The global milk powder market is estimated to increase at a CAGR of 4.03% from a market value of US$30,528.520 million in 2019 to achieve a market value of US$39,113.500 million by the end of 2025. Milk powder or dried milk find suitability in those operations where there is a lack of immediate access to adequate refrigeration methods and dairy products. The dried milk product is obtained by the removal of water from milk. The main motive of manufacturing dried milk lies in the conversion of perishable liquid raw material into a product that can be easily stored without the loss in quality, hence this increases the shelf life of the product. The market is projected to grow at a significant pace owing to its immense application across varied end-users. This includes confectionaries, bakeries, infant formulas, and nutritional foods among others. The growing foodservice restaurants are further augmenting the market growth during the forecast period. Additionally, the growing food and beverage industry where milk powder is utilized as an important ingredient for manufacturing various food products is further providing an impetus in burgeoning the market growth during the forecast period.
Furthermore, there is an availability of instant milk powders for a range of customers worldwide, hence with the growing adoption of a busy schedule, milk powders in the form of instant packages are again contributing to surging the market growth in the forecast period. One of the examples of a company manufacturing instant products includes Dana Dairy Group, a company involved in the manufacturing of instant milk powders, the products are available in the form of tins, sachets, and pouches. Products, particularly, pouches and sachets are available in an easy to carry, small personal size milk powders that are fit for consumption for on-the-go customers. However, the consumption of fresh milk will contribute to restraining the market growth during the course of the forecast period.
On the basis of geography, the Asia Pacific region is projected to hold a substantial market share during the forecast period due to the evolving lifestyle of consumers along with the growing disposable income and increasing family income. The increasing family income is mainly attributed to the availability of more than one earning family member where women have also started to enter the main workforce and thus adopt convenience and are relying on packaged food products as well. On the other hand, North America and Europe are predicted to hold a significant market share in the global milk powder market over the next five years.
The current COVID-19 scenario is estimated to hamper market growth in 2020. This is mainly attributed to the fact that inspite of the fact that milk production is growing in the largest markets around the globe, a decrease in demand for milk powders has been noticed. The main reason lies in the low demand for milk products in retail and foodservice channels, in addition to the rise in the accumulation of milk powder stocks due to closure of public gathering places for prevention measures. Furthermore, with significant supply chain disruptions which include the utmost competition for shipping containers around the globe, the market is projected to decline amid the COVID-19 pandemic scenario. Moreover, the decline in global tourism has further affected the sales of milk products including milk powders in various foodservice restaurants, hotels, and cafes worldwide. This is further contributing to decreasing market growth in the current year.
The utilization of milk powder as an essential ingredient in manufacturing a wide range of processed food products is contributing to driving sales during the forecast period.
Milk powders are utilized by customers, for in-home and out-of-home consumption, in the form of substitutes for fresh milk. Milk powder applications include instant milk powders, that dissolve readily in water utilized by consumers in varied beverage mixes, there is an availability of nutritionally-enriched milk powders, known as fortified milk powders for fulfilling the additional nutritional needs at different stages of life. The milk powder products found in the marketplace are usually enriched with calcium, iron, and folate nutrients.
Additionally, it is also used as an ingredient for manufacturing a wide range of processed food commodities. These powders are manufactured in accordance with certain standards and specifications for composition. Also, there is a range of technical specifications that are required for the characterization of milk powders in order to ensure that they have the required functional performance according to their target applications. Different types of powdered milk available in the market include skimmed milk, full-cream milk, and buttermilk among others. Milk powders are used for manufacturing dairy and processed food products. A significant amount is utilized for manufacturing traditional recombined dairy products like evaporated milk, sweetened milk, and UHT (Ultra-high Temperature) milk. For the production of UHT milk, big companies like TetraPak have increased its one-step processing technology for the production of ultra-high temperature milk from powder. Hence, by utilizing this novel technology, producers are capable of preparing UHT milk from powder in one continuous step only. Also, this contributes to cost-cutting by around 40% and helps in the reduction of carbon footprint to a greater extent.
Other applications where milk powders are used as ingredients for the manufacture of food products include ice creams, cultured milk, yogurts, chocolate, confectionery, bakery products, soups, sauces, and infant formulae. In addition, buttermilk powders are used as replacers for skim-milk powders in applications requiring enhanced dairy flavours.
For example, milk powder replacers manufactured by All American Foods, Inc. as Pro Mix® Milk Replacers are designed for utilization in varied human consumption applications. The Pro Mix® Milk Replacers include nonfat, skim milk and low-fat milk replacers, buttermilk powder replacers, whole milk powder replacers, Hi Acid powder replacers, and cultured dairy & buttermilk powders replacers. Potential applications include specialty flavorings, snack foods, frozen desserts, salad dressings, processed potatoes, and many more.
Another company, FIT, that specializes in the trade and distribution of dairy ingredients for agri-food industry processors offers regular buttermilk powder containing low-fat content of around 6-12%, and protein content of around 28-34%. The buttermilk powder is provided in 25kg-bags or big bags.
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