United States Milk Powder Market Size & Forecast 2025–2033

The United States milk powder market is on a steady growth trajectory, backed by rising nutrition awareness, expanding dairy-tech innovation, and a booming demand for shelf-stable food ingredients. According to Renub Research, the U.S. milk powder market is expected to reach US$ 15.92 billion by 2033, climbing from US$ 10.56 billion in 2024, at a strong CAGR of 4.66% from 2025 to 2033.

Milk powder — made by evaporating or spray-drying pasteurized milk — has become one of the most essential commodities in modern food supply chains. Its long shelf life, storage flexibility, nutrient density, and industrial functionality have made it a backbone of everything from infant formula and sports nutrition to bakery, confectionery, beverages, and culinary applications.

🥛 Market at a Glance

Parameter Value

Market Value (2024) US$ 10.56 Billion

Forecast Value (2033) US$ 15.92 Billion

Growth Rate (2025–2033) 4.66% CAGR

Key Demand Driver Infant formula, dietary supplements, bakery & confectionery

Major Challenge Imported product competition & sustainability pressures

Fastest Growing Segment Skimmed Milk Powder & Infant Formula

🧾 What Is Powering U.S. Milk Powder Demand?

✅ 1. Rising Infant Nutrition Needs

Milk powder is the primary foundation of infant formula, which continues to hold one of the most robust market shares in the U.S. This demand is propelled by:

Rising awareness of early-life nutrition

Increasing number of working mothers requiring convenient feeding alternatives

Growth of fortified and specialized baby nutrition (lactose-free, high-protein, immunity-boosting)

Pediatric healthcare guidance emphasizing balanced nutrition

With infant formula manufacturers intensifying their R&D and safety standards, quality milk powder supply has become critical and non-negotiable.

✅ 2. Dietary & Sports Nutrition Boom

U.S. consumers have dramatically increased their intake of supplements, protein blends, shakes, and fortified nutritional products. Milk powder plays a crucial functional role due to its:

High protein & calcium content

Rich vitamin profile (A, D, E, K)

Mineral composition (zinc, magnesium, potassium)

Easy formulation into bars, powders, and ready-mix drinks

Its dominance in the fitness, wellness, clinical nutrition, and active lifestyle sectors is contributing to sustained market demand.

✅ 3. Urbanization Meets Convenience

The rise of urban lifestyles has made shelf-stable, non-refrigerated, instant food ingredients essential.

Milk powder answers key modern consumer needs:

Long shelf-life

Easy storage without refrigeration

Lower logistical and spoilage risks

Suitable for compact housing spaces

Functional mixing in beverages and recipes

These benefits strengthen both retail and industrial adoption.

✅ 4. Expanding Bakery, Confectionery, and Culinary Applications

Milk powder has functional properties that improve:

Texture

Flavor richness

Whipping, foaming, and binding

Creaminess in desserts

Stability in processed foods

Hence, it is heavily used in:

Cakes, brownies, pastries

Chocolates, mousse, marshmallows

Ice cream and frozen desserts

Savory seasoning, sauces, and gravy mixes

Coffee creamers and instant beverages

With the U.S. bakery and packaged food sector continuing to grow, milk powder remains a core industrial ingredient.

⚠️ Key Challenges Facing the Market

❗1. Heavy Competition from Imported Milk Powder

Countries such as New Zealand and the European Union export milk powder at highly competitive prices due to:

Subsidized dairy farming

Lower production costs

Economies of scale

More efficient dairy supply chains

This puts pressure on U.S. manufacturers to:

Innovate formulations

Improve production efficiencies

Optimize pricing without losing margins

❗2. Environmental and Sustainability Concerns

Growing scrutiny of the dairy industry includes concerns around:

Methane emissions from livestock

Water usage in dairy farming

Carbon footprint from supply chain and logistics

Waste management and packaging sustainability

To meet regulatory standards and consumer demand, companies must invest in:

Carbon reduction strategies

Energy-efficient processing

Recyclable or sustainable packaging

Clean label and transparency initiatives

Although these steps drive long-term sustainability, they also raise production costs.

🧩 Market Segmentation Overview

By Type (6 Segments)

Whole Milk Powder

Skimmed Milk Powder

Dairy Whitener Powder

Buttermilk Powder

Fat-Filled Milk Powder

Other Milk Powder

By Application (6 Segments)

Nutritional Food

Infant Formula

Confectionaries

Baked Sweets

Savories

Others

Among these, Skimmed Milk Powder leads the product category, driven by rising health consciousness and preference for low-fat nutrition.

Infant formula dominates the application segment, maintaining strong momentum due to consistent demand and innovation in specialized baby nutrition.

📊 Segment Insights

🔹 Skimmed Milk Powder: The Health-Driven Leader

Low fat, high protein profile

Ideal for diet-conscious and fitness consumers

Longer shelf life and easy storage

Used widely in supplements, dairy blends, and protein drinks

This segment continues to outperform due to the U.S. shift toward healthier food alternatives.

🔹 Infant Formula: The Most Critical Growth Engine

The segment is thriving due to:

High reliance on milk powder formulations

Rising R&D in nutrient-enriched baby products

Demand for hypoallergenic, lactose-free, and fortified variants

Strict FDA and quality adherence enhancing consumer trust

Its role in early childhood nutrition makes it indispensable rather than optional.

🏢 Competitive Landscape (Key Companies)

Company Market Strength

Dairy Farmers of America Inc. Largest dairy cooperative, extensive product portfolio

Darigold Strong milk powder processing capabilities

Cargill Corporation Global supply chain, nutrition expertise

The Kraft Heinz Company Strong brand ecosystem, retail reach

Conagra Brands Inc. Food ingredient integration and scale

Land O'Lakes, Inc. Dairy innovation and sustainability initiatives

Schreiber Foods Inc. Ingredient-focused dairy product specialist

California Dairies Inc. One of the largest U.S. milk processors

These companies compete through innovation, pricing strategies, production scale, strategic partnerships, and supply chain expansion.

🔍 Trends Reshaping the U.S. Milk Powder Market

Trend Impact

Clean label formulations Higher consumer trust and premium demand

Protein fortification trend Boosts supplement and sports nutrition market

Lactose-free & allergen-friendly variants Expands consumer base

Sustainable sourcing Long-term brand advantage

B2B industrial applications Rapid uptake in baked goods & ready mixes

🚀 What Lies Ahead? (2025–2033 Outlook)

Demand will remain strongest in nutritional, infant, and functional food categories

Product innovation and export competition will reshape pricing strategies

Sustainability will move from optional to mandatory

Skimmed and fortified powders will dominate product innovation pipelines

Partnerships between dairy cooperatives and nutrition brands will increase

💭 Final Thoughts

The U.S. milk powder market is more than just a dairy segment — it sits at the intersection of nutrition science, food innovation, consumer lifestyle shifts, and global trade dynamics.

With a projected market size of US$ 15.92 billion by 2033, growth is not only expected — it's already in motion. Companies that will win this space are those investing in:

✔ Clean & sustainable production

✔ Nutritional innovation

✔ Cost-efficient supply chains

✔ Consumer-centric formulations

The opportunity is vast, evolving, and anchored in necessity — because milk powder is no longer just an ingredient, it's a nutritional and industrial foundation for the future of food.