Milk Powder Market Report 2026

The milk powder market size has grown strongly in recent years. It will grow from $42.16 billion in 2025 to $45.64 billion in 2026 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to rising demand for shelf-stable dairy products in regions with limited cold-chain infrastructure, growth in infant formula consumption driving demand for specialized milk powders, increasing global trade of milk powder due to ease of transport and long shelf life, expansion of food processing industries using milk powder as a key ingredient, rising adoption of non-fat dry milk in bakery and confectionery applications.

The milk powder market size is expected to see strong growth in the next few years. It will grow to $61.92 billion in 2030 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to growing consumer preference for organic and lactose-free milk powders, increasing demand for high-protein whey and functional dairy powders, expansion of infant nutrition markets in emerging economies boosting premium milk powder sales, rising use of milk powders in meal replacements and sports nutrition products, continued innovation in drying technologies improving product quality and energy efficiency. Major trends in the forecast period include rising demand for infant formula and pediatric nutrition powders, expansion of lactose-free and specialty dietary milk powders, growing preference for organic and clean-label milk powders, increased use of milk powders in sports nutrition and functional foods, geographic shift toward emerging markets for milk powder consumption.

The growth of the dairy industry is set to drive the milk powder market forward. The dairy industry encompasses agriculture sectors engaged in producing, processing, and distributing milk and milk-based products. This industry's expansion is due to rising worldwide demand for convenient, shelf-stable dairy items, which offer longer shelf life, easier storage, and are well-suited for fast-paced lifestyles. Milk powder supports the dairy industry by providing a stable, easy-to-transport alternative to liquid milk, enhancing product availability globally and allowing for extended distribution. It improves production flexibility and meets consumers' needs for convenient, long-lasting dairy options. For example, in May 2025, the National Agricultural Statistics Service (NASS), a US government agency, reported total cheese production reaching $1.55 trillion (£1,225,783 million) in March 2025, up from $1.53 trillion (£1,209,415 million) in March 2024. Thus, the dairy industry’s expansion is fueling the growth of the milk powder market.

Key players in the milk powder market are focusing on launching innovative products like instant milk powder to boost convenience, affordability, and nutritional quality. Instant milk powder dissolves rapidly and retains essential nutrients, making it more soluble than regular milk powders. For instance, in October 2023, Nestlé, a Switzerland-based food and beverage firm, introduced Nido Milk & Soya instant powder mix. The product uses microencapsulation technology to prevent clumping and dissolves instantly in cold water. It is enriched with vitamins A and D and iron to help fight malnutrition. Nido Milk & Soya is specially designed to meet the nutritional needs of children and families in Central and West Africa, combining the benefits of milk and plant-based soy to provide important nutrients like protein, iron, and calcium in a convenient instant powder form.

In June 2024, Müller Milk & Ingredients, a UK dairy company, acquired Yew Tree Dairy for an undisclosed sum. With this purchase, Müller plans to increase its milk powder production and export capabilities by utilizing Yew Tree Dairy’s facilities in Skelmersdale, while making investments to reinforce the future of the UK dairy industry. Yew Tree Dairy is a UK dairy processing company specializing in milk powder manufacturing.

Major companies operating in the milk powder market are Nestlé S.A., Abbott Laboratories, Lactalis Group, Danone S.A., Dairy Farmers of America Inc., Inner Mongolia Yili Industrial Group Co. Ltd., Land O’Lakes Inc., Arla Foods Amba, Fonterra Co-operative Group Limited, China Mengniu Dairy Company Limited, Saputo Inc., Royal FrieslandCampina N.V., Schreiber Foods Inc., Glanbia Public Limited Company, Almarai Company, Morinaga Milk Industry Co. Ltd., Bel Group, Feihe International Inc., Vietnam Dairy Products Joint Stock Company (Vinamilk), Mother Dairy Fruit & Vegetable Pvt. Ltd., Hatsun Agro Product Limited, Parag Milk Foods Limited, Agri-Mark Inc., California Dairies Inc.

Asia-Pacific was the largest region in the milk powder market in 2025. The regions covered in the milk powder market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on dairy commodities and processed milk products are increasing production and export costs for whole milk powder, skimmed milk powder, fat filled milk powder and infant formula, particularly in major exporting regions such as Oceania, the EU and North America. Higher import duties in developing markets are pressuring prices and slowing demand in segments like confectionery, bakery, sports nutrition foods and dry mixes, while encouraging some countries to invest in local spray-drying and blending capacity. Infant formula milk powder and high-spec lactose-free or whey protein concentrate powders are among the most affected due to their higher value and tighter margins. At the same time, tariffs can benefit domestic cooperatives and regional players by improving their competitive position, stimulating local sourcing and supporting the development of more value-added milk powder formulations.

The milk powder market research report is one of a series of new reports that provides milk powder market statistics, including the milk powder industry global market size, regional shares, competitors with the milk powder market share, detailed milk powder market segments, market trends, and opportunities, and any further data you may need to thrive in the milk powder industry. This milk 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.

Milk powder, also referred to as dried milk, is a dairy product created by evaporating milk to eliminate almost all of its moisture content, resulting in a dry, powdery form. This method helps in preserving the milk and significantly extends its shelf life without the need for refrigeration. Milk powder maintains most of the nutritional qualities of liquid milk, such as proteins, vitamins, and minerals, and can be reconstituted with water to be used as a milk substitute.

The primary varieties of milk powder include whole milk powder, skimmed milk powder, dairy whitener, buttermilk powder, fat filled milk powder, among others. Whole milk powder is a dairy product obtained by removing moisture from whole milk, thus retaining its fat content and nutritional benefits. It is categorized by its functions into emulsification, foaming and flavoring, and thickening, and finds applications in infant formula, confectionery, sports and nutrition foods, bakery products, dry mixes, fermented milk products, meat products, and other sectors.

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

The milk powder market consists of sales of goat milk powder, organic milk powder, non-fat dry milk, sweetened condensed milk powder, lactose-free milk powder, infant formula milk powder, and whey protein concentrate powder. 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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