The global milk powder market has been experiencing steady growth, with an expansion rate of around 3.8% CAGR during the historical period of 2018-2023. This growth is expected to continue during the forecast period of 2024-2032, supported by diverse applications, innovations, and growing demand across emerging markets, especially in the Asia Pacific region. This blog explores the various factors driving the growth of the milk powder market, key market segments, and trends influencing its future.
Diverse Applications of Milk Powder Bolstering the Market Growth
Milk powder, a versatile and easily stored dairy product, plays a crucial role in the production of various food and beverage products. Its ability to provide a long shelf life and ease of use makes it a preferred choice across the food industry. Whether it’s used as a flavouring, thickening, or emulsifying agent, milk powder enhances the texture, taste, and nutritional value of a wide range of products.
One of the key drivers of the milk powder market is its application in confectionery, bakery, and nutrition-based foods. With the growing preference for processed and ready-to-consume products, milk powder serves as an essential ingredient in items like chocolates, biscuits, cakes, nutrition bars, and beverages. The working population, particularly in urban areas, is increasingly turning to convenient food options, thus propelling the demand for milk powder as a key ingredient.
The market’s growth is also fuelled by the availability of various types of milk powder, such as whole, skim, instant, and full-cream milk powders. These products cater to different consumer needs and preferences, driving market segmentation and making it easier to target specific applications within the food industry. For example, skim milk powder is often used in low-fat products, while full-cream milk powder is preferred for richer, creamier products.
The Asia Pacific: A Lucrative Region for Milk Powder Market Growth
The Asia Pacific region is projected to be a significant contributor to the global milk powder market during the forecast period. The shift in consumer lifestyles, increasing disposable income, and changing dietary patterns are contributing to the rising demand for milk powder-based products in countries like China, India, and other emerging markets in the region.
Rising consumer demand for confectionery and bakery products, particularly among the younger and working population, is driving the consumption of milk powder. In addition, rapid urbanisation and the growing trend of online shopping are making these products more accessible to consumers across the region. As online platforms become more prevalent, the availability and ease of purchasing milk powder-based products will continue to support market growth.
Furthermore, economic improvements in emerging economies in Asia Pacific are creating a large middle-class consumer base that is more inclined to purchase packaged food and beverages. The increasing awareness about nutrition, particularly in the wake of growing health concerns, is another factor that is expected to drive the consumption of milk powder in the region.
Market Segmentation of Milk Powder
By Product Type:
- Whole Milk Powder: This product is obtained by evaporating whole milk and is widely used in a variety of applications, especially in the confectionery and beverage sectors.
- Skimmed Milk Powder: Made from low-fat milk, skimmed milk powder is commonly used in dairy products, processed foods, and nutritional supplements.
- Others: This segment includes various types of milk powder, such as instant milk powder, organic milk powder, and fortified milk powders, catering to specific consumer needs.
By Function:
- Emulsification: Milk powder is often used as an emulsifier in processed foods, helping to blend ingredients that usually do not mix well, such as oil and water.
- Foaming: It is used to produce foam in beverages and dairy-based products, enhancing their texture.
- Flavouring: Milk powder serves as a flavour enhancer in both sweet and savoury food products.
- Thickening: Its thickening properties are utilised in soups, sauces, and beverages to improve consistency.
By Application:
- Infant Formula: The use of milk powder in infant formula is a major segment of the market, driven by the increasing demand for nutritious and convenient alternatives for infant feeding.
- Confectionery: Milk powder plays a crucial role in chocolates, candies, and other confectionery products, enhancing their taste and texture.
- Sports and Nutrition Foods: With the growing interest in fitness, milk powder is used in protein supplements, energy bars, and other nutritional products.
- Bakery Products: From cakes to bread, milk powder is an essential ingredient in baked goods for its flavour, texture, and nutritional benefits.
- Dry Mixes: Milk powder is often included in dry mixes for soups, sauces, and ready-to-cook meals.
- Fermented Milk Products: Milk powder is used in the production of products like yogurt and cheese, as it serves as a good source of protein and calcium.
- Others: This includes various uses in processed foods, dairy products, and beverages.
Growing Innovations and Product Launches
In recent years, there has been an increase in product innovation in the milk powder market, as companies strive to cater to evolving consumer demands for health and convenience. The growing awareness about the nutritional benefits of milk powder, such as its high protein content, calcium, and vitamins like B12 and thiamine, is driving the market.
Leading market players are investing in research and development to launch new products that offer additional health benefits, such as fortification with vitamins, minerals, and probiotics. For instance, in December 2020, Nestlé S.A. launched a powdered milk beverage under the YIYANG®Active brand in China. This product is aimed at enhancing bone health, muscle strength, and joint functioning, especially among older adults. Such product innovations are expected to fuel the growth of the milk powder market.
The convenience of storage due to the low moisture content in milk powder, which offers a longer shelf life, is another factor supporting its growing use in households and the food processing industry. These factors are anticipated to contribute significantly to market growth over the coming years.
Key Players in the Milk Powder Market
Several global companies dominate the milk powder market, and they are continually evolving to cater to the growing demand. Some of the leading players in the market include:
- Nestlé S.A.: As a major player in the dairy and nutrition sector, Nestlé has a wide range of milk powder products catering to both infant and adult consumers.
- Danone S.A.: Known for its innovative dairy products, Danone plays a significant role in the global milk powder market, especially in the infant formula sector.
- Fonterra Co-operative Group Limited: A key player in the global dairy industry, Fonterra is involved in the production and supply of milk powders worldwide.
- Royal FrieslandCampina N.V.: This company is known for producing high-quality milk powder products, with a strong presence in Europe and Asia.
- Saputo Inc.: A major dairy company in North America, Saputo produces a variety of milk powder products, catering to both domestic and international markets.
- Arla Foods Amba: With a strong European presence, Arla Foods is a leading supplier of milk powder products globally.
These companies are focusing on expanding their product offerings, improving production capabilities, and increasing their presence in emerging markets, particularly in Asia Pacific and Latin America.
The global milk powder market is poised for significant growth in the coming years, driven by the increasing demand for milk powder-based products across various industries. The versatility and convenience of milk powder, along with the growing consumer awareness of its nutritional benefits, are key factors that will continue to fuel market expansion. Innovations in product development, especially those targeting health-conscious consumers, will also play a critical role in shaping the future of the milk powder market. As the Asia Pacific region leads the market growth, companies are well-positioned to capitalise on emerging opportunities, especially with the rise of online shopping platforms and the growing popularity of dairy-based food and beverages.
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