Milk Powder Market Outlook 2025–2033

The global milk powder market continues to demonstrate resilience and long-term growth potential. The industry is projected to expand at a compound annual growth rate (CAGR) of 4.94% between 2025 and 2033. By 2033, the market is expected to reach an estimated value of US$ 51.96 billion, up from approximately US$ 33.69 billion in 2024.

This steady expansion is supported by rising demand for dairy-based nutrition, convenience foods, and fortified products across both developed and emerging economies. Milk powder remains a crucial ingredient in infant formula, bakery items, confectionery, dairy beverages, and processed food applications due to its extended shelf life, ease of transportation, and stable nutritional profile.

Urbanization, population growth, and changing dietary preferences continue to fuel consumption. Meanwhile, technological innovations in spray-drying and nutrient preservation have enhanced solubility, taste, and product consistency, strengthening the industry's global footprint.

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Market Overview

Milk powder is produced by removing water from liquid milk through advanced drying techniques, resulting in a concentrated product that retains key nutrients such as protein, calcium, and vitamins. Available in full-cream and skimmed variants, it serves both household and industrial applications.

In recent years, the market has diversified beyond traditional dairy formats. Functional milk powders fortified with probiotics, vitamins, and minerals cater to infants, elderly populations, athletes, and health-conscious consumers. Simultaneously, plant-based milk powder alternatives derived from soy, almond, and oat are expanding the competitive landscape.

Global trade plays a significant role in the milk powder ecosystem, as leading dairy-producing nations export to regions with growing nutritional demand. Sustainability, traceability, and supply chain efficiency are increasingly central to competitive advantage.

Leading Companies in the Milk Powder Market

Nestlé S.A.

Founded in 1866 and headquartered in Switzerland, Nestlé reported revenue of US$ 103.8 billion in 2023. The company operates across multiple food and beverage categories, including dairy, infant nutrition, and functional products. With brands such as Nido, Cerelac, and Milo, Nestlé maintains a strong presence in the milk powder segment globally. Its extensive supply chain and R&D capabilities allow continuous product innovation and global distribution.

Danone S.A.

Established in 1919 and headquartered in France, Danone generated US$ 29.6 billion in revenue in 2023. The company focuses on dairy, early-life nutrition, and plant-based products. Through brands like Actimel, Oikos, and Aptamil, Danone remains active in infant formula and specialized milk powders tailored for medical and nutritional needs.

Arla Foods amba

Founded in 2000 and based in Denmark, Arla Foods reported revenue of US$ 14.8 billion in 2023. As a farmer-owned cooperative, Arla produces milk powder under brands such as Dano and Baby & Me Organic. Its vertically integrated structure ensures strong quality control from farm to processing.

Saputo Inc.

Established in 1954 and headquartered in Montreal, Saputo manufactures dairy ingredients, including milk powder, across North America, Australia, and Europe. Its diversified operations and established brands provide resilience against regional market volatility.

Royal FrieslandCampina N.V.

Based in the Netherlands and formed in 2008, FrieslandCampina produces a wide range of dairy products, including milk powders for infant and professional nutrition markets. Its brands, such as Dutch Lady and Frico, support strong global market penetration.

SWOT Analysis

Dairy Farmers of America Inc.

Dairy Farmers of America Inc.

Strength – Farmer-Owned Cooperative Model
DFA’s cooperative structure ensures stable milk supply, strong farmer relationships, and vertical integration across collection, processing, and distribution. With over 11,000 member farms, DFA benefits from scale efficiencies and supply chain control.

Opportunity – Value-Added and Sustainable Dairy Products
DFA can expand into fortified milk powders, protein-enriched blends, and lactose-free variants. Sustainability initiatives—such as carbon reduction and animal welfare programs—can further enhance brand value and global competitiveness.

Amul (Gujarat Co-operative Milk Marketing Federation Ltd.)

Amul

Strength – Cooperative Supply Chain & Brand Equity
Amul’s cooperative network includes millions of farmers, ensuring raw milk stability and cost efficiency. Strong brand recognition supports consumer loyalty domestically and internationally.

Opportunity – Innovation & International Expansion
Amul can leverage demand for high-protein, low-fat, and probiotic milk powders. Growing global demand for traditional Indian dairy products offers significant export opportunities.

Yili Group

Yili Group

Strength – Brand Leadership and R&D Capabilities
Yili holds a leading position in Asia’s dairy market, supported by strong supply chain integration and multiple R&D centers. Its access to premium milk sourcing regions strengthens product quality.

Opportunity – Functional Dairy and Global Diversification
The company can capitalize on demand for immunity-enhancing, probiotic, and fortified milk powders. International expansion into over 60 countries reduces reliance on domestic markets.

Recent Industry Developments

In June 2025, Darigold, Inc. began operations at its newly constructed dairy processing facility in Pasco, Washington. The plant processes up to 8 million pounds of milk daily, producing butter and powdered milk for domestic and export markets across 30 countries.

In May 2025, Asahi Group Holdings entered the dairy alternative segment with “Like Milk,” a yeast extract powder-based substitute free from 28 major allergens, signaling diversification into plant-based powdered formats.

Also in May 2025, Nova Dairy introduced a new skim milk powder using advanced drying techniques to ensure nutrient retention and solubility, targeting health-conscious consumers.

Market & Forecast Analysis

Historical Trends:
The milk powder market has witnessed steady expansion driven by infant nutrition demand, bakery sector growth, and emerging market urbanization.

Forecast Analysis:
With projected growth to US$ 51.96 billion by 2033, the industry is expected to benefit from rising protein consumption, fortification trends, and global trade expansion.

Market Share Dynamics:
Large multinational corporations dominate through scale, distribution networks, and R&D investments, while regional cooperatives maintain strong domestic market control.

Competitive Landscape

The following companies are evaluated across overview, leadership, sustainability initiatives, product analysis, SWOT assessment, and revenue performance:

·        Nestlé S.A.

·        Danone S.A.

·        Saputo Inc.

·        Arla Foods amba

·        Royal FrieslandCampina N.V.

·        Fonterra Co-operative Group Limited

·        Lactalis Group

·        Dairy Farmers of America Inc.

·        Olam International Limited

·        Westland Milk Products

·        Amul

·        Yili Group

·        China Mengniu Dairy Company Limited

·        Parmalat S.p.A.

·        Hochdorf Swiss Nutrition AG

Sustainability and Innovation Focus

Milk powder producers are increasingly investing in renewable energy adoption, energy-efficient processing infrastructure, water conservation strategies, and circular economy initiatives. Sustainable packaging and waste reduction programs are becoming standard competitive requirements.

Innovation in fortified, lactose-free, and functional dairy powders is shaping the next growth phase. At the same time, plant-based powdered alternatives are emerging as complementary categories, expanding the broader dairy landscape.

Final Thoughts

The global milk powder market stands at the intersection of nutrition demand, technological advancement, and sustainability transformation. With expected growth from US$ 33.69 billion in 2024 to US$ 51.96 billion by 2033, the industry demonstrates steady resilience and global opportunity.

Leading multinational corporations and cooperative models continue to strengthen supply chains, invest in value-added innovation, and expand internationally. As consumer demand for protein-rich, convenient, and functional dairy products rises, milk powder will remain a cornerstone of the global food and nutrition ecosystem for years to come.