Market Research Report · Study period 2021-2031 Published: November 2026

Global Milk Powder Market 2021–2031: Size, Share, Trends and Forecast

The global milk powder market is valued at USD 39.8 billion in 2025 and will reach USD 52.7 billion by 2031, expanding at a CAGR of 4.8%. Demand is shifting toward application-specific powders for bakery, confectionery, recombined dairy, clinical nutrition and fortified consumer products, while commodity pricing remains anchored by Oceania, European and US export availability. Asia-Pacific accounts for 39.0% of market value, supported by large food-manufacturing systems and structurally import-dependent markets across Southeast Asia. The report quantifies value, volume, pricing, trade flows, application demand and supplier positioning across six segmentation dimensions and 20 country markets.

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Global Milk Powder Market 2021–2031: Size, Share, Trends and Forecast — report cover

Market size & forecast

Market value · USD billion
Historical Forecast
Source: shev.io Research.
Report highlights
Market size (2025)USD 39.8 bn
Forecast (2031)USD 52.7 bn
CAGR (2025–2031)4.8%
Largest regionAsia-Pacific · 39%
Fastest-growingMiddle East and Africa · 6.2%
ConcentrationModerate
PublishedNovember 2026

Key findings

▪︎The global milk powder market generated USD 39.8 billion in 2025 and will add USD 12.9 billion in annual sales by 2031.
▪︎Whole milk powder represented 42.0% of 2025 market value, retaining leadership through its use in recombined dairy, beverages, confectionery and household nutrition.
▪︎Food and beverage manufacturing accounted for 42.0% of market value, while infant and specialized nutrition was the fastest-growing application at a 6.2% CAGR.
▪︎Asia-Pacific held 39.0% of global value in 2025; the Middle East and Africa will grow fastest at a 6.2% CAGR through 2031.
▪︎OECD-FAO reported that world milk production reached approximately 950 million tonnes in 2024 after increasing 1.1%.
▪︎OECD-FAO projects global milk production to rise by 1.8% annually over the coming decade, led by yield improvement and production growth in India and Pakistan.
▪︎Approximately half of global whole and skim milk powder production enters international trade, making powder pricing more trade-sensitive than most fresh dairy categories.
▪︎New Zealand whole milk powder exports are forecast at 1.395 million tonnes in 2026, preserving Oceania's central role in internationally traded supply.
▪︎Direct business-to-business contracting accounted for 62.0% of 2025 market value as major buyers prioritized specification control, traceability and forward supply coverage.

Key report takeaways

✓︎Growth will come from formulated and specification-led powders rather than undifferentiated commodity volume alone.
✓︎Asia-Pacific is the largest demand pool, but the Middle East and Africa offers the strongest regional growth and import-substitution opportunity.
✓︎Whole milk powder remains the value leader; specialized low-heat, instantized, fortified and nutrition-grade powders command the strongest premiums.
✓︎Supply security requires multi-origin procurement because milk seasonality, weather and product-allocation decisions rapidly change export availability.
✓︎Industrial customers are increasing direct contracting and supplier qualification to manage microbiological, functional and traceability requirements.
✓︎Energy-efficient evaporation and spray drying will become a material cost and tender advantage as customers incorporate supply-chain emissions into procurement.
✓︎Winning suppliers will combine large-scale milk access with application laboratories, regional inventory and customer-specific powder functionality.

Milk Powder Market Segmentation Analysis by Product, Application and Channel

By Product Type

Whole milk powder leads because it combines milkfat and non-fat solids in a transportable format suited to recombined dairy, beverages and confectionery. Skim milk powder remains central to bakery, cultured products and standardized protein applications, with its economics closely linked to butter production. Specialty powders are gaining fastest as manufacturers pay for defined heat treatment, instantization, fortification and application performance.

Whole Milk PowderSkim Milk PowderFat-Filled Milk PowderButtermilk PowderSpecialty and Functional Milk Powder
By Application

Food manufacturing is the largest application because milk powder delivers solids, flavor, color development and water control across bakery, confectionery, beverages and prepared foods. Specialized nutrition is growing faster as adult, clinical and sports products broaden beyond conventional infant-formula demand. Household consumption remains important in markets where ambient storage and reconstitution offer practical advantages over chilled milk.

Food and Beverage ManufacturingInfant and Specialized Nutrition IngredientsHousehold ConsumptionFoodserviceAnimal Feed and Other Uses
By Packaging

Multiwall bags dominate industrial shipments because they balance protection, handling efficiency and cost for standard commercial lots. Metal and composite cans retain a premium position in household and nutrition products where barrier performance and consumer trust matter. Pouches and cartons are gaining through lower material use, smaller price points and expanding modern retail in emerging markets.

Industrial BagsCansPouches and CartonsBulk Totes and Other Formats
By Distribution Channel

Direct contracting leads because industrial customers require specification approval, volume scheduling and quality documentation. Specialist distributors remain important for fragmented buyers and markets requiring local inventory, repacking or credit. E-commerce is the fastest-growing channel from a smaller base, led by household packs, foodservice procurement and direct-to-business platforms.

Direct Business-to-BusinessDistributors and WholesalersModern and Traditional RetailE-commerce
By Milk Source

Cow milk dominates global drying infrastructure, international trade and standardized industrial formulations. Buffalo milk powder retains a regional role in South Asia and specialized high-solids products. Goat and sheep powders are growing faster in premium nutrition and specialty retail, although constrained milk availability keeps their market share small.

Cow MilkBuffalo MilkGoat, Sheep and Other Milk

Milk Powder Market Regional Analysis and Country Outlook

Asia-Pacific generated 39.0% of global milk powder revenue in 2025. China remains the region's largest commercial demand center, but its mix is moving away from birth-driven volume toward adult nutrition, bakery, foodservice and functional products. Indonesia, Vietnam, the Philippines and Malaysia provide the stronger structural import story because population growth, urban food manufacturing and limited domestic milk availability support recombination and ingredient demand.

Europe and North America together represented 40.0% of market value. Europe combines a substantial processing base with export-oriented skim milk powder supply, although cheese economics increasingly compete for the regional milk pool. North American growth is concentrated in bakery, confectionery, sports nutrition, export ingredients and specialized low-heat powders rather than household milk reconstitution.

The Middle East and Africa will record the fastest regional CAGR at 6.2% through 2031. Algeria, Saudi Arabia, the United Arab Emirates, Egypt and Nigeria use powder to bridge local milk deficits, support recombined dairy and supply institutional channels. Latin America remains a balanced production-and-consumption market, with Brazil the largest demand center and Argentina and Uruguay maintaining strategically important export positions.

Projected CAGR by region
Asia-Pacific5.6%
Europe3.6%
North America3.8%
Latin America4.5%
Middle East and Africa6.2%
Projected CAGR, 2021-2031. Source: shev.io Research.

Milk Powder Market Competitive Landscape and Company Share

The market is moderately concentrated: a limited group of export-scale cooperatives and multinational dairy processors controls a large share of internationally traded whole and skim milk powder, while national processors retain meaningful positions in domestic and specialty segments. Fonterra has the strongest exposure to globally traded powder through New Zealand's pasture-based milk system, while Lactalis, FrieslandCampina, Arla Foods, Dairy Farmers of America, Saputo and regional cooperatives compete through milk-pool scale, customer relationships and diversified product allocation.

Competition increasingly centers on functional performance, nutrition-grade quality, carbon intensity and regional service rather than basic drying capacity. Producers are directing milk toward higher-return proteins, cheese and specialized ingredients, requiring commodity powder buyers to compete more directly for solids. Application centers, technical sales teams, customer-specific agglomeration and reliable destination-market certification are becoming decisive supplier-selection criteria.

Recent transactions and capital programs point toward consolidation and portfolio specialization. Lactalis agreed to acquire Fonterra's consumer and associated businesses in 2025, while FrieslandCampina and Milcobel combined from January 2026. Fonterra's Studholme investment and Arla's high-temperature heat-pump deployment illustrate parallel moves toward higher-value powders and lower-emission processing.

Each company profile covers:

Business overviewProduct & brand portfolioEstimated revenue and capacityRecent developmentsStrategy & outlook

Milk Powder Market Forecast, Scenarios and Opportunities

Global market value will rise from USD 39.8 billion in 2025 to USD 52.7 billion in 2031. Volume growth will remain steadier than value growth as specification premiums, energy investment and a richer application mix increase realized prices. The central forecast assumes continued expansion in emerging-market food processing, moderate export-supply growth and no prolonged disruption across the major dairy origins.

The upside scenario is driven by stronger Southeast Asian recombined-dairy demand, accelerated healthy-ageing nutrition and faster adoption of premium functional powders. The downside scenario centers on weaker Chinese purchasing, sharp feed or energy inflation and aggressive substitution by whey ingredients, liquid dairy or plant-based formulations in selected applications.

The strongest returns will accrue to suppliers that can allocate milk flexibly across whole, skim, fat-filled and specialty powders while maintaining customer-specific performance. Regional inventory, application support, certified lower-emission production and dual-origin supply arrangements will matter more as buyers seek resilience without carrying excessive working capital.

➤︎High-protein and fortified powders for healthy-ageing products
➤︎Fat-filled formulations tailored to price-sensitive emerging markets
➤︎Low-heat powders for recombined dairy and fermentation applications
➤︎Lactose-reduced, organic and grass-fed retail powders
➤︎Regional dry-blending and repacking hubs near import markets
➤︎Electrification, heat recovery and lower-emission drying technology

Regulation and taxation

Excise, labelling and distribution rules shape where and how the market competes. The regimes that matter most here:

§︎Codex Alimentarius CXS 207-1999, amended through 2023, establishes international identity and composition standards for milk powders and cream powder, including fat and protein requirements.
§︎European Union Regulation No 1169/2011 governs mandatory food information, nutrition declarations and allergen presentation for prepacked milk powder sold to consumers.
§︎US milk-powder facilities and importers operate under Food Safety Modernization Act preventive-control, foreign-supplier verification and traceability requirements administered by the US Food and Drug Administration.
§︎New Zealand dairy exporters must operate through registered and verified risk-management programs under the Animal Products Act and satisfy destination-specific Overseas Market Access Requirements administered by the Ministry for Primary Industries.
§︎China's State Administration for Market Regulation maintains product-formula registration for finished infant formula; 1,251 formulas were registered as of April 2025, shaping qualification and demand for nutrition-grade dairy inputs.
§︎Tariff-rate quotas, sanitary certificates and approved-establishment listings remain central determinants of market access for powder shipments entering the European Union, China, the United States and several Middle Eastern markets.

Recent industry developments

February 2025
Fonterra reported that its NZD 75 million Studholme investment remained on schedule to begin producing advanced protein ingredients in 2026, including upgrades to drying, milling, storage and powder-transfer systems.
May 2025
Fonterra increased operational capacity at Darfield, enabling the site to produce more than 270,000 tonnes of cream cheese and milk powder annually.
August 2025
Fonterra agreed to sell its consumer and associated businesses to Lactalis for NZD 3.845 billion, alongside a long-term agreement under which Fonterra will continue supplying milk and ingredients.
October 2025
Arla Foods commissioned a high-temperature electric heat-pump system at its AKAFA milk-powder site in Denmark, designed to cut annual carbon dioxide emissions by more than 1,500 tonnes.
December 2025
FrieslandCampina and Milcobel approved their cooperative merger, creating a larger European milk pool and dairy-ingredient platform effective January 2026.
January 2026
FrieslandCampina completed its acquisition of Wisconsin Whey Protein and began integrating Milcobel, expanding its North American specialized-protein presence and European supply base.

Report scope

Market definition. The milk powder market comprises whole milk powder, skim milk powder, fat-filled milk powder, buttermilk powder and specialty or functional milk powders sold to industrial, foodservice and retail customers. Market value is measured at the manufacturer selling-price level and includes domestic sales and imports entering commercial distribution. The scope covers standard and instantized powders derived predominantly from cow milk, together with commercially marketed buffalo, goat, sheep and other dairy-milk powders.

What you get
✓︎PDF report with executive narrative, tables and charts
✓︎Excel workbook containing annual value and volume datasets
✓︎Regional and country forecast model for 2021-2031
✓︎Product, application, packaging and channel segment database
✓︎Competitive benchmarking and estimated company-share workbook
✓︎Source register and methodology appendix
✓︎One analyst briefing session
✓︎Thirty days of post-delivery clarification support
Out of scope
—Finished infant and follow-on formula products
—Whey powder and isolated whey-protein products
—Casein, caseinates and isolated milk-protein concentrates
—Plant-based milk powders and non-dairy creamers
—Condensed, evaporated and liquid milk
—Privately produced milk powder that does not enter commercial channels

Table of contents

1 Introduction
1.1 Study Scope and Objectives
1.2 Milk Powder Market Definition
1.3 Inclusions, Exclusions and Assumptions
2 Research Methodology
2.1 Secondary Research Program
2.2 Primary Interview Program
2.3 Market Sizing and Triangulation
2.4 Forecast Model and Scenario Design
3 Executive Summary
3.1 Market Size and Forecast
3.2 Segment and Regional Highlights
3.3 Strategic Takeaways
4 Milk Powder Market Dynamics
4.1 Market Trends
4.2 Growth Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Porter's Five Forces Analysis
4.6 Price, Milk-Supply and Trade Analysis
5 Milk Powder Market by Product Type
5.1 Whole Milk Powder
5.2 Skim Milk Powder
5.3 Fat-Filled Milk Powder
5.4 Buttermilk Powder
5.5 Specialty and Functional Milk Powder
6 Milk Powder Market by Application
6.1 Food and Beverage Manufacturing
6.2 Infant and Specialized Nutrition Ingredients
6.3 Household Consumption
6.4 Foodservice
6.5 Animal Feed and Other Uses
7 Milk Powder Market by Packaging and Channel
7.1 Industrial Bags
7.2 Cans
7.3 Pouches, Cartons and Bulk Formats
7.4 Direct Business-to-Business Sales
7.5 Distribution, Retail and E-commerce
8 North America Milk Powder Market
8.1 United States
8.2 Canada
8.3 Mexico
8.4 Rest of North America
9 Europe Milk Powder Market
9.1 Germany
9.2 France
9.3 Netherlands
9.4 United Kingdom
9.5 Ireland
9.6 Rest of Europe
10 Asia-Pacific Milk Powder Market
10.1 China
10.2 India
10.3 Japan
10.4 Indonesia
10.5 Vietnam
10.6 Australia
10.7 New Zealand
10.8 Rest of Asia-Pacific
11 Latin America Milk Powder Market
11.1 Brazil
11.2 Argentina
11.3 Chile
11.4 Rest of Latin America
12 Middle East and Africa Milk Powder Market
12.1 Saudi Arabia
12.2 United Arab Emirates
12.3 Algeria
12.4 South Africa
12.5 Nigeria
12.6 Rest of Middle East and Africa
13 Competitive Landscape
13.1 Market Concentration and Company Share
13.2 Capacity, Product and Geographic Benchmarking
13.3 Mergers, Acquisitions and Capital Investment
13.4 Fonterra Co-operative Group
13.5 Lactalis Group
13.6 Royal FrieslandCampina
13.7 Nestlé
13.8 Arla Foods
13.9 Dairy Farmers of America
13.10 Saputo
13.11 DMK Group
13.12 Glanbia
13.13 Synlait Milk
13.14 Open Country Dairy
13.15 Yili Group
14 Market Forecast and Opportunities
14.1 Central, Upside and Downside Scenarios
14.2 Product and Application Opportunities
14.3 Geographic Expansion Priorities
List of figures (18)
Global Milk Powder Market Value, 2021-2031
Milk Powder Market Share by Product Type, 2025
Milk Powder Market CAGR by Region, 2025-2031
Milk Powder Driver and Restraint Impact on Forecast CAGR
Global Milk Powder Price and Volume Trend Index, 2021-2031
Milk Powder Value Share by Product Type, 2025
Product-Type CAGR Comparison, 2025-2031
Milk Powder Market Share by Application, 2025
Application Growth and Value Contribution, 2025-2031
Milk Powder Packaging Share, 2025
Distribution Channel Share, 2025
Channel CAGR Comparison, 2025-2031
Global Milk Powder Market Share by Region, 2025
Regional Milk Powder Market Value, 2025 and 2031
Milk Powder Net Import Dependence by Selected Country
Estimated Global Milk Powder Company Share, 2025
Competitive Positioning by Scale and Specialty-Powder Exposure
Milk Powder Market Forecast Scenarios, 2025-2031
List of tables (41)
Milk Powder Product Definitions, Composition and Included Categories
Market Scope, Exclusions, Units, Currency and Conversion Factors
Global Milk Powder Market Snapshot, 2021-2031
Milk Powder Market Value and Volume by Year, 2021-2031
Leading and Fastest-Growing Segments, 2025-2031
Milk Powder Market Drivers: Impact, Geography and Time Horizon
Milk Powder Market Restraints: Impact, Geography and Time Horizon
Global Dairy Supply, Milk Powder Trade and Pricing Indicators
Milk Powder Market Value by Product Type, 2021-2031
Milk Powder Market Volume by Product Type, 2021-2031
Milk Powder Market Value and Share by Milk Source, 2025 and 2031
Product-Type Pricing and Functional Specification Matrix
Milk Powder Market Value by Application, 2021-2031
Milk Powder Consumption Volume by Application, 2021-2031
Food Manufacturing Demand by Bakery, Confectionery, Beverage and Prepared Food
Specialized Nutrition Powder Requirements and Supplier Qualification Criteria
Milk Powder Market Value by Packaging Format, 2021-2031
Milk Powder Volume by Packaging Format, 2021-2031
Milk Powder Market Value by Distribution Channel, 2021-2031
Industrial Pack Sizes, Materials and End-Use Suitability
Channel Economics, Margins, Inventory and Service Requirements
North America Milk Powder Market by Country, 2021-2031
Europe Milk Powder Market by Country, 2021-2031
Asia-Pacific Milk Powder Market by Country, 2021-2031
Latin America Milk Powder Market by Country, 2021-2031
Middle East and Africa Milk Powder Market by Country, 2021-2031
Leading Milk Powder Suppliers: Share, Regions, Products and Strategic Position
Fonterra Co-operative Group Company Profile
Lactalis Group Company Profile
Royal FrieslandCampina Company Profile
Nestlé Company Profile
Arla Foods Company Profile
Dairy Farmers of America Company Profile
Saputo Company Profile
DMK Group Company Profile
Glanbia Company Profile
Synlait Milk Company Profile
Open Country Dairy Company Profile
Yili Group Company Profile
Milk Powder Market Central, Upside and Downside Scenarios
Opportunity Matrix by Product, Application, Region and Investment Horizon

Milk Powder Market Research Methodology

The study combines official production, trade and policy data with shev.io Research interviews, company analysis and bottom-up market reconstruction. Historical results were reconciled across production, international trade, apparent consumption, application demand and realized manufacturer pricing before forecasts were generated.

Market sizing

The bottom-up build aggregates producer and country volumes by powder type and applies region-, specification- and channel-specific prices. Results are reconciled with a top-down view of milk availability, powder production, trade and end-use consumption.

Forecast basis

Forecasts incorporate population, income, food-manufacturing output, nutrition demand, milk-production growth, product allocation, pricing, energy and regional import dependence. Central, upside and downside scenarios test Chinese demand, export availability, input costs and specialty-product penetration.

Validation

Every major figure is triangulated across supply, demand and trade evidence and reviewed by senior dairy-industry specialists.

Primary research programme

Interviews validated the product and application mix, pricing premiums by specification, direct-versus-distributor channel structure, regional import dependence and company positioning. Respondents also tested assumptions on milk allocation, plant utilization, customer qualification and the adoption of lower-emission drying technology.

By company tier
Top tier41%
Mid tier34%
Smaller players25%
By seniority
C-level / founders27%
Functional / unit leaders46%
Managers / specialists27%
By region
Americas28%
EMEA37%
Asia-Pacific35%
Participants interviewed
Milk-powder and dairy-ingredient producersDairy cooperatives and milk-procurement executivesEvaporation, spray-drying and packaging-equipment suppliersFood and beverage manufacturersInfant, clinical and adult-nutrition formulatorsImporters, traders and specialist distributorsRetail and foodservice procurement leadersQuality, regulatory and market-access specialists
Secondary sources
Tier 1
Official government & intergovernmental statistics
Tier 2
Industry associations & regulators
Tier 3
Company filings & business press
National statistics offices, agriculture ministries and customs authoritiesFAO, OECD-FAO and USDA dairy production, supply, demand and trade databasesUN Comtrade and national trade databases using relevant HS 0402 classificationsDairy-industry associations, cooperatives and producer organizationsCompany annual reports, investor disclosures and official press releasesFood-safety, labelling, customs and market-access authorities

Frequently asked questions

How large is the global milk powder market?

The global milk powder market was valued at USD 39.8 billion in 2025. It is forecast to reach USD 52.7 billion by 2031.

What is the forecast CAGR for the milk powder market?

The market will expand at a CAGR of 4.8% between 2025 and 2031, supported by food manufacturing, specialized nutrition and import-dependent emerging markets.

Which region has the largest milk powder market?

Asia-Pacific is the largest region, accounting for 39.0% of global market value in 2025.

Which region is growing fastest?

The Middle East and Africa is the fastest-growing region, with a forecast CAGR of 6.2% through 2031.

Which product type leads the market?

Whole milk powder leads with 42.0% of 2025 market value, reflecting broad use in recombined dairy, beverages, confectionery and household nutrition.

What is the largest application for milk powder?

Food and beverage manufacturing is the largest application at 42.0% of 2025 value. Bakery, confectionery, beverages and prepared foods are the principal industrial demand centers.

Which companies are the leading milk powder suppliers?

Leading participants include Fonterra, Lactalis, FrieslandCampina, Nestlé, Arla Foods, Dairy Farmers of America, Saputo, DMK Group, Glanbia, Synlait, Open Country Dairy and Yili.

What products are included in the milk powder market?

The scope includes whole, skim, fat-filled, buttermilk and specialty or functional milk powders sold through industrial, foodservice and retail channels.

Does the market include infant formula?

Finished infant and follow-on formulas are excluded. Milk powders sold as ingredients to infant and specialized-nutrition manufacturers are included.

Why is milk powder heavily exposed to international trade?

Drying removes water, extends shelf life and makes dairy solids economical to ship. OECD-FAO reports that approximately half of global whole and skim milk powder production is traded internationally.

What determines milk powder prices?

Prices are shaped by farmgate milk costs, butterfat and protein values, seasonal output in major exporting regions, energy, freight, exchange rates and import demand from large buying countries.

Where are the strongest investment opportunities?

The strongest opportunities are in specialty functional powders, fat-filled products for emerging markets, healthy-ageing nutrition, regional dry-blending hubs and lower-emission spray-drying capacity.

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DO
David Okafor
Food & Beverage Analyst, shev.io Research
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