The worldwide milk powder market was valued at USD 35.26 billion in 2024. In 2025, the demand for milk powder registered a growth facilitating the international market to reach USD 36.5 billion in 2025.
Global sales, over the projection period (2025 to 2035), are projected to demonstrate a CAGR of 3.9%, there by, ultimately providing an assessment of sales value, which is expected to ascend to a sales value of USD 53.4 billion by end of 2035.
While milk powder is being used in food processing (infant nutrition, confectionery, beverages, etc.), increasingly it has been driven by the long shelf life, cost-effectiveness, and versatility of milk powder, the milk powder market is growing steadily.
Powdered milk is particularly popular in areas with limited refrigeration or where bulk storage is economically required.Population growth, urbanization, and increased disposable income particularly in emerging markets in Asia-Pacific and Africa are also pushing demand.
Anticipating the future, sales of milk powder derived infant formula still remains one of the top-most grossing business segments, thanks to the rising awareness about the importance of child nutrition, and steadily developing categories of working parents.
Moreover, players are launching fortified and organic variants of milk powder products for health-conscious customers and premium product segments. Big names such as Nestlé, Fonterra, Friesl and Campina, and Lactalis are already at the forefront of innovation by launching their fortified products with vitamins, minerals, and probiotics.
| Attributes | Description |
|---|---|
| Estimated Global Milk Powder Industry Size (2025E) | USD 36.5 billion |
| Projected Global Milk Powder Industry Value (2035F) | USD 53.4 billion |
| Value-based CAGR (2025 to 2035) | 3.9% |
Sustainability is increasingly important in this industry too, with companies purchasing low-emission drying technologies and renewable energy sources for milk processing. New bulk containers, recyclable pouches and other packaging changes improve logistics performance and better meet environmental targets.
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The following table provides a comparative outlook of change in CAGR over six months for base year (2024) and current year (2025) of global milk powder market. Through this analysis, key changes in performance are disclosed and patterns for realizing revenue are established allowing stakeholders to gain better insights into the growth trajectory over the year.
H1 refers to the first half of a year, i.e., January-end of June. H2 refers to the second half, which is from July to December.
| Particular | Value CAGR |
|---|---|
| H1(2024 to 2034) | 3.5% |
| H2(2024 to 2034) | 3.7% |
| H1(2025 to 2035) | 3.8% |
| H2(2025 to 2035) | 3.9% |
The growth of the business in the first half (H1) of the decade from 2025 to 2035 is estimated at 3.8 % CAGR, while for the second half (H2) of the same decade it will increase to 3.9 %. This represents a steady yet consistent upward trend in demand owing to expanding food processing industries, increasing nutritional awareness, and robust global trade in dairy-based ingredients. H1 improved by 30 BPS YoY, and H2 improved by 20 BPS YoY.
Tier 1 consists of a competitive cast of a few high revenue, highly dominant players with large cross market coverage. These companies have significant brand equity and invest heavily on advertising, technology innovation and global distribution networks.
Nestlé S.A. has emerged as a market leader with a diversified dairy portfolio along with strong presence in many developed and emerging markets. Its brands of milk powder are particularly well trusted in markets like infant nutrition and within general categories of dairy consumption.
Other notable player is the New Zealand based Fonterra Co-operative Group, who leads the international milk powder exports powered by the robust supply chain, large-scale production & steady quality. Danone S.A. has a firm footing in the worldwide dairy business, particularly through milk powder with infant formula and particular nutrition. Well known for its sustainable practices, Arla Foods amba, one of the largest dairy companies in Europe, focuses its powdered milk production on value-added products for health-oriented consumers.
Brands in Tier 2 earn less revenue than those in Tier 1 but enjoy a dominant regional market presence and rapid momentum overseas. One such company is Saputo Inc., a Canadian company that makes milk powder for diverse applications including foodservice and industrial.
Amul, which is owned by the Gujarat Cooperative Milk Marketing Federation in India, holds a prominent share in the Indian subcontinent, through affordability and extensive distribution in rural and urban areas. A key player is FrieslandCampina, a Dutch multinational cooperative that includes consumer-driven as well as bulk milk powders, with a strong presence in Asia and Africa.
Companies in Tier 3 are smaller and relatively new and are more popular in niche or local markets. These brands do not yet benefit from the same global infrastructure of Tier 1 or 2 players, but are benefiting from creative strategies, e-commerce leverage, and regional tap-dancing. One such example is China based Mengniu Dairy who met its domestic demand for powdered milk by rapidly implementing systems.
Dairy Farmers of America, an American cooperative, also makes powdered milk for industrial use and is branching into consumer segments. These companies often distinguish themselves by emphasizing local sourcing, cleaner labels, and tailor-made formulations for unique dietary or cultural preferences.
Increasing Demand for Infant and Pediatric Nutrition Products
Shift:The global infant formula segment is also witnessing accelerated growth on the back of rising birth rates in developing nations, increasing urbanization as well as growing awareness among parents regarding child nutrition.
In particular, formula-grade milk powders and milks enriched with DHA, iron and vitamins have become an important nutritional substitute or addition to breastfeeding for customers. Demand is being driven by markets like China, India, Nigeria, and Brazil, while regulatory compliance and safety are still concerns for parents.
Strategic Response:The company aimed at broadening its range of the NAN Supreme Pro and Lactogen product lines with targeted infant formulas in Asia-Pacific and Sub-Saharan Africa. These are designed to help with brain development, immunity, and digestive health.
In 2023, Nestlé’s infant nutrition division grew 9%, fueled by powdered milk sales in Southeast Asia.Danone S.A. is progressively rolling out its Aptamil and Nutricia product ranges across China and the Middle East with various country-specific SKUs, containing human milk oligosaccharides (HMOs), prebiotics, etc., to match breastmilk advantages.
Fonterra Co-operative Group Limited expanded Anmum and its Anchor brands in Latin America and South Asia through shelf-stable enriched milk powder products targeted toward mothers and toddlers, which helped boost pediatric nutrition product lines by 12% YoY.
Emerging Economies Drive Demand for Shelf-Stable Dairy
Shift:In parts of the world with little refrigeration infrastructure like Africa, Southeast Asia and the countryside of South America milk powder is a reliable, shelf-stable substitute for fresh milk. The consumer preference is more robust for powdered milk used for drinking as well as cooking and baking. For governments and aid agencies, too, it is relied on for school feeding programs and disaster relief.
Strategic Response: Lactalis ramped up production of cheap full-cream and skimmed milk powders sold under such brands as Président and Celia in West Africa and South Asia. These products are primarily sold both in modern trade as well as in traditional kirana stores.Fonterra's bulk milk powder exports grew significantly to Sri Lanka, Indonesia, and the Philippines, where targeted blends were developed for tea, coffee and foodservice customers. It also launched value multi-serve packs for families in low-income neighbourhoods.
Used with permissionDano, a brand from Arla Foods amba, which offers affordable fortified milk powders rich in calcium and vitamin D nutrients critical for child development and bone health has had impressive growth rates and a steadily increasing market share in Bangladesh, Ghana, and Nigeria.
Transition to organic, clean-label, and fortified powders
Shift:As health and transparency takes a front seat to consumer purchasing decisions, there is increasing demand for organic, non-GMO, and fortified milk powders. Urban consumers, particularly in the United States, United Kingdom, and European Union, are becoming more vigilant about ingredient lists and sourcing standards. Fortification with vitamins A, D, iron and calcium adds value, especially for older populations and health-conscious consumers.
Strategic Response:In Europe and North America, families seeking more wellness options were targeted with organic and grass-fed powdered milk from Nestlé under its NIDO and Lactogen brands.Arla Foods amba sells Arla Organic Milk Powder in the German and Danish markets with messaging around ethical sourcing, EU organic certification, and absence of artificial additives.
One company leading this trend is Cargill, Incorporated, a leading supplier of functional dairy ingredients, who provide clean-label formulation solutionsthat empower major brands to formulate powders fortified with plant enzymes for improved digestibility.
Expanding in their Sports Nutrition and Adult Wellness Segments
Shift:As interest in fitness and protein supplementation increases the focus on aging well, milk powders are being reformulated and marketed for adult nutrition, particularly whey, casein and full-cream milk powders. Muscle recovery, joint health and weight management are a big focus. Arabic and Asian markets are also seeing robust growth, as lifestyle-driven food products make their way into Japan, urban USA, South Korea and Germany.
Strategic Response:Danone revamped its Nutricia Fortisip powdered nutritional drinks to boost elderly nutrition and medical recovery in the UK and Australia. These powders consist of flavours such as vanilla and strawberry, along with additional minerals and high protein.
Cargill joined forces in joint ventures to develop milk based protein concentrates and isolates necessary for meal replacement powders and sports beverages. These to serve large clients within the North American and European gym and fitness communities.
Disruption through Packaging and Convenience and E-commerce
Shift:Convenience is critical for today’s consumers, and milk powder is constantly being packaged into single-serve sachets, resealable pouches and travel-ready tins. Direct-to-consumer growth driven across Asia-Pacific, North America and the Middle East through e-commerce platforms as key growth enablers for specialized products such as baby formula, sports powders, and lactose-free products
Strategic Response:Britannia Nutrition Foundation introduced sachet-based milk powder enriched with vitamins A & D, tailored for school nutrition initiatives across India, emphasizing ease of use and single serving precision.Nestlé updated its NIDO milk powder packaging to include recyclable tins and resealable zip locks for environmentally conscious families in Europe and the USA.
Fonterra’s Anchor and Anlene brands are readily available on e-commerce portals such as Lazada and Amazon; they also offer bundle packs, auto-replenishment and subscription models in Singapore, Malaysia and the U.A.E.Lactalis Group launched portable fortified powdered milk drinks for adults and teens under the Celia Active line in France and the Middle East, blending convenience with lifestyle nutrition.
The following table shows the estimated growth rates of the top five territories projected to exhibit high consumption through 2035.
| Country | CAGR 2025 to 2035 |
|---|---|
| USA | 2.6% |
| Germany | 1.5% |
| China | 0.9% |
| Japan | 0.4% |
| India | 6.1% |
Milk powder has become increasingly popular in the United States because of its long shelf-life, nutritional benefits, and versatility in food applications. As the world’s appetite for high-protein, low-waste products increases, powdered milk is playing a growing role in sports nutrition, protein shakes and bakery mixes.
A COVID-era fixation on pantry staples and emergency food supplies also benefited its visibility. As clean-label trends solidify, producers are reformulating with fewer additives and improved nutritional value. Although not a fast-tracked category, innovations such as keto-friendly and lactose-free milk powders are widening appeal among health-conscious customers and niche diet groups.
The voluminous German milk powder market is growing at a steady pace thanks to consumer interest in organic dairy products, traceable sourcing, and environmental responsibility. German shoppers are gravitating toward brands championing low-carbon processing, recyclable packaging and certifications for animal welfare.
While fresh dairy is king for everyday consumption, milk powder is an important ingredient in food production and in particular, in the production of pastries, confections and baby food. Export-oriented producers have also been tapping into growing demand from the Middle East and Asia, promoting EU-quality standards. Demographic stability and a mature dairy market can keep growth in check, but premiumization provides a means to move forward.
The milk powder market within China is struggling, thanks to plummeting birth rates and changing demographics. Dominated historically by infant formula, the market is now expanding to adult nutrition, with strong interest in milk powders fortified for older consumers.
Health concerns around immune and digestive health have Australians seeking formulations with added probiotics, vitamins and calcium. Simultaneously, increasing interest in domestic brands and regulatory support for domestically produced dairy is changing the competitive landscape. E-commerce platforms continue to be key in reaching younger urban families looking for premium, health-focused dairy offering.
Booming Japan dairy market is fuelling consumer demand for internationally recognised brands; Milk powder volume growth is negligible as Japanese consume majority of fresh dairy products. But new opportunities are emerging in specialized health products targeting aging consumers.
Bone-supportive powdered milk, collagen and heart-health ingredients are becoming popular. On top of that, manufactures are responding to convenience trends with single-serve sachets and instant-blending formats. Industrial demand remains steady due to culinary use in traditional and Western-style sweets. We do little overall expansion but Japanese standards of quality, safety, and innovation remain high in the category.
In India, milk powder demand has been strong owing to faster pace of urbanisation, increase in middle-class income and the extensive use of milk powder in cooking in households. Pereira says milk powder is popular because it is relatively inexpensive, convenient to use and versatile in tea, sweet and bakery recipes.
Government programs that focus on maternal and child nutrition-such as midday meal schemes and fortified food initiatives stimulate institutional demand. Where cold chain access is limited, milk powder provides a reliable alternative in rural areas. The expanding food processing industry also opens up new opportunities for use in packaged snacks and drinks. Local brands are ramping up operations to satisfy growing consumer demands for purity, taste and price competitiveness.
| Segment | Value Share (2025) |
|---|---|
| Skimmed Milk Powder (By Type) | 34.7% |
On the basis of type, the skimmed milk powder segment had dominated the market since consumers prefer low-fat, high-protein dairy products. Consumers worldwide are becoming more health conscious, especially among urban populations, and are increasingly choosing skimmed milk powder as a healthier alternative to full-fat milk powder.
This milk powder variant is especially attractive to calorie-conscious consumers and those with cholesterol management targets, leading to its extensive use in households and processed food products. Skimmed milk powder is widely used in bakery, confectionery and nutritional food manufacturing due to its low-fat composition without sacrificing flavour and texture. Its obtained characteristics such as its longer shelf life and easy solubility makes it part of the most promising products in the market for B2B.
Top dairy brands are introducing fortified skimmed milk powder variants incorporating additional health benefits such as calcium; iron, and vitamins to entice health-focused customers. This segment will still thrive in both developed and emerging markets, driven by the demand for functional and diet-friendly dairy options.
| Segment | Value Share (2025) |
|---|---|
| Infant Formu las (By Application) | 29.3% |
Infant formula application segment remains one of the most significant contributors in the milk powder market, owing to the growing demand for dependable and nutrient-rich milk alternatives for infants. With women continuing to embrace the workforce and urbanization establishing itself as the norm, consumer choices rely on convenience and trust in scientifically formulated infant nutrition products.
The base of most infant formulas is milk powder, which provides the protein, carbohydrates and essential micronutrients needed for early growth and development. These also contribute to consumer confidence in terms of regulatory compliance, safety standards, and traceability.
Key businesses such as Nestlé, Abbott, and Danone, are making significant investments in their R&D initiatives to introduce infant formula powders that aim to meet the challenges of digestion, immunity, and development. This segment also offers high consumer loyalty and brand trust, which makes it a stable cash cow in both developed and emerging economies.
Nestlé, Danone, and Fonterra are some of the key players this market and they have consolidated their position in the global milk powder market through strategic acquisitions, powerful brands and banking on product diversification. In response to evolving consumer demands, these companies have introduced specialized variants of milk powder including infant formulas, fortified powders, organic items, and lactose-free products.
It enables them to reach a broad demographic and provides them an advantage across developed and emerging markets.Formulation and packaging innovation has proved to be a key driver. Companies are also looking at technologies to improve solubility, shelf-life and nutritional content of milk powder.
This is combined with the important action of sponsoring environmentally friendly, lightweight packaging, in order to attract consumers who love sustainability. Such developments not only boost product appeal, but set brands apart in an incredibly commoditized market.
Competitors keep shaping their businesses through strategic moves like joint ventures, acquisitions, and expansion into international markets. Firms such as this have been making a deeper commitment to expansion in these areas, with Asia-Pacific and Middle Eastern markets growing ever more integral, for instance, as consumers in those regions embrace demand for both infant nutrition, and dairy-based beverages.
For instance:
The global industry is estimated at a value of USD 36.5 billion in 2025.
Some of the leaders in this industry include Nestlé, Danone, Groupe Lactalis, Fonterra, Royal FrieslandCampina N.V., Dean Foods, Arla Foods, Dairy Farmers of America, Kraft Foods, Saputo, Parmalat, and The Kraft Heinz Company.
While specific regional figures are not detailed here, Asia Pacific is expected to hold a significant market share by 2025 due to rising infant formula demand and growing dairy consumption.
The milk powder industry is projected to grow at a forecast CAGR of 3.9% from 2025 to 2035.
The milk powder market is segmented, based on type, into Skimmed Milk Powder, Whole Milk Powder, Fat Filled Milk Powder, Dairy Whitener, and Other Milk Powder.
Key applications of milk powder include Bakery & Confectionery, Nutritional Food, Infant Formulas, and Others.
Various distribution channels for milk powder are B2B, B2C, Hypermarkets/Supermarkets, Convenience Stores, Specialty Stores, Retail Stores, and Online Retail.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
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