Global Milk Powder Market Set to Reach $51.96 Billion by 2033: Growth Driven by Infant Formula, Convenience, and Health Trends

According to Renub Research Latest Report milk powder market is experiencing steady expansion, projected to reach $51.96 billion by 2033, up from $33.69 billion in 2024, reflecting a CAGR of 4.93% from 2025 to 2033, according to Renub Research. Milk powder remains a staple in households, bakeries, and the food and beverage industry, owing to its versatility, long shelf life, and nutritional value.

Milk Powder: A Staple That Keeps Growing

Milk powder, or dried milk, is created by removing water from fresh milk using spray-drying or drum-drying techniques, producing a shelf-stable product that retains most nutrients. Depending on consumer needs, milk powder can be whole, skimmed, whey, buttermilk, fat-filled, or dairy whitener, offering a wide range of options based on fat content and application.

The powdered formula is particularly critical for infant nutrition, forming the foundation of baby formulas. Beyond this, milk powder is widely used in baking, confectionery, beverages, and processed foods, making it an indispensable ingredient for global food manufacturers. Its affordability and convenience also make it an attractive alternative to fresh milk, especially in regions where refrigeration is limited or unavailable.

👉 Want to explore detailed market trends, segment insights, and forecasts? 🔗 Request Sample Report

Key Drivers of Market Growth

Rising Demand for Infant Formula

One of the primary growth engines for the milk powder market is the expansion of infant formula consumption. As populations rise globally and parental awareness of nutrition grows, demand for powdered infant formula has surged. Milk powder provides the essential nutrients required for infant growth, and technological advances in production have allowed manufacturers to enhance quality, fortify products, and cater to specific nutritional needs.

Convenience and Shelf Life

Milk powder’s long shelf life and portability make it a favorite for households, food manufacturers, and retailers alike. With urbanization on the rise and lifestyles becoming increasingly fast-paced, consumers are gravitating toward convenient food solutions. Powdered milk offers a ready-to-use, reliable alternative to fresh milk, ensuring uninterrupted access to dairy-based nutrition.

Health-Conscious Trends

Health-conscious consumers are increasingly seeking products that are fortified, low-fat, or protein-enriched, which has led manufacturers to innovate within the milk powder segment. For instance, skimmed and fat-filled milk powders cater to consumers aiming to manage caloric intake while still enjoying dairy benefits. Functional foods, enriched with vitamins, minerals, and probiotics, are increasingly formulated using milk powder as a base, further expanding its relevance.

Market Challenges

Despite its growth, the milk powder market faces certain hurdles:

Supply Chain Disruptions and Raw Material Costs

Milk powder production is highly sensitive to fluctuations in raw material costs. Prices of milk and other dairy inputs can vary due to weather conditions, farm yields, and transportation expenses. Global events such as pandemics, trade restrictions, and logistical bottlenecks exacerbate these supply chain vulnerabilities, potentially increasing production costs and impacting product availability.

Rising Competition from Plant-Based Alternatives

The increasing popularity of plant-based milk alternatives—almond, oat, soy, and coconut—poses a significant challenge. As consumers shift toward vegan or lactose-free options for health or environmental reasons, traditional milk powder manufacturers face growing competition, compelling them to innovate and diversify their product offerings.

Regional Insights

India: A Growing Market

India’s milk powder market is expanding rapidly due to population growth, urbanization, and rising disposable income. Milk is integral to Indian diets, and milk powder is increasingly used in cooking, confectionery, and beverages. Packaged and ready-to-use dairy products are gaining preference, with consumers willing to pay for convenience.

Government policies promoting dairy farming and milk production further bolster growth. In January 2024, the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) launched Sagar Skimmed Milk Powder nationwide, meeting rising demand for shelf-stable dairy products.

Germany: European Leadership

Germany is a leader in the European milk powder market, with strong demand driven by infant formula, bakery products, and dairy beverages. The country boasts a technologically advanced dairy industry, producing high-quality milk powder that caters to premium and organic trends.

Innovation is at the forefront, exemplified by a German company that patented the ‘nocturnal milk’ process in January 2024, producing milk with reportedly 100 times more melatonin than regular milk, potentially aiding sleep regulation. Strong export networks further cement Germany’s dominance in the regional market.

Brazil: Latin America’s Rising Star

Brazil’s milk powder market continues to grow, propelled by robust domestic dairy production, increasing middle-class consumption, and demand for ready-to-use food products. Milk powder is widely used in infant formula, confectionery, and bakery applications, and the government’s focus on enhancing milk production efficiency helps sustain market growth.

South Africa: Urbanization Driving Demand

South Africa is seeing rising milk powder consumption, especially in urban areas. Applications primarily include infant nutrition, cooking, and baking, and domestic consumption is growing alongside exports. Although raw material costs—mainly feed for dairy cows—can fluctuate, expanding urbanization, retail sector growth, and a rising middle class support steady market expansion.

👉 For deeper analysis, detailed segment data, and company insights: 🔗 Request Customization Report

Market Segmentation

By Type:

Whole

Skimmed

Dairy Whitener

Buttermilk

Fat-Filled

Other

By Application:

Nutritional Food

Infant Formula

Confectionery

Baked Sweets

Savories

Other

By Region:

North America: United States, Canada

Europe: Germany, UK, France, Italy, Spain, Switzerland

Asia-Pacific: Japan, China, India, South Korea, Indonesia, Australia

Latin America: Mexico, Brazil, Argentina

Middle East & Africa: Saudi Arabia, UAE, South Africa

Rest of World

Competitive Landscape

Key players in the global milk powder market include:

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 innovation, expanding global distribution, and enhancing product quality, ensuring that milk powder continues to meet evolving consumer needs. From fortification and flavor enhancements to functional food development, manufacturers are adapting to health-conscious, convenience-driven, and infant nutrition-focused markets.

Outlook for the Global Milk Powder Market

The global milk powder market is expected to maintain steady growth through 2033, underpinned by rising demand for infant nutrition, convenience-driven consumer behavior, and increasing health awareness. While plant-based alternatives pose competition, the versatility and nutritional value of milk powder keep it at the center of the global dairy industry.

Developments in processing technologies, fortified and functional products, and strategic expansions into emerging markets will continue to support growth. Regional trends, including government-backed dairy initiatives in India, premium and organic innovations in Germany, and rising middle-class consumption in Brazil and South Africa, will shape the market dynamics.

In conclusion, milk powder remains a vital ingredient across the globe, serving households, manufacturers, and retailers alike. Its combination of nutritional value, convenience, and adaptability ensures a resilient market poised to achieve $51.96 billion by 2033, reflecting both ongoing consumer demand and innovation in the dairy sector.

Note: If you need details, data, or insights not covered in this report, we are glad to assist. Through our customization service, we will collect and deliver the information you require, tailored to your specific needs. Share your requirements with us, and we will update the report to align with your expectations.