Introduction to the Milk Powder Market 

The global Milk Powder Market is witnessing steady growth, with its market size expected to expand from USD 36.45 billion in 2026 to USD 43.95 billion by 2031. In 2025, the dairy segment dominated the market, accounting for a significant 62.68% milk powder market share, reflecting its widespread use across various applications. Milk powder, a dehydrated form of liquid milk, offers several advantages such as longer shelf life, ease of storage, and convenient transportation. 

Rising consumer awareness about health and nutrition has been instrumental in driving the demand for fortified and organic milk powders.  Its widespread industrial applications and role in enhancing product stability have further strengthened its position in the Milk Powder Industry, making it a critical component in the global food supply chain. 

Key Trends in the Milk Powder Market 

  • Increasing Demand for Infant Formula: Growing awareness of infant nutrition, coupled with regulatory support for formula production, has boosted the adoption of milk powder in infant products. Premium formulations with added nutritional components are gaining traction, catering to the needs of health-conscious parents. 

  • Population Growth and Urbanization: Rapid urbanization in Asia-Pacific and other emerging regions is increasing access to packaged dairy products. Higher disposable incomes and urban lifestyles are fueling demand for shelf-stable milk powder products. 

  • Advancements in Dairy Processing Technology: Innovations in microfiltration, ultrafiltration, and nanofiltration are enhancing the quality of milk powder. These technologies allow manufacturers to produce specialized protein-rich and fortified powders, meeting specific nutritional requirements. 

  • Integration in Processed Foods: Milk powder is increasingly used in bakery items, desserts, beverages, and ready-to-eat meals to improve nutritional content and shelf life. Its versatility has made it a preferred ingredient in both industrial and retail food applications. 

Milk Powder Market Segmentation 

  • By Type: Dairy Milk Powder, Non-Dairy/Plant-Based Milk Powder 

  • By Dairy Type: Whole Milk Powder (WMP), Skim Milk Powder (SMP), Fat-Filled Milk Powder, A2 and Specialty Nutritional Powders 

  • By Non-Dairy Type: Soy Milk Powder, Almond Milk Powder, Coconut Milk Powder, Oat & Other Cereal-Based Powders 

  • By Packaging Format: Flexible Pouches, Cans & Tins, Bulk Bags, Single-Serve Sachets 

  • By Distribution Channel: Retail, Foodservice, Industrial 

  • By Application: Infant & Follow-On Formula, Bakery & Confectionery, Dairy-Based Beverages & Recombination, Nutritional & Sports Supplements, Others (Ready Meals, Cosmetics, etc.) 

  • By Geography: North America, Europe, Asia-Pacific, South America, Middle East & Africa 

Key Players in the Milk Powder Industry 

  • Arla Foods amba – Known for high-quality dairy milk powders across Europe and Asia 

  • Nestlé S.A. – Offers specialized infant and nutritional milk powders globally 

  • Danone S.A. – Focused on functional dairy products and fortified powders 

  • Groupe Lactalis – Extensive portfolio of dairy-based milk powders for retail and industrial use 

  • Fonterra Co-operative Group – Major supplier in Asia-Pacific and global markets 

Conclusion 

The Milk Powder Market is set for steady growth over the forecast period, supported by increasing demand for infant nutrition, processed foods, and fortified dairy products.  While lactose intolerance, milk allergies, and commodity price volatility present challenges, the market continues to expand with emerging opportunities in plant-based alternatives and new distribution channels. 

Overall, the Milk Powder Market size is expected to grow steadily, with diverse applications, evolving consumer preferences, and strong adoption in emerging regions contributing to long-term market growth. The market outlook remains favorable, with promising potential for both established and emerging players in the industry.