Yogurt Powder Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Yogurt Powder Market is projected to expand from USD 737.16 Million in 2025 to USD 1.08 billion by 2031, growing at a CAGR of 6.71%. Yogurt powder is a shelf-stable dehydrated dairy ingredient created by removing moisture from fresh yogurt, typically via spray drying, while preserving the tart flavor and nutritional content of the original culture. The market's expansion is fundamentally driven by industrial demand for versatile ingredients that avoid the spoilage risks and cold-chain logistics of fresh dairy, allowing for extensive use in bakery goods, dry mixes, and nutritional beverages. This growth is further supported by the sustained popularity of the yogurt category; the International Dairy Federation reported a 7% rise in yogurt sales in South Africa in 2024, indicating a strong consumer appetite for cultured dairy that bolsters the derivative powder market.

However, a major obstacle hindering market growth is the vulnerability of heat-sensitive probiotic bacteria to degradation during the thermal drying process. This loss of bioactivity diminishes the powder's functional health appeal relative to fresh yogurt, often requiring costly microencapsulation technologies. These additional processing requirements can increase production costs, thereby limiting the ingredient's accessibility in price-sensitive market sectors.

Market Drivers

A primary catalyst for the Global Yogurt Powder Market is the surging demand for high-protein and sports nutrition ingredients, as manufacturers increasingly seek shelf-stable dairy formats to enhance functional foods. Yogurt powder enables formulators to integrate the nutritional benefits of cultured dairy into dry applications - such as meal replacement powders, ready-to-mix recovery shakes, and protein bars - without the moisture issues that affect texture and shelf life in high-protein products. This trend is fueled by health-conscious consumers focusing on functional density; Glanbia Nutritionals noted in March 2024 that 25% of recent global yogurt launches claimed to be a "high source of protein," demonstrating the intense industrial focus on protein fortification that benefits the powder sector.

Simultaneously, expanding applications in the confectionery, bakery, and beverage sectors are broadening the market for dehydrated yogurt beyond traditional dairy uses. Food technologists utilize the distinct flavor and acidity of yogurt powder to create tangy coatings for pretzels, yogurt-filled confections, and shelf-stable smoothie mixes, effectively bypassing the cold-chain limitations of fresh yogurt. This diversification aligns with evolving snacking habits; Mondelēz International reported in March 2024 that 60% of global shoppers prefer snacks over traditional meals, creating a favorable environment for yogurt-infused innovations. Additionally, the USDA reported that U.S. dairy exports reached $8.2 billion in 2024, highlighting the robust global demand for versatile dairy solids that underpins the yogurt powder supply chain.

Market Challenges

The susceptibility of probiotic bacteria to thermal degradation significantly restricts the Global Yogurt Powder Market by eroding its primary value proposition as a functional health ingredient. The high temperatures required for industrial spray drying often cause irreversible viability loss in essential bacterial strains like Lactobacillus and Bifidobacterium. This reduction in bioactivity forces manufacturers to market their products as yogurt-flavored rather than claiming the digestive health benefits that modern consumers aggressively seek. Consequently, the powder becomes less competitive in the lucrative health and wellness sector, limiting its adoption primarily to bakery and confectionery applications where taste profile is prioritized over functional attributes.

This technical limitation leads to a substantial divergence between the commercial performance of fresh cultured dairy and its dehydrated counterpart. While the demand for active probiotic foods continues to rise, standard yogurt powders struggle to consistently deliver the live cultures needed to capitalize on this trend. For instance, Dairy Australia reported that annual per capita yogurt consumption in Australia reached 10 kilograms in 2024, underscoring the immense preference for active cultured products. The yogurt powder segment struggles to mirror this category expansion because it cannot replicate the live probiotic efficacy that drives fresh sales without incurring production costs that render the final product competitively unviable.

Market Trends

The emergence of plant-based and vegan yogurt powder alternatives is reshaping the market landscape as manufacturers adapt to the global shift away from animal-derived proteins. To meet the rising demand for dairy-free formulations, suppliers are developing dehydrated yogurt bases from almond, coconut, oat, and soy milk that replicate the texture and tartness of traditional dairy. These plant-based powders are essential for formulators creating vegan-friendly baking ingredients, smoothies, and dry mixes where clean labeling and shelf stability are paramount. The Good Food Institute reported in April 2025 that plant-based yogurt accounted for 3.5% of total retail yogurt sales in 2024, highlighting a critical and expanding niche that directly drives the development of derivative powder alternatives.

Simultaneously, innovation in exotic and premium flavor profiles is driving value growth as brands move beyond standard fruit varieties to offer sophisticated, indulgence-oriented sensory experiences. Industrial users are leveraging yogurt powder as a carrier for complex, high-margin flavor systems - such as ethnic-fusion tastes or dessert-inspired profiles - to create premium beverage mixes and confectionery fillings that appeal to adventurous consumers. This trend aligns with the broader industrial strategy of prioritizing high-value products; Danone's June 2025 report indicated that over 60% of the company's revenue in 2024 came from high-value functional segments, reflecting the strong commercial imperative to innovate with premium, flavor-forward dairy ingredients.

Key Players Profiled in the Yogurt Powder Market

• Glanbia PLC
• Epi Ingredients
• Kerry Group P.L.C.
• Yogen FrUz Canada Inc.
• Danone S.A.
• Prolactal GmbH
• CP Ingredients
• Nestle SA
• EasiYo Products Ltd.
• Puramio India Private Limited

Report Scope

In this report, the Global Yogurt Powder Market has been segmented into the following categories:

Yogurt Powder Market, by Product Type:

• Whole Yogurt Powder
• Skimmed Yogurt Powder
• Semi-Skimmed Yogurt Powder

Yogurt Powder Market, by Packaging:

• Sachets/Pouches
• Cans/Jars
• Bulk Packaging

Yogurt Powder Market, by End Use:

• HoReCa
• Industrial
• Household

Yogurt Powder Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Yogurt Powder Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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