Australia Milk Powder Market Report and Forecast 2025-2034

Australia Milk Powder Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia milk powder market size witnessed a healthy growth in 2024. Aided by the increasing demand for premium infant formula exports, particularly to Asia, and the rising popularity of milk powder as a convenient, long-shelf-life alternative, the market is projected to grow at a CAGR of 3.80% between 2025 and 2034.

The Australia milk powder market expansion is being driven by increasing demand for dairy products, expanding food and beverage industries, and the growing popularity of milk powder in several applications such as infant formula, nutritional supplements, and processed foods. Milk powder, produced by evaporating milk to a dry form, provides a convenient and long-lasting alternative to fresh milk and has become integral to the Australian dairy industry, given the country’s reputation as one of the leading dairy exporters globally.

A major factor propelling the Australia milk powder market growth is the surging demand for infant formula. With a growing population and urbanisation, particularly in metropolitan areas, the need for infant nutrition products has increased. Milk powder plays a key role in infant formula due to its essential nutrients, such as proteins, vitamins, and minerals, that support infants’ healthy growth and development. As more parents become aware of the importance of optimal nutrition for infants, demand for high-quality infant formula has risen, further boosting the market. Additionally, the convenience and shelf stability of milk powder have made it a preferred choice for busy parents seeking practical nutritional options for their babies.

Another significant factor boosting the Australia milk powder market revenue is the rise of health and wellness trends. With growing awareness of the benefits of dairy, milk powder has become a popular choice for many health-conscious consumers. It serves as a vital source of protein, calcium, and other essential nutrients, contributing to overall wellness. Particularly, milk powder is increasingly used in nutritional supplements such as protein powders and meal replacements. The demand for protein-rich products has grown as consumers focus more on fitness and nutrition, and milk powder is often a key ingredient in these formulations. As a result, the increasing preference for health-focused products has led to an expansion of the market.

The growing dairy consumption, particularly in emerging markets, has also shaped the Australia milk powder market dynamics. Known for producing premium quality dairy products, Australia has become a key supplier of milk powder, especially to Asia. Countries such as China and India, with their growing middle-class populations, are experiencing a higher demand for imported dairy, which has led to an increase in the export of milk powder. As these markets continue to expand, Australia’s dairy industry is well-positioned to benefit from this increased demand, aided by the Australian government’s trade agreements and partnerships with key global markets. These developments are expected to further support the growth of the milk powder export market.

Technological innovations in milk powder production are also revolutionising the Australia milk powder market landscape. Modern production techniques like spray drying and vacuum drying have significantly improved the quality and shelf life of milk powder products. These advancements ensure that milk powder retains its nutritional value, taste, and texture for extended periods. The efficiency of production has also improved, helping manufacturers meet the increasing demand for both domestic and international markets. Furthermore, these technologies have made milk powder production more cost-effective, enabling manufacturers to meet price-sensitive consumer needs while maintaining high-quality standards.

Another key Australia milk powder market trend is the increasing popularity of plant-based diets. With veganism on the rise, there is a growing demand for dairy alternatives, including plant-based milk powders. Consumers seeking non-dairy options due to dietary preferences, lactose intolerance, or ethical reasons have turned to alternatives such as almond, soy, and oat milk. In response to this, Australian manufacturers have expanded their product offerings to include plant-based milk powders, catering to the growing demand for dairy-free alternatives. These plant-based products are becoming increasingly popular, presenting new opportunities in the Australian milk powder market.

Despite the positive growth prospects, the Australia milk powder market faces challenges. One significant issue is the volatility of raw material prices, particularly the price of milk. Factors such as weather conditions, feed costs, and fluctuations in global markets can affect the cost of milk, which in turn impacts the cost of producing milk powder. This price instability can present challenges for manufacturers in maintaining profitability and pricing consistency. Moreover, the increasing pressure to adopt sustainable practices is another challenge for the industry. With consumers becoming more environmentally conscious, there is rising demand for sustainable production methods and eco-friendly products. Manufacturers are being encouraged to reduce their carbon footprints and adopt more environmentally friendly practices, which may require substantial investments in technology and process improvements.

Looking ahead, the Australia milk powder market is set for continued growth, bolstered by strong domestic demand, a rising international presence, and technological advancements. The increasing focus on health and wellness, along with the growing popularity of infant formula and nutritional supplements, will continue to fuel market expansion. The export market, especially in Asia, is expected to remain a crucial growth driver, as Australia’s reputation for high-quality dairy products gives it a competitive edge. Additionally, the demand for plant-based milk powders presents new opportunities, offering manufacturers avenues for diversification. Although challenges such as price volatility and sustainability concerns remain, the market is positioned for long-term growth, supported by innovation, quality, and a strong global market presence.

Market Segmentation

The market can be divided based on type, application, distribution channel, and region.

Market Breakup by Type

• Dairy Milk Powder
• Non-Dairy Milk Powder

Market Breakup by Application

• Infant Formula
• Bakery and Confectionary
• Nutritional Food
• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia milk powder market. Some of the major players explored in the report by Expert Market Research are as follows:

• Tatura Milk Industries Pty. Ltd.
• Blue Lake Dairy Group Pty Ltd.
• Nzac Foods
• Bubs Australia Ltd.
• Burra Foods Pty Ltd.
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.