Milk Powder Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Milk Powder Market Trends and Insights

Surging demand for infant fomrula

Global infant formula demand intensifies as regulatory frameworks evolve to support market resilience and nutritional adequacy. In 2025, the FDA unveiled its Long-Term National Strategy aimed at bolstering the resilience of the U.S. infant formula market. The strategy introduces fresh measures to prevent contamination and offers incentives to manufacturers, encouraging diversification in light of recent supply chain disruptions. These measures are designed to ensure a more robust and reliable supply chain, minimizing the risk of shortages and enhancing consumer confidence. Simultaneously, technological advancements in premium formulations are making waves. A case in point is Nestlé's debut of NAN Sinergity, which boasts six human milk oligosaccharides. This move underscores how a super-premium positioning not only commands higher margins but also caters to specific nutritional needs, addressing the growing demand for specialized infant nutrition. The blend of regulatory backing and innovative strides is fueling a demand growth that's not just tethered to traditional demographic influences but also driven by evolving consumer preferences and health-conscious choices.

Population growth and urbanization

As urbanization rises in emerging markets, it fuels a structural demand growth, with increased access to packaged dairy products and a boost in disposable income steering choices towards premium nutrition. According to a UN-Habitat report, Asia is home to 54% of the world's urban population, amounting to over 2.2 billion individuals. Projections suggest that by 2050, Asia's urban populace will grow by an additional 1.2 billion, reflecting a 50% increase^{[1]Source: UN-Habitat, “Asia and the Pacific Region”, www.unhabitat.org}. This rapid urbanization in the Asia-Pacific is not just creating dense consumer hubs but also bolstering infrastructure, paving the way for cold-chain distribution networks vital for penetrating the milk powder market. Urban consumers, especially in regions where fresh milk faces availability challenges due to infrastructural constraints, are showing a pronounced willingness to pay more for convenience and nutritional advantages. This demographic evolution lays down robust growth foundations, transcending fleeting economic cycles and fostering predictable demand patterns. Such patterns, in turn, bolster long-term capacity planning and investment strategies.

Advancements in dairy processing technology boost milk powder quality and efficiency

Processing innovation enhances product quality and reduces operational costs by optimizing nutrient retention and extending shelf life through precision manufacturing techniques. SPX FLOW uses advanced milk fractionation technology, applying microfiltration, ultrafiltration, and nanofiltration. This approach preserves nutritional components, facilitates diverse milk separations, minimizes waste, and enhances product value. These advancements enable manufacturers to efficiently separate milk into various components, such as proteins, fats, and minerals, creating a wide range of high-value products. These technological strides allow manufacturers to craft specialized formulations tailored to specific nutritional needs while maintaining cost competitiveness with traditional methods. Additionally, manufacturers expand production possibilities by integrating precision fermentation capabilities, creating unique protein profiles that cater to evolving consumer demands and differentiate their offerings in a crowded marketplace.

Use in processed foods such as ready meals, desserts, and beverages

Food manufacturers are increasingly integrating milk powder into a variety of product categories, aiming to boost nutritional profiles and prolong shelf life. This trend is driven by the versatility of milk powder, which can be used in products ranging from baked goods and confectionery to beverages and infant nutrition. Thanks to advanced processing technologies, manufacturers can now overcome solubility constraints, incorporating milk powder into applications once deemed unsuitable, such as high-protein beverages and ready-to-eat meals. Concurrently, a rising trend towards clean-label products is fueling the preference for familiar dairy ingredients over synthetic substitutes, as consumers increasingly seek transparency and natural components in their food. This widespread industrial adoption not only shields producers from the unpredictable swings of the consumer market but also paves the way for lucrative opportunities in specialized formulations, including functional foods and premium product lines.

Lactose intolerance and allergies

Milk powder faces significant challenges due to lactose intolerance and milk allergies, which act as major restraints in this market. According to the National Institutes of Health (NIH), approximately 68% of the global population is affected by lactose intolerance ^{[2]Source: National Institute of Health, “Definition & Facts for Lactose Intolerance”, www.niddk.nih.gov}. This condition limits the consumption of dairy-based products, including milk powder, as individuals with lactose intolerance experience difficulty digesting lactose, a sugar found in milk and dairy products. Furthermore, milk allergies, particularly prevalent among children, further reduce the potential consumer base for milk powder. The Frontiers Report 2024 identifies Cow's Milk Allergy (CMA) as one of the most common food allergies in children, with a prevalence of 1.8% among children aged 1 to 5 in the United States ^{[3]Source: Frontiers, “The future of cow’s milk allergy – milk ladders in IgE-mediated food allergy”, www.frontiersin.org}. These health concerns have led to a growing consumer preference for non-dairy alternatives, such as plant-based milk powders, which are perceived as healthier and more suitable for individuals with lactose intolerance or milk allergies. Additionally, regulatory bodies worldwide are increasingly emphasizing the need for clear and accurate labeling of allergens in food products. This regulatory focus adds to the operational challenges for manufacturers, as they must ensure compliance with stringent labeling requirements while maintaining product quality and market competitiveness.

Volatile global dairy commodity prices caused by climate-linked supply shocks

Volatile global dairy commodity prices, particularly in the milk powder market, are significantly influenced by climate-linked supply shocks. Unpredictable weather patterns, such as droughts, floods, and extreme temperatures, have disrupted milk production in key dairy-producing regions. These disruptions lead to inconsistent supply levels, creating price instability in the market. Additionally, climate change has impacted feed availability and quality, further straining milk production. Such supply-side challenges have made it difficult for producers to maintain steady output, thereby intensifying price fluctuations. This volatility poses a major restraint for the milk powder market, affecting both producers and consumers by increasing uncertainty and complicating long-term planning and investment decisions. Moreover, the global dairy industry is heavily reliant on specific regions for milk production, such as New Zealand, the European Union, and the United States. When these regions face climate-related disruptions, the ripple effects are felt across the global supply chain. For instance, drought conditions in New Zealand, a leading exporter of milk powder, have historically resulted in reduced export volumes, driving up prices in international markets. 

Segment Analysis

By Product Type: Dairy Milk Powder Dominates, Plant-Based Alternatives Gain Traction

In 2024, dairy milk powder dominated the milk powder market, accounting for a significant 63.22% share. This dominance can be attributed to its widespread use in various applications, including infant formula, bakery products, confectionery, and beverages. Dairy milk powder's long shelf life, ease of transportation, and nutritional benefits make it a preferred choice among consumers and manufacturers alike. Additionally, the segment benefits from the growing demand for protein-enriched diets and the increasing consumption of ready-to-eat and processed foods. Emerging markets, particularly in Asia-Pacific, are witnessing a surge in demand for dairy milk powder due to rising disposable incomes and changing dietary patterns. Furthermore, advancements in processing technologies and the availability of fortified dairy milk powders are expected to sustain the segment's growth during the forecast period.

On the other hand, non-dairy alternatives, such as plant-based milk powders, are experiencing rapid growth, with a projected CAGR of 4.04% through 2030. This growth is driven by rising consumer preferences for vegan and lactose-free products, along with increasing awareness of environmental sustainability. Plant-based milk powders, derived from sources like soy, almond, and oat, are gaining traction due to their health benefits and suitability for individuals with dietary restrictions. The segment's expansion is further supported by innovation in product offerings, such as flavored and fortified variants, which cater to diverse consumer preferences. Additionally, the growing adoption of plant-based diets, supported by marketing campaigns and endorsements from health and wellness influencers, is fueling demand. The increasing availability of plant-based milk powders in mainstream retail channels and their incorporation into various food and beverage applications are expected to drive further growth in this segment.

By Packaging Format: Single-Serve Innovation Drives Growth

In 2024, flexible pouches dominated the packaging segment of the milk powder market, accounting for a significant 38.00% revenue share. These pouches are widely preferred due to their lightweight nature, convenience, and ability to preserve the product's freshness for an extended period. Additionally, flexible pouches are cost-effective and environmentally friendly, as they use less material compared to rigid packaging options. Their versatility in accommodating various sizes and quantities makes them a popular choice among manufacturers and consumers alike, driving their substantial market share. Furthermore, the growing adoption of flexible pouches in e-commerce channels, where durability and ease of transportation are critical, has further bolstered their demand. 

Single-serve sachets, on the other hand, are projected to grow at a CAGR of 4.79% during the forecast period. These sachets cater to the increasing demand for portion-controlled and on-the-go consumption, particularly among urban consumers and working professionals. The convenience of single-serve sachets, coupled with their affordability, has made them a preferred option for individual servings. Additionally, single-serve sachets are gaining traction in emerging markets, where affordability and accessibility are critical factors influencing consumer choices. Their compact size and ease of disposal align with the growing consumer preference for sustainable and practical packaging solutions. Moreover, the rising trend of health-conscious consumers seeking precise portion sizes has further fueled the demand for single-serve sachets, positioning them as a growing segment in the milk powder market.

By Distribution: Retail Leads, Foodservice Surges

In 2024, the retail segment accounted for a significant 56.33% share of the milk powder market. This dominance can be attributed to the increasing demand for milk powder among households, driven by its longer shelf life and convenience compared to liquid milk. Retailers have also been expanding their product offerings, including organic and fortified milk powder variants, to cater to evolving consumer preferences. The growing penetration of e-commerce platforms has further boosted the retail segment, making milk powder more accessible to a broader consumer base. Additionally, the rising trend of purchasing packaged and branded food products has contributed to the segment's growth, as consumers increasingly prioritize quality and safety in their food choices. 

Meanwhile, the foodservice sector is projected to grow at a CAGR of 5.11% through 2030. This growth is fueled by the rising use of milk powder in the preparation of various food and beverage products, such as bakery items, desserts, and beverages, within the foodservice industry. The sector benefits from the cost-effectiveness and ease of storage associated with milk powder, which makes it a preferred choice for restaurants, cafes, and catering services. Furthermore, the increasing number of quick-service restaurants (QSRs) and the growing popularity of ready-to-eat and ready-to-drink products have amplified the demand for milk powder in this segment. The foodservice sector is also leveraging innovations in product formulations, such as lactose-free and plant-based milk powder alternatives, to meet the diverse dietary preferences of consumers. 

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

In 2024, the Asia-Pacific region secures a dominant 42.00% market share in the milk powder market, driven by several key factors. The region's demographic expansion, coupled with rising disposable incomes, has significantly increased consumer purchasing power, enabling greater access to packaged dairy products, including milk powder. Urbanization trends further amplify this demand, as urban consumers increasingly prefer convenient and shelf-stable dairy options. Additionally, China's regulatory landscape is undergoing significant changes, with the introduction of new national food safety standards and restrictions on the use of milk powder in shelf-stable milk. While these regulations create short-term disruptions, they also elevate quality standards, benefiting producers who comply with these stringent requirements and positioning them for long-term growth in the market.

The Middle East and Africa region is experiencing the fastest growth in the milk powder market, with a projected CAGR of 5.10% through 2030. This rapid growth is underpinned by ongoing economic development and substantial improvements in infrastructure, which are critical for the efficient distribution and consumption of dairy products. As disposable incomes rise and urbanization progresses, the demand for milk powder and other dairy products is expected to grow steadily. Furthermore, government initiatives aimed at enhancing food security and promoting local dairy production are likely to support the market's expansion in this region, creating opportunities for both domestic and international players.

North America and Europe exhibit stable growth patterns, reflecting the maturity of their respective milk powder markets. These regions benefit from well-established supply chains, high consumer awareness, and consistent demand for dairy products. However, growth opportunities remain limited compared to emerging markets. In contrast, South America presents a promising landscape for the milk powder market, driven by economic development and the expansion of the middle-class population. As consumers in this region increasingly seek nutritional enhancement products, the demand for milk powder is expected to rise. Additionally, the region's growing focus on improving dairy production capabilities and expanding export opportunities further supports market growth.