Milk Powder Market Report by Product Type, Function, Application, and Region 2026-2034

The global milk powder market size reached USD 38.5 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 61.3 Billion by 2034, exhibiting a growth rate (CAGR) of 5.15% during 2026-2034. Escalating product demand due to rising global population and urbanization, the burgeoning infant formula sector, increasing health consciousness boosting dietary supplement intake, the expansion of the bakery and confectionery industries, and enhanced dairy technology are some of the factors fueling the market growth.

Milk Powder Market Analysis:

• Market Growth and Size: The milk powder market size is expanding significantly, driven by its integral role in various industries and the shifting consumer preferences towards convenient, long-lasting food products. The market's growth is mirrored in its increasing market share, reflecting a rising demand across global households, especially in regions with limited access to fresh milk. The scalability of milk powder production meets the growing nutritional needs of the burgeoning global population, further contributing to the market's size. As urbanization continues, the convenience that milk powder offers ensures its staple status in daily consumption, thereby consistently enlarging the milk powder market share.
• Major Market Drivers: The kye drivers shaping the milk powder market include evolving consumer preferences towards plant-based diets, which is leading to a rise in demand for plant-based milk powders. Innovations in flavor and fortification are attracting a broader consumer base, while the integration of organic and non genetically modified organisms (GMO) ingredients caters to the health-conscious segment, which is boosting the market growth. Besides this, the shift towards sustainable packaging solutions, growing environmental awareness, the surging fitness and sports nutrition sector, and the rise in lactose intolerance are bolstering the market growth.
• Technological Advancements: Technological advancements in the milk powder market are revolutionizing the industry, enhancing product quality, and optimizing production efficiency. Innovations in spray drying technologies and membrane filtration have significantly improved the consistency and shelf-life of milk powder, thereby boosting the milk powder market size. Advances in packaging technology ensure longer freshness and easier transportation, augmenting the market's growth. Moreover, the development of instant milk powder, which dissolves more readily in water, showcases the industry's adaptation to consumer convenience, further solidifying its market share.
• Industry Applications: The milk powder market finds extensive applications across various industries, significantly influencing its market share. In the food industry, it's a vital ingredient in chocolates, bakery products, confectioneries, and infant formula, adding nutritional value and flavor. The pharmaceutical sector utilizes milk powder in vitamin and mineral supplements due to its high calcium and protein content. Additionally, the cosmetic industry incorporates it into skincare products, exploiting its moisturizing and skin-nourishing properties.
• Key Market Trends: The emerging trends in the milk powder market include the rising popularity of protein-enriched and fortified milk powders, catering to the health and wellness sector. Moreover, the increasing consumer inclination towards clean-label products is pushing manufacturers to adopt transparent labeling practices, which is bolstering the market growth. Additionally, the trend of personalization and customization of milk powder blends and the exploration of exotic and diverse flavors in milk powder appeals are supporting the market growth.
• Geographical Trends: The Asia-Pacific region leads in the milk powder market, attributed to its large population, increasing urbanization, and shifting dietary patterns. This region's dominance is supported by the high consumption rates in countries like China and India, where milk powder is heavily incorporated into daily diets, infant nutrition, and various culinary practices. The market's expansion in this region is also fueled by rising income levels, growing awareness about the nutritional benefits of milk powder, and the convenience it offers.
• Competitive Landscape: The competitive landscape of the milk powder market is characterized by the presence of both large multinational corporations and local players, contributing to a fragmented market structure. Companies are increasingly focusing on expanding their product portfolio, improving quality, and implementing innovative marketing strategies to enhance their market presence and increase their market share. Strategic alliances, mergers, acquisitions, and partnerships are prevalent, aiming to leverage mutual strengths for expanded distribution networks and enhanced product offerings.
• Challenges and Opportunities: The milk powder market faces challenges such as fluctuating milk supply prices, stringent regulatory standards, and the need for high-quality control to prevent contamination. However, these challenges present opportunities for market players to innovate and differentiate their products. There's a growing demand for specialty milk powders tailored for specific health needs or dietary restrictions, offering considerable growth opportunities. Additionally, expanding into emerging markets can provide new revenue streams and customer bases.

Milk Powder Market Trends:

Increasing population and urbanization

The global milk powder market thrives as the world's population grows and urbanization accelerates, leading to heightened demand for convenient, non-perishable food items. Urban lifestyles, characterized by busy schedules and smaller living spaces, favor easily stored and long-lasting food products like milk powder. It offers a practical solution for consumers seeking nutritious, quick-to-prepare options, fitting seamlessly into the fast-paced urban life. The durability and storage efficiency of milk powder, devoid of the refrigeration need, align perfectly with the urban demand for convenience and longevity in food choices, thereby driving the market growth.

Expanding infant formula industry

Milk powder is a cornerstone ingredient in infant formula, an essential food product for babies who are not breastfed. The expanding infant formula industry significantly propels the milk powder market, given its critical role in providing necessary nutrients, vitamins, and minerals to infants. This industry's growth is fueled by increasing awareness of the benefits of fortified infant formula, rising global birth rates, and the growing number of working mothers seeking convenient feeding solutions. As manufacturers strive to meet the stringent quality and nutritional standards required for infant nutrition, the demand for high-quality milk powder escalates, thereby bolstering the market.

Rising trend of dietary supplements

The global surge in health consciousness and the popularity of dietary supplements significantly impact the milk powder market. Milk powder, rich in calcium, protein, and other essential nutrients, is a favored ingredient in the formulation of these supplements. Consumers increasingly turn to dietary supplements to fulfill their nutritional needs, maintain health, and enhance their overall well-being. This trend is particularly pronounced in the fitness and wellness communities, where milk powder is incorporated into protein shakes, bars, and health drinks, driving its demand and, subsequently, market growth.

Significant growth in bakery and confectionery sectors

Milk powder is integral to the bakery and confectionery industries, valued for its ability to enhance flavor, texture, and shelf-life of products like cakes, cookies, and chocolates. As these sectors expand globally, the demand for milk powder escalates. Its versatility allows for a wide range of applications, from improving the tenderness of baked goods to serving as a key ingredient in confectionery items. The growth of these industries is driven by increasing consumer indulgence in sweet goods, innovation in bakery and confectionery products, and the rising trend of artisanal and premium baked items, all of which fuel the market demand for milk powder.

Milk Powder Industry Segmentation:

Breakup by Product Type:

• Whole Milk Powder
• Skimmed Milk Powder

Whole milk powder dominates the market

The whole milk powder segment is driven by the increasing consumer demand for richer flavor profiles and higher nutritional content, particularly in terms of fat-soluble vitamins and essential fatty acids found abundantly in whole milk powder. This segment benefits from its widespread use in the culinary world, where its full-fat content is preferred for creating creamy, rich textures in baked goods, confectioneries, and dairy products. The trend towards convenience foods also propels this segment, as whole milk powder offers a convenient, shelf-stable alternative to fresh milk, preserving the flavor and nutritional integrity. Additionally, the rising global consumption of dairy products in emerging economies, where whole milk powder is often favored for its energy and nutrient density, significantly contributes to the segment's growth.

The skimmed milk powder segment is driven by the increasing health consciousness among consumers, who prefer low-fat, high-protein dairy options that skimmed milk powder provides. This segment capitalizes on the growing fitness and wellness trend, where individuals seek out food products that support their dietary and lifestyle goals, including weight management and cardiovascular health. Skimmed milk powder is also gaining traction in the food processing industry for its functional properties, such as its ability to add texture and flavor without the added fat, making it a preferred ingredient in low-calorie baked goods, confections, and dairy products. Moreover, its extended shelf life and lower storage and transportation costs, compared to liquid milk, appeal to both manufacturers and consumers, further fueling the market growth.

Breakup by Function:

• Emulsification
• Foaming
• Flavouring
• Thickening

The emulsification segment is driven by the increasing demand for processed and convenience foods, where stable emulsions are crucial for product quality. Innovations in food processing technologies and the growing need for extended shelf life in products such as dressings, mayonnaise, and sauces fuel this segment. The industry's push towards clean-label ingredients has also heightened the demand for natural emulsifiers, which are perceived as healthier alternatives. The quest for improved texture and consistency in food and beverage products, along with the expanding range of applications in personal care and pharmaceuticals, further bolsters the growth of this segment.

The foaming segment is driven by the increasing consumer interest in products with enhanced sensory attributes and textures, such as light, airy, and frothy consistencies found in beverages, whipped creams, and mousse. The segment benefits from technological advancements in food processing and the incorporation of foaming agents that ensure product stability, longevity, and quality. There's also a significant push towards natural and plant-based foaming agents, reflecting the growing trend of clean-label and vegan products. The expanding applications in cosmetic and personal care products, particularly in skincare and haircare formulations, contribute substantially to the segment's growth, capitalizing on the consumer's desire for products offering rich and luxurious experiences.

The flavoring segment is driven by the increasing consumer demand for new, exotic, and authentic flavors, reflecting the global palate's expansion and the desire for culinary exploration. The food and beverage industry's continuous innovation, coupled with the rising popularity of ethnic cuisines and fusion flavors, propels this segment. There's a growing emphasis on natural, organic flavorings and clean-label ingredients, resonating with the health-conscious consumer seeking transparency and simplicity. The segment also benefits from advancements in flavor encapsulation and delivery technologies, enhancing flavor stability, intensity, and longevity in products, thus meeting the consumer demand for high-quality, flavorful, and consistent food experiences.

The thickening segment is driven by the increasing consumer preference for products with enhanced textures and viscosities, such as sauces, gravies, soups, and dairy products. The demand for natural and clean-label thickening agents is on the rise, in line with the overall shift towards healthier and more transparent food choices. Technological advancements in food processing and the development of new and innovative thickening agents enable manufacturers to improve product quality and shelf life. Additionally, the segment is supported by the growing demand in the pharmaceutical industry, where thickeners are used in formulations to improve the administration and efficacy of medicinal products, reflecting the sector's broadening scope and the continuous evolution of consumer preferences.

Breakup by Application:

Milk Powder Market Trends:

Increasing population and urbanization

The global milk powder market thrives as the world's population grows and urbanization accelerates, leading to heightened demand for convenient, non-perishable food items. Urban lifestyles, characterized by busy schedules and smaller living spaces, favor easily stored and long-lasting food products like milk powder. It offers a practical solution for consumers seeking nutritious, quick-to-prepare options, fitting seamlessly into the fast-paced urban life. The durability and storage efficiency of milk powder, devoid of the refrigeration need, align perfectly with the urban demand for convenience and longevity in food choices, thereby driving the market growth.

Expanding infant formula industry

Milk powder is a cornerstone ingredient in infant formula, an essential food product for babies who are not breastfed. The expanding infant formula industry significantly propels the milk powder market, given its critical role in providing necessary nutrients, vitamins, and minerals to infants. This industry's growth is fueled by increasing awareness of the benefits of fortified infant formula, rising global birth rates, and the growing number of working mothers seeking convenient feeding solutions. As manufacturers strive to meet the stringent quality and nutritional standards required for infant nutrition, the demand for high-quality milk powder escalates, thereby bolstering the market.

Rising trend of dietary supplements

The global surge in health consciousness and the popularity of dietary supplements significantly impact the milk powder market. Milk powder, rich in calcium, protein, and other essential nutrients, is a favored ingredient in the formulation of these supplements. Consumers increasingly turn to dietary supplements to fulfill their nutritional needs, maintain health, and enhance their overall well-being. This trend is particularly pronounced in the fitness and wellness communities, where milk powder is incorporated into protein shakes, bars, and health drinks, driving its demand and, subsequently, market growth.

Significant growth in bakery and confectionery sectors

Milk powder is integral to the bakery and confectionery industries, valued for its ability to enhance flavor, texture, and shelf-life of products like cakes, cookies, and chocolates. As these sectors expand globally, the demand for milk powder escalates. Its versatility allows for a wide range of applications, from improving the tenderness of baked goods to serving as a key ingredient in confectionery items. The growth of these industries is driven by increasing consumer indulgence in sweet goods, innovation in bakery and confectionery products, and the rising trend of artisanal and premium baked items, all of which fuel the market demand for milk powder.

Milk Powder Industry Segmentation:

Breakup by Product Type:

• Whole Milk Powder
• Skimmed Milk Powder

Whole milk powder dominates the market

The whole milk powder segment is driven by the increasing consumer demand for richer flavor profiles and higher nutritional content, particularly in terms of fat-soluble vitamins and essential fatty acids found abundantly in whole milk powder. This segment benefits from its widespread use in the culinary world, where its full-fat content is preferred for creating creamy, rich textures in baked goods, confectioneries, and dairy products. The trend towards convenience foods also propels this segment, as whole milk powder offers a convenient, shelf-stable alternative to fresh milk, preserving the flavor and nutritional integrity. Additionally, the rising global consumption of dairy products in emerging economies, where whole milk powder is often favored for its energy and nutrient density, significantly contributes to the segment's growth.

The skimmed milk powder segment is driven by the increasing health consciousness among consumers, who prefer low-fat, high-protein dairy options that skimmed milk powder provides. This segment capitalizes on the growing fitness and wellness trend, where individuals seek out food products that support their dietary and lifestyle goals, including weight management and cardiovascular health. Skimmed milk powder is also gaining traction in the food processing industry for its functional properties, such as its ability to add texture and flavor without the added fat, making it a preferred ingredient in low-calorie baked goods, confections, and dairy products. Moreover, its extended shelf life and lower storage and transportation costs, compared to liquid milk, appeal to both manufacturers and consumers, further fueling the market growth.

Breakup by Function:

• Emulsification
• Foaming
• Flavouring
• Thickening

The emulsification segment is driven by the increasing demand for processed and convenience foods, where stable emulsions are crucial for product quality. Innovations in food processing technologies and the growing need for extended shelf life in products such as dressings, mayonnaise, and sauces fuel this segment. The industry's push towards clean-label ingredients has also heightened the demand for natural emulsifiers, which are perceived as healthier alternatives. The quest for improved texture and consistency in food and beverage products, along with the expanding range of applications in personal care and pharmaceuticals, further bolsters the growth of this segment.

The foaming segment is driven by the increasing consumer interest in products with enhanced sensory attributes and textures, such as light, airy, and frothy consistencies found in beverages, whipped creams, and mousse. The segment benefits from technological advancements in food processing and the incorporation of foaming agents that ensure product stability, longevity, and quality. There's also a significant push towards natural and plant-based foaming agents, reflecting the growing trend of clean-label and vegan products. The expanding applications in cosmetic and personal care products, particularly in skincare and haircare formulations, contribute substantially to the segment's growth, capitalizing on the consumer's desire for products offering rich and luxurious experiences.

The flavoring segment is driven by the increasing consumer demand for new, exotic, and authentic flavors, reflecting the global palate's expansion and the desire for culinary exploration. The food and beverage industry's continuous innovation, coupled with the rising popularity of ethnic cuisines and fusion flavors, propels this segment. There's a growing emphasis on natural, organic flavorings and clean-label ingredients, resonating with the health-conscious consumer seeking transparency and simplicity. The segment also benefits from advancements in flavor encapsulation and delivery technologies, enhancing flavor stability, intensity, and longevity in products, thus meeting the consumer demand for high-quality, flavorful, and consistent food experiences.

The thickening segment is driven by the increasing consumer preference for products with enhanced textures and viscosities, such as sauces, gravies, soups, and dairy products. The demand for natural and clean-label thickening agents is on the rise, in line with the overall shift towards healthier and more transparent food choices. Technological advancements in food processing and the development of new and innovative thickening agents enable manufacturers to improve product quality and shelf life. Additionally, the segment is supported by the growing demand in the pharmaceutical industry, where thickeners are used in formulations to improve the administration and efficacy of medicinal products, reflecting the sector's broadening scope and the continuous evolution of consumer preferences.

Key Questions Answered in This Report

• 1.What was the size of the global milk powder market in 2025?
• 2.What is the expected growth rate of the global milk powder market during 2026-2034?
• 3.What is the market potential of milk powder?
• 4.What has been the impact of COVID-19 on the global milk powder market?
• 5.What is the breakup of the global milk powder market based on the product type?
• 6.What is the breakup of the global milk powder market based on the function?
• 7.What is the breakup of the global milk powder market based on the application?
• 8.What are the key regions in the global milk powder market?
• 9.Who is the largest producer of milk powder?