Milk Powder Market Size and Forecast 2025–2033

The global dairy landscape is undergoing a major transition, driven by shifting lifestyles, expanding urban markets, and the growing need for long-lasting nutrition solutions. Among the most essential dairy derivatives benefitting from this shift is milk powder, a versatile, shelf-stable product used across food, beverage, and nutrition industries worldwide.

According to Renub Research, the global milk powder market is expected to reach US$ 51.96 billion by 2033, rising from US$ 33.69 billion in 2024, at a steady CAGR of 4.93% from 2025 to 2033. This growth reflects a broader movement toward convenient dairy ingredients, rising infant formula consumption, and increasing consumer interest in nutritional and functional food products.

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Milk Powder Market Outlook: Why It Matters More Than Ever

Milk powder—also known as dried milk—is produced through the evaporation of liquid milk, leaving behind a dry, concentrated product that retains the nutrients of its fresh counterpart. Modern processing methods such as spray drying and drum drying allow manufacturers to preserve flavor, protein quality, and essential vitamins while ensuring long shelf life and easy transportability.

Milk powder exists in many varieties, including whole milk powder, skimmed milk powder, whey powder, dairy whitener, buttermilk powder, and fat-filled milk powder. Each type serves distinct market needs, from household use to large-scale industrial applications.

Its importance spans across several industries, owing to its:

Affordability compared to fresh milk

Long shelf life, especially critical in developing regions

Compatibility with processed and packaged foods

Nutrient density, essential for infant nutrition and dietary supplements

From bakery products to beverages, dairy desserts, chocolates, ready-to-eat foods, protein powders, and infant formulas, milk powder has become a foundational element of global food manufacturing.

A Pillar of Modern Food Production

The food and beverage industry relies heavily on milk powder for its stability, ease of handling, and versatility. Some of its key uses include:

Infant formula, providing essential nutrients to millions of babies worldwide

Baking, where it enhances texture, browning, and flavor

Chocolate and confectionery, improving creaminess and structure

Ice cream, yogurt, and cheese production, serving as a base ingredient

Nutritional powders and sports supplements, offering high-protein content

The product’s ability to withstand transportation and storage challenges makes it indispensable, particularly in regions where cold-chain infrastructure remains underdeveloped.

Challenges Facing the Milk Powder Market

Despite its rising demand, the milk powder industry is not without headwinds.

Supply Chain Disruptions & Raw Material Volatility

Milk production is sensitive to numerous variables—weather patterns, feed availability, energy prices, and transportation costs. The global dairy supply chain has faced repeated disruptions due to:

Pandemic-related labor shortages

Rising logistics costs

Climate-driven declines in milk yields

Trade restrictions impacting dairy exports

These disruptions not only increase production costs but also create instability in global pricing, making it harder for manufacturers to maintain consistent supply levels.

Growing Competition from Plant-Based Alternatives

A major challenge for the industry is the rapid rise of plant-based dairy alternatives. With consumers becoming increasingly conscious of:

Health benefits

Sustainability concerns

Ethical considerations

Lactose intolerance

dairy alternatives such as soy, oat, almond, and coconut milk powders have gained popularity.

This shift puts pressure on traditional dairy manufacturers to innovate and differentiate their offerings through organic certifications, fortified products, and sustainable sourcing practices.

Regional Market Dynamics

The global milk powder market varies widely across regions, influenced by cultural consumption patterns, economic development, dairy sector strength, and government policies.

India Milk Powder Market: One of the World’s Fastest-Growing Segments

India’s milk powder market is expanding due to:

A large and growing population

Rising disposable incomes

Increasing urbanization

Elevated demand for packaged dairy foods

Milk is deeply ingrained in the Indian diet, and powdered milk plays a critical role in beverages, sweets, bakery items, and home cooking. With rising demand for ready-to-use dairy products, milk powder usage is becoming more widespread.

A significant boost came in January 2024, when the Gujarat Cooperative Milk Marketing Federation (GCMMF)—owners of Amul—launched Sagar Skimmed Milk Powder nationwide, reinforcing India’s position as a powerhouse in dairy production and processing.

Germany Milk Powder Market: Europe’s Innovation Leader

Germany remains at the forefront of Europe’s milk powder production, supported by:

Advanced dairy processing technologies

A mature food and beverage industry

Strong demand for infant formula and protein-enriched foods

A robust export ecosystem

Rising consumer preference for organic and specialty dairy ingredients

In January 2024, a German company patented a revolutionary approach to creating “nocturnal milk”, claiming it naturally contains 100 times more melatonin—a hormone linked to better sleep quality. Such innovations exemplify Germany’s influence on high-value, science-backed dairy products.

Brazil Milk Powder Market: Latin America’s Dairy Powerhouse

Brazil’s milk powder market continues to grow steadily, buoyed by:

Rising consumption of dairy-based foods

Expansion of the middle class

Increased production of baked goods and confectionery

Greater demand for infant formula

Brazil’s strategic investments in dairy farming and improved efficiency have strengthened its role as one of Latin America’s most important milk powder producers.

South Africa Milk Powder Market: Expanding Alongside Urban Growth

South Africa’s market growth is fueled by:

Increasing urbanization

Expanding retail and supermarket networks

Rising household demand for packaged foods

Growing applications in baking, cooking, and infant nutrition

Despite challenges such as fluctuating feed prices impacting dairy production, the country’s evolving consumer landscape continues to support strong demand for milk powder products.

Milk Powder Market Segmentation

By Type

Whole Milk Powder

Skimmed Milk Powder

Dairy Whitener

Buttermilk Powder

Fat-Filled Milk Powder

Others

By Application

Nutritional Foods

Infant Formulas

Confectionaries

Baked Sweets

Savories

Others

By Country Coverage

North America

United States, Canada

Europe

Germany, United Kingdom, France, Italy, Spain, Switzerland

Asia-Pacific

Japan, China, India, South Korea, Indonesia, Australia

Latin America

Mexico, Brazil, Argentina

Middle East & Africa

Saudi Arabia, United Arab Emirates, South Africa

Rest of World

Competitive Landscape: Companies Leading the Global Market

The milk powder industry is dominated by established global players known for their extensive product portfolios, technological expertise, and widespread distribution.

Each of the following companies is evaluated from three angles: Overview, Recent Developments, and Revenue.

Nestlé (Switzerland)

Danone

Saputo Inc.

Arla Foods amba

The Kraft Heinz Company (U.S.)

Royal FrieslandCampina N.V.

Land O’Lakes, Inc.

China Mengniu Dairy Company Limited

Ausnutria Dairy Corporation Ltd. (Netherlands)

These companies are driving improvements in:

Sustainable dairy production

Innovation in nutritional formulations

Expansion of infant nutrition brands

Research in protein enhancements and fortified dairy

Strategic mergers and acquisitions

Their global influence ensures continued advancement in milk powder quality and availability.

Looking Ahead: The Future of the Milk Powder Market

Multiple global trends will support market expansion between now and 2033:

1. Rising Consumer Focus on Health and Nutrition

Fortified milk powders enriched with vitamins, minerals, and protein will see increased demand.

2. Growth of Infant Formula Markets

Asia-Pacific remains the fastest-growing region for infant nutrition, driving milk powder volumes.

3. Expanding Processed & Packaged Food Industries

With busy lifestyles and urban migration, milk powder’s long shelf life makes it ideal for modern food manufacturing.

4. Technological Advancements in Dairy Processing

Innovations in spray drying, heat treatment, and nutrient preservation will enhance product quality.

5. New Market Entrants & Product Innovations

Hybrid dairy-plant products, organic powders, and specialized formulations will open fresh opportunities.

Final Thoughts

The global milk powder market is set for significant expansion over the coming decade, reaching nearly US$ 52 billion by 2033, supported by rising demand for convenient, nutritious, and long-lasting dairy solutions.

Emerging economies, particularly in Asia and Latin America, will remain the primary drivers of growth, while innovations from European leaders will continue shaping product quality and market direction.

In an era defined by shifting dietary habits, global population growth, and the need for sustainable food systems, milk powder stands out as a resilient, versatile, and indispensable ingredient for the world’s nutrition landscape.