Global Buttermilk Powder Market Size, Share & Trends Analysis Report By Distribution Channel (B2B and B2C (Hypermarkets & Supermarkets, Convenience stores, Online, and Others)), By Nature, By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Buttermilk Powder Market Size, Share & Trends Analysis Report By Distribution Channel (B2B and B2C (Hypermarkets & Supermarkets, Convenience stores, Online, and Others)), By Nature, By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Buttermilk Powder Market size is expected to reach $5.4 billion by 2031, rising at a market growth of 7.5% CAGR during the forecast period. In the year 2023, the market attained a volume of 157,161.9 Tonnes experiencing a growth of 14.5% (2020-2023).

With an increasing preference for shelf-stable dairy alternatives, this powder fits well into this market trend. It provides an alternative to refrigerated dairy products, catering to consumers who value long shelf life and the convenience of not refrigerating their dairy ingredients. Thus, Dairy Products segment captured $578.2 Million revenue in the market in 2023. Also, Dairy Products would utilize 29,888.85 tonnes in 2023. Its ability to be reconstituted quickly into a usable form without refrigeration aligns perfectly with the modern consumer’s desire for quick, hassle-free food preparation. This powder’s long shelf life and stability make it suitable for emergency preparedness and disaster relief scenarios.

This powder is versatile in various processed products, including baked goods, snack foods, sauces, dressings, and instant mixes. The rising popularity of these products drives demand for this powder as it enhances flavour, texture, and nutritional content. This powder contributes to desirable attributes such as creaminess, tanginess, and moisture control in processed foods. Thus, the growing demand for processed foods drives the market's growth.

Additionally, the dairy industry is characterized by continuous innovation and the development of new products to meet changing consumer preferences. This includes the creation of new dairy-based formulations and specialty products that often incorporate this powder. In conclusion, the dairy sector and dairy ingredients industry drives the market's growth.

The primary raw material for this powder is dairy, specifically buttermilk. The price of raw milk and buttermilk can fluctuate due to supply and demand, weather conditions, and feed costs for dairy cows. These fluctuations can increase production costs for this powder manufacturers. The need for additional ingredients or additives to maintain product quality can further drive up costs. Thus, high production costs of this powder are hampering the market's growth.

Distribution Channel Outlook

On the basis of distribution channel, this market is segmented into B2B and B2C. The B2C segment recorded 72% revenue share in this market in 2023. In terms of volume, the segment recorded 34,935.2 tonnes in 2023. This powder has a longer shelf life and is easier to store, making it a convenient option for household consumers. It can be used in various home cooking and baking applications, such as pancakes, biscuits, and sauces, appealing to home cooks. Buttermilk powder is often perceived as a healthy ingredient, rich in calcium and probiotics, which appeals to health-conscious consumers.

Nature Outlook

Based on nature, this market is divided into conventional and organic. The organic segment attained 20% revenue share in this market in 2023. Increasing health and wellness awareness drives consumers to choose organic products, perceived as healthier and free from harmful chemicals and pesticides. Many consumers believe organic powder offers superior nutritional benefits to conventional options, further boosting demand. Organic farming practices are seen as more environmentally friendly and sustainable. Consumers who prioritize sustainability are more likely to choose organic buttermilk powder.

Application Outlook

By application, this market is divided into food & beverages, foodservice, and household. The foodservice segment acquired 23% revenue share in this market in 2023. In 2023, the segment recorded a volume of 35,394.1 tonnes in 2023. Buttermilk powder offers significant convenience for foodservice operations. Unlike liquid buttermilk, which requires refrigeration and has a limited shelf life, buttermilk powder has a long shelf life and does not need refrigeration. This makes it easier to store, handle, and use in large quantities, particularly in commercial kitchens and foodservice settings where space and storage efficiency are crucial.

Regional Outlook

Region-wise, the buttermilk powder market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region generated 26% revenue share in this market. The Asia Pacific region is seeing growth in dairy production and processing, leading to an increased supply and use of dairy ingredients, including buttermilk powder. Significant investments in dairy infrastructure and technology improve the production and availability of buttermilk powder in the region. The bakery and confectionery sector in the Asia Pacific region is expanding, with a higher demand for ingredients that improve the taste and texture of products like cakes, pastries, and cookies.

List of Key Companies Profiled

• Fonterra Co-operative Group Limited
• Dairy Farmers of America, Inc.
• Arla Foods amba
• Agropur Dairy Cooperative
• Kerry Group plc.
• NOW Foods, Inc.
• Uelzena Group
• Valio Ltd.
• North Cork Creameries Ltd.
• Numidia B.V.

Global Buttermilk Powder Market Report Segmentation

By Distribution Channel (Volume, Tonnes, USD Billion, 2020-2031)

• B2B
• B2C
• Hypermarkets & Supermarkets
• Convenience stores
• Online
• Others

By Nature (Volume, Tonnes, USD Billion, 2020-2031)

• Conventional
• Organic

By Application (Volume, Tonnes, USD Billion, 2020-2031)

• Food & Beverages
• Bakery & Confectionery
• Dairy Products
• Beverages
• Others
• Foodservice
• Household

By Geography (Volume, Tonnes, USD Billion, 2020-2031)

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia & New Zealand
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA