Milk Powder Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Milk Powder Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global milk powder market is projected to record a CAGR of 3.86% during the forecast period (2022 - 2027).

Due to lockdowns and commercial shutdowns, COVID-19 has had a global impact on economies and industries. The closure of several plants and factories impacted worldwide supply chains, negatively impacting product manufacturing, delivery schedules, and sales in the global milk powder business. However, uncertainties caused by Covid-19 led to the mass buying and stockpiling of essential items. Thereby, demand for milk powder and other packed dairy surged. Moreover, during the lockdown buying fresh milk on a daily basis was inconvenient due to the movement restrictions. Also, fresh milk is highly perishable, so customers preferred buying milk powder, which led to an increase in demand for milk powder in the market.

Milk powder is consumed globally, owing to the presence of several nutrients, such as vitamin B12, thiamin, and high amounts of protein, driving the global milk powder market. Moreover, milk powder's shelf life is higher than regular milk, which further leads to the increased demand for milk powder over regular milk.

Consumption of whole milk powder and skimmed milk powder has increased as the number of middle-class customers, household incomes, and health consciousness among consumers has increased, which is driving the market growth.

The development of advanced technologies in milk powders, which helps to retain the nutrient content of milk even after the drying process, and very trace amounts of fat, which, in turn, makes it low in calorie content, is driving the attention of the people toward the consumption of milk powder. This helps people to lose or maintain weight and also aids in promoting a healthy heart. Furthermore, as a rich source of complete proteins, which helps build and maintain lean muscles, its consumption has also increased among athletes. According to CLAL data, the volume of skimmed milk powder imported into China amounted to 426 thousand metric tons in 2020, up from 336 thousand metric tons in the previous year. Owing to the factors above, milk powder consumption has increased in various countries, which calls for increased dependence on exports.

Because of changing lifestyles, Asia-Pacific now dominates the milk powder market. Furthermore, during the projection period, globalization and an increase in the working population will all contribute to the growth of the region's milk powder market. Because of processing and shipping technology advancements, Asia-Pacific is expected to see significant expansion in the milk powder industry. Furthermore, lower transportation costs and the utilization of export subsidies are expected to move the milk powder industry in the region forward.

The global milk powder is fragmented, with many domestic and multinational players competing for market share. Companies focus on new product launches with natural or organic claims as their key marketing strategy. Major players include - AMUL Fed, Nestlé S.A, Arla Foods, Fonterra Co-Operative Group, and NOW Foods, among others.

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