everything is smooth sailing.

❗ 1. Raw Material Price Volatility

Milk pricing fluctuates due to:

Climate conditions affecting dairy farms

Cattle feed inflation

Logistics & storage expenses

Disease outbreaks impacting cattle production

This makes pricing unpredictable for manufacturers, affecting margins and retail pricing stability.

❗ 2. Fierce Competition & Thin Margins

The market is crowded with:

Global giants (Nestlé, Fonterra, FrieslandCampina)

Regional champions (Amul, Mengniu, Ausnutria)

Local budget-focused brands

Price wars are common, making it tough for companies to retain loyalty without:

Heavy marketing

Product innovation

Functional nutrition offerings

Premium positioning

Country Spotlight: The Power Players in APAC

🇨🇳 China — The Innovation and Health-Led Market

China leads the regional milk powder demand with a strong preference for premium, fortified, and immune-boosting dairy solutions.

A standout development:

In December 2022, Junlebao launched “Le Gai” milk powder targeted at middle-aged and older adults, claiming double the calcium (1200 mg per 100 g) compared to regular milk powder.

This shows a major trend:

➡ Milk powder is no longer just for babies — adult nutrition & healthy aging is the next frontier.

🇮🇳 India — Scale, Demand & Dairy Infrastructure Growth

India’s dairy consumption is surging in both urban and rural regions thanks to rising awareness and lifestyle shifts.

A landmark investment:

In November 2021, Amul invested INR 415 crore (USD 55.7 million) to expand milk powder manufacturing capacity — increasing processing from 35 lakh to 50 lakh liters per day.

India is now one of the largest milk powder production and consumption markets, driven by:

✔ Infant nutrition demand

✔ Tea & coffee culture (dairy whiteners, creamers)

✔ Rapid FMCG and bakery expansion

🇯🇵 Japan — Functional & Senior Nutrition Boom

Japan’s dairy story is different — it is centered around aging population needs. Milk powder products here are often fortified with:

Calcium

Vitamin D

Probiotics

Joint health boosters

Convenience and health upgrades make milk powder a daily staple for seniors. Also, e-commerce subscriptions for nutrition products are seeing a rapid rise.

Market Segmentation at a Glance

🥛 By Type

Whole Milk Powder

Skimmed Milk Powder

Dairy Whitener

Buttermilk Powder

Fat-Filled Milk Powder

Others

🍼 By Application

Nutritional Food

Infant Formula

Confectionery

Baked Sweets

Savories

Others

Country-Wise Market Coverage

China

Japan

India

South Korea

Thailand

Malaysia

Indonesia

Australia

New Zealand

Rest of Asia Pacific

Competitive Landscape (Top Companies)

Nestlé SA

China Mengniu Dairy Company Limited

Fonterra Co-Operative Group Ltd

Hatsun Agro Product Ltd (India)

Saputo Inc.

Arla Foods

Royal FrieslandCampina N.V.

Ausnutria Dairy Corp Ltd

Each company is analyzed based on:

✔ Overview

✔ Key Executives

✔ Recent Developments

✔ Financial Snapshot

Trends to Watch Through 2033

Trend Market Impact

Fortified & functional milk powders Strong growth in adult, child & elderly nutrition

E-commerce subscriptions Higher repeat purchases & customer retention

Lactose-free & organic variants Rising among health-conscious consumers

Sustainability labeling Clean label + eco packaging gaining traction

Regional manufacturing expansion Reduces import dependency & stabilizes pricing

Final Thoughts

Asia Pacific’s milk powder market is entering a golden growth phase where demand is led by nutrition awareness, demographic shifts, modern retail expansion, and product innovation.

Whether it’s a mother choosing infant formula, a bakery brand optimizing formulation, or an elderly consumer switching to high-calcium nutrition, milk powder has become a multi-generational dietary solution.

With Renub Research forecasting the market to grow from US$ 11.54 billion (2024) to US$ 18.25 billion (2033) at 5.22% CAGR, one thing is clear:

Milk powder is no longer a backup for fresh milk. In Asia Pacific, it's the future of dairy consumption.