Milk Powder Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global milk powder market was valued to reach a market size of USD 40.15 Billion in 2024. The industry is expected to grow at a CAGR of 6.30% during the forecast period of 2025-2034. One of the driving factors behind the milk powder market is the increasing demand for convenient, long-shelf-life dairy products. Busy lifestyles, rising disposable incomes, and growing populations within emerging economies contribute to the consumption of milk powder, thus aiding the market growth to attain a valuation of USD 73.96 Billion by 2034.

Milk Powder Market Overview

The global milk powder market is steady in growth, with various drivers such as convenience, rise in disposable income, and changes in dietary preferences. The demand for milk powder will increase with adoption in emerging economies due to urbanization and improved living standards, consequently increasing the consumption of dairy products. The trend towards non-refrigerated, long-shelf-life dairy options increases the demand for milk powder further as it is best suited for busy lifestyles and results in enormous growth in the milk powder market.

Increasing consumption of flavored milk powders, growing uses of milk powder in baby food, and high demand for fortified products that carry vitamins and minerals are key market trends. This is complemented by changing preferences among consumers for organic and plant-based milk powders, with an opportunity to innovate and further enhance the scope of offerings to consumers.

Nestle, Danone, and FrieslandCampina, one of the major players in milk powder, invest in expanding the portfolio and their distribution networks. Companies are carrying out research and development to manufacture niche products such as lactose-free and high protein milk powders for different kinds of consumers. Sustainability, for instance, environmentally friendly packaging and sourcing, has become a mainstay focus area for companies answering the demand for consumers who have concerns about responsible products for the environment.

Milk Powder Market Growth

The global milk powder market is witnessing an upward trend as it is increasingly used in functional beverages. Milk powder adds proteins, vitamins, and minerals to drinks, which are perfect for health-conscious people. Ready-to-drink protein shakes, and energy drinks often incorporate milk powder, which provides nutritional value and enhances flavor. This is well-aligned with the need for on-the-go products that focus on health, giving additional impetus to milk powder demand growth.

This commodity is being utilized in the cosmetic industry as the natural moisturizing and skin brightening of milk powder has caught up. It exfoliates and hydrates the skin because of its content of lactic acid, so it is extensively used in face masks, creams, and bathing products. The milk powder formulation of niche skincare brands attracts organic and sustainable beauty seekers, opening new markets and opportunities for diversification and growth.

Key Trends and Developments

The milk powder market is driven by demand for infant formula, sports nutrition, bakery uses, and organic or plant-based powders, catering to health-focused, urban, and eco-conscious consumers.

December 2024

Milma's INR 131.3 crore milk powder factory was inaugurated in Moorkanad, Malappuram. Built by Tetra Pak, the factory converts one lakh liters of milk into 10 tonnes of powder daily, enhancing Kerala's dairy processing capabilities.

December 2024

Kreol Travel Retail has introduced Anchor Milk Powder sachets in 1.6kg size at Muscat Duty Free. It is a premium, easy-to-carry dairy product for travelers. Fonterra of New Zealand has manufactured this product with its commitment to global dairy excellence.

November 2024

Amul launched its milk products in Europe in the month-end with the help of a Spanish milk cooperative. The products would initially include milk, and later ghee, dahi, and paneer, with supply of machinery for production.

October 2023

Nestlé launched its first affordable, nutritious instant powder, Nido Milk & Soya, in Central and West Africa. Developed locally at the Abidjan R&D center in Côte d'Ivoire, this blend of milk and soya provides essential nutrients like protein, fiber, iron, and calcium. The product now launched in Nigeria is versatile for use with cereals, porridges, and drinks.

Rising Demand for Infant Formula

The rising birth rates and heightened awareness of infant nutrition drive demand for milk powder in baby formula production. It is preferred for its convenience, long shelf life, and nutritional benefits. Rising demand for infant formula, with added vitamins, minerals, and probiotics, is gaining prominence, especially in emerging markets like India and China. Companies are investing in advanced formulations to replicate the nutritional profile of breast milk. For example, Abbott and Nestlé are innovating premium infant formula products to cater to this growing segment, making infant nutrition a significant trend in the milk powder market.

Growth in Sports Nutrition

Milk powder's high protein content and versatility have made it a key ingredient in sports and fitness products. With an increasing penchant for healthy lifestyle choices and working out, there is a rapidly increasing demand in protein powders, meal substitutes, and sports drinks. Quickly digested, the whey-based milk powders are being especially preferred in helping to accelerate the recovery process in muscles. Major international companies, such as Optimum Nutrition and MuscleTech, use milk powder to achieve nutritional requirements. This trend is quite prevalent in North America and Europe, and now it is widely adopted in the Asia-Pacific regions.

Increased Adoption in Bakery and Confectionery

Bakery and confectionery is a leading user of milk powder in making cakes, cookies, chocolates, and desserts. It gives a creamy taste and prolongs shelf life, so the usage of milk powder is a highly preferred choice by the manufacturers of processed foods. This trend is driven by the increasing demand for ready-to-eat and packaged snacks in urban areas. The two significant companies, Mondelez and Ferrero, have extensively used milk powder in their product lines, thereby improving the milk powder market revenue.

Emergence of Organic and Plant-Based Milk Powders

The shift towards organic and plant-based diets has driven innovation in alternative milk powders made from almonds, soy, and oats. The health-conscious and environmentally aware consumer drives it, especially in North America and Europe. Organic cow milk powder also has a good demand due to its perceived health benefits and no synthetic additives. Startups such as Oatly and the industry leaders Danone are constantly expanding their plant-based milk powder portfolio, catering to vegan and lactose-intolerant consumers and, therefore, redefining the milk powder market landscape.

Milk Powder Market Opportunities

The milk powder market offers several opportunities driven by evolving consumer preferences, technological advances, and expanding applications across industries. The overall demand for infant formula, especially in emerging markets such as India and China, gives scope for innovation with the help of fortified products catering to infant nutrition. Additionally, the sports and fitness industry offer a growing opportunity, as high-protein milk powders become increasingly popular in protein shakes, meal replacements, and recovery drinks among health-conscious consumers. Another area of growth is in the use of milk powder in bakery and confectionery products, where manufacturers are looking for cost-effective, long-shelf-life ingredients to improve texture and flavor in processed foods. Urbanization and busy lifestyles continue to fuel the demand for ready-to-eat products, thereby boosting milk powder consumption in food processing.

With this growing trend towards organic and plant-based diets, avenues to produce organic cow milk powder along with other powders derived from almonds, soy, and oats are open, targeting the environmentally conscious and the lactose intolerant consumer base. Technological innovations in spray drying processes have helped companies produce powders that are high in quality and nutrient dense. With these opportunities in place, the key players can pursue product innovation, sustainability, and extension of distribution networks to target diversified consumer needs in the global marketplace.

Milk Powder Market Trends

The milk powder market is influenced by several emerging trends that shape its global growth. First, there is the demand for infant formula, particularly in Asia-Pacific, where the awareness of infant nutrition has been growing. Fortified formulas enriched with probiotics and vitamins are gaining so much demand among health-conscious parents. A health and fitness trend is a source of increasing demand for milk powder in sports nutrition. High-protein powders are the most widely consumed in protein shakes, meal replacements, and recovery beverages for individuals who are sports enthusiasts and athletes and thus determine trends in the market for milk powder.

Bakery and confectionery are two more sectors that drive growth as milk powder increases the flavor, texture, and shelf life of chocolates, cakes, and other desserts. It is also preferred as there is a growing urbanization and a preference for ready-to-eat and processed foods. This is also driven by the growth in organic and plant-based diets which encourages the expansion of vegan and lactose-free milk powders to cater to the eco-friendly and health-conscious consumers of this world.

Milk Powder Market Restraints

The milk powder market growth is challenged by many restraints. The high volatility of costs for raw materials-the biggest one being dairy-affects pricing stability, thereby eating into manufacturer's margins. Higher compliance costs emerge with government regulation on the safety and quality of food, especially for labeling and fortification requirements. Moreover, plant-based alternatives to milk powder have gained demand from consumers due to increased vegan and lactose-free products. This has challenged the milk powder market. Greenhouse gas emissions from dairy farming add pressure on the industry to pursue sustainable methods. Inadequate cold storage infrastructure and inefficiencies in the supply chain of some regions add to market stagnation. Lastly, increasing health awareness about the danger of overconsumption of dairy products, such as lactose intolerance and allergies, reduces demand from some sections of consumers.

Milk Powder Industry Segmentation

“Milk Powder Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

By product type, the market is divided into:

• Whole Milk Powder
• Skimmed Milk Powder
• Others

On the basis of function, the industry can be categorised into:

• Emulsification
• Foaming
• Flavouring
• Thickening
• Others

Based on application, the market can be segregated into:

• Infant Formula
• Confectionery
• Sports and Nutrition Foods
• Bakery Products
• Dry Mixes
• Fermented Milk Products
• Others

Market Breakup by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Milk Powder Market Share

Market Analysis by Type

As per milk powder market analysis, due to wide applications and rising demand, the global market for milk powder is experiencing considerable growth across product types. The application of whole milk powder for baking, confectionery, and infant nutrition contributes to high nutritional value and gives it more popularity in the food and beverage industry. Skimmed milk powder, which is low in fat and rich in protein, is used increasingly in health-focused products, such as protein shakes and dietary supplements, for healthy and low-fat options. The "Others" category includes specialty powders like organic and lactose-free variants, as consumers seek niche products that meet dietary preferences and health requirements. These trends are supported by urbanization, convenience, and the growth in popularity of packaged food products around the world.

By Function Analysis

Demand in the global milk powder industry is increasing across functional categories due to the versatile usage of the product. Emulsification drives demand in processed foods, as milk powder stabilizes fat and water mixtures, used increasingly in sauces and dressings. Its foaming properties make milk powder suitable for bakery and confectionery products like cakes and whipped toppings. Thickening applications are gaining in soups, gravies, and dairy-based products with rich consistency. The others segment, including uses like nutrient fortification and coating, is expanding with demand for specialized applications in health, fitness, and infant nutrition, fueled by evolving consumer preferences for functional and versatile food products.

Market Insights by Application

As per milk powder industry analysis, the market is gaining momentum across applications due to its versatility and growing demand. Infant formula is the biggest market as an essential component of infant nutrition that provides essential nutrients for early development. Confectionery applications also drive demand for milk powder as it enhances the texture and flavor in chocolates and sweets. The milk powder in sports and nutrition foods is fast picking up momentum because of its high protein and nutritional value in energy bars and protein shakes. Milk powder helps improve flavor, texture, and shelf life, and thus bakery products enjoy its usage. Dry mixes in the form of instant soups and beverage powders also make use of milk powder for ease of use and taste. Products using milk powder also include fermented milks like yoghurt and cheese. The rest of the group deals with niche applications: ready-to-eat meals which are encouraged through urbanization and diet shift.

Milk Powder Market Regional Insights

North America Milk Powder Market Dynamics

The North America milk powder market also experiences a growing demand due to rising demand for convenient foods and dietary supplements. The milk powder has extensive applications in protein bars, meal replacements, and instant beverages that are aimed at the healthy population. Organizations like Nestlé USA and Land O'Lakes have been increasing their offerings and offering enriched milk powders with added nutrition for dietary supplement purposes. In addition, with the nutritional advantage it holds, more demand is occurring for infant formula. In North America, there's a growth seen in the product lactose-free milk powder; this happens in light of more awareness among consumers about lactose intolerance.

Asia Pacific Milk Powder Market Trends

Usage of milk powder is witnessing growth in Asia Pacific, particularly due to an increase in the adoption of infant formula driven by higher urbanization rates and awareness on infant nutrition. Countries such as China and India are the biggest markets for baby food products, while Feihe International and Yili Group are at the forefront of the market. With the rise in disposable incomes in emerging economies such as India and Indonesia, the demand for sports nutrition and confectionery products is also increasing. In addition, the increased dairy exports from Australia and New Zealand are driving regional consumption and helping to make milk powder more easily accessible.

Europe Milk Powder Market Drivers

Europe observes the rise in consumption of milk powder due to premium dairy product demands. Countries like the UNITED KINGDOM and Germany are using more milk powder in bakery and confectionery industries for consistency in products and flavor enhancement. Companies like Arla Foods and Danone are increasing milk powder production to meet the growing demand for organic and sustainably sourced milk powders. The growing popularity of sports and nutrition foods in the region also contributes to growth in specialized milk powders, especially for the health-conscious looking for protein-rich alternatives.

Latin America Milk Powder Market Opportunities

Demand for milk powder in Latin America is rising as a result of an increasingly affluent middle class and a general rise in dairy consumption throughout regions like Brazil and Mexico. The trend toward processed and ready-to-eat foods continues, and milk powder finds significant applications in products like instant soups, beverages, and baked goods. Companies like Lactalis Group and Nestlé continue to extend their portfolio of milk powders in accordance with regional demand. The lactose-free and fortified milk powder products are gaining popularity because of the growing health awareness and lactose intolerance.

Middle East and Africa Milk Powder Market Outlook

The demand for milk powder in the Middle East and Africa is fueled by the rising consumption of instant food products and infant formula, as the population increases, and dietary habits change. Milk powder is widely used in beverages, soups, and confectionery in the region. Companies such as Almarai and Oman Dairy Products are taking advantage of this demand by expanding their product lines. The health and wellness sector, including sports nutrition products, is also growing, thus increasing the demand for protein-rich milk powder in urbanized cities like Dubai and Cairo.

Competitive Landscape

The global milk powder market players are emphasizing innovative products that vary according to their consumer requirements in terms of nutritional content, lactose-free and organic milk powder. Milk powder companies are seeking emerging markets, including Asia Pacific and Latin America, where rising demand can be met. Another important aspect for them is sustainability. Players, such as Nestlé and Danone, invest in eco-friendly packaging and other ethical sourcing practices. They also try to benefit from the increasing demand for sports nutrition and infant formula products.

Nestlé S.A.

Nestlé S.A was established in 1867, based in Vevey, Switzerland. They are producing various types of milk powders for infant formula, sports nutrition, and everyday family nutrition with their products such as Nido and Nan.

Danone S.A.

Danone S.A. was established in 1919 in Paris, France. Their brands Nutrilon and Cow & Gate focus on infant nutrition and specialty nutrition. Danone specializes in healthy products that respect health-conscious and sustainability-based formulations.

Fonterra Co-operative Group Limited

Fonterra is a leading supplier of Anchor Milk Powder and Anmum, serving markets across infant formula, bakery, and dairy-based nutritional products with a focus on quality and sustainability. Founded in 2001 and headquartered in Auckland, New Zealand.

Royal FrieslandCampina N.V.

Founded in 1896 and headquartered in Amersfoort, Netherlands, FrieslandCampina produces Friso and Dutch Lady milk powders, specializing in infant nutrition, bakery products, and high-protein dairy offerings for global markets.

Other market players include Saputo Inc., and Arla Foods Amba, among others.