Milk powder market in Canada

Earlier Report Observations

From 2018 to 2020, the Canadian milk powder market volume first increased from 55.3 thousand tons to 62.3 thousand tons, then stabilized near 61.8 thousand tons. Regulatory adjustments to dairy establishment registration and product classification in Canada, alongside the implementation of the Milk Industry Standards Regulation in British Columbia, helped standardize production and maintain product quality, supporting domestic demand. The entry of new players on the global market intensified competition and spurred innovation. In 2020, the COVID-19 pandemic disrupted supply chains and accelerated at-home consumption of shelf-stable products like milk powder, which helped sustain market volume despite broader economic uncertainties.

The market surged to 78.5 thousand tons in 2021, primarily driven by the emergence of innovative product segments such as organic and fortified milk powders, which met growing consumer demand for healthy and functional foods. This expansion was supported by maintained federal regulations on product classification and traceability. However, in 2022, volume fell to 70.4 thousand tons. Global climate shocks affecting dairy production and volatility in raw material prices reduced availability and increased costs, constraining the market. During this period, major global dairy companies like Fonterra and Arla Foods launched new infant and health-focused powder ranges, reflecting ongoing product innovation amidst challenging conditions.

Market volume declined further to 67.9 thousand tons in 2023. Continued investments in research and development focused on improving product quality, including lactose-free and hypoallergenic variants, aimed to meet evolving consumer needs. Strict federal and provincial regulations on production, labeling, and food safety remained in force. In 2024, Nestlé's launch of a new organic infant formula in Canada highlighted persistent innovation in response to consumer preference for sustainable and healthy options, while global factors such as climatic conditions and geopolitical tensions continued to influence dairy raw material availability.

Production milk powder in Canada

In kind, 2017-2020, K t

Between 2017 and 2020, Canada ranked 20th globally in milk powder production.

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Canada's milk powder production declined for the third year in a row. In 2020, the country produced 97.2 K t, which was 7.2% lower than in 2019. Over the 2017-2020 period, production fell by 16.6%, averaging an annual decrease of 5.9%.

Annual dynamics of production in Canada in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, Canada's milk powder output was valued at 230.2 M $ US, showing little change from the previous year. From 2017 to 2020, production value increased by 6.4%, with an average annual growth rate of 2.1%. The lowest value was recorded in 2018 at 198.5 M $ US, while the highest was in 2019 at 231.4 M $ US. The largest decline occurred in 2018 at 8.3%, and the largest increase was in 2019 at 16.6%.

Annual dynamics of production in Canada in value, 2017-2020, M $ US

Exports milk powder from Canada

Exports in kind, t

Canada's milk powder exports fell for the third consecutive year. In 2020, export volume reached 40 238 t, a sharp drop of 15.8% compared to 2019. Over the 2017-2020 period, exports decreased by 44.7%, with a compound annual growth rate of -17.9%.

Annual dynamics of product's exports from Canada in kind, 2017-2020, t

From 2017 to 2020, no single market dominated Canada's milk powder exports. Algeria accounted for 20.9% of export volume, Egypt for 16.9%, and the Philippines for 7.5%, together making up 45.3% of total exports. Many smaller partners held modest individual shares.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Canada in kind, 2017-2020

Exports in value, M $ US

Milk powder exports from Canada declined for the third year in a row. In 2020, exports were valued at 95.3 M $ US, down 9.8% from 2019. Over the 2017-2020 period, export value fell by 29.4%, with a compound annual growth rate of -10.9%.

Annual dynamics of product's exports from Canada in value, 2017-2020, M $ US

Between 2017 and 2020, Canada's milk powder exports in value terms were spread across a wide range of countries. Algeria represented 20.4% of export value, Egypt 17.7%, and the Philippines 7.4%, together accounting for 45.5% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Canada in value, 2017-2020

Imports milk powder to Canada

Imports in kind, t

Canada's milk powder imports declined for the second consecutive year. In 2020, import volume was 4 891 t, a modest decrease of 10.0% from 2019. Over the 2017-2020 period, imports fell by 7.9%, with a compound annual growth rate of -2.7%. The highest volume was recorded in 2018 at 6 115 t. The largest decline occurred in 2019 at 11.1%, while the largest increase was in 2018 at 15.2%.

Annual dynamics of product's imports to Canada in kind, 2017-2020, t

From 2017 to 2020, the United States was the primary source for Canada's milk powder imports, accounting for 94.3% of total import volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Canada in kind, 2017-2020

Imports in value, M $ US

Canada's milk powder imports decreased for the third year in a row. In 2020, imports were valued at approximately 11.6 M $ US, a gradual decline of 5.2% from 2019. Between 2017 and 2020, import value dropped by 20.5%, averaging an annual decrease of 7.4%.

Annual dynamics of product's imports to Canada in value, 2017-2020, M $ US

Throughout 2017-2020, the United States remained the nearly exclusive supplier of milk powder to Canada, holding a 94.9% share of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Canada in value, 2017-2020