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Dry Buttermilk Market

Market Insights on Dry Buttermilk covering sales outlook, demand forecast & up-to-date key trends

Dry Buttermilk Market by Nature, Type, End Use, Sales Channels, Region & Forecast 2023 to 2033

Dry Buttermilk Market Snapshot (2023 to 2033)

The global market for dry buttermilk is expected to accumulate a market value of US$ 260 million in 2023, according to Future Market Insights. During the forecast period ranging from 2023 to 2033, a CAGR of 8.7% is projected for the market. By the end of the said period of assessment, FMI anticipated sales of dry buttermilk to be valued at US$ 600 million. Dry buttermilk refers to the powdered residue left behind after evaporating all the water and can be used in a variety of food applications.

Dry buttermilk powder is a highly useful ingredient, having a longer shelf-life, and being a flavor enhancer, stabilizer, and emulsifying agent. Powdered buttermilk, or dry buttermilk, must meet certain criteria, which include less than 5% moisture content, over 4.5% milkfat by weight, at least 30% protein content, must not contain any milk powder, preservatives, or neutralizing agents. Dry buttermilk offers various functional advantages, promoting the browning of dairy products, adding nutritional value to the food, as well as acting as an excellent binding ingredient.

Dry buttermilk has applications across a broad spectrum of food products, including baked goods, sauces, salads & dressings, animal feed, dietary supplements, ready-to-cook products, and processed foods. Given its extensive use as a functional ingredient, the scope for dry buttermilk and buttermilk powder is expected to widen significantly in the years to come.

Functional ingredients are ingredients that provide a health benefit to shoppers, such as water enriched with vitamins or chips that include additional protein sources. The trend of consuming foods rich in functional ingredients especially gained traction during the COVID-19 pandemic. As consumers became increasingly health conscious, they started consuming foods with more natural and immunity-boosting ingredients, leading to an increase in sales of this category. Attributed to the disease’s highly contagious nature, consumers were looking for ways to protect themselves from being infected.

The market for buttermilk powder is expected to witness significant competition, given the presence of a large number of manufacturers and suppliers. Notable market players include Hoogwegt, Lactalis Ingredients, All American Foods Inc., Vitagreen Products Pvt. Ltd, and Kompass International SA among others. Besides these players, a number of small to medium-sized manufacturers are capitalizing on this product line.

All American Foods Inc. is a prominent face in the dry buttermilk landscape. Its buttermilk powder offers various benefits and can be used for a wide range of applications. Some of its applications involve accentuating color development during cooking and baking, imparting the right flavor, preventing the formation of fat globules into one large mass, improving product appearance, and improving mouthfeel.

Likewise, Lactalis Ingredients offers buttermilk powders with different fat content ranging from 4-8% and is Kosher as well as vegetarian certified. It imparts a milky taste to all end-use products, comes in a rich creamy flavor, is pale yellow in color, offers good solubility, and is cost-efficient and easy to handle.

NZMP, another market player, offers two categories of buttermilk powder- Regular Buttermilk Powder and Regular Buttermilk Powder for UHT Milk. The former product line is suitable for application across consumer milk powders, beverages, and food manufacturing. Additionally, the product is halal certified. The latter product is exclusively used for food manufacturing, and like the regular powder, is also halal certified. Both product lines offer good solubility, excellent heat stability, and good emulsifying properties. In addition, the powder for UHT milk can also be used to make sweetened condensed milk and ice cream.

Data Points

Key Statistics

Expected Market Value in 2023

US$ 260 million

Projected Market Value in 2033

US$ 600 million

Growth Rate (2023 to 2033)

CAGR of 8.7%

Dry buttermilk is obtained from liquid buttermilk after removal of water. Dry buttermilk must have a protein content of not less than 30%.Dry buttermilk manufactures are focusing on certifications and claims such as Kosher, ISO, and Halal etc. which helps manufacturers to gain the trust of consumers. The clean-label and certified packaging is helping to make dry buttermilk powder as promising product to the consumers.

Dry buttermilk is also used as substitute of skimmed milk. Dry buttermilk is used to enhance the quality, taste, flavor, texture and appearance of food products.

Dry buttermilk is used to increase the nutritional properties, freshness and shelf-life of ready to cook and processed products. Dry buttermilk is a rich source of phosphorus which helps in building the RNA &DNA as it is rich source of phosphorus Due to multiple health benefits the use of dry buttermilk is rising in food and beverage, sports and dietary supplements and animal feed industry.

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Increasing On-the-go Food Consumption

Changing lifestyles and rising urbanization have influenced prevailing trends as consumers select either ready-to-use or finished products. The demand for semi-processed products is less as consumers prefer not to waste time in cooking. Ready-to-go products are high in demand, especially among the working demographic. Thus, the demand for processed food is high as consumers increasingly demand for products that are innovative as well as nutritious.

Rapid growth of the middle class population, especially in Asia, offers a great opportunity for food processing manufacturers. Moreover, the working population has become more aware of health and wellness due to which they prefer nutritious and healthy ready to cook products.

The dry buttermilk helps to enhance the nutritional properties and shelf-life of ready to cook products. The rising demand for ready to cook products helps to boost the growth rate of dry buttermilk market.

Soaring Demand from Bakery & Confectionery Industry to Propel Dry Buttermilk Market Growth

According to a report published by World Bread and Bakery Products, the consumption of bread and bakery products is increasing, and went from 122,000 tonnes in 2007 to 129,000 tonnes in 2016.

Usage of dry buttermilk is increasing in bakery and confectionery products, as dry buttermilk is important to enhance texture, color, flavor, and aroma of various bakery and confectionery products. Dry buttermilk is use as emulsifier and flavor enhancer for bakery and confectionery products.

The health-conscious consumers are increasing rapidly across the globe due to which they prefer low fat and nutritious products. The dry buttermilk is low fat product as well as use for nutritional enrichment. Due to its nutritional properties the use of dry buttermilk is rising in bakery and confectionery products.

Nandini Roy Choudhury
Nandini Roy Choudhury
Principal Consultant
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Dry Buttermilk Market: Regional Analysis

North America and Europe are leading in dry buttermilk market. These regions are expected to dominate in forecast period as health-conscious consumers are rising in these regions because of which usage of dry buttermilk is high in dietary supplements and food industry.

Asia Pacific is expected to grow rapidly in the forecast period as the awareness of health and wellness is rising as well as the consumption of ready to cook food products, bakery and confectionery products is rising. The number of individuals and students who live away from their house for employment and education is rising globally due to which consumption of ready to cook products is increased globally.

The dry buttermilk is primary ingredient in ready to cook products as its helps to improve sustainability as well as quality of the products due to which demand for dry buttermilk is expected to increase globally in forecast period.

Global Dry Buttermilk: Key Players

Some of the key players operating their business in the

  • global dry buttermilk market All American Foods Inc.
  • Numidia
  • Lactalis Ingredients
  • Uelzena Ingredients
  • Hoogwegt
  • NZMP
  • Michigan Milk Producers Association
  • Param Dairy Limited
  • Vitagreen Products Pvt. Ltd.

The number of local and regional dry buttermilk manufacturers is increasing as demand for dry buttermilk is rising from food manufacturers and health-conscious consumers.

Due to rising number of players the competition is getting intense in dry buttermilk market. The research report presents a comprehensive assessment of the dry buttermilk market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data.

It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to market segments such as product type, nature, end use, and sales channel.

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The report covers exhaustive analysis on

  • Dry buttermilk market Segments
  • Dry buttermilk market Dynamics
  • Dry buttermilk market Size
  • Dry buttermilk Supply and Demand
  • Current Trends/Issues/Challenges pertaining to dry buttermilk market
  • Competition Landscape and Emerging Market Participants in dry buttermilk market
  • Technology related to Production/Processing of dry buttermilk
  • Value Chain Analysis of the dry buttermilk market

Regional analysis includes

  • North America (USA, Canada)
  • Latin America (Mexico, Brazil)
  • Europe (Germany, United Kingdom, France, Italy, Spain, Poland, Russia)
  • East Asia (China, Japan, South Korea)
  • South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
  • Oceania (Australia, New Zealand)
  • Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.

The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.

Dry Buttermilk Market Segmentation

Basis of Nature:

  • Organic
  • Conventional

Basis of Product Type:

  • Spray-dried buttermilk powder
  • Atmospheric roller dried buttermilk powder

Basis of End Use:

  • Food & Beverage Industry
  • Baked products
  • Confectionery products
  • Sauces, Salad Dressings, & Soups
  • Custard powder
  • Ready to Cook Products
  • Processed Products
  • Dietary & Spots Supplements
  • Animal Feed

Basis of Sales Channels:

  • B2B
  • B2C
  • Store Based Retail
  • Hypermarkets/ supermarkets
  • Convenience Stores
  • Specialty Stores
  • Others
  • Online Retail

Table of Content


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List of Tables

Nandini Roy Choudhury
Nandini Roy Choudhury
Principal Consultant
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