Powdered milk is easy to store in cold temperatures and convenient to transport to remote areas, where milk supply and production volumes are low. Along with long shelf life, powdered milk is also very cost-effective. Furthermore, powdered milk is a rich source of vitamins and minerals (magnesium, calcium, and others) as it is produced by extracting water and fat from fresh pasteurized milk. The powdered milk market is estimated to reach $10 billion by 2025, growing at a CAGR of 4.5% owning to its characteristics of having a longer shelf-life than liquid milk.

Introduction of skim milk powder has been a prominent factor driving growth of the powdered milk market. As skim milk powder consist of very trace amounts of fat and are low in calorie content, it has garnered huge attention among those who are trying to lose or maintain their weight. Furthermore, skim powder milk is low in cholesterol, therefore it promotes a healthy heart and weight loss.  Being a rich source of complete proteins, which helps in building and maintaining lean muscles, its consumption has increased among athletes also. As skim milk powder is the richest source of calcium among other milk powders, it is expected to witness significant growth during the upcoming period. 

Growth of the powdered milk market can be mainly attributed to development of advanced technologies, which retain the nutrient content of milk even after the drying process.  With rise in consumption of infant as well as adult formula, the powdered milk market is estimated to witness heavy growth.  Due to strict regulations, manufacturers need to find replacements for preservatives used in infant milk formula. 

Powdered milk is one of the top European Union-exports among different dairy products. Every year, European dairies transform 160 million tons of raw milk into high-quality dairy products. In terms of sales channels, the offline segment held the greatest share with more than 85% in 2018. However, with rising internet penetration, the online segment would exhibit the fastest growth rate during the forecast period.

The powdered milk market has witnessed tremendous growth due to the extended shelf life capabilities displayed by milk powder as compared to milk, due to the former’s low water content. In high temperature regions, production of milk is low and milk powder has gained an important position among commercial as well as household applications, due to its long shelf life and high nutrient content. Furthermore, transportation of milk powder is also more economical as compared to the transport of milk due to its convenient packaging and low maintenance. Advancements in the drying process has also played an important role in growth of the powdered milk market.  The spray drying process uses lesser heat in comparison to the roller drying process. Due to the low heat treatment, the biological properties of proteins remain intact as does its nutrient content. 

In emerging economies such as China, Brazil, and India, the growing population and growth in the food and beverage industry is stimulating demand of powdered milk. The same nutritional value is offered by powdered milk as by regular milk, and therefore, powdered milk is being used in various diet plan in the form of nutrition bars and beverages. Increasing health consciousness and fitness awareness are two major factors fueling consumption of powdered milk in sports diets.

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Increasing world population is posing a burden on development of various milk substitutes. Apart from traditional cow milk powder, innovations in the market have seen various new products namely goat milk powder, soy milk powder, and coconut milk powder.  Lactose intolerant people are preferring goat milk powder over cow milk powder as it is low in sugar and has 13% more calcium, vitamin A, and Vitamin B6. Goat milk powder is now widely being used in developing countries as well as in the Middle East and Eastern European countries.

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