Non Fat Dry Milk Market Report 2026

The non fat dry milk market size has grown strongly in recent years. It will grow from $8.82 billion in 2025 to $9.33 billion in 2026 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to expansion of dairy processing infrastructure, increasing consumption of packaged food products, growth in bakery and confectionery usage, improved milk powder preservation techniques, rising global dairy trade.

The non fat dry milk market size is expected to see strong growth in the next few years. It will grow to $11.72 billion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to increasing demand for protein-rich food ingredients, expansion of infant nutrition and sports nutrition markets, growing focus on long shelf-life dairy products, rising use in foodservice and institutional catering, increasing adoption in emerging markets. Major trends in the forecast period include increasing adoption of spray drying technologies, rising demand for shelf-stable dairy ingredients, growing use of nfdm in processed foods, expansion of functional dairy applications, enhanced focus on quality and purity standards.

The increasing health consciousness among consumers is expected to drive the growth of the non-fat dry milk market in the coming years. Health-conscious consumers are individuals who adopt wellness-focused lifestyles and place strong emphasis on nutrition and overall well-being. Growing awareness around maintaining a healthy lifestyle and preventing chronic and long-term diseases has encouraged more consumers to make healthier dietary choices. As a result, many health-focused individuals are choosing non-fat dry milk due to its multiple benefits, including providing nutritional value comparable to fresh milk, supplying essential minerals that support bone development, and meeting dietary needs through high levels of protein, calcium, vitamin D, and vitamin A. For example, in June 2024, an online survey conducted by the International Food Information Council (IFIC), a US-based non-profit organization that provides science-based information on food safety, nutrition, and health, found that among 1,005 American respondents, 54% reported following a healthy diet or eating pattern in 2024, up from 52% in 2023. Consequently, rising health awareness among consumers is contributing to the expansion of the non-fat dry milk market.

Key players in the non-fat dry milk market are focusing on the development of innovative products, such as skimmed milk powders, to reach broader consumer segments, increase sales, and boost revenue. Skimmed milk powder is a dairy product produced by removing most of the water content from skimmed or non-fat milk. For instance, in April 2023, Valio Ltd., a Finland-based dairy company, introduced Valio Prime SMP. This product features an optimized dry blend that enables infant milk formula manufacturers to simplify production processes while maintaining high microbiological quality. Developed through decades of research and development, Valio Prime SMP allows flexible customization through dry blending to meet varying market requirements. It is particularly beneficial for small and medium-sized manufacturers, while also offering large producers an opportunity to streamline operations.

In June 2024, Müller UK & Ireland Ltd., a UK-based dairy and food company, acquired Yew Tree Dairy Ltd. for an undisclosed amount. Through this acquisition, Müller aims to strengthen its milk powder production capacity, broaden its product portfolio, enhance export operations, and improve overall operational efficiency to meet increasing domestic and international demand. Yew Tree Dairy Ltd. is a UK-based dairy company specializing in the production of fresh milk, cream, and milk powder.

Major companies operating in the non fat dry milk market are All American Foods Inc, Alpen Food Group, Anand Milk Union Limited, Arla Foods AMBA, Bluegrass Ingredients Inc, Cayuga Milk Ingredients LLC, Chicago Dairy Corporation, Clofine Dairy & Food Products, DairyAmerica Inc, DANA Dairy Group Ltd, Danone SA, Glanbia Ingredients Ireland Limited, Hilmar Cheese Company, Hochdorf Holding AG, Holland Dairy Foods LLC, Nestlé SA, Organic Valley Cropp Cooperative, Revala Ltd, St Albans Cooperative Creamery, Vreugdenhil Groep B.V., Agropur Cooperative, Associated Milk Producers Inc, Aurora Dairy Corporation, California Dairies Inc.

North America was the largest region in the non-fat dry milk market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the non fat dry milk market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the non fat dry milk market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The non-fat dry milk market consists of sales of baker’s dry milk, spray-dried non-fat dry milk, skimmed milk powders, non-agglomerated (non-instant) non-fat dry milk, and agglomerated (instant) non-fat dry milk. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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