Buttermilk Powder

Global Buttermilk Powder Market to Reach US$4.2 Billion by 2030

The global market for Buttermilk Powder estimated at US$3.1 Billion in the year 2024, is expected to reach US$4.2 Billion by 2030, growing at a CAGR of 4.8% over the analysis period 2024-2030. Conventional Buttermilk Powder, one of the segments analyzed in the report, is expected to record a 5.9% CAGR and reach US$2.4 Billion by the end of the analysis period. Growth in the Organic Buttermilk Powder segment is estimated at 3.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$856.9 Million While China is Forecast to Grow at 7.9% CAGR

The Buttermilk Powder market in the U.S. is estimated at US$856.9 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$831.8 Million by the year 2030 trailing a CAGR of 7.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.2% and 4.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.1% CAGR.

Global Buttermilk Powder Market - Key Trends & Drivers Summarized

Why Is Buttermilk Powder Gaining Popularity in the Global Market?

The growing demand for convenient, shelf-stable dairy products has significantly contributed to the rising popularity of buttermilk powder. As a versatile ingredient widely used in the food and beverage industry, buttermilk powder provides excellent emulsification, texture enhancement, and flavor improvement across various applications. Its extended shelf life compared to liquid buttermilk makes it an attractive option for manufacturers and consumers alike, particularly in regions where refrigeration infrastructure is limited. The increasing preference for clean-label and natural food ingredients is also driving market growth, as buttermilk powder is perceived as a healthier alternative to synthetic stabilizers and emulsifiers. Additionally, the rising adoption of buttermilk powder in functional foods and sports nutrition products has further expanded its market potential, aligning with the global trend of health-conscious consumer choices.

How Are Technological Innovations Enhancing Buttermilk Powder Production?

Advancements in food processing and dairy technology are playing a crucial role in improving the production efficiency and quality of buttermilk powder. Spray-drying techniques have been refined to ensure better nutrient retention, solubility, and overall product consistency, catering to the needs of high-end food processing industries. Additionally, innovations in membrane filtration technology are allowing manufacturers to produce buttermilk powder with enhanced protein content and lower fat levels, making it more suitable for health-focused applications. The introduction of organic and non-GMO buttermilk powder variants is also gaining traction, with consumers and food manufacturers increasingly prioritizing transparency in ingredient sourcing. Moreover, AI-driven quality control mechanisms and automated packaging solutions are streamlining production processes, reducing waste, and improving supply chain efficiency, ultimately contributing to the market’s expansion.

Which Industries Are Driving the Demand for Buttermilk Powder?

The buttermilk powder market is being propelled by its widespread application across multiple industries, including bakery and confectionery, dairy-based beverages, ready-to-eat meals, and animal feed. The bakery sector is one of the largest consumers of buttermilk powder, leveraging its emulsification properties to enhance dough texture, moisture retention, and flavor. The dairy industry is incorporating buttermilk powder into yogurt, cheese, and flavored milk formulations to improve nutritional value and product consistency. In the processed food sector, the demand for buttermilk powder is growing due to its ability to extend product shelf life without compromising taste or texture. Additionally, the pet food and animal nutrition industry is increasingly utilizing buttermilk powder as a cost-effective source of protein and calcium, further expanding its application base. With the food and beverage industry continuously evolving, the demand for high-quality buttermilk powder is expected to rise steadily across diverse market segments.

What Factors Are Fueling Market Growth?

The growth in the buttermilk powder market is driven by several factors, including rising demand for functional food ingredients, advancements in dairy processing technologies, and the increasing consumption of bakery and convenience foods. The growing preference for clean-label and organic products is pushing manufacturers to develop minimally processed buttermilk powder variants with enhanced nutritional profiles. Expanding global trade and improved supply chain logistics are making buttermilk powder more accessible to emerging markets, further supporting its adoption. Additionally, the increasing demand for plant-based dairy alternatives has led to innovations in hybrid formulations, combining buttermilk powder with non-dairy ingredients to cater to a wider consumer base. As food manufacturers continue to explore innovative applications and sustainability-driven production practices, the buttermilk powder market is set for sustained growth in the coming years.

SCOPE OF STUDY:

The report analyzes the Buttermilk Powder market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Nature (Conventional Buttermilk Powder, Organic Buttermilk Powder); Distribution Channel (B2B Distribution Channel, B2C Distribution Channel); Application (Food and Beverages Application, Foodservice Application, Household Application)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 36 Featured) -

• Agropur Cooperative
• California Dairies, Inc.
• Dairy Farmers of America, Inc. (Ingredient Solutions)
• Fonterra Co-operative Group Limited (NZMP)
• Lactalis Ingredients
• North Cork Creameries Ltd.
• NOW® Foods
• Numidia BV
• Uelzena eG
• Valio Oy
• Westland Milk Products
• Zaklad Produkcyjny Bempresa Sp. z o.o.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

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