Global Milk Powder Market to Hit $52B by 2033 Amid Rising Infant Formula Demand

Global Milk Powder Market Overview

According to Renub Research Latest Report milk powder market is projected to reach US$ 51.96 billion by 2033, rising from US$ 33.69 billion in 2024, registering a CAGR of 4.93% during 2025–2033, according to Renub Research. The market is expanding due to rising demand for convenient dairy products, increased infant formula consumption, and the growing popularity of health-conscious diets.

Milk powder, also called dry milk, is produced by removing water from liquid milk through evaporation, spray-drying, or drum-drying methods. This process preserves nutrients while producing a shelf-stable product. Milk powder is available in various types—including whole, skimmed, and whey milk powders—to meet different nutritional and culinary needs.

Its flexibility makes milk powder a staple ingredient in infant nutrition, baking, beverages, dairy-based desserts, and other processed foods. It serves as an economical alternative to fresh milk, especially in regions with limited refrigeration. Additionally, it forms the base for products such as cheese, yogurt, ice cream, and ready-to-use dairy beverages.

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Growth Drivers for the Milk Powder Market

Rising Infant Formula Consumption

Milk powder is an essential ingredient in infant formula, providing vital nutrients for early childhood development. Increasing awareness of the nutritional needs of infants is driving demand for high-quality powdered milk products, particularly in Asia-Pacific and Latin America, where urbanization and dual-income households are expanding the consumer base.

Convenience and Shelf Life

Milk powder’s long shelf life and easy storage make it a preferred choice for households, bakeries, and the foodservice industry. It eliminates the need for cold chain storage, allowing for easy transportation and distribution, which is particularly crucial in developing countries with infrastructure challenges.

Health-Conscious Consumer Trends

Growing awareness of health and nutrition is shifting consumers toward products rich in protein, calcium, and vitamins. Milk powders, particularly skimmed and fortified varieties, cater to health-conscious individuals seeking low-fat or nutrient-enriched dairy options. Moreover, specialty products such as fat-filled or fortified milk powders are gaining popularity in both developed and emerging markets.

Challenges in the Milk Powder Market

Supply Chain Disruptions and Raw Material Costs

The milk powder industry is highly sensitive to raw material price fluctuations and supply chain interruptions. Milk prices are influenced by weather conditions, dairy farm outputs, and transportation costs. Global events such as pandemics, trade restrictions, and logistic bottlenecks can further disrupt production and distribution, leading to price volatility and inconsistent supply.

Competition from Plant-Based Alternatives

Increasing consumer preference for plant-based alternatives, such as almond, soy, and oat milk, presents a competitive challenge to traditional milk powder. Vegan diets and lactose intolerance are driving the adoption of these alternatives, prompting dairy manufacturers to innovate and diversify product lines to remain competitive.

Regional Market Insights

India

India’s milk powder market is expanding due to population growth, urbanization, and a rising middle class with higher disposable income. Milk is an integral part of the Indian diet, and milk powder is widely used in cooking, confectionery, and beverages.

Government support for dairy farming and milk production is also boosting market growth. For instance, in January 2024, the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) launched Sagar Skimmed Milk Powder across India, catering to growing demand for packaged and ready-to-use dairy products.

Germany

Germany remains a dominant player in Europe’s milk powder market. The demand is driven by infant nutrition, bakery products, and dairy-based beverages. Advanced dairy processing technologies enable the production of high-quality milk powders, while premium and organic trends encourage innovation.

In January 2024, a German dairy company patented its “nocturnal milk” process, which produces milk with 100 times more melatonin than regular milk, supporting sleep regulation—a notable example of market innovation and specialization.

Brazil

Brazil’s milk powder market is growing steadily due to increasing dairy consumption and a strong dairy industry. Milk powder is widely used in infant formula, bakery, and confectionery products. The country benefits from a large population and a growing middle class that demands ready-to-use and long-life dairy products. Efforts to enhance milk production efficiency have further strengthened market growth.

South Africa

In South Africa, milk powder consumption is increasing due to urbanization, rising middle-class income, and growing demand for processed foods. While raw material cost fluctuations, especially feed prices, pose challenges, domestic consumption and exports continue to expand steadily. Applications include infant formula, baking, and cooking, contributing to the market’s gradual growth.

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Market Segmentation

By Type

Whole Milk Powder

Skimmed Milk Powder

Dairy Whitener

Buttermilk Powder

Fat-Filled Milk Powder

Other

By Application

Nutritional Food

Infant Formula

Confectioneries

Baked Goods

Savories

Others

By Geography

North America: US, 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

Key Players in the Milk Powder Market

Leading companies in the global milk powder industry are focusing on product innovation, quality assurance, and regional expansion. They are:

Nestle (Switzerland) – A global leader in infant nutrition and dairy products, offering a diverse range of milk powders.

Danone (France) – Specializes in infant formula and functional dairy powders.

Saputo Inc. (Canada) – Supplies dairy powders for industrial and retail applications.

Arla Foods amba (Denmark) – Produces whole and skimmed milk powders for domestic and export markets.

The Kraft Heinz Company (US) – Offers dairy-based ingredients and milk powder for processed foods.

Royal FrieslandCampina N.V. (Netherlands) – Provides high-quality milk powders for nutrition and infant formula.

Land O’Lakes, Inc. (US) – Focuses on dairy and nutritional powders for commercial applications.

China Mengniu Dairy Company Limited (China) – Leading dairy manufacturer with growing milk powder operations.

Ausnutria Dairy Corporation Ltd. (Netherlands) – Innovates infant formula and specialty milk powders.

These companies employ strategies such as R&D investments, strategic partnerships, and expanding production facilities to strengthen their market presence and address growing global demand.

Recent Developments in the Milk Powder Market

GCMMF launches Sagar Skimmed Milk Powder (India, Jan 2024): Expands availability of packaged milk powder products across India, catering to urban and rural demand.

German nocturnal milk patent (Jan 2024): Innovations targeting functional milk products with added benefits, such as sleep regulation, showcase how companies are differentiating products.

Global expansion of infant formula products: Companies such as Nestle, Danone, and FrieslandCampina continue to introduce fortified milk powders in emerging markets to meet nutritional demands.

Conclusion

The global milk powder market is poised for steady growth, driven by rising infant formula consumption, convenience, and health-conscious consumer trends. While challenges such as supply chain fluctuations and competition from plant-based alternatives exist, innovations, government support, and increasing urbanization are expected to sustain growth.

Regions such as India, Germany, Brazil, and South Africa are witnessing strong demand, while companies continue to innovate and expand globally to meet diverse consumer needs. With a focus on sustainability, nutrition, and convenience, milk powder remains a critical ingredient in the global food and dairy sector.

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