Milk Powder Market Forecasts to 2028 – Global Analysis By Type (Skimmed Milk powder, Whole Milk Powder, Fat Filled Milk Powder and Other Types), Function (Emulsification, Foaming, Flavouring and Thickening), Distribution Channel, Application and By Geogra

Milk Powder Market Forecasts to 2028 – Global Analysis By Type (Skimmed Milk powder, Whole Milk Powder, Fat Filled Milk Powder and Other Types), Function (Emulsification, Foaming, Flavouring and Thickening), Distribution Channel, Application and By Geography

According to Stratistics MRC, the Global Milk Powder Market is accounted for $31.61 billion in 2022 and is expected to reach $46.91 billion by 2028 growing at a CAGR of 6.8% during the forecast period. Milk powder is a concentrated form of milk that is generally prepared by dehydrating liquefied milk via spray drying methods until it changes into a powder. Because it is convenient to use and has a longer shelf life, it is widely utilized by consumers as an alternative to fresh milk in a wide range of food preparations, including confectionaries, infant formulas, savory items, and desserts. Its ability to bind water, along with its foaming and emulsifying properties, make milk powder an important food ingredient.

According to Food and Agricultural Organization (FAO), around 950 million tonnes of milk is produced in 2022 and the production is increased by 0.6% from 2021, owing to the surge in requirement for milk in emerging economies such as India, China, and Brazil.

Market Dynamics

Driver

Long Shelf Life

The long shelf life of milk powder makes it a convenient option for consumers. Unlike fresh milk, which requires refrigeration and has a limited shelf life, milk powder can be stored at room temperature for an extended period without spoiling. This convenience allows consumers to stock up on milk powder and have it readily available whenever needed without worrying about it going bad. In contrast, fresh milk has a shorter shelf life, and if not consumed within a certain period, it can spoil and be wasted. Milk powder's extended shelf life allows consumers to use it at their own pace, reducing the likelihood of wastage.

Restraint

Perceived freshness

Milk powder may not fully replicate the sensory attributes of fresh milk. Some consumers may find the taste, texture, or aroma of reconstituted milk powder different from fresh milk. These sensory differences can influence consumer preferences and lead to a preference for fresh milk in terms of sensory experience. Additionally, some consumers perceive fresh milk as a more natural and superior product compared to milk powder. They associate fresh milk with higher quality, better taste, and greater nutritional value. This perception can create a preference for fresh milk over milk powder, particularly among consumers who prioritize freshness in their food choices.

Opportunity

Growing demand for convenience

The modern lifestyle is characterized by busy schedules and time constraints, which has led to an increased demand for convenient food options. Milk powder offers a convenient and time-saving alternative to liquid milk. It can be easily stored, transported, and prepared, making it suitable for individuals and families with hectic lifestyles. Additionally, milk powder can be conveniently carried and consumed on the go. It can be easily reconstituted with water, making it suitable for travel, outdoor activities, and situations where fresh milk may not be readily available. This portability and ease of use make milk powder a preferred choice for individuals seeking convenience in their daily lives.

Threat

Price Fluctuations

Price volatility in the milk powder market can impact the profit margins of manufacturers and suppliers. Fluctuations in the prices of raw materials, such as milk and dairy ingredients, can lead to increased production costs. If the cost of raw materials rises significantly, it may be challenging for manufacturers to maintain competitive pricing or sustain desired profit levels. Additionally, price fluctuations make it difficult for companies to plan and budget effectively. Sharp and unpredictable changes in milk powder prices can disrupt supply chain management, inventory management, and production planning. This uncertainty can hinder long-term business strategies and decision-making processes. Thus, it is anticipated that the aforementioned factors will limit market growth throughout the forecast period.

Covid-19 Impact

The COVID-19 epidemic harms farmers and company employees since carrying out operational tasks was difficult due to the government's strict lockdown regulations. The pandemic caused uncertainty and volatility for dairy producers by disrupting output due to a lack of resources for creating milk powder varieties. Prices fluctuated due to the market's restricted supply of milk, which affected the entire price of the end product, making it more expensive than the average market price. While farmers strove to increase output volume to meet demand from dairy firms, the final product's quality deteriorated. The rise in transportation costs has produced regular interruptions in product distribution around the world.

The whole milk segment is expected to be the largest during the forecast period

The whole milk segment gained a major share of the global milk powder market and is expected to sustain its market share during the forecast period. The vast majority of customers globally believe that whole milk is the most natural sort of milk. Developing countries with rising populations and disposable incomes are driving the growth of whole milk powder. This is due to the convenience, shelf life, and nutritional benefits of whole milk powder over fresh milk. This is due to increased demand for dairy products in the global market as well as a shift in customer preferences toward convenience and health benefits.

The bakery & confectionary segment is expected to have the highest CAGR during the forecast period

The bakery & confectionary segment is expected to have the highest CAGR during the forecast period. Confectionery requires milk products such as whole milk powder, fat-filled milk powder, and others as a basic ingredient for manufacturing the final product. Milk powder provides confectionary items with a rich and creamy flavor, making them more attractive to customers. Milk powder is a useful component for confectionery makers since it is easy to store and transport and can be reconstituted with water as required. In addition, milk powder does not degrade as rapidly as fresh milk, and confectionery items employing milk powder have a longer lifespan than those manufactured with fresh milk, which helps to propel the segment in the market.

Region with largest share

Asia Pacific is estimated to hold the largest share of the market and is projected to progress at a substantial pace throughout the forecast period. The Asia Pacific region has a large and growing population with increasing urbanization. Demographic trend drives the consumption of milk powder in the region. Additionally, it has a significant market for infant formula, and milk powder is a crucial ingredient in its production. The growing middle class, increasing disposable income, and changing lifestyles have led to an increase in demand for infant formula in the region. Milk powder manufacturers cater to this demand by producing specialized formulas for infants.

Region with highest CAGR

North America has a well-established dairy industry, with countries like the United States and Canada being major milk producers. The countries in the region have efficient dairy farming practices and advanced milk processing facilities, allowing them to produce a substantial amount of milk powder domestically. This domestic production caters to both local demand and export markets. Additionally, this region has a significant market for infant formula, and milk powder serves as a vital ingredient in its production. The demand for infant formula is driven by factors such as population growth, increasing disposable income, and working mothers.

Key players in the market

Some of the key players in Milk Powder market include Arla Foods, Dairy Farmers of America Inc., Danone S.A., Dean Foods, Fonterra Co-operative Group Limited, Kraft Heinz Company, Lactalis Group, Nestlé S.A., Parmalat S.p.A., Royal FrieslandCampina N.V. and Saputo, Inc.

Key Developments

In March 2023, Dairy Farmers of America announced partnership with Good Culture in order to expand its probiotic milk products portfolio

In January 2023, Dairy Farmers of America (DFA) announced the acquisition of two extended shelf-life (ESL) processing facilities from SmithFoods

In July 2022, Danone S.A. has launched the new Dairy & Plants Blend baby formula to meet parents’ desire for feeding options suitable for vegetarian, flexitarian and plant-based diets, while still meeting their baby’s specific nutritional requirements

In October 2021, Royal FrieslandCampina N.V. divested the sale of its milk powder towers in Aalter, Belgium, to Royal A-ware

Types Covered
• Skimmed Milk powder
• Whole Milk Powder
• Fat Filled Milk Powder
• Buttermilk Powder
• Fat Filled Milk Powder
• Dairy Whitener
• Other Types

Functions Covered
• Emulsification
• Foaming
• Flavouring
• Thickening

Distribution Channels Covered
• Business to Business
• Business to Customer
• Other Distribution Channels

Applications Covered
• Bakery & Confectionary
• Nutritional Food
• Infant Formulas
• Savories
• Household
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements