Non Fat Dry Milk Market Report 2025

The non fat dry milk market size has grown strongly in recent years. It will grow from $8.41 billion in 2024 to $8.92 billion in 2025 at a compound annual growth rate (CAGR) of 6.1%. The growth in the historic period can be attributed to increased dairy products consumption, consumer preferences, dairy industry competition, economic factors, ingredient in food products.

The non fat dry milk market size is expected to see strong growth in the next few years. It will grow to $11.26 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to supply chain management, health and wellness trends, dietary preferences, dairy alternatives, rising population and urbanization. Major trends in the forecast period include product innovations, functional foods integration, sustainable product introduction, plant-based alternatives.

The growing health consciousness among consumers is anticipated to fuel the expansion of the non-fat dry milk market in the future. Health-conscious consumers (HCCs) are those who adopt wellness-oriented lifestyles and prioritize their nutrition and environmental impact. This increasing awareness is driven by the desire to maintain a healthy lifestyle and prevent chronic diseases. Many health-conscious individuals are turning to non-fat dry milk for its numerous benefits, including its ability to provide the same nutritional value as fresh milk. It also offers essential minerals for bone development and meets nutritional requirements with high levels of protein, calcium, vitamin D, and vitamin A. For instance, in June 2024, an online survey conducted by the International Food Information Council (IFIC), a US-based non-profit organization dedicated to providing science-based information on food safety, nutrition, and health, revealed that 54% of 1,005 surveyed Americans reported following a healthy diet or eating pattern in 2024, up from 52% in 2023. Thus, the increasing health consciousness among consumers is expected to drive the growth of the non-fat dry milk market.

The increasing consumption of bakery products is projected to propel the growth of the non-fat dry milk market in the future. Bakery products encompass a variety of items, including bread, rolls, cookies, pies, pastries, and muffins, which are typically made from flour or grain-based meals. As the consumption of these products rises, so does the demand for non-fat dry milk, which serves as a crucial ingredient due to its functional and nutritional advantages in creating a wide array of baked goods. For example, in February 2024, Agriculture and Agri-Food Canada (AAFC), a department of the Government of Canada focused on developing policies and programs, reported that the bakery market was valued at approximately US$82.9 billion in 2022. It is anticipated to grow at a compound annual growth rate (CAGR) of 3.1% from 2023 to 2027, potentially reaching US$97.7 billion by 2026. Therefore, the rising consumption of bakery products is a significant driver of growth for the non-fat dry milk market.

Major companies in the non-fat dry milk market are focusing on creating innovative products, such as ready-to-drink (RTD) flavored milk, to attract a broader customer base, boost sales, and enhance revenue. RTD flavored milk is a convenient, pre-packaged beverage that combines milk with various flavorings, making it ideal for on-the-go consumption. For example, in August 2024, Nestlé, a Switzerland-based food products company, launched a new limited-edition RTD flavored milk under its Nesquik brand, named Nesquik Another Bun. This drink features a cinnamon bun flavor, with notes of sweet cinnamon and warm baked dough. Each low-fat serving is made with 100% real milk and provides 14 grams of protein.

In a similar vein, major players in the non-fat dry milk market are leveraging innovation by introducing skimmed milk powders to expand their consumer reach and drive revenue growth. Skimmed milk powder, derived from non-fat or skimmed milk, undergoes a process of water content removal. For instance, Valio Ltd's launch of Valio Prime SMP in April 2023 presents a unique offering tailored for infant milk formula (IMF) manufacturers. Renowned for its optimized dry blend and exceptional microbiological quality, this product streamlines the production process for IMF, catering to market demands by enabling flexible product customization. Notably advantageous for small to medium-sized enterprises, Valio Prime SMP seamlessly integrates into existing manufacturing processes, providing efficiency enhancements for larger manufacturers as well.

In November 2022, California Dairies Inc., a dairy processing company based in the United States, successfully acquired DairyAmerica for an undisclosed sum. This acquisition by CDI aims to attain ownership rights currently held by Agri-Mark, Inc. and O-AT-KA Milk Products, thereby transforming DairyAmerica into a wholly owned subsidiary of CDI. Under this revised structure, DairyAmerica will persist in its role of marketing milk powders sourced from Agri-Mark, Inc. and O-AT-KA Milk Products. These strategic marketing agreements are structured to maintain the ongoing advantages derived from a diverse and sustainable supply chain that DairyAmerica currently benefits from. DairyAmerica is recognized as a U.S.-based provider specializing in non-fat dry milk.

Major companies operating in the non fat dry milk market are Blue Diamond Growers Co., All American Foods Inc., Alpen Food Group, American Dairy Products Institute, Anand Milk Union Limited, Arla Foods AMBA, Bluegrass Ingredients Inc., Bob's Red Mill Natural Foods 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, NOW Foods Pvt. Ltd., Organic Valley Cropp Cooperative, Revala Ltd., St Albans Cooperative Creamery, SunOpta Inc., Vreugdenhil Groep B.V., Agropur Cooperative, Associated Milk Producers Inc., Aurora Dairy Corporation, California Dairies, Inc., Continental Dairy Facilities LLC.

North America was the largest region in the non fat dry milk market in 2024. 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, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the non fat dry milk market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Non-fat dry milk is the residual product obtained post-removal of fat and water from milk. Retaining the same composition of lactose, milk proteins, and minerals as fresh milk, it contains less than 5% moisture content, rendering it a dried, shelf-stable product.

The two primary types of non-fat dry milk include spray-dried and roller-dried variations. Spray-dried non-fat dry milk undergoes a process where fluid milk is converted into a dry powder using a hot drying medium. This method ensures rapid water removal, enhancing yield while preventing the crystallization of lactose, thereby preserving nutritional integrity. It is categorized into high-heat, medium-heat, and low-heat variations, offering diverse options like almond, coconut, soy, and others. Serving residential and commercial end-users, its functionalities span browning, emulsification, foaming, water binding, and flavor enhancement.

The non-fat dry milk market research report is one of a series of new reports that provides non-fat dry milk market statistics, including non-fat dry milk industry global market size, regional shares, competitors with a non-fat dry milk market share, detailed non-fat dry milk market segments, market trends and opportunities, and any further data you may need to thrive in the non-fat dry milk industry. This non-fat dry milk market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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