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Australia Milk Powder Market Size, Share and Report (2025-2034)

12-03-2025 12:39 PM CET | Food & Beverage

Press release from: Expert Market Research

Australia Milk Powder Market

Australia Milk Powder Market

Australia Milk Powder Market Outlook

The Australia milk powder market is poised for steady growth in the forecast period, supported by the nation's strong dairy industry, rising global demand for high-quality milk products, and increasing applications of milk powder across food and non-food sectors. The Australia milk powder market is projected to grow at a CAGR of 2.76% between 2025 and 2034, reflecting sustained domestic consumption and robust export potential. Australia's reputation for premium dairy production, stringent quality standards, and favourable climatic conditions for dairy farming continues to strengthen the market's competitive position both regionally and internationally.

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Milk powder, which includes skimmed milk powder (SMP), whole milk powder (WMP), and specialty variants, offers long shelf life, ease of transport, and versatility in application. These advantages make it a preferred ingredient across food manufacturing, infant nutrition, bakery and confectionery, and beverage industries. As global dietary patterns shift and processed food consumption rises, demand for milk powder is set to remain strong.

Australia Milk Powder Market Size and Share

Australia remains one of the prominent players in the global milk powder landscape, driven by significant volumes of dairy production and export activities. A substantial portion of Australia's milk powder output caters to overseas markets, particularly in Asia-Pacific countries such as China, Japan, Indonesia, and Singapore, where demand for dairy-based infant formula, bakery goods, and nutritional supplements continues to rise.

Within the domestic market, milk powder is widely used in households, food service establishments, and dairy processing plants. Skimmed milk powder accounts for a considerable share due to its use in low-fat dairy beverages, bakery mixes, and sports nutrition products. Meanwhile, whole milk powder remains essential in confectionery, chocolate, and specialty dairy applications. The market share is also influenced by the rising demand for organic, fortified, and value-added milk powders, which cater to health-conscious consumers and premium product segments.

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Australia Milk Powder Market Trends

Several emerging trends are shaping the trajectory of the Australia milk powder market. One notable trend is the growing demand for infant formula products, fuelled by rising birth rates in key export destinations and increasing consumer emphasis on nutrition. Premium and specialty milk powders fortified with vitamins, minerals, and functional ingredients are witnessing rising popularity.

Sustainability trends are also influencing the market, with manufacturers investing in environmentally friendly production practices, renewable energy use, and sustainable packaging solutions. Additionally, technological advancements in spray drying and milk processing are enhancing efficiency, improving product consistency, and enabling the development of innovative milk powder formulations.

The rising adoption of protein-rich diets and increased consumption of high-calcium foods are further supporting milk powder demand, especially among fitness-conscious consumers. E-commerce growth has also made milk powder more accessible, expanding its reach across regional and metropolitan markets.

Drivers of Growth

The growth of the Australia milk powder market is supported by several key drivers. First, strong export demand plays a pivotal role, especially from Asian economies where milk powder is widely used in food manufacturing and infant nutrition. Australia's reputation for producing high-quality, safe, and traceable dairy products enhances its competitiveness in these markets.

Second, the expanding food and beverage industry within the country drives steady domestic demand. Milk powder remains a crucial ingredient in a broad range of products, including bakery mixes, dairy desserts, chocolates, beverages, and nutritional supplements.

Third, rising health consciousness is boosting the consumption of milk powder as a source of essential nutrients, including calcium, protein, and vitamins. The growing popularity of sports nutrition products, fortified foods, and protein shakes further contributes to demand.

Australia Milk Powder Market Segmentation

The market can be divided based on type, application, distribution channel and region.

Market Breakup by Type

Dairy Milk Powder
Non-Dairy Milk Powder

Market Breakup by Application

Infant Formula
Bakery and Confectionary
Nutritional Food
Others

Market Breakup by Distribution Channel

Supermarkets and Hypermarkets
Convenience Stores
Online
Others

Market Breakup by Region

New South Wales
Victoria
Queensland
Australian Capital Territory
Western Australia
Others

Competitive Landscape

The Australia milk powder market key players are:

Tatura Milk Industries Pty. Ltd.
Blue Lake Dairy Group Pty Ltd.
Nzac Foods
Bubs Australia Ltd.
Burra Foods Pty Ltd.
Others

Challenges and Opportunities

Despite strong prospects, the market faces challenges, including fluctuations in milk production due to climate conditions and rising production costs related to feed, labour, and energy. Competition from other dairy-exporting nations, particularly New Zealand, also poses challenges for Australia's export market share.

However, these challenges are accompanied by significant opportunities. The rising demand for organic and clean-label milk powders offers avenues for product diversification. Additionally, advancements in dairy technology, improved farm productivity, and expanding free trade agreements present opportunities for enhanced export capabilities.

Australia Milk Powder Market Forecast

Looking ahead, the Australia milk powder market is expected to witness stable and sustained growth, underpinned by robust export performance, the rise of value-added dairy products, and continued innovation in food processing. With a projected CAGR of 2.76% between 2025 and 2034, the industry is set to maintain its position as a key contributor to Australia's agricultural and food processing sector. Continued investments in quality enhancement, sustainability, and market expansion strategies will be crucial in driving long-term growth.

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