Milk Powder Market Size, Share, Growth, and Industry Analysis, By Type (Skim Milk Powder, Whole Milk Powder) By Application (Infant Formula Milk Powder, Adult Formula Milk Powder, Confectionery, Others) and Regional Forecast to 2033

Milk Powder Market OVERVIEW

The global milk powder market size was USD 17.85 billion in 2025 and is projected to reach USD 20.11 billion by 2033, exhibiting a CAGR of 1.7 % during the forecast period.

Over the last couple of decades, the global market of milk powder has seen proliferation as the demand of the dairy-based products rises on the one hand and the increase in the sense of health on the other hand; not to mention the added shelf life as a result of the powdered milk as compared to liquid milk. The use of milk powder is an advantage when transporting and storing milk because of the ease of transportation and storing milk, which can easily be carried and stored in places where there is inadequate system of refrigeration. The product finds extensive application in a number of applications such as infant nutrition, confectionary, bakery, beverages, functional foods etc. People mostly use skim milk powder and whole milk powder depending on the required use, which is based on their fat contents. Infant formula is another huge factor since there are growing populations in newborns in the developing world and the number of working women is also on the rise. Further, the market is complemented by an increase in the awareness of nutritional qualities of milk and government schemes that offer powdered milk to students through school lunch programs and nutrition plans. Consumption in the world is dominated by Asia-Pacific especially China and India whereas Europe and North America are dominant in production and innovation. Innovation has taken place in drying mechanisms and wrapping such that the quality of the product has been enhanced thereby driving it in demand. Consumer base of the market has increased due to the online retailing channels and the growth of population in urban areas. Nevertheless, the disruptions in the supply chain, changing milk prices, and the rising competition of plant-based alternatives are problematic. The industry is getting more competitive and the firms are already concentrating on product innovation, quality enhancement, and sustainability programs to improve their standing in the market.

GLOBAL CRISES IMPACTING Milk Powder MarketCOVID-19 IMPACT

Milk Powder Market Had a Negative Effect Due to Supply Chain Disruption During COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic has significantly affected the milk powder market share with regards to the initial stages. Shortages that were triggered by supply chain breaks at the hands of lockdowns and restrictions of international trade caused a lack of raw milk and suspended production plans. Export regions particularly the European regions, and Oceania suffered logistical challenges leading to delays in delivery and rise in prices. At the same time, there was a huge drop in demand among institutional buyers, like hotels, restaurants and cafes, which means that the consumption in bulk drops considerably. There was also a shift in consumer demand to essential products, which had an influence on retail intake of the non-essential milk powder products such as adult formula and premium confectionary items. Moreover, the shortage of workers, the temporary shutdowns of the manufacturing facilities, and the increased anti-hygienic regimes formed the operational inefficiencies. A significant drop in birth rates was recorded in many countries which decreased the growth of the infant formula segment. Although e-commerce sales experienced slight increase, it was not enough to achieve balance in other channels of distribution. All in all, the pandemic pointed at the vulnerability of the global dairy supply chains and caused temporary deceleration of market dynamics.

LATEST TRENDS

Integration of AI and IoT for Predictive Traffic Management Drives Market Growth

The other significant emerging trend in the milk powder industry is the increased tendency of consumers to a fortified/functional dairy powders. Nutrition is becoming a priority, so manufacturers have launched new products with added micronutrients in the condition of calcium, vitamin D, iron, omega-3 fatty acids and probiotics. The tendency has been particularly strong in health-conscious populations, aging groups of people who want to get better bone, digestive, and immune health. Innovation has especially moved into the infant and adult formula sectors as different formulations have been made to suit various age groups and dietary needs. Skim milk powder, in combination with other healthy ingredients, is becoming popular among the active-healthy population because of its fat-free and healthy protein. Additionally, the post-pandemic trend towards the preventive approach to healthcare has also boosted the need in milk powder as a nutritional supplement. The manufacturers are also investing in R&D in order to enhance taste, solubility and bioavailability of these enhanced products. The trend is in line with the increased demand of tailored nutrition and is likely to change the assortment of products in the markets all around the world.

Milk Powder Market SEGMENTATION

BY TYPE

Based on type, the global market can be categorized into Skim Milk Powder, Whole Milk Powder

• Skim Milk Powder: Milk powder obtained by the removal of cream from whole milk and is low-fat. Protein-rich, usually prepared in baking and dairy mixes. It is preferred weight control and dietary products.

• Powdered Whole Milk: It has natural milk fat, providing it with a creamy flavor. Glasses are used in dairy beverages, chocolates, and desserts. Researchers popularized it because of its complete nutrition.

BY APPLICATION

Based on Application, the global market can be categorized into Infant Formula Milk Powder, Adult Formula Milk Powder, Confectionery, Others

• Infant Powdered Milk: Particularly designed to satisfy the nutritional requirements of babies. Increasingly enriched with vitamins and enhancements, minerals, and DHA. Important in low breast feeding areas.

• Adult formula Milk Powder: Focused on old age and adult with healthcare requests. May contain supplemental bone health nutrients, immune nutrients or digestive nutrients. Healthcare and wellness are popular.

• Confectionery: Applied in chocolates, candy, and pastillage. Is very flavorful and textural. Refers shelf life and uniformity of products.

• Others: Contains sports nutrition, emergency food and food aid. Applied in many industrial and non-food use. Frequently consists of custom made or specialty formulas.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions. 

DRIVING FACTORS

Rising Demand in Emerging Economies Boost the Market

Asia-Pacific and African emerging markets are being on the rise in consumption of milk powder market growth as they become urbanized, mobilize more disposable income, and enlighten themselves about nutrition. Countries such as China, India and Indonesia are increasingly populated with middle classes that expect easily stored dairy-based foods. The long shelf life and easy storage of powdered milk makes it the most suitable during distribution periods in areas not well served by cold-chains. The consumer base is also increasing because of government nutrition programs and the school feeding schemes. With growing popularity of western patterns of diet, local manufacturers and multinationals are increasing production and marketing activities to win these emerging markets.

Increase in Infant and Geriatric Nutrition Needs Expand the Market

The increasing population of infants and the aged population in the world is contributing to the increased demand of milk powder products in special forms. The infant formula powders are used by working parents and in regions of low breastfeeding incidences and the adult formula powders address the nutritional requirements of the elderly. Graying populations in Europe, Japan, and some of the North American regions are presenting a potential to fortified products and products that are easy to swallow. This population pattern is leading product development in packaging formulation with an aim at solvency, bone health, and intestinal advantage, thus contributing to the general increase in the market area.

RESTRAINING FACTOR

Fluctuating Raw Milk Prices and Supply Potentially Impede Market Growth

The fluctuation of raw milk prices because of climatic factors, cost of feeds and geopolitical factors presents a serious limitation to milk powder market. The input cost is also very high which influenced the production margin and causes uneven pricing and manufacturers cannot longer commit in long-term contracts. The production of about dairy products may be heavily disturbed in drought-prone areas such as Australia or a situation like the war in Ukraine. Small producers are the most affected by such instability, which lowers their world competitiveness and decreases the affordability of their products to the final consumers.

OPPORTUNITY

Growing Plant-Based and Organic Segment Integration Create Opportunity for The Product in The Market

The potential exists to have an increasing market demand of hybrid or organic milk powders having the characteristic features of conventional dairy giant plus plant-based food products. Conscientious and green customers are gaining interest in milk powder that is organic certified or sustainably made. As well, lactose free and allergen reduced versions introduce new frontiers of innovation. Brands that piggyback on the ethical sourcing, animal welfare and clean labeling trends have a good chance of capturing market shares, especially in the developed markets.

CHALLENGE

Rising Competition from Dairy Alternatives Could Be a Potential Challenge for Consumers

The increased products of plant-based substitutes of milks which include soy milk, almond milk, and oat milk become a threat to the conventional milk powder. These substitutes have attracted vegan customers, lactose sensitivity consumers, and consumers who believe in sustainability. As the alt-dairy brands step up their market pursuits and as their taste profiles continue to improve, standard milk powders will be forced to invent and diversify their products by providing superior nutrition, rational prices, and performance in processed foods or face losing their market share to the alt-dairy brands.

Milk Powder Market REGIONAL INSIGHTS

• NORTH AMERICA

The milk powder market in North America is significant, which is because of large scale consumption of dairy products per capita, technologies, and demand of nutrients both in infants and adults. The United States milk powder market ranks at the top in the export of skim milk powder due to its productive dairy cooperatives and a supportive atmosphere of the dairy farmers by the federal government. There is also well developed retail and e commerce infrastructures that enable it to distribute widely in the region. Furthermore, a growing demand in the consumption of fortified and organic products is determining innovation practice. Although veganism continues to grow, milk powder still has considerable use in the confectionary, bakery, and nutritional products.

• EUROPE

Europe dominates in the manufacturing of the milk powder and the major producers are countries such as Germany, France and Netherlands. It is also a major exporter to Asia and Africa and its dairy processing infrastructure and high level of quality are its assets. The Common Agricultural Policy of the European Union provides dairy farmers with reasonable food keeping which stabilizes supply of milk. The area is also investing in sustainability and low emission in dairy practices. The development of the market is associated with growth in the consumption of functional dairy, clean-label-powders manufacturing, and lactose-free.

• ASIA

Asia-Pacific consumes milk powder in the greatest volumes; it represents more than fifty percent of the world demand. High population of the working class, upcoming non-working population of infants, and fast urbanization of the region stagnate the demand of whole and skim milk powders. China dominates in consuming infant formula, whereas India has a great demand of traditional foods which are dairy-based. The governments also keep investing in nutrition programs and dairy development and open up new market access. Increasing e-commerce infiltration, as well as enhancing cold chain logistics is triggering further growth of sales of packaged milk powders in both urban and semi-urban areas.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The international milk powder industry is very competitive whereby a few key players concentrate in production, innovation, and distribution. Among the heavyweights is Nestle (Switzerland), which sells a huge range of infant and adult milk powders all around the world prefixed with such brands as Nido and NAN. The other key player Danone (France) also dominates in the infant formula category with products like Aptamil and Nutricia. Fonterra (New Zealand), an exporter of dairy goods by cooperative, is the leading producer and exporter of the skim and whole milk powder in the global market, specifically in the regions of Asia and Middle East. FrieslandCampina (Netherlands) has a large product category of milk-based products and supplies in more than 100 countries. The Arla Foods (Denmark) are solid in Europe and Africa, with high quality and organic dairy powders. Prominent others consist of Lactalis Group, Saputo Inc. and Glanbia plc. These companies are investing so much in R&D, sustainability efforts and development of e-commerce avenues to increase reach to markets and brand loyalty among the potentially thousands of consumer segments.

List of Top Milk Powder Market Companies

• Danone (France)
• Nestle (Switzerland)
• FrieslandCampina (Netherland) 
• Arla (Denmark)

KEY INDUSTRY DEVELOPMENT

February 2024: Fonterra announced the launch of a new high-protein skim milk powder line designed for functional food manufacturers, aimed at boosting nutrition in sports and wellness products.

 REPORT COVERAGE

Milk powder market is one such most important part in dairy industry that serves the general need of the consumers in all aspects like baby and geriatric food to the bakery farms, confectionaries and emergency food corridor. It is interesting because its shelf life is longer, easy to transport, and has a lot of uses and this makes it a must have compost in developed and growing economies. The market has changed a lot as there emerged the health-oriented consumer population and the demand on milk powder based on fortification, being organic, and functional has increased dramatically. Asia-Pacific is the largest multinational market in consumption whereas Europe and North America are the forefront in technological advancement and innovation. Although the problems caused by the COVID-19 pandemic were temporary, the market is resilient with a high rebound level, and enhanced supply chain dynamics in the context of growing e-commerce penetration help it. However, some issues like fluctuation in prices, environment-related concerns and the increasing competition by plant based products still exist. In order to be competitive, firms are venturing in R&D, eco-friendliness and product diversification. As the emerging economies increase the demand and further deployment in the health and wellness industries, the future of the milk powder market is bright. Manufacturers which have the aptitude to tie demand, affordability, and environmental responsibility are likely to pick up huge market shares in the coming years.