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milk powder industry has emerged as a vital segment of the dairy and food processing market, owing to its extended shelf life, ease of transportation, and diverse applications in food, beverage, and nutrition sectors. In terms of market performance, the industry stood at USD 243.57 billion in 2024, reflecting its strong foothold in both developed and emerging economies. Moving forward, the market is projected to reach USD 256.85 billion in 2025 and USD 270.83 billion in 2026, before scaling to an impressive USD 589.57 billion by 2034. This translates to a healthy CAGR of 5.45% during 2025–2034, signaling consistent long-term growth.
The steady growth of the milk powder sector is largely fueled by rising demand for infant nutrition, bakery, confectionery, and convenience foods, alongside strong trade flows between major producing and importing countries. According to the Food and Agriculture Organization (FAO), global milk powder consumption has been increasing steadily, with countries in Asia-Pacific accounting for over 42% of global imports in 2024, led by China, India, and Indonesia. This consumption trend is expected to expand further in 2025 as urbanization, income growth, and health awareness accelerate dairy intake in developing markets.
From a supply perspective, leading producers such as New Zealand, the European Union, and the United States dominate global exports, together accounting for nearly 80% of international trade volumes in 2024. New Zealand alone contributed more than 1.7 million metric tons of milk powder exports, with the majority shipped to Asia-Pacific. Meanwhile, the United States is strengthening its position with over 2.2 million metric tons of output in 2025, supported by key players like Dairy Farmers of America, Cargill Corporation, and Dean Foods.
In terms of applications, infant formula remains the largest segment, contributing over 35% of global milk powder revenues in 2024, while demand for specialty powders such as lactose-free, fortified, and high-protein milk powders is growing at an accelerated pace of 7–8% annually. The bakery and confectionery industries also accounted for nearly 22% of total consumption in 2024, with steady growth expected due to increasing processed food demand.
Overall, the milk powder industry in 2025 is positioned as a strategic global market, bridging dairy supply between surplus regions and import-dependent economies. With major multinational companies such as Nestlé, Danone, Arla Foods, and Glanbia actively expanding their portfolios, the sector is set to remain a cornerstone of the global food economy through the next decade.
What is Milk Powder & Why It Matters in 2025?
Milk powder, also known as dried milk, is a dairy product created by evaporating milk to remove its water content, leaving behind a nutrient-dense powder. This process not only extends shelf life to 12–18 months but also enables easier storage, transportation, and global trade compared to liquid milk. In 2025, milk powder plays a pivotal role in global food security, nutrition, and commercial supply chains.
According to the Food and Agriculture Organization (FAO), global milk powder consumption exceeded 12.8 million metric tons in 2024 and is expected to reach 13.3 million metric tons in 2025, representing a year-on-year growth of 3.9%. This demand surge is linked to the rising use of milk powder in infant formula, bakery, confectionery, and ready-to-drink beverages. In fact, infant nutrition alone accounts for 35% of the global milk powder market value, underscoring its critical role in child health worldwide.
The milk powder industry, valued at USD 256.85 billion in 2025, has become an essential pillar for both developed and developing economies. Asia-Pacific, which consumes over 42% of global milk powder imports, relies heavily on imports from New Zealand, the EU, and the U.S. to meet local demand. For instance, China imported more than 780,000 metric tons of milk powder in 2024, a figure projected to increase by 6.2% in 2025 due to rising urban consumption and infant population growth.
Additionally, specialty products such as organic, lactose-free, and fortified milk powders are gaining traction. According to Euromonitor International, this segment is expanding at a 7.5% CAGR between 2025–2030, as consumers prioritize health-focused dairy alternatives.
Thus, in 2025, milk powder is more than a commodity — it is a strategic product driving global nutrition, trade, and innovation, with a direct impact on infant health, food security, and international dairy markets.
USA Growing Milk Powder Market
The United States milk powder market has grown significantly in recent years, driven by strong export performance, increasing infant formula demand, and the rise of functional food applications. According to the U.S. Department of Agriculture (USDA), the United States produced over 2.2 million metric tons of skimmed milk powder (SMP) and whole milk powder (WMP) in 2024, making it one of the top three producers globally. In value terms, the U.S. milk powder industry is projected at USD 11.5 billion in 2025, accounting for nearly 15% of the global market share.
Exports remain a cornerstone of the U.S. milk powder industry. Data from the U.S. Dairy Export Council (USDEC, 2025) shows that U.S. milk powder exports rose by 6.8% year-on-year in 2024, with major destinations including Mexico (28%), China (22%), and Southeast Asia (18%). Mexico continues to be the largest importer, with volumes exceeding 650,000 metric tons in 2024, reflecting the critical role of North American trade agreements in sustaining dairy flows. Meanwhile, U.S. exports to China rebounded by 8.3% in 2024, fueled by infant nutrition and bakery demand.
Domestically, the U.S. Census Bureau’s Food Manufacturing Data (2024) indicates that powdered milk products contributed USD 4.2 billion in sales within the domestic food sector, highlighting their role in bakery, confectionery, and nutritional supplements. Infant formula demand alone accounts for 36% of U.S. milk powder consumption, driven by a rise in working mothers and an increase in birth rates in immigrant populations.
Regionally, production hubs in California, Wisconsin, Minnesota, and Texas dominate milk powder output, supported by large dairy cooperatives such as Dairy Farmers of America (DFA) and companies like Dean Foods and Cargill. According to the USDA Economic Research Service, California alone contributes nearly 18% of national milk powder production, reflecting its leadership in U.S. dairy processing capacity.
Looking ahead, opportunities are emerging in specialty and value-added milk powders such as lactose-free, organic, and fortified nutritional blends, which the USDA projects will grow by over 7% annually through 2030. Furthermore, the U.S. government’s trade partnerships, including the U.S.-Mexico-Canada Agreement (USMCA), continue to support stable dairy trade, making milk powder a strategically important export commodity.
How Big is the Milk Powder Industry in 2025?
The global milk powder industry has established itself as one of the largest and fastest-growing segments within the dairy sector. In 2025, the industry is projected to reach a market value of USD 256.85 billion, up from USD 243.57 billion in 2024, reflecting steady growth in both developed and emerging economies. By 2026, the market is expected to expand further to USD 270.83 billion, setting the stage for long-term expansion that is forecasted to touch USD 589.57 billion by 2034, growing at a CAGR of 5.45% during 2025–2034.
In terms of production, the Food and Agriculture Organization (FAO) estimates that global output of milk powder will surpass 13.3 million metric tons in 2025, marking a 3.9% increase from 2024. The Asia-Pacific region dominates consumption, accounting for nearly 42% of global demand, with China alone importing over 780,000 metric tons in 2024, expected to rise by 6.2% in 2025. This region’s growth is largely driven by the infant nutrition sector, which remains the single largest consumer of milk powder worldwide.
On the supply side, New Zealand, the European Union, and the United States remain the top three exporters, collectively contributing nearly 80% of international milk powder trade in 2025. According to the U.S. Department of Agriculture (USDA), the U.S. is projected to export more than 2.2 million metric tons in 2025, with Mexico, China, and Southeast Asia as primary destinations.
Segment-wise, infant formula represents 35% of market revenues, while bakery, confectionery, and functional food applications contribute another 40%. Specialty powders such as lactose-free, fortified, and organic milk powders are growing faster, at nearly 7–8% CAGR, creating high-value opportunities for both established players and startups.
Thus, the milk powder industry in 2025 stands as a USD 256.85 billion global powerhouse, driven by robust consumption, cross-border trade, and innovation in specialty dairy products.
| Country / Region | Global Share (%) | Production Volume (Metric Tons, 2025) | Key Companies / Cooperatives |
|---|---|---|---|
| New Zealand | 35% | 4.6 Million | Fonterra, Tatua Co-op |
| European Union | 30% | 3.9 Million | Arla Foods, Danone, Glanbia |
| United States | 15% | 2.2 Million | Dairy Farmers of America, Dean Foods, Cargill |
| China & India | 10% | 1.3 Million | Yili Group, Amul, Mengniu |
| Latin America (Brazil, Argentina) | 5% | 650,000 | Grupo La Serenísima, Itambé |
| Middle East & Africa | 5% | 650,000 | Almarai, Promasidor |
Regional Market Share & Opportunities, and Restraints Impact Analysis
The global milk powder market in 2025 shows diverse regional patterns shaped by consumer demand, production capabilities, and trade flows. Below is a detailed regional analysis covering market share, growth opportunities, and the main restraints that could impact future expansion.
North America
North America represents 18% of the global milk powder market in 2025, valued at approximately USD 46.2 billion. The United States dominates the region’s output, producing over 2.2 million metric tons of milk powder in 2024–2025, while Canada contributes modestly with niche specialty powders.
Opportunities:
- Exports form a core growth driver. According to the U.S. Dairy Export Council (USDEC), U.S. milk powder exports rose 6.8% in 2024, with Mexico (28%), China (22%), and Southeast Asia (18%) as the largest buyers.
- Growing domestic demand for infant formula is significant, accounting for 36% of U.S. consumption.
- The region is witnessing a rapid rise in organic, lactose-free, and fortified powders, which are expected to expand at 7% CAGR through 2030.
Restraints:
- Volatile feed and energy prices inflate production costs, squeezing margins.
- Strong competition from New Zealand and EU suppliers threatens the U.S. export advantage, particularly in Asia.
Europe
Europe contributes 28% of global milk powder revenues in 2025, valued at nearly USD 71.9 billion. Production is led by France, Germany, Denmark, and Ireland, with companies like Arla Foods, Danone, and Glanbia driving exports across Asia and Africa.
Opportunities:
- Rising demand for organic, fortified, and specialty powders, particularly in Western Europe. Specialty dairy powders are growing at 8% annually, supported by consumer health trends.
- Europe’s strong logistics network facilitates exports to Asia-Pacific and the Middle East.
- EU dairy leaders are investing heavily in sustainable dairy production, aligning with the EU’s Green Deal.
Restraints:
- Stringent environmental regulations on livestock farming and carbon emissions raise production costs.
- Declining per capita liquid milk consumption in countries like Germany and France affects raw material supply.
Asia-Pacific
Asia-Pacific is the largest regional market, commanding 42% of the global share in 2025, worth USD 107.8 billion. The region’s demand is concentrated in China, India, Indonesia, and Vietnam, which together account for over 65% of Asia’s milk powder consumption.
Opportunities:
- China remains the world’s top importer, expected to purchase more than 830,000 metric tons in 2025, a 6.2% increase from 2024. Infant formula demand is the biggest driver, with Asia-Pacific responsible for 50% of global baby formula revenues.
- Rapid urbanization and rising disposable incomes in India and Southeast Asia are pushing higher consumption of dairy-based beverages and bakery items.
- Opportunities exist for international companies to partner with local brands to capture growing middle-class demand.
Restraints:
- Heavy reliance on imports from New Zealand and the EU exposes the region to global price fluctuations.
- Strong price sensitivity in India and Indonesia limits the adoption of premium or specialty powders.
Latin America
Latin America accounts for 7% of the global milk powder market in 2025, with a value of approximately USD 18 billion. Brazil and Argentina lead production, together contributing nearly 650,000 metric tons annually.
Opportunities:
- Expanding dairy processing infrastructure, supported by government modernization programs in Brazil and Argentina.
- Growing demand for infant formula and sports nutrition powders, with an expected 6.5% CAGR from 2025–2030.
- Export potential to Africa and Southeast Asia, where demand for affordable milk powders is rising.
Restraints:
- Economic volatility and currency inflation in Argentina impact investment in the dairy sector.
- High logistics costs and limited cold-chain capacity pose challenges to scaling exports.
Middle East & Africa (MEA)
MEA holds a 5% share of the global milk powder market in 2025, valued at around USD 12.8 billion. The region is largely import-dependent, with GCC nations (Saudi Arabia, UAE, Kuwait) and African economies (Nigeria, Kenya, South Africa) driving demand.
Opportunities:
- Rapid population growth in Africa and rising infant populations in the Middle East create robust demand for infant nutrition powders.
- Increasing adoption of fortified milk powders to combat malnutrition, especially in Sub-Saharan Africa.
- Companies like Almarai (Saudi Arabia) and Promasidor (Africa) are expanding local processing capacity.
Restraints:
- Heavy reliance on imports exposes the region to price volatility and global supply disruptions.
- Weak infrastructure and political instability in parts of Africa hinder large-scale dairy investments.
Global Growth Insights unveils the top List Global Milk Powder Companies:
In 2025, leading global milk powder companies continue to expand production, diversify into specialty powders, and strengthen their geographic presence.
- Dairy Farmers of America, Inc. (USA) reported revenues of USD 24.3 billion in 2024, with a CAGR of 4.1% (2020–2025). In 2025, it increased exports to Mexico and China, securing its leadership in the U.S. market.
- Glanbia PLC (Ireland) generated USD 6.8 billion in 2024, with a 3.9% CAGR. It invested in specialty whey and infant formula powders across Europe and North America.
- Dean Foods Company (USA) posted USD 4.7 billion revenue in 2024, focusing on strategic restructuring in milk derivatives.
- The Kraft Heinz Company (USA) with USD 28.5 billion revenue in 2024, launched powdered dairy blends tailored for the foodservice segment.
- Arla Foods, Inc. (Denmark) earned USD 15.2 billion in 2024, growing at 4.6% CAGR, and expanded its organic milk powder portfolio.
- Danone S.A. (France) generated USD 28.9 billion in 2024, with 5.0% CAGR, driven by strong infant nutrition demand in China.
- Cargill Corporation (USA), with USD 177 billion overall revenue in 2024, saw its dairy ingredients grow at 3.4% CAGR, expanding in Asia-Pacific markets.
- Nestlé S.A. (Switzerland) reported USD 103.2 billion in 2024, with 4.3% CAGR, strengthening infant formula leadership.
- Carbery Group Ltd. (Ireland), with USD 720 million revenue in 2024, expanded its whey-based powders for performance nutrition.
- Saputo, Inc. (Canada) achieved USD 12.3 billion revenue in 2024, with 3.7% CAGR, expanding into Latin America with new facilities.
| Company | Headquarters | Revenue (2024) | CAGR (2020–2025) | Geographic Presence | 2025 Key Highlight |
|---|---|---|---|---|---|
| Dairy Farmers of America, Inc. | USA | USD 24.3 Bn | 4.1% | North America, Asia Exports | Expanded exports to Mexico & China |
| Glanbia PLC | Ireland | USD 6.8 Bn | 3.9% | Europe, North America, Asia | Invested in specialty whey powders |
| Dean Foods Company | USA | USD 4.7 Bn | 2.8% | USA | Restructured operations in dairy derivatives |
| The Kraft Heinz Company | USA | USD 28.5 Bn | 3.2% | Global | Launched powdered dairy blends |
| Arla Foods, Inc. | Denmark | USD 15.2 Bn | 4.6% | Europe, Asia, Middle East | Expanded organic milk powder portfolio |
| Danone S.A. | France | USD 28.9 Bn | 5.0% | Global | Boosted infant nutrition sales in China |
| Cargill Corporation | USA | USD 177 Bn* | 3.4% (Dairy) | Global | Expanded dairy ingredient exports to Asia |
| Nestlé S.A. | Switzerland | USD 103.2 Bn | 4.3% | Global | Strengthened infant formula leadership |
| Carbery Group Ltd. | Ireland | USD 720 Mn | 4.1% | Europe, Asia | Expanded whey-based nutrition powders |
| Saputo, Inc. | Canada | USD 12.3 Bn | 3.7% | North America, Latin America | New facility expansion in Latin America |
High-End & Specialty Milk Powder Manufacturers
The high-end and specialty milk powder segment has become one of the fastest-growing categories in the dairy industry, reflecting rising consumer demand for premium nutrition, functional foods, and health-focused dairy alternatives. Specialty powders include organic milk powder, fortified milk powder, lactose-free varieties, protein-enriched powders, and infant-specific formulations.
According to Euromonitor International (2025), the global specialty milk powder segment is valued at USD 68.5 billion in 2025, representing nearly 26.7% of the overall milk powder industry value. This category is expanding at a much faster pace than the traditional segment, with a projected CAGR of 7.5% between 2025–2030, compared to the overall industry CAGR of 5.45%.
Key Growth Drivers:
- Health & Wellness Trends: Demand for fortified powders containing added vitamins, minerals, probiotics, and omega-3s has risen by 12% annually in premium markets such as Europe and North America.
- Infant & Pediatric Nutrition: Infant formula continues to dominate specialty demand, accounting for 35% of global specialty milk powder revenues in 2025.
- Dietary Intolerance Solutions: The global lactose-free milk powder market alone is projected to reach USD 9.6 billion in 2025, growing at 8.2% CAGR.
- Sports & Performance Nutrition: Protein-enriched milk powders are driving growth, with sales up by 9.1% in 2025 across North America and Europe.
Leading Specialty Manufacturers (2025):
- Nestlé S.A. (Switzerland): Strengthened its premium infant formula range, generating over USD 15.2 billion in specialized nutrition sales in 2025.
- Danone S.A. (France): Expanded its high-end pediatric and medical nutrition products in China and Southeast Asia.
- Arla Foods (Denmark): Invested heavily in organic and lactose-free powders, accounting for 12% of its total milk powder sales.
- Glanbia PLC (Ireland): Focused on whey-based and protein-rich powders, contributing to 10% annual growth in its performance nutrition division.
- Carbery Group Ltd. (Ireland): Innovating in whey-based powders tailored for sports and lifestyle nutrition.
Opportunities for Startups & Emerging Players (2025)
The milk powder industry in 2025, valued at USD 256.85 billion, presents significant opportunities for startups and emerging players, especially in niche and value-added segments. Unlike traditional large-scale producers such as Nestlé, Danone, and Arla Foods, startups can carve out space by focusing on specialty, health-driven, and regionally tailored products. According to Euromonitor International, specialty milk powders—including organic, fortified, lactose-free, and plant-dairy blends—are growing at a 7.5% CAGR (2025–2030), compared to the overall industry growth of 5.45%. This creates a favorable entry point for smaller, agile companies that can innovate faster.
In 2025, consumer preferences are shifting toward health-focused and sustainable dairy products, with nearly 40% of global consumers willing to pay a premium for organic or fortified milk powders, based on NielsenIQ’s global health survey. Startups can leverage this trend by offering clean-label, probiotic-enriched, or high-protein powders, which are forecast to expand at 8–9% CAGR in North America and Europe.
Regional opportunities are also significant. In Asia-Pacific, which accounts for 42% of global milk powder demand, the infant nutrition segment alone is projected to exceed USD 54 billion in 2025, providing fertile ground for startups entering with innovative baby food formulations. Similarly, in Africa, demand for affordable fortified milk powders is increasing at 6.5% annually, supported by government nutrition initiatives.
Moreover, the rise of direct-to-consumer (D2C) models and e-commerce platforms is enabling startups to bypass traditional distribution challenges. According to Statista (2025), online dairy product sales are expected to cross USD 12 billion globally, with milk powders among the top-selling items in the nutrition category.
Conclusion
The global milk powder industry in 2025 is positioned as a critical pillar of the international dairy and food processing sector, with a projected market value of USD 256.85 billion and an expected trajectory toward USD 589.57 billion by 2034 at a CAGR of 5.45%. This consistent growth reflects the industry’s ability to meet rising global demand for infant formula, bakery, confectionery, sports nutrition, and specialty dairy powders.
Regionally, Asia-Pacific remains the largest consumer market, holding 42% of global demand, driven by the rapid expansion of infant nutrition and urban dietary preferences. Europe and North America, with a combined share of over 46%, continue to dominate production and exports, supported by advanced processing technologies and strong multinational players. Meanwhile, Latin America and the Middle East & Africa represent emerging growth hubs, with increasing demand for fortified and affordable milk powders, driven by both population growth and nutrition initiatives.
From a competitive perspective, global leaders such as Nestlé S.A., Danone S.A., Arla Foods, Glanbia, and Dairy Farmers of America continue to shape the industry with large-scale production, innovation, and strong export networks. At the same time, opportunities are widening for startups and emerging players in niche segments like organic, fortified, lactose-free, and protein-rich milk powders, which are growing faster than traditional categories.
The industry also faces challenges, including price volatility, regulatory constraints, and sustainability pressures. Yet, innovation in specialty powders, sustainable dairy practices, and e-commerce distribution models is creating new avenues for growth.
FAQs: Global Milk Powder Market
Q1: How big is the global milk powder market in 2025?
The global milk powder market is valued at USD 256.85 billion in 2025, up from USD 243.57 billion in 2024. It is projected to reach USD 589.57 billion by 2034, growing at a CAGR of 5.45% during 2025–2034.
Q2: Which region dominates the milk powder industry?
Asia-Pacific leads the market with a 42% share in 2025, equivalent to over USD 107.8 billion, driven by high demand for infant formula, bakery, and processed dairy products. China alone imported more than 830,000 metric tons of milk powder in 2025.
Q3: Who are the leading milk powder companies worldwide?
Major players include Nestlé S.A. (Switzerland), Danone S.A. (France), Arla Foods (Denmark), Glanbia PLC (Ireland), Dairy Farmers of America (USA), Cargill Corporation (USA), Saputo Inc. (Canada), Kraft Heinz (USA), Dean Foods (USA), and Carbery Group Ltd. (Ireland). These companies collectively account for over 60% of global supply.
Q4: What is driving growth in the milk powder industry?
Key growth drivers in 2025 include:
- Rising demand for infant nutrition (35% of market revenues).
- Expansion of bakery and confectionery applications (22% share).
- Growth in specialty powders (organic, lactose-free, fortified), expanding at 7.5% CAGR (2025–2030).
- Increasing exports from New Zealand, EU, and USA, which control ~80% of global milk powder trade.
Q5: What are the main restraints impacting the market?
- Price volatility in global dairy trade.
- High production and feed costs in North America and Europe.
- Regulatory constraints in the EU related to sustainability and emissions.
- Import dependency in MEA and parts of Asia, exposing markets to global supply shocks.
Q6: Are there opportunities for startups in the milk powder sector?
Yes. Startups in 2025 are focusing on organic, clean-label, fortified, and protein-rich powders. According to Euromonitor, specialty milk powders are projected to reach USD 68.5 billion in 2025, offering a faster growth rate (7.5% CAGR) than the broader market. Direct-to-consumer (D2C) and e-commerce sales channels, valued at USD 12 billion globally in 2025, also provide cost-effective entry points.
Q7: What is the future outlook for the industry?
The industry is projected to grow steadily through 2034, fueled by infant formula demand, global trade, and specialty nutrition. With Asia-Pacific leading consumption and Europe/North America dominating exports, the global milk powder market will remain a cornerstone of food security and nutrition worldwide.