- Summary
- Table Of Content
- Methodology
Dry Whole Milk Powder Market Size:
Dry Whole Milk Powder Market size is growing with a CAGR of 3.0% during the forecast period (2025-2032), and the market is projected to be valued at USD 15.66 Billion by 2032 from USD 12.41 Billion in 2024. Additionally, the market value for the 2025 attributes to USD 12.73 Billion.
Dry Whole Milk Powder Market Scope & Overview:
Dry whole milk powder (DWMP) is made by removing water from fresh whole milk. The milk is first pasteurized and heated. After that, it is dried using hot air in a process called spray drying. This turns the milk into a fine powder, which is stored for a long time without refrigeration. This powder form is highly recognized for its convenience, cost-effectiveness, and nutritional value as it retains the nutrients of whole milk such as protein, calcium, vitamins, & minerals. There are two main types of this powder, organic and conventional. These powders are distributed through both online and offline channels.
Dry Whole Milk Powder Market Dynamics - (DRO) :
Key Drivers:
Increasing Demand for the Dairy Products is Accelerating the Dry Whole Milk Powder Market Expansion.
Dry whole milk powder is widely used in the dairy products in the production of yoghurt, cheese, ice cream, and reconstituted milk among others. It is used to increase solids and fat content. Moreover, it provides creamy texture and flavor to these products. They also have longer shelf life and are stored without refrigeration. Additionally, they provide consistent quality across large batches. Population growth has led to increased food needs, driving production of dairy products as well, thus requiring this dry milk powder.
For instance,
- According to HART Design, in 2021, the production of American cheese reached 5.57 billion pounds, in U.S., showing a 4.3% increase compared to the previous year, thus positively impacting dry whole milk powder market trends.
Overall, the increasing need for dairy products is significantly boosting the dry whole milk powder market expansion.
Rising Infant Formula Manufacturing is Driving the Market.
Dry whole milk powder is very useful in manufacturing infant formula. It has important nutrients such as protein, fat, vitamins, and minerals that help babies grow strong and healthy. The powder is easy to mix and store. This makes it safe and convenient for parents. The smooth texture and good taste also make it easy for infants to drink. The need for infant formula is rising due to growing birth rates in, more working mothers, and increased awareness of infant nutrition. Consequently, manufacturers are expanding production to meet this growing need, thus requiring this dry milk powder.
For instance,
- In 2024, Bobbie, a women-led infant formula producer, opened a new 90,000-square-foot infant formula manufacturing facility in Ohio, U.S., thus positively impacting the dry whole milk powder market trends.
Thus, the rising infant formula manufacturing is accelerating the global dry whole milk powder market growth.
Key Restraints:
Growing Commercialization of Alternatives is Hampering the Dry Whole Milk Powder Market Demand.
The market faces competition from other substitutes available in the market such as plant-based whole milk powders and fresh milk. Products made from soy, almond, oat, and coconut are becoming popular among health-conscious consumers and those who are lactose intolerant. These plant-based options are more sustainable and easier to digest. Fresh milk and skimmed milk are also a strong alternative, especially where cold storage is available. The trend of veganism and dairy-free products further increases the competition from these substitutes. Hence, the growing commercialization of substitutes is hampering the dry whole milk powder market demand.
Future Opportunities :
Expanding Bakery & Confectionery is Expected to Increase Dry Whole Milk Powder Market Opportunities.
Dry whole milk powder in bakery and confectionery gives a rich, creamy flavor to products such as cakes, cookies, and chocolates. It helps create a soft crumb and better moisture retention. It also enhances smoothness and color of the products. Additionally, it is easy to mix with any type of ingredient and does not need refrigeration. The powder also helps extend the shelf life of these products. Changing lifestyles and higher demand for ready-to-eat snacks is driving the bakery & confectionery sector, thus requiring this powder for multipurpose.
For instance,
- According to Indusfood, the Indian bakery market is expected to grow at a CAGR of 9.8% from 2023 to 2032.
Overall, expanding bakery & confectionery sector is expected to increase the dry whole milk powder market opportunities.
Dry Whole Milk Powder Market Segmental Analysis :
By Type:
Based on type, the market is categorized into organic and conventional.
Trends in Type:
- Conventional type is widely used due to its wider availability and generally lower cost.
- Increasing health and environmental awareness is driving a higher need for organic type.
The conventional segment accounted for the largest market share in 2024.
- Conventional type is made from regular cow’s milk using standard farming methods.
- The cows are usually fed with regular feed and are treated with antibiotics or hormones, as allowed by local regulations.
- This form of milk powder contains all the natural milk fat and nutrients found in fresh whole milk.
- Compared to organic, the conventional type is more widely available in the market.
- Moreover, it is affordable, which is beneficial for bulk buyers. It also has a longer production history, making it easier to use for large-scale manufacturing.
- Overall, as per the market analysis, wide availability, affordability, and historically established nature is driving a segment in the dry whole milk powder market growth.
The organic segment is expected to grow at the fastest CAGR over the forecast period.
- Organic type is made from cows that are raised without the use of synthetic pesticides, hormones, and antibiotics.
- These cows are typically fed organic feed and allowed access to pasture.
- Compared to conventional milk powder, organic powder is free from chemicals, which appeal to health-conscious consumers.
- Globally, the number of people adopting a veganism trend is increasing, which drives the demand of organic whole milk dry powder.
- For instance, Vegconomist published an article stating UK vegan population has increased to 2.5 million from 1.1 million in 2024. They also stated that it is going to increase to 3.4 million by 2025.
- According to market analysis, increasing focus on plant-based foods will drive the segmental share for the upcoming years.
By Application:
Based on application, the market is categorized into dairy products, bakery & confectionery, infant formula, nutritional foods, beverages, and others.
Trends in the Application
- The increasing consumption of protein powders, meal replacements, and weight gainers is driving higher DWMP consumption.
- Dried whole milk powder remains a critical ingredient in infant formula due to its essential nutrient profile for early childhood development.
The dairy products segment accounted for the largest market share of 31.24% in 2024.
- In dairy products, this whole milk powder is used to enhance the solid content in products such as yogurt and cheese. This leads to a richer texture and improved mouthfeel.
- Moreover, it retains milk fats fractions and proteins. This boosts the nutritional profile in dairy products.
- The powder also improves the stability and shelf life of dairy products.Additionally, it serves as a readily available milk source. Rising production of dairy products globally is driving the need for this dry milk powder.
- For instance, according to the European Commission,the European Union's ice cream production reached 3.2 billion liters in 2022, a 5% increase compared to 2021.
- Overall, as per the dry whole milk powder market analysis, the growing dairy output is driving the segment in the dry whole milk powder industry.
The bakery & confectionery segment is expected to grow at the fastest CAGR over the forecast period.
- In bakery and confectionery, the whole milk dry powder is used in products such as bread, candies, cookies, pastries, and cakes.
- This powder helps in in browning the products and boost moisture retention. It also adds richness and flavor to these products.
- Moreover, it is also convenient and easy to store compared to fresh milk. Additionally, it enhances the nutrient content and extends shelf life.
- Growing busy lifestyles is rising the need for convenient and affordable food options, leading to increased production of processed snacks such as bread, thus driving the need for this dry milk powder.
- Thus, according to market analysis, busy lifestyles requiring processed snacks are driving segmental growth for the forecasted years.
By Distribution Channel:
Based on distribution channel, the market is categorized into offline and online.
Trends in the Distribution Channel
- Supermarkets and specialty stores are increasing their online presence. They are offering packaged DWMP directly to consumers for home use.
- Large manufacturers and distributors are integrating both online and offline channels. This is improving customer needs and market segments.
The offline segment accounted for the largest market share in 2024.
- Offline channel is further categorized into supermarkets & hypermarkets, departmental stores, specialty stores, and others.
- These stores allow customers to see the product and check the packaging before buying.
- Moreover, shoppers also get help and advice from store staff regarding product recommendations, which help them with their purchasing decision.
- Additionally, in supermarkets and specialty stores, there are promotions and samples that help them boost sales.
- Also, offline channels build brand trust through visibility on store shelves and bulk purchases are easier in physical stores. All these advantages are driving the segment.
- Overall, the convenience of product checks, staff assistance, and bulk buying favor is driving the segment in the dry whole milk powder industry.
The online segment is expected to grow at the fastest CAGR over the forecast period.
- Online segment is emerging as it offers many advantages.Customers shop anytime, from anywhere, making it very convenient.
- They are able to quickly compare prices, brands, and read reviews before making a decision.
- Moreover, discounts, special offers, and home delivery make online shopping attractive. It also saves time and travel costs.Increasing busy lifestyles and hectic working is requiring online shopping experience.
- For instance, IBEF published an article stating that Indian e-commerce sector is expected to grow at a CAGR of 27% by 2026, creating potential for segment.
- Thus, according to market analysis, the expanding e-commerce sector will drive segmental growth for the forecasted years.
Regional Analysis:
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2024, Asia Pacific accounted for the highest dry whole milk powder market share at 36.92% and was valued at USD 4.58 Billion and is expected to reach USD 5.54 Billion in 2032. In Asia Pacific, the China accounted for the dry whole milk powder market share of 33.48% during the base year of 2024. More people in region are adding dairy to their diets due to increasing awareness of benefits. Countries such as China, Japan, South Korea, and India leads the market.
For instance,
- In 2021, according to the Ministry of Industry and Information Technology, China's major dairy producers experienced a significant 9.4% increase in output.
DWMP is easy to use, store, and mix, which makes it perfect for large dairy production. The powder adds flavor, creamy texture, and richness to dairy products. It helps dairy companies keep product quality stable and low costs. Overall, rising dairy products output is driving the market in the region.
In Europe, the dry whole milk powder market is experiencing the fastest growth with a CAGR of 4.8% over the forecast period. There is growing production of bakery and confectionery in the region. Cakes, biscuits, chocolates, and pastries are popular across many countries, and DWMP is a main ingredient in these products. It gives a rich taste, smooth texture, and better life. Moreover, it is easy to store, blend, and transport, which helps manufacturers save time and money. As more people enjoy ready-to-eat snacks, food companies are making more products, thus requiring dry milk powder. With rising demand in both local and export markets, the market is growing across Europe.
North America’s dry whole milk powder market analysis indicates that several key trends are contributing to its growth in the region. There is growing consumption infant formula in region. Many parents are looking for safe, healthy, and convenient feeding options for their babies. Dry milk powder is a key ingredient in infant formulas because it provides important nutrients such as protein, fat, and vitamins. Moreover, big brands are launching products with organic nature, which attract health-conscious and vegan consumers, further boosting the market in region.
Middle East and Africa (MEA) market analysis indicates that there is growing need for food service in the region. Hotels, restaurants, cafes, and catering services are increasing as more people eat out or order food. These businesses use DWMP in many recipes such as sauces, desserts, baked goods, and drinks because it is easy to store, cost-effective, and lasts longer than fresh milk. Moreover, rising tourism boosts the food service sector, requiring dry milk powder in bulk. Countries such as UAE, Saudi Arabia, and South Africa leads the market.
Latin America's region creates potential for the market. The adoption of functional foods and beverages is driving the need for dry whole milk powder. Functional foods are those that offer health benefits beyond basic nutrition. This includes boosting immunity or aiding digestion. Many functional drinks, snacks, and health products use dry milk powder because it provides important nutrients such as protein, calcium, and vitamins. They are a key ingredient in these products also due to their versatility and long shelf life.
Top Key Players and Market Share Insights:
The Dry Whole Milk Powder market is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D) and product innovation to hold a strong position in the global Dry Whole Milk Powder market. Key players in The Dry Whole Milk Powder industry include-
- Horizon Organic Dairy, LLC (United States)
- Nestlé S.A. (Switzerland)
- King Arthur Baking (United States)
- Royal FrieslandCampina N.V. (Netherlands)
- Land O'Lakes Ingredients (United States)
- Fonterra Co-operative Group (New Zealand)
- Dairy Farmers of America, Inc. (United States)
- Lactalis Ingredients (France)
Recent Industry Developments :
Product Launch:
- In 2021, Lactalis Ingredients launched an organic whole milk powder. It is prepared by spraying whole milk to remove the water. It is suitable for various organic food applications such as chocolate, dairy, and baking.
Dry Whole Milk Powder Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 15.66 Billion |
| CAGR (2025-2032) | 3.0% |
| By Type |
|
| By Application |
|
| By Distribution Channel |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the Dry Whole Milk Powder market? +
In 2024, the Dry Whole Milk Powder market is USD 12.41 Billion.
Which is the fastest-growing region in the Dry Whole Milk Powder market? +
Europe is the fastest-growing region in the Dry Whole Milk Powder market.
What specific segmentation details are covered in the Dry Whole Milk Powder market? +
Type, Application, and Distribution Channel segmentation details are covered in the Dry Whole Milk Powder market.
Who are the major players in the Dry Whole Milk Powder market? +
Horizon Organic Dairy, LLC (United States), Land O'Lakes Ingredients (United States), Fonterra Co-operative Group (New Zealand), and Dairy Farmers of America, Inc. (United States) are some major players in the market.
