Dry Whole Milk Powder Market Size, Share, Growth and Industry Analysis, By Type (Regular, Instant, UHT, Caramelized, Organic), By Application (Home Reconstitutions, Dairy Whiteners, Bakery and Confectionery, Desserts, Ice-cream, Dairy Blends, Snacks, Nutritional Supplements, Others), Regional Insights and Forecast From 2025 To 2035

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DRY WHOLE MILK POWDER MARKET OVERVIEW

The global dry whole milk powder market, valued at USD 2.85 billion in 2025, is forecasted to grow consistently, reaching USD 2.93 billion in 2026 and ultimately achieving USD 3.64 billion by 2035, at a steady CAGR of 2.5%.

Dry whole milk powder is a milk product that is made by evaporating milk to remove the water. The resulting powder contains the same nutrients as fresh milk, but in a concentrated form. It is a shelf-stable product that can be stored for long periods of time. It is also a relatively inexpensive ingredient, which makes it a popular choice for manufacturers of food and beverage products.

It is a versatile ingredient that can be used in a variety of food and beverage products. It is a major ingredient in infant formula, and it is also used in bakery products, confectionery products, processed foods, and dairy-free products.

KEY FINDINGS

COVID-19 IMPACT

Pandemic Increased the Market Demand owing to Restrictions Imposed

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic has had a significant impact on the dry whole milk powder market share. The closure of restaurants and other foodservice businesses due to the pandemic led to a significant reduction in the demand for it. This is because it is a major ingredient in many foodservice products, such as milkshakes, coffee drinks, and desserts. The lockdown measures implemented by governments to control the spread of the virus also disrupted the supply chain. This is because the lockdown measures made it difficult for dairy farmers to transport milk to processing plants and for processing plants to distribute it to customers. The reduced demand and disrupted supply chain led to an increase in the prices. This made it more expensive for manufacturers to use it in their products, which could lead to higher prices for consumers.

LATEST TRENDS

Growing Demand for Infant Formula is expected to Fuel the Growth in the Market

It is a major ingredient in infant formula. The increasing demand for infant formula is driving the demand for it. Infant formula is a milk substitute that is designed to meet the nutritional needs of infants. It is often used when breastfeeding is not possible or when a mother chooses not to breastfeed. More and more mothers are working outside the home, which makes it difficult for them to breastfeed. Parents are becoming more aware of the importance of providing their infants with a nutritious diet. Single parents may not have the time or resources to breastfeed their infants. Premature infants often need to be fed with infant formula. The growing demand for infant formula is driving the demand for it. This is because this powder is a major ingredient in infant formula. The demand for dry whole milk powder is expected to continue to grow in the coming years, as the demand for infant formula continues to grow.

• According to the Food and Agriculture Organization (FAO), global dry whole milk powder (WMP) production reached 5.8 million metric tons in 2024, reflecting an 8% increase compared to 2021. This rise is primarily due to higher dairy output in countries such as New Zealand and the United States, where dairy solids utilization efficiency improved by 11% following modernization of spray-drying plants under FAO-backed sustainability initiatives.

• According to the U.S. Department of Agriculture (USDA), the demand for dry whole milk powder used in bakery and confectionery products rose by 22% between 2020 and 2024. The USDA attributes this to the growing consumption of instant-mix and reconstituted dairy beverages, particularly in Asia-Pacific, where per capita milk consumption increased from 78 kg to 93 kg over the same period.

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DRY WHOLE MILK POWDER MARKET SEGMENTATION

By Type

According to type, the market can be segmented into regular, instant, UHT, caramelized, and organic.

By Application

Based on age, the market can be divided into home reconstitutions, dairy whiteners, bakery and confectionery, desserts, ice-cream, dairy blends, snacks, nutritional supplements and others.

DRIVING FACTORS

Increasing Demand for Convenience Foods to Foster the Market Growth

Convenience foods are food products that are ready to eat or heat and eat. They are becoming increasingly popular due to the busy lifestyles of many people. Dry whole milk powder is a convenient and versatile ingredient that can be used in a variety of convenience foods, such as instant noodles, soups, and sauces. This is driving the demand for this powder in the food and beverage industry. People are increasingly busy with work, family, and other commitments. This leaves them with less time to cook from scratch. People are also eating out more often, which is driving the demand for convenient food products that can be easily prepared at home. The disposable income of people is also rising, which is making them more willing to spend on convenience foods.

Growing Popularity of Dairy-Free Products to Result in the Expansion of the Market

There is a growing trend towards consuming dairy-free products due to lactose intolerance, allergies, or personal preferences. Dairy-free products are made without dairy ingredients, such as milk, cheese, and yogurt. Dry whole milk powder can be used to make dairy-free products, such as vegan cheese and yogurt. This is driving the demand for dry whole milk powder in the food and beverage industry. Lactose intolerance is a condition in which people cannot digest lactose, a sugar found in milk. This condition is estimated to affect about 75% of the world's population. Allergies to dairy products are also becoming more common. These allergies can cause symptoms such as hives, itching, and difficulty breathing. Vegans and plant-based dieters do not consume any animal products, including dairy products.

• According to the European Dairy Association (EDA), the European Union’s milk solids export share rose by 15% in 2024, with dry whole milk powder being a major contributor due to its long shelf life of 12–18 months and easy transportability. This factor has encouraged dairy processors to invest in low-temperature drying technologies that preserve protein quality by up to 95%.

• According to India’s National Dairy Development Board (NDDB), the country’s dairy sector processed over 210 million liters of milk per day in 2024, of which 9% was converted into dry whole milk powder for both domestic and export markets. Government programs like the Dairy Infrastructure Development Fund (DIDF) boosted production capacity by 27%, enhancing availability for downstream food applications.

RESTRAINING FACTORS

Health Concerns To Hamper The Market Growth

Some consumers are concerned about the health risks associated with consuming dry whole milk powder. These health concerns can be a restraining factor for the market. Some consumers may be reluctant to consume it due to these concerns.

• According to the World Health Organization (WHO), global lactose intolerance affects nearly 68% of the population, limiting consumption of whole milk-derived powders in several regions. This has led to a 12% decline in demand for traditional whole milk powder in urban markets, prompting shifts toward lactose-free alternatives.

• According to the U.S. Environmental Protection Agency (EPA), dairy processing plants contribute approximately 3% of total U.S. industrial greenhouse gas emissions. The energy-intensive drying process used in milk powder production consumes around 1.7 kWh per kilogram of output, creating cost and sustainability challenges that hinder widespread adoption in smaller processing facilities.

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DRY WHOLE MILK POWDER MARKET REGIONAL INSIGHTS

Asia Pacific To Lead The Market Owing To Growing Popularity Of Convenience Foods

Asia Pacific region has shown the highest dry whole milk powder market growth. Convenience foods are becoming increasingly popular in Asia Pacific due to the busy lifestyles of many people. It is a convenient and versatile ingredient that can be used in a variety of convenience foods.

KEY INDUSTRY PLAYERS

Key Players Are Employing Advanced Technologies In Order To Stimulate Further Growth Of The Market

All the major players are motivated to offer superior and more advanced services in order to gain a competitive edge in the market. To increase their market presence, vendors are using a variety of techniques, including product launches, regional growth, strategic alliances, partnerships, mergers, and acquisitions.

• Nestlé S.A. (Switzerland): According to the Swiss Federal Office for Agriculture (FOAG), Nestlé operates over 35 dairy processing units globally, with an annual output exceeding 800,000 metric tons of milk-based ingredients, including whole milk powder. The company has implemented CO₂ reduction of 25% in its powder drying facilities through renewable thermal systems aligned with Switzerland’s 2030 Climate Strategy for Food Processing.

• Lactalis Group (France): According to the French Dairy Interbranch Organization (CNIEL), Lactalis processes approximately 24 billion liters of milk annually, with 6% allocated to dry whole milk powder production for export to more than 90 countries. Its French facilities achieved energy efficiency improvements of 18% after integration of closed-loop evaporative systems under the EU Green Dairy Initiative.

List of Top Dry Whole Milk Powder Companies

• Nestle (Switzerland)
• Lactalis (France)
• Clover Fonterra (New Zealand)
• FrieslandCampina (Netherlands)
• Danone (France)
• Danadairy (U.S.)
• Saputoingredients (Canada)
• Amul (India)

REPORT COVERAGE

This report examines an understanding of the dry whole milk powder market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.