Butter Milk Powder Market Report 2025 (Global Edition)

Global Butter Milk Powder Market Report 2025 Market Size Split by Type (Atmospheric Roller Dried, Spray Dried), by Nature (Organic, Conventional), by End User (Retail, Foodservice, Industrial, Animal ...

Butter Milk Powder Market Report Description

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How 2025 Tariffs Are Reshaping the Consumer Goods Industry

In 2025, the global trade landscape has shifted dramatically following the U.S. introduction of sweeping tariffs under President Donald Trump’s administration. These "Liberation Day Tariffs," launched in April, aim to reduce trade deficits and boost domestic manufacturing. Tariffs range from 10% on imports from countries like the UK and Australia to 46% on Vietnamese goods, with a blanket 34% tariff on many Chinese imports and 25% on all steel, aluminum, and auto parts. This policy heavily impacts the consumer goods sector apparel, appliances, packaged foods, and personal care products due to their deep reliance on global supply chains, especially in Asia. U.S.–China trade tensions have intensified, with reciprocal tariffs reaching up to 145% on U.S. goods and 125% on Chinese exports, while China’s trade surplus with the U.S. hit USD 102.6 billion in March 2025. In response, the EU and Canada have implemented retaliatory measures, signaling a broader shift toward protectionism.

The consumer goods industry is feeling immediate effects: production costs are rising, sourcing is delayed, and inflation pressures are mounting. Apparel and footwear now face 25% tariffs, prompting brands to seek nearshoring options or raise prices. Household appliances incur 20% tariffs, complicating inventory and procurement strategies. Packaged foods and beverages are hit with 10–15% tariffs, impacting contracts and leading to supplier diversification and product reformulation. Personal care firms face higher costs for imported ingredients and packaging, leading to local sourcing efforts and delays in new product launches. Meanwhile, electronics, though temporarily exempt, are preparing for possible disruptions by diversifying suppliers and increasing inventories.

China remains the backbone of U.S. consumer goods sourcing, accounting for a large portion of imports either directly or through upstream components. This makes tariffs on Chinese goods especially disruptive. The rising input costs 15–30% in many categories combined with seasonal pressures and tight timelines, are causing delays and increased costs. Smaller brands, in particular, are struggling due to limited capital and reduced supplier leverage. Many are being forced to increase prices, cut product variety, or compromise on quality.

Market research is now critical to navigating this volatile environment. It supports supplier mapping and risk assessment, helping brands identify alternative sourcing countries with stable regulations and quality control. It also aids in cost and margin analysis, guiding decisions on pricing and sourcing changes. Optimization of product design and materials through research allows companies to reduce costs while maintaining consumer expectations. Additionally, research helps assess consumer price sensitivity, enabling strategic repositioning. Tracking regulatory changes and running scenario planning models allow firms to anticipate and adapt to future trade shifts.

To cope, companies are restructuring their global sourcing models. Major brands like Nike and IKEA are expanding operations in Vietnam, India, and Mexico, while embracing “in-market for market” strategies to reduce exposure to tariffs and logistics risks. Many are adopting AI-driven demand forecasting and automated procurement, and pushing suppliers for transparency. Product redesign and SKU rationalization are also common. The most successful firms are those using data-driven insights, operational flexibility, and strategic supplier partnerships to adapt not just survive in this new era of global trade.

Butter Milk Powder Market Insights Video

Competitive Landscape of the Butter Milk Powder Market

The buttermilk powder market is competitive, with major players like Arla Foods, Fonterra, and Glanbia dominating due to their extensive distribution networks and strong brand presence. Global companies, including FrieslandCampina and LACTALIS Ingredients, focus on expanding production capacity and product innovation to maintain a competitive edge. Smaller regional players, such as KMF Dairy and Mlekovita, cater to local demand but face pricing pressure from larger competitors. The market sees growing competition with increasing demand for convenience and dairy-based products.

In January 2022, Dairy Farmers of America purchased two shelf-stable facilities from SmithFoods. This acquisition aims to help the company take advantage of the increasing market demand for products with longer shelf lives. (Source: https://dfamilk.com/newsroom/press-center/press-center-blog/august-2022/dairy-farmers-of-america-acquires-two-processing-f) In January 2024, Arla Foods AMBA, the Danish dairy leader, raised its ownership in Massby Facility and Service, a property management firm servicing a dairy in Sipoo, near Helsinki, from 60% to 100%. (Source: https://dairybusinessafrica.com/2024/01/10/arla-foods-expands-production-capacity-in-finland-with-full-acquisition-of-sipoo-dairy/) In October 2023, Ornua Co-operative invested €40 million in Kerrygold Park, its main butter production facility located in Mitchelstown, County Cork. The facility features ten packing lines and offers 50 different product formats. (Source: https://www.ornua.com/wp-content/uploads/2024/04/Ornua-Annual-Report-2023.pdf)

In September of 2024, Agri-Mark, Maryland and Virginia Milk Producers Cooperative Association, and Upstate Niagara Cooperative launched Integrated Dairy Ingredients. The firm's initial offerings consisted of non-fat dry milk, skim milk powder, and buttermilk powder.
(Source- https://mdvamilk.com/agri-mark-maryland-virginia-milk-producers-and-upstate-niagara-cooperative-announce-strategic-partnership-to-market-dairy-ingredients/)

Top Companies Market Share in Butter Milk Powder Industry: (In no particular order of Rank)

• Arla Foods
• Glanbia plc
• Fonterra Co-operative Group
• LACTALIS Ingredients
• KMF Dairy
• Sodiaal Group
• ALPEN DAIRIES
• Royal FrieslandCampina
• Valio Ltd.
• Arion Dairy Products
• Land O'Lakes
• Inc.
• Devondale Murray Goulburn
• All American Dairy Products
• Inc.
• Organic Valley
• Mlekovita
• Confidential Data
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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Regional Analysis of the Butter Milk Powder Market

Which Region Dominates the Butter Milk Powder Market in 2024?

According to Cognitive Market Research, North America currently dominates the Butter Milk Powder market, and the region is expected to have significant growth during the projected period. This is due to the region's high demand for dairy products and a robust food processing industry. The region's well-established dairy sector, coupled with the growing trend of convenience foods, drives the consumption of buttermilk powder in baking, snacks, and ready-to-eat meals. Additionally, increasing health awareness among consumers has led to a preference for nutrient-rich dairy ingredients, further boosting market growth. Strong distribution channels also facilitate widespread availability.

Which Region is Expanding at the Fastest CAGR?

The Asia Pacific region is experiencing the fastest CAGR in the buttermilk powder market due to rising urbanization and changing dietary preferences towards processed and convenience foods. Increasing disposable incomes and a growing middle class are driving demand for dairy products, including buttermilk powder, in applications like bakery, confectionery, and beverages. Additionally, the region's expanding food and beverage industry, along with a heightened focus on health and nutrition, is propelling the adoption of buttermilk powder as a versatile ingredient.

The current report Scope analyzes Butter Milk Powder Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Butter Milk Powder Market Analysis

According to Cognitive Market Research, the global Butter Milk Powder market size was estimated at USD 3251.2 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 1300.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Butter Milk Powder market with a market size of USD 1026.08 million in 2024 and is projected to grow at a CAGR of 4.5% during the forecast period. The U.S. market's increasing consumer demand for convenient and versatile dairy products is driving the Butter Milk Powder market.
• The Canada Butter Milk Powder market had a market share of USD 156.06 million in 2024 and is projected to grow at a CAGR of 5.5% during the forecast period. Canada’s high-protein options has boosted the popularity of butter milk powder is driving the Butter Milk Powder market.
• The Mexico Butter Milk Powder market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 118.34 million in 2024.

Europe Butter Milk Powder Market Analysis

According to Cognitive Market Research, the global Butter Milk Powder market size was estimated at USD 3251.2 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 975.36 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.0% from 2024 to 2031.

• The United Kingdom Butter Milk Powder market had a market share of USD 163.87 million in 2024 and is projected to grow at a CAGR of 5.8% during the forecast period. In the UK, Butter Milk Powder sales witness an upswing due to rising demand for dairy-based ingredients in various food products.
• The France Butter Milk Powder market is projected to witness growth at a CAGR of 4.2% during the forecast period, with a market size of USD 89.73 million in 2024.
• According to Cognitive Market Research, the German Butter Milk Powder market size was valued at USD 193.12 million in 2024 and is projected to grow at a CAGR of 5.2% during the forecast period. In Germany, Butter Milk Powder surged due to presence of major market players.
• The Italy Butter Milk Powder market is projected to witness growth at a CAGR of 4.4% during the forecast period, with a market size of USD 83.88 million in 2024.
• The Russia Butter Milk Powder market is projected to witness growth at a CAGR of 4.0% during the forecast period, with a market size of USD 151.18 million in 2024.
• The Spain Butter Milk Powder market is projected to witness growth at a CAGR of 4.1% during the forecast period with a market size of USD 79.98 million in 2024
• The Luxembourg Butter Milk Powder market is projected to witness growth at a CAGR of 5.1% during the forecast period, with a market size of USD 30.24 million in 2024.
• The Portugal Butter Milk Powder market is projected to witness growth at a CAGR of 4.8% during the forecast period, with a market size of USD 20.48 million in 2024.
• The Greece Butter Milk Powder market is projected to witness growth at a CAGR of 5.3% during the forecast period, with a market size of USD 11.70 million in 2024.
• The Rest of Europe's Butter Milk Powder market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD 151.18 million in 2024.

Asia Pacific Butter Milk Powder Market Analysis

According to Cognitive Market Research, the global Butter Milk Powder market size was estimated at USD 3251.2 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 747.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.

• According to Cognitive Market Research, the China Butter Milk Powder market size was valued at USD 336.50 million in 2024 and is projected to grow at a CAGR of 8.0% during the forecast period. Butter Milk Powder surged in China due to rising disposable incomes and changing dietary habits.
• The Japan Butter Milk Powder market is projected to witness growth at a CAGR of 7.0% during the forecast period, with a market size of USD 103.19 million in 2024.
• The India Butter Milk Powder market had a market share of USD 89.73 million in 2024 and is projected to grow at a CAGR of 10.3% during the forecast period. India's expansion of the food and beverage industry is driving the Butter Milk Powder market.
• The South Korean Butter Milk Powder market is projected to witness growth at a CAGR of 7.6% during the forecast period, with a market size of USD 74.78 million in 2024.
• The Australian Butter Milk Powder market is projected to witness growth at a CAGR of 8.2% during the forecast period, with a market size of USD 38.88 million in 2024.
• The South East Asia Butter Milk Powder market is projected to witness growth at a CAGR of 9.5% during the forecast period, with a market size of USD 51.60 million in 2024.
• The Rest of Asia Pacific Butter Milk Powder market is projected to witness growth at a CAGR of 8.3% during the forecast period, with a market size of USD 53.09 million in 2024.

South America Butter Milk Powder Market Analysis

According to Cognitive Market Research, the global Butter Milk Powder market size was estimated at USD 3251.2 Million, out of which the Latin America held the market share of around 5% of the global revenue with a market size of USD 162.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Butter Milk Powder market size was valued at USD 69.58 million in 2024 and is projected to grow at a CAGR of 6.5% during the forecast period. Butter Milk Powder flourished in Brazil due to rising consumer interest in dairy products and health-conscious eating habits.
• Argentina's Butter Milk Powder market had a market share of USD 27.31 million in 2024 and is projected to grow at a CAGR of 6.8% during the forecast period. Argentina's expanding food processing industry is driving the Butter Milk Powder market.
• Colombia Butter Milk Powder market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 14.47 million in 2024.
• Peru Butter Milk Powder market is projected to witness growth at a CAGR of 6.1% during the forecast period, with a market size of USD 13.33 million in 2024.
• Chile Butter Milk Powder market is projected to witness growth at a CAGR of 6.2% during the forecast period, with a market size of USD 11.70 million in 2024.
• The Rest of Latin America's Butter Milk Powder market is projected to witness growth at a CAGR of 5.0% during the forecast period, with a market size of USD 26.17 million in 2024.

Middle East Butter Milk Powder Market Analysis

According to Cognitive Market Research, the global Butter Milk Powder market size was estimated at USD 3251.2 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 65.02 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031..

• The GCC Countries Butter Milk Powder market is projected to witness growth at a CAGR of 7.0% during the forecast period, with a market size of USD 27.83 million in 2024. Butter Milk Powder sales flourish due to the presence of major market players.
• The Egypt Butter Milk Powder market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 6.83 million in 2024.
• The South Africa Butter Milk Powder market is projected to witness growth at a CAGR of 7.2% during the forecast period, with a market size of USD 10.27 million in 2024. Butter Milk Powder sales flourished in South Africa due to increasing demand for dairy products driven by a rising population and urbanization.
• The Turkey Butter Milk Powder market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 5.59 million in 2024.
• The Nigeria Butter Milk Powder market is projected to witness growth at a CAGR of 5.3% during the forecast period, with a market size of USD 6.83 million in 2024.
• The Rest of the MEA Butter Milk Powder market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 7.67 million in 2024.

Butter Milk Powder Market Analysis

Butter Milk Powder Market Type Segment Analysis

According to Cognitive Market Research, Atmospheric Roller Dried are likely to dominate the Butter Milk Powder Market over the forecast period. The atmospheric roller dried type captured the largest market share in the buttermilk powder market due to its efficient production process and cost-effectiveness. This method allows for the quick and uniform drying of buttermilk, preserving its flavor and nutritional content while producing a fine powder with excellent solubility. Additionally, roller-dried buttermilk powder has a longer shelf life and is widely used in various applications, such as baking and dairy products, making it a preferred choice among manufacturers and consumers alike.

The spray dried type is growing at the highest CAGR in the buttermilk powder market due to its superior quality and processing advantages. This method preserves the nutritional value, flavor, and color of buttermilk better than traditional drying techniques. Spray drying produces a finer, more soluble powder, enhancing its application in various food products, including beverages and bakery items. Additionally, the increasing demand for high-quality, shelf-stable ingredients in the food industry drives the preference for spray dried buttermilk powder.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Butter Milk Powder Industry. Request a Free Sample PDF!

Butter Milk Powder Market Nature Segment Analysis

According to Cognitive Market Research, the Organic segment holds the largest share of the market. The organic nature segment captured the largest market share in the buttermilk powder market due to the growing consumer preference for natural and health-conscious food options. As awareness of the benefits of organic products increases, consumers are increasingly seeking dairy ingredients free from synthetic additives and pesticides. Organic buttermilk powder is perceived as healthier, offering nutritional benefits without harmful chemicals. Additionally, the rising trend of clean-label products in the food and beverage industry further fuels the demand for organic buttermilk powder.

The conventional nature segment is growing at the highest CAGR in the buttermilk powder market due to its affordability and widespread availability. Conventional buttermilk powder is often produced at lower costs, making it an attractive option for manufacturers looking to reduce production expenses. Additionally, the increasing demand for processed foods and baked goods drives the consumption of conventional buttermilk powder, particularly in regions with established dairy industries. Its versatility in various applications, along with robust supply chains, supports its rapid growth.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Butter Milk Powder End User Segment Analysis

Butter Milk Powder Market End User Segment Analysis

According to Cognitive Market Research, The Retail segment holds the largest market share. The retail end user segment captured the largest market share in the buttermilk powder market due to increasing consumer demand for home cooking and baking, particularly during and after the COVID-19 pandemic. As consumers seek convenient, shelf-stable ingredients for various recipes, retail outlets have expanded their offerings of buttermilk powder. Additionally, the growth of e-commerce and online grocery shopping has improved access to these products. The rise in health-conscious consumers further boosts retail sales of buttermilk powder as a nutritious ingredient.

The foodservice end user segment is growing at the highest CAGR in the buttermilk powder market due to the rising demand for versatile, high-quality ingredients in restaurants, cafes, and catering services. As foodservice establishments increasingly focus on offering diverse menu options, buttermilk powder is favored for its ability to enhance flavor and texture in various dishes. Additionally, the recovery of the foodservice industry post-COVID-19, along with trends towards premium and convenient food offerings, is driving significant growth in this segment.

• Retail
• Foodservice
• Industrial
• Animal Feed

Butter Milk Powder Distribution Channel Segment Analysis

Butter Milk Powder Market Distribution Channel Segment Analysis

According to Cognitive Market Research, the Business to Business segment dominates the market. The business-to-business (B2B) distribution channel captured the largest market share in the buttermilk powder market due to its crucial role in supplying bulk quantities to food manufacturers, bakeries, and foodservice providers. B2B transactions often involve long-term contracts, ensuring a steady demand for buttermilk powder in various food applications. The efficiency of B2B channels in meeting large-scale production needs and providing consistent quality makes them preferable for manufacturers. Additionally, the growing trend of processed and convenience foods further supports the dominance of B2B distribution in the market.

The business-to-consumer (B2C) distribution channel is growing at the highest CAGR in the buttermilk powder market due to the increasing trend of home cooking and baking, especially during the pandemic. Consumers are increasingly purchasing buttermilk powder directly from retail stores and e-commerce platforms for convenience and accessibility. The rise of online grocery shopping has further fueled this growth, allowing consumers to easily access a variety of buttermilk powder products. Additionally, growing health consciousness drives demand for organic and specialty buttermilk powders in the B2C segment.

• Business to Business
• Business to Consumer

Author's Detail

Sneha Mali

Research Analyst at Cognitive Market Research

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I am a research analyst working in various domains including the Consumer Goods domain, and my primary responsibility is to conduct thorough research on various subjects and provide valuable insights to support client requirements. I have knowledge of research methodologies, and data mining which enables me to analyze large data sets, draw meaningful conclusions, and communicate them effectively. I stay up-to-date with the latest research trends, methodologies, and technologies to ensure that my research is accurate, relevant, and impactful.

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