Buttermilk Powder Market Report 2026

The buttermilk powder market size has grown strongly in recent years. It will grow from $2.32 billion in 2025 to $2.46 billion in 2026 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to expansion of industrial dairy processing, rising use of powdered dairy in baking, increasing demand for extended shelf life ingredients, growth of packaged food consumption, improved dehydration technologies.

The buttermilk powder market size is expected to see strong growth in the next few years. It will grow to $3.1 billion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to growing demand for functional dairy ingredients, increasing focus on protein-rich food formulations, expansion of online food ingredient distribution, rising adoption of organic dairy powders, growth in global bakery and snack production. Major trends in the forecast period include increasing demand for clean-label dairy ingredients, rising adoption of spray-drying technologies, growing use in convenience and ready-to-eat foods, expansion of bulk packaging for food manufacturers, enhanced focus on shelf-stable dairy solutions.

The growing demand for convenience foods is expected to drive the expansion of the buttermilk powder market in the coming years. Convenience foods are pre-packaged or pre-prepared food items designed for quick and easy consumption, requiring minimal cooking or preparation effort. Demand for convenience foods is rising as increasingly busy lifestyles and time constraints push consumers toward fast and simple meal solutions. Buttermilk powder is widely used in convenience foods to enhance flavor, improve texture, and deliver a creamy, tangy profile in products such as soups, sauces, baked goods, and ready-to-eat meals. For instance, in April 2024, according to the National Association of Convenience Stores, a US-based trade association, in 2023, foodservice sales - including prepared foods, commissary items, and dispensed beverages - accounted for 26.9% of in-store sales, up from 25.6% in 2022. In addition, prepared food sales per store per month increased by 12.2% in 2023 compared to 2022. Therefore, the rising demand for convenience foods is fueling the growth of the buttermilk powder market.

The increasing demand for dairy products is also expected to propel the growth of the buttermilk powder market going forward. Dairy products include milk-based foods such as cheese, butter, and yogurt produced from animals such as cows and goats. Demand for dairy products is rising due to greater consumer awareness of the nutritional benefits of dairy, including protein, calcium, and probiotics. Buttermilk powder is commonly incorporated into dairy products to enhance flavor, improve texture, and increase the creamy consistency of items such as yogurt, cheese, and ice cream. For example, in November 2024, according to the Foreign Agricultural Service, a US-based government department, milk production in Australia is projected to increase by 1.1% in 2025 to reach 8.8 million metric tons, following a 2.7% rise in 2024 to approximately 8.7 million metric tons. Therefore, the growing demand for dairy products is contributing to the expansion of the buttermilk powder market.

In March 2024, Lakeland Dairies Group, an Ireland-based dairy company, acquired De Brandt Dairy International NV for an undisclosed amount. Through this acquisition, Lakeland Dairies aims to strengthen its position in the European dairy market, broaden its product portfolio, and expand its customer base. The transaction is intended to enhance processing capacity, improve supply chain efficiency, and deliver greater value to farmer members and customers across Europe. De Brandt Dairy International NV is a Belgium-based dairy company specializing in the production of buttermilk powder and related dairy products.

Major companies operating 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, Arion Dairy Products B.V.

North America was the largest region in the buttermilk powder market in 2025. The regions covered in the buttermilk powder market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

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 that 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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