Milk Powder Global Market Report 2026

Milk powder, also referred to as dried milk, is a dairy product created by evaporating milk to eliminate almost all of its moisture content, resulting in a dry, powdery form. This method helps in preserving the milk and significantly extends its shelf life without the need for refrigeration. Milk powder maintains most of the nutritional qualities of liquid milk, such as proteins, vitamins, and minerals, and can be reconstituted with water to be used as a milk substitute.

The primary varieties of milk powder include whole milk powder, skimmed milk powder, dairy whitener, buttermilk powder, fat filled milk powder, among others. Whole milk powder is a dairy product obtained by removing moisture from whole milk, thus retaining its fat content and nutritional benefits. It is categorized by its functions into emulsification, foaming and flavoring, and thickening, and finds applications in infant formula, confectionery, sports and nutrition foods, bakery products, dry mixes, fermented milk products, meat products, and other sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on dairy commodities and processed milk products are increasing production and export costs for whole milk powder, skimmed milk powder, fat filled milk powder and infant formula, particularly in major exporting regions such as Oceania, the EU and North America. Higher import duties in developing markets are pressuring prices and slowing demand in segments like confectionery, bakery, sports nutrition foods and dry mixes, while encouraging some countries to invest in local spray-drying and blending capacity. Infant formula milk powder and high-spec lactose-free or whey protein concentrate powders are among the most affected due to their higher value and tighter margins. At the same time, tariffs can benefit domestic cooperatives and regional players by improving their competitive position, stimulating local sourcing and supporting the development of more value-added milk powder formulations.

The milk powder market research report is one of a series of new reports from The Business Research Company that provides milk powder market statistics, including the milk powder industry global market size, regional shares, competitors with the milk powder market share, detailed milk powder market segments, market trends, and opportunities, and any further data you may need to thrive in the milk powder industry. This milk powder market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The milk powder market size has grown strongly in recent years. It will grow from $42.16 billion in 2025 to $45.64 billion in 2026 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to rising demand for shelf-stable dairy products in regions with limited cold-chain infrastructure, growth in infant formula consumption driving demand for specialized milk powders, increasing global trade of milk powder due to ease of transport and long shelf life, expansion of food processing industries using milk powder as a key ingredient, rising adoption of non-fat dry milk in bakery and confectionery applications.

The milk powder market size is expected to see strong growth in the next few years. It will grow to $61.92 billion in 2030 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to growing consumer preference for organic and lactose-free milk powders, increasing demand for high-protein whey and functional dairy powders, expansion of infant nutrition markets in emerging economies boosting premium milk powder sales, rising use of milk powders in meal replacements and sports nutrition products, continued innovation in drying technologies improving product quality and energy efficiency. Major trends in the forecast period include rising demand for infant formula and pediatric nutrition powders, expansion of lactose-free and specialty dietary milk powders, growing preference for organic and clean-label milk powders, increased use of milk powders in sports nutrition and functional foods, geographic shift toward emerging markets for milk powder consumption.

The growth of the dairy industry is set to drive the milk powder market forward. The dairy industry encompasses agriculture sectors engaged in producing, processing, and distributing milk and milk-based products. This industry's expansion is due to rising worldwide demand for convenient, shelf-stable dairy items, which offer longer shelf life, easier storage, and are well-suited for fast-paced lifestyles. Milk powder supports the dairy industry by providing a stable, easy-to-transport alternative to liquid milk, enhancing product availability globally and allowing for extended distribution. It improves production flexibility and meets consumers' needs for convenient, long-lasting dairy options. For example, in May 2025, the National Agricultural Statistics Service (NASS), a US government agency, reported total cheese production reaching $1,556.94 billion (£1,225,783 million) in March 2025, up from $1,534.96 billion (£1,209,415 million) in March 2024. Thus, the dairy industry's expansion is fueling the growth of the milk powder market.

Key players in the milk powder market are focusing on launching innovative products like instant milk powder to boost convenience, affordability, and nutritional quality. Instant milk powder dissolves rapidly and retains essential nutrients, making it more soluble than regular milk powders. For instance, in October 2023, Nestle, a Switzerland-based food and beverage firm, introduced Nido Milk & Soya instant powder mix. The product uses microencapsulation technology to prevent clumping and dissolves instantly in cold water. It is enriched with vitamins A and D and iron to help fight malnutrition. Nido Milk & Soya is specially designed to meet the nutritional needs of children and families in Central and West Africa, combining the benefits of milk and plant-based soy to provide important nutrients like protein, iron, and calcium in a convenient instant powder form.

In June 2024, Muller Milk & Ingredients, a UK dairy company, acquired Yew Tree Dairy for an undisclosed sum. With this purchase, Muller plans to increase its milk powder production and export capabilities by utilizing Yew Tree Dairy's facilities in Skelmersdale, while making investments to reinforce the future of the UK dairy industry. Yew Tree Dairy is a UK dairy processing company specializing in milk powder manufacturing.

Major companies operating in the milk powder market are Nestle S.A., Abbott Laboratories, Lactalis Group, Danone S.A., Dairy Farmers of America Inc., Inner Mongolia Yili Industrial Group Co. Ltd., Land O'Lakes Inc., Arla Foods Amba, Fonterra Co-operative Group Limited, China Mengniu Dairy Company Limited, Saputo Inc., Royal FrieslandCampina N.V., Schreiber Foods Inc., Glanbia Public Limited Company, Almarai Company, Morinaga Milk Industry Co. Ltd., Bel Group, Feihe International Inc., Vietnam Dairy Products Joint Stock Company (Vinamilk), Mother Dairy Fruit & Vegetable Pvt. Ltd., Hatsun Agro Product Limited, Parag Milk Foods Limited, Agri-Mark Inc., California Dairies Inc.

Asia-Pacific was the largest region in the milk powder market in 2025. The regions covered in the milk powder market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the milk powder market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The milk powder market consists of sales of goat milk powder, organic milk powder, non-fat dry milk, sweetened condensed milk powder, lactose-free milk powder, infant formula milk powder, and whey protein concentrate powder. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Milk Powder Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses milk powder market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for milk powder ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The milk powder market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Whole Milk Powder; Skimmed Milk Powder; Dairy Whitener; Buttermilk Powder; Fat Filled Milk Powder; Other Types
• 2) By Function: Emulsification; Foaming; Flavouring; Thickening
• 3) By Application: Infant Formula; Confectionery; Sports and Nutrition Foods; Bakery Products; Dry Mixes; Fermented Milk Products; Meat Products; Other Applications
• Subsegments:
• 1) By Whole Milk Powder: Organic Whole Milk Powder; Non-Organic Whole Milk Powder; Instant Whole Milk Powder; Non-Instant Whole Milk Powder
• 2) By Skimmed Milk Powder: Organic Skimmed Milk Powder; Non-Organic Skimmed Milk Powder; Instant Skimmed Milk Powder; Non-Instant Skimmed Milk Powder
• 3) By Dairy Whitener: Spray-Dried Dairy Whitener; Roller-Dried Dairy Whitener; Instant Dairy Whitener; Non-Instant Dairy Whitener
• 4) By Buttermilk Powder: Cultured Buttermilk Powder; Sweet Buttermilk Powder; Instant Buttermilk Powder; Non-Instant Buttermilk Powder
• 5) By Fat Filled Milk Powder: Vegetable Fat Filled Milk Powder; Animal Fat Filled Milk Powder; Blended Fat Filled Milk Powder; Instant Fat Filled Milk Powder
• 6) By Other Types: Infant Milk Powder; Lactose-Free Milk Powder; Flavored Milk Powder; Whey-Added Milk Powder
• Companies Mentioned: Nestle S.A.; Abbott Laboratories; Lactalis Group; Danone S.A.; Dairy Farmers of America Inc.; Inner Mongolia Yili Industrial Group Co. Ltd.; Land O'Lakes Inc.; Arla Foods Amba; Fonterra Co-operative Group Limited; China Mengniu Dairy Company Limited; Saputo Inc.; Royal FrieslandCampina N.V.; Schreiber Foods Inc.; Glanbia Public Limited Company; Almarai Company; Morinaga Milk Industry Co. Ltd.; Bel Group; Feihe International Inc.; Vietnam Dairy Products Joint Stock Company (Vinamilk); Mother Dairy Fruit & Vegetable Pvt. Ltd.; Hatsun Agro Product Limited; Parag Milk Foods Limited; Agri-Mark Inc.; California Dairies Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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