Buttermilk Powder Market Poised to Hit $2.93 Billion by 2029 with Accelerating Growth Trends

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Buttermilk Powder Market Size Growth Forecast: What to Expect by 2025?
In recent years, the market size for buttermilk powder has seen significant expansion. Notably, projections show it will surge from $2.18 billion in 2024 to $2.32 billion in 2025, with a compound annual growth rate (CAGR) of 6.3%. This impressive growth during the historic period can be credited to factors such as increasing consumer demand for dairy products that are both convenient and shelf-stable, burgeoning of the processed food industry, an upswing in global dairy trade, growth of the bakery and confectionery sectors, inconsistency in liquid milk supply, and a rise in health consciousness.

How Will the Buttermilk Powder Market Size Evolve and Grow by 2029?
There's an expectation for a robust expansion of the buttermilk powder market in the forthcoming years. Its size is projected to rise to $2.93 billion by 2029, with a 6.0% compound annual growth rate (CAGR). The anticipated growth within the forecast period is linked to an increased demand for shelf-stable and convenient dairy elements, escalating use in bakery and snack items, the rise in protein-enriched and functional food tendencies, developments in food processing sectors, the growing favorability of traditional and ethnic dishes, and heightened usage in animal feed recipes. The forecast period is also likely to see trends like improvements in spray drying procedures, adoption of pure-label ingredients, better packaging methods for enhancing shelf-life, integration of artificial intelligence in quality assurance, and progress in formulas.

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What Drivers Are Propelling the Growth of Buttermilk Powder Market Forward?
The burgeoning requirement for easy-to-prepare meals is projected to foster the expansion of the buttermilk powder market. Formulated for swift and effortless consumption, convenience foods are pre-arranged or pre-packaged food items that necessitate minimal effort or preparation. The escalating demand for convenience foods can be attributed to frenetic lifestyles and time constraints, as consumers hunt for fast, straightforward meal options. Buttermilk powder acts as a flavor enhancer, texture improver, and as a source of rich, tangy taste in convenience foods like sauces, soups, baked items, and readymade meals. As an illustration, in April 2024, the National Association of Convenience Stores, a trade organization based in the US, revealed that food service sales, including dispensed beverages, commissary items, and prepared foods constituted 26.9% of in-store sales in 2023, a rise from 25.6% in 2022. Moreover, there was a 12.2% surge in the sales of prepared foods per store per month in 2023 as opposed to 2022. Consequently, the escalating demand for convenience foods is catalyzing the growth of the buttermilk powder market.

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Which Emerging Trends Are Transforming the Buttermilk Powder Market in 2025?
The surge in consumption of dairy products is projected to drive the expansion of the buttermilk powder market in the future. Dairy products, which consist of milk-derived foods such as cheese, butter and yogurt, typically come from cows or goats. The increasing consumer interest in dairy products can be attributed to greater health consciousness regarding the protein, calcium, and probiotic content in dairy. Buttermilk powder plays a significant role in dairy products by enhancing their taste, improving their texture, and increasing the creaminess of items like yogurt, cheese, and ice cream. For example, the Foreign Agricultural Service, a U.S. government agency, reported in November 2024 that Australian milk production is anticipated to grow 1.1% in 2025, reaching 8.8 million metric tons, following a 2.7% rise in 2024 amounting to an estimated 8.7 million metric tons. Consequently, the increasing demand for dairy products is fueling the expansion of the buttermilk powder market.

What Are the Key Segments in the Buttermilk Powder Market?
The buttermilk powder market covered in this report is segmented -

1) By Formulation: Organic Buttermilk Powder, Conventional Buttermilk Powder, Low-Fat Buttermilk Powder, Instant Buttermilk Powder
2) By Packing: Bags, Tubs, Cartons, Glass Containers, Bulk Packaging
3) By Application: Baking Industry, Dairy Products, Beverage Industry, Confectionery, Food Service
4) By End-User: Household, Commercial, Food Processing Industry, Hospitality Sector
5) By Distribution Channel: Direct Sales, Online Retail, Supermarkets Or Hypermarkets, Specialty Stores, Distributors Or Wholesalers

Subsegments:
1) By Organic Buttermilk Powder: Certified Organic, Non-GMO Organic, Gluten-Free Organic, Vegan-Friendly Organic
2) By Conventional Buttermilk Powder: Standard Conventional, Preservative-Added Conventional, Enriched Conventional (Fortified with vitamins/minerals), Bulk Pack Conventional
3) By Low-Fat Buttermilk Powder: Reduced-Fat, Zero-Fat, Cholesterol-Free, High-Protein Low-Fat
4) By Instant Buttermilk Powder: Quick-Dissolving, Flavored Instant, Sweetened Instant, Multi-Purpose Baking Instant

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Who Are the Key Players Shaping the Buttermilk Powder Market's Competitive Landscape?
Major companies operating in the buttermilk powder market are Groupe Lactalis S.A., Dairy Farmers of America Inc., Land O' Lakes Inc., Arla Foods Ingredients Group P/S, Fonterra Co-operative Group Limited, Saputo Inc., Royal Friesland Campina N.V., Glanbia plc, Valio Oy, NOW Foods, California Dairies Inc., Anand Milk Union Limited (AMUL), NUMIDIA BV, UELZENA eG, North Cork Creameries Ltd, Pelwatte Dairy Industries Pvt. Limited, Alpen Food Group BV, Rogers and Company Foods Pty Ltd, Murray Goulburn Co-operative Co. Limited, Arion Dairy Products B.V.

What Geographic Markets Are Powering Growth in the Buttermilk Powder Market?
North America was the largest region in the buttermilk powder market in 2024. The regions covered in the buttermilk powder market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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