Milk Powder Market Size, Share and Forecast 2026 | USD 61.3 Billion by 2034

According to a research report by IMARC Group, 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 key factors fueling the market growth.

Market at a Glance:

Base Year - 2025
Forecast Years - 2026-2034
Historical Years - 2020-2025
Market Size in 2025 - USD 38.5 Billion
Market Forecast in 2034 - USD 61.3 Billion
Market Growth Rate (CAGR) - 5.15%

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Key Milk Powder Market Trends Driving Expansion:

Increasing Population and Urbanization:

Some reasons for the growth of the milk powder market include the growing global population‚ increasing urbanization‚ fast paced urban lifestyles and lack of space to store food products‚ which is increasing the demand for food products that can be preserved easily and stored for longer periods‚ such as milk powder. Furthermore‚ it is a very convenient alternative which is nutritious and economical to prepare‚ while aligning with the fast-paced life of many urban consumers. Another reason why milk powder may be preferred over other alternatives is the fact that it does not require refrigeration for storage‚ thus offering a longer shelf life. This explains the consistent growth.

Expanding Infant Formula Industry:

The demand for milk powder is fueled by the fact that it is a main ingredient of infant formula which has been growing rapidly. The rapid growth in the market can be attributed to growing parental awareness of fortified nutrition‚ higher birth rates‚ and the increase in the number of women in the workforce. Food-grade milk powder of good quality‚ including probiotics and prebiotics as well as specific vitamins‚ is in greater demand because manufacturers are required to comply with the appropriate standards in producing infant formula products.

Rising Trend of Dietary Supplements and Health Consciousness:

The global health consciousness and health supplements consumption trend is expected to continue to drive the global milk powder market. Additionally‚ the high calcium‚ protein and nutrient content of the milk powder makes it an ingredient of choice to be used in protein shakes‚ body building energy bars and drinks‚ etc.‚ in the fitness and health & wellness space. Dietary supplements are increasingly being used to meet nutritional requirements of humans for health and wellness benefits. The use of milk powder in the dietary supplements market has increased in the sports nutrition segment in particular‚ owing to functional attributes of milk powder.

Significant Growth in Bakery and Confectionery Sectors:

Milk powder is used as an ingredient in bakery and confectionery applications for flavor‚ texture and shelf life. These applications include cakes‚ cookies‚ bars‚ chocolates‚ and similar products. As the global fresh bakery and confectionery industries' demand for premium sweet goods‚ such as pralines and truffles‚ artisan and craft confections‚ gluten free products and organic products develop‚ so does the demand for milk powder. Its ability to modify the physical properties of food‚ both as a toughener in baked goods and as the major ingredient in candy‚ makes it one of the most important food industry ingredients.

Milk Powder Market Segmentation Analysis:

By Product Type

• Whole Milk Powder
• Skimmed Milk Powder

Whole milk powder dominates the market as the largest product type segment - driven by increasing consumer demand for richer flavor profiles and higher nutritional content, including fat-soluble vitamins and essential fatty acids. Its full-fat content is widely preferred in culinary applications for creating creamy, rich textures in baked goods, confectioneries, and dairy products. The segment also benefits from rising global consumption of dairy products in emerging economies, where whole milk powder is favored for its energy and nutrient density. Skimmed milk powder, meanwhile, is gaining strong traction among health-conscious consumers seeking low-fat, high-protein dairy options, particularly in sports nutrition and low-calorie food formulations.

By Function:

• Emulsification
• Foaming
• Flavouring
• Thickening

Emulsification leads the functional segment - driven by increasing demand for processed and convenience foods where stable emulsions are critical for product quality. Applications span dressings, mayonnaise, sauces, and personal care products. Foaming is growing in parallel, fueled by consumer interest in enhanced sensory textures in beverages, whipped creams, and mousse. Flavouring is propelled by demand for natural, organic, and clean-label ingredients, while thickening benefits from consumer preference for enhanced textures in sauces, gravies, soups, and dairy products, alongside pharmaceutical applications where thickeners improve medicinal formulation efficacy.

By Application

• Infant Formula
• Confectionery
• Sports and Nutrition Foods
• Bakery Products
• Dry Mixes
• Fermented Milk Products
• Meat Products
• Others

Infant formula represents the leading application segment - underpinned by rising parental awareness of nutritional benefits, innovative formula developments including probiotics and prebiotics, and stringent safety standards that reassure consumers about product reliability. Confectionery follows as a major application, with milk powder enhancing flavor, texture, and shelf-life across chocolates, candies, and artisan sweets. The sports and nutrition foods segment is expanding rapidly amid the fitness and wellness boom, while bakery products, dry mixes, and fermented milk products collectively represent substantial and growing end-use areas across global food manufacturing.

By Region:

• European Union
• New Zealand
• China
• United States
• Brazil
• Others

The European Union leads the market, accounting for the largest milk powder market share - driven by high standards of dairy quality, stringent regulatory frameworks ensuring product safety and environmental responsibility, and the presence of well-established dairy industries in the Netherlands, France, and Germany. The EU's strong export orientation - particularly to markets facing dairy production deficits - along with a growing emphasis on organic and non-GMO milk powder products, reinforces its dominant global position. China and New Zealand are critical secondary markets, with China driven by infant formula demand and food safety preferences for imported dairy, and New Zealand renowned for its high-quality, export-oriented pasture-based dairy production.

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Competitive Landscape in the Milk Powder Industry:

The global milk powder industry is a moderately fragmented market. It is characterized by the presence of various large multinational corporations and small local players. To gain market share‚ these companies focus on developing a broad product range‚ improving quality standards of the manufacturing process‚ and implementing innovative marketing strategies. Cooperations (mergers‚ acquisitions and partnerships) are common due to existing distribution networks and product ranges. There are also niche markets in organic‚ non-GMO labels and clean label products‚ with competition within these markets increasing.

Key Milk Powder Market Players and Segments Include:

• Large multinational dairy corporations with global distribution networks
• Regional dairy cooperatives with high-volume export capabilities
• Specialty infant nutrition companies with advanced formula technology
• Organic and clean-label dairy producers catering to health-conscious consumers
• Sports nutrition manufacturers leveraging milk powder in functional food applications

Key Regional Insights:

European Union:

The EU is the largest producer and exporter of milk powder in the world. A highly regulated dairy sector‚ milk processing infrastructures and established dairy industries in the Netherlands‚ France and Germany help achieve this. Thus‚ EU milk powder has special value on the premium global market for organic‚ non-GMO and sustainable produced milk.

New Zealand:

The New Zealand milk powder industry has a reputation for producing clean‚ natural and high-quality dairy products‚ based on pasture‚ and being export-oriented with multiple FTAs. Demand from Asia‚ in particular‚ from China‚ is a most important driver. Due to a great reputation of the dairy quality‚ New Zealand has a strong and growing credibility there.

China:

Since China is one of the largest growth markets in the world‚ infant formula demand has been fuelled by the increase in awareness of health‚ a better disposable income and an increased preference for imported milk powder following food safety scandals. Fast urbanization and changing lifestyles continue to increase consumption across all demographic groups.

United States:

The U.S. milk powder market benefits from a large-scale, technologically advanced dairy processing industry serving both domestic and export demand. The versatility of milk powder across infant formula, sports nutrition, bakery, and dry mixes aligns well with the diverse and evolving dietary preferences of the American consumer base.

Brazil:

Brazil's dairy market is supported by the growing middle class in the country‚ rapid urbanization‚ and growing demand for convenience and long-life dairy products. Brazil's huge agricultural sector also supports the dairy market. The growing domestic demand for dairy products‚ combined with the focus on improving production quality‚ is contributing to the growth of the market in the region.

Market Drivers, Challenges & Opportunities:

Major Market Drivers:

• Rising global population and urbanization increasing demand for convenient, shelf-stable dairy products.
• Expanding infant formula industry requiring high-quality, food-safe milk powder at scale.
• Growing health consciousness driving dietary supplement and sports nutrition consumption.

Key Challenges:

• Fluctuating raw milk supply prices impacting production costs and profitability.
• Stringent regulatory standards and quality control requirements across global markets.

Emerging Opportunities:

• Rising demand for specialty milk powders tailored for specific health needs or dietary restrictions.
• Rapid expansion into emerging markets in Asia, Latin America, and Africa offering new revenue streams.
• Innovation in organic, non-GMO, plant-based, and fortified milk powder variants to capture premium segments.

Conclusion: Milk Powder Market Outlook to 2034:

With population growth‚ urbanization and rising demand for infant nutrition products and health products‚ the milk powder market is forecasted to grow strongly on a global scale up until 2034. Given the potential for scalability and functionality for the food‚ pharmaceutical‚ and cosmetic industries‚ the outlook for milk powder is that it will continue to be a strong and high-growth global commodity.

EU is leading the global market in terms of quality and volumes exported. High growth markets such as China and Southeast Asia are driving the demand for milk powder to unprecedented levels. The global milk powder market size and outlook is poised to reach strong levels of growth‚ offering good market opportunities for producers‚ investors and other stakeholders.

About the Author:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services.

IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement.

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This release was published on openPR.