Buttermilk Powder Global Market Report 2025

The buttermilk powder market size has grown strongly in recent years. It will grow from $2.18 billion in 2024 to $2.32 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth during the historic period can be attributed to the increasing demand for convenient and shelf-stable dairy products, the expansion of the processed food industry, a rise in global dairy trade, the growth of the bakery and confectionery sectors, fluctuations in liquid milk supply, and growing health awareness.

The buttermilk powder market size is expected to see strong growth in the next few years. It will grow to $2.93 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to the rising demand for convenient and shelf-stable dairy ingredients, increased usage in bakery and snack products, the growing trend toward protein-rich and functional foods, the expansion of food processing industries, the rising popularity of ethnic and traditional cuisines, and the growing adoption of buttermilk powder in animal feed formulations. Key trends expected during the forecast period include advancements in spray drying technology, the shift toward clean-label ingredients, improved packaging solutions to extend shelf life, the integration of AI in quality control processes, and innovations in product formulations.

The increasing demand for convenience foods is projected to drive the growth of the buttermilk powder market in the coming years. Convenience foods are pre-prepared or pre-packaged meals designed for quick consumption with minimal cooking or preparation. This demand surge is linked to fast-paced lifestyles and limited time availability, prompting consumers to opt for easy, ready-to-eat solutions. Buttermilk powder is incorporated into these products to elevate flavor, improve texture, and impart a creamy, tangy profile in items such as soups, sauces, baked goods, and ready meals. For example, in April 2024, the National Association of Convenience Stores, a US-based trade organization, reported that foodservice sales, including prepared foods, commissary items, and dispensed beverages, made up 26.9% of in-store sales in 2023, rising from 25.6% in 2022. Additionally, monthly sales of prepared foods per store increased by 12.2% in 2023 compared to the previous year. Thus, the rising demand for convenience foods is contributing significantly to the growth of the buttermilk powder market.

The increasing popularity of dairy products is anticipated to fuel the growth of the buttermilk powder market over time. Dairy products include milk-derived items such as cheese, butter, and yogurt made from animals like cows and goats. Rising consumer awareness regarding the nutritional value of dairy, particularly its protein, calcium, and probiotic content, is driving demand. Buttermilk powder plays a key role in enhancing flavor, improving texture, and adding creaminess to dairy items such as yogurt, cheese, and ice cream. For instance, in November 2024, the Foreign Agricultural Service, a US government agency, forecasted that Australia’s milk production would grow by 1.1% in 2025 to reach 8.8 million metric tons, following a 2.7% increase in 2024 to an estimated 8.7 million metric tons. Therefore, rising demand for dairy products is supporting the upward trajectory of the buttermilk powder market.

In March 2024, Lakeland Dairies Group, a dairy company based in Ireland, acquired De Brandt Dairy International NV for an undisclosed sum. This acquisition aims to bolster Lakeland’s footprint in the European dairy sector, expand its product offerings, and grow its customer network. The strategic deal is designed to increase processing capacity, enhance supply chain efficiency, and deliver added value to its farmer suppliers and customers throughout Europe. De Brandt Dairy International NV, headquartered in Belgium, is a dairy manufacturer specializing in the production of buttermilk powder and related dairy ingredients.

Major players in the buttermilk powder market are Groupe Lactalis S.A., Dairy Farmers of America Inc., Land O’ Lakes Inc., Arla Foods Ingredients Group P/S, Fonterra Co-operative Group Limited, Saputo Inc., Royal Friesland Campina N.V., Glanbia plc, Valio Oy, NOW Foods, California Dairies Inc., Anand Milk Union Limited (AMUL), NUMIDIA BV, UELZENA eG, North Cork Creameries Ltd, Pelwatte Dairy Industries Pvt. Limited, Alpen Food Group BV, Rogers and Company Foods Pty Ltd, Murray Goulburn Co-operative Co. Limited, and Arion Dairy Products B.V.

North America was the largest region in the buttermilk powder market in 2024. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the buttermilk powder market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Buttermilk powder is a dried version of traditional buttermilk, which is the liquid remaining after churning butter from cultured cream. It retains the characteristic tangy flavor and mild acidity of buttermilk and is rich in lactic acid, proteins, and minerals. Commonly used in baking, snack products, and seasoning mixes, buttermilk powder adds a creamy texture and tangy flavor. It offers a long shelf life and can be easily reconstituted with water when needed.

The primary types of buttermilk powder include organic, conventional, low-fat, and instant variants. Organic buttermilk powder is produced from buttermilk made with milk sourced from cows raised according to organic farming standards, which exclude synthetic pesticides, fertilizers, and genetically modified organisms in feed or pasture. Packaging formats for buttermilk powder include bags, tubs, cartons, glass jars, and bulk containers. It is utilized across various industries such as baking, dairy, beverages, confectionery, and food service. Buttermilk powder serves a broad range of sectors including household use, commercial kitchens, food processing, and the hospitality industry. Distribution channels consist of direct sales, online retail platforms, supermarkets or hypermarkets, specialty stores, and distributors or wholesalers.

The buttermilk powder market research report is one of a series of new reports that provides buttermilk powder market statistics, including the buttermilk powder industry global market size, regional shares, competitors with the buttermilk powder market share, detailed buttermilk powder market segments, market trends, and opportunities, and any further data you may need to thrive in the buttermilk powder industry. This buttermilk powder market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The buttermilk powder market consists of sales of spray dryers, evaporators, mixing and blending equipment, and packaging machines. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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