Dry, Condensed, and Evaporated Dairy Products Market Report 2026

The dry, condensed, and evaporated dairy products market size has grown strongly in recent years. It will grow from $122.12 billion in 2025 to $128.39 billion in 2026 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to expansion of global dairy production, increasing use of milk powders in food processing, growth of infant nutrition products, rising demand for shelf-stable dairy, advancements in dehydration technologies.

The dry, condensed, and evaporated dairy products market size is expected to see strong growth in the next few years. It will grow to $160.27 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to increasing demand for protein-rich dairy ingredients, expansion of bakery and confectionery applications, rising focus on functional and fortified dairy products, growing penetration of emerging markets, increasing investments in efficient dairy processing. Major trends in the forecast period include increasing demand for long-shelf-life dairy ingredients, rising adoption of spray drying technologies, growing use of dairy powders in food formulations, expansion of functional dairy ingredients, enhanced focus on product consistency and quality.

The rising demand from the food and beverage industry is expected to drive the growth of the dry, condensed, and evaporated dairy products market in the coming years. The food and beverage industry includes activities related to the production, processing, distribution, marketing, and sale of food and drink products. This industry relies on dry, condensed, and evaporated dairy products to improve flavor, texture, and overall product quality across a wide range of applications, making these dairy ingredients essential and sustaining their demand within the sector. For example, in March 2025, according to the Australian Bureau of Statistics, an Australia-based national statistical agency, an estimated 15.3 million tonnes of food and non-alcoholic beverages were sold through food stores in Australia during 2023-24. This marked a 3.5% increase, or an additional 0.51 million tonnes, compared with the previous 12-month period (2022-23). Therefore, the increasing demand from the food and beverage industry is driving the growth of the dry, condensed, and evaporated dairy products market.

Major companies operating in the dry, condensed, and evaporated dairy products market are emphasizing product innovation, such as Valio Prime skimmed milk powder (SMP), to address the growing need for high-quality infant milk formula (IMF). Valio Prime skimmed milk powder is an infant-grade SMP developed specifically for dry-blend IMF manufacturing. For instance, in April 2023, Valio Ltd., a Finland-based dairy company, introduced Valio Prime skimmed milk powder. The product is produced from fresh Finnish milk in an ultra-clean environment, resulting in exceptionally high microbiological purity. It is also optimized for dry blending, ensuring ease of use and consistent quality, and offers versatility and customization for the production of a broad range of IMF products.

In September 2025, Open Country Dairy Limited, a New Zealand-based dairy processing company focused on milk powders and other dairy products, acquired Miraka Limited for an undisclosed amount. Through this acquisition, Open Country Dairy sought to expand its capacity in dry and evaporated dairy products, reinforce its supply chain, and integrate Miraka’s sustainable dairy processing operations that are powered by renewable geothermal energy. Miraka Limited is a New Zealand-based dairy processor specializing in milk powders and other premium dairy products, with a strong emphasis on sustainability.

Major companies operating in the dry, condensed, and evaporated dairy products market are Nestlé S.A., GCMMF Ltd., Magnolia Inc., Goya Foods Inc., Fonterra USA Inc., Darigold, Prairie Farms Dairy Inc., Crystal Creamery, Milk Specialties Company, Merrick's Inc., PBM Covington LLC, Lactalis American Group Inc., Schreiber Foods Inc., Saputo Inc., Glanbia plc, Dairy Farmers of America Inc., Foremost Farms USA Cooperative, Land O'Lakes Inc., Leprino Foods Company, Agropur Cooperative, Associated Milk Producers Inc., California Dairies Inc., MCT Dairies Inc., Michigan Milk Producers Association, Tillamook County Creamery Association.

Western Europe was the largest region in the dry, condensed, and evaporated dairy products market in 2025. Asia-Pacific was the second-largest region in the dry, condensed, and evaporated dairy products market. The regions covered in the dry, condensed, and evaporated dairy products 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 dry, condensed, and evaporated dairy products market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The dry, condensed, and evaporated dairy product market consists of sales of buttermilk powder, yogurt powder, cheese powders, condensed whey, evaporated whey, and other dry, condensed, and evaporated dairy products. The companies in the industry package and distribute their products through various distribution channels to both individual customers and commercial establishments. 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.

This product will be delivered within 1-3 business days.