Milk Replacers Market Report 2025

The milk replacers market size has grown strongly in recent years. It will grow from $4.24 billion in 2024 to $4.62 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to rising milk prices, increased livestock productivity, disease prevention, increasing demand for animal protein, droughts and feed shortages, livestock health management.

The milk replacers market size is expected to see strong growth in the next few years. It will grow to $6.6 billion in 2029 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to sustainability and environmental concerns, government initiatives and regulations, innovations in nutritional science, use in non-traditional livestock species, focus on animal welfare. Major trends in the forecast period include specialized formulas for different species, innovation in ingredients and formulations, sustainable sourcing and production, technological advancements in processing, customization for health and performance, digitalization in animal nutrition.

The increasing demand for dairy products is anticipated to boost the growth of the milk replacer market in the future. Dairy products encompass milk and any food items made from it, including butter, cheese, ice cream, yogurt, and condensed or dried milk. Factors such as rapid population growth, changing dietary preferences, and heightened awareness of the health benefits associated with dairy are driving consumers toward greater dairy consumption. To satisfy this rising demand, milk replacers serve as effective substitutes for milk, thereby promoting market growth. For example, in November 2023, the International Dairy Foods Association, a US-based trade organization, reported that cheese consumption reached an all-time high in 2022, averaging nearly 42 pounds per person, an increase of half a pound per person from 2021. Thus, the surge in dairy product usage is propelling the milk replacer market forward.

The burgeoning preference for clean-label goods is set to propel the milk replacer market. Clean-label products feature straightforward, recognizable ingredients, aligning with consumer preferences for transparency and wholesomeness. Milk replacers often streamline ingredient lists, catering to consumers seeking simplicity and familiarity in their products. Notably, a September 2023 survey conducted by FONA International Inc. revealed that 83% of respondents favored clean or natural ingredients, with 68% willing to pay a premium for products boasting recognizable ingredient lists. This consumer inclination is instrumental in fueling the growth of the milk replacer market.

Nutrition-based product enhancement is a significant trend emerging in the milk replacer market. Leading companies in this sector are concentrating on improving the nutritional profiles of their milk replacers by incorporating essential nutrients to maintain their market position. For example, in February 2024, Mole Valley Farmers, a UK agricultural supply and rural retail company, introduced ProtéGo, a calf formula designed to promote calf health and growth. Drawing inspiration from colostrum, the initial milk produced by mammals, ProtéGo is enriched with essential bioactive components that support the development of the gut and immune system. This formula ensures the presence of immunoglobulins, lactoferrin, and Milk Fat Globule Membrane (MFGM), all crucial for enhancing disease resistance and facilitating better weight gain in calves. Formulated with specially selected, low-heat-treated dairy ingredients, ProtéGo aims to boost daily weight gain, particularly during the crucial early weeks of life. Its unique formulation provides the energy and protein necessary for healthy calf growth.

Leading companies in the milk replacer market are focusing on creating innovative solutions, such as calf milk replacer, to enhance animal health while providing a cost-effective and sustainable alternative to whole milk in livestock farming. Calf milk replacer is a specially formulated nutritional substitute designed to replicate the nutritional profile of cow's milk for young calves. Farmers use it to feed calves when cow's milk is limited or needs to be reserved for other commercial uses, such as dairy production. For example, in January 2023, Auctus, a New Zealand-based animal nutrition company, introduced Opti-Skim, a new skim-based formula tailored to meet the nutritional needs of calves. This innovative product stands out due to its high-quality protein content, primarily sourced from a significant proportion (60%) of skim milk powder. This formulation not only supports optimal growth rates but also promotes efficient digestion.

In December 2022, Butterfly Equity, a prominent U.S.-based private food company, successfully completed the acquisition of Milk Specialties Global. The acquisition, executed for an undisclosed sum, marks a strategic move aimed at expanding, diversifying, and enhancing Butterfly’s existing product portfolio. By integrating Milk Specialties Global into its operations, Butterfly gains access to a range of science-driven nutritional dairy products and dairy protein ingredients, notably including milk replacers.

Major companies operating in the milk replacers market include Cargill Incorporated, Archer Daniels Midland Company, CHS Inc., Alltech Inc., Nutreco Holding N.V., Glanbia Public Limited Company, Land O'Lakes Creameries Inc., Groupe Lactalis SA, Van Drie Holding BV, BEWITAL agri GmbH & Co. KG, Nukamel B.V., Kent Nutrition Group, Calva Products LLC, Hi-Pro Feeds LP, Milk Products LLC, Manna Pro Products LLC, Pet-Ag Inc., Lactalis Group, Royal FrieslandCampina N.V., Liprovit BV, Trouw Nutrition, Volac International Limited, Nor-Feed Sud, Bonanza Calf Nutrition, Merrick's Inc., Grober Nutrition, Agribrands Purina Canada Inc., Koninklijke DSM N.V., ForFarmers NV, Harbro Nutrition Inc.

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

Milk replacers constitute specially formulated products incorporating a blend of ingredients that replicate the composition of milk, encompassing milk proteins, fats, and carbohydrates. These products serve as substitutes for milk in applications where a preference for higher protein and lower lactose content exists.

The primary categorizations of milk replacers are medicated and non-medical. Medicated variants pertain to formulas or feeds designed for young animals, such as calves or lambs, featuring medications aimed at preventing or treating specific illnesses or conditions. Available in both powder and liquid forms, these products come in milk-based, non-milk-based, and blended varieties. Milk replacers find application in feeding various livestock animals, including ruminants, swine, horses, pets, and others. Distribution channels for these products encompass online retailing, supermarkets, hypermarkets, convenience stores, and other relevant outlets.

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

The milk replacers market consists of sales of whole milk replacers, skim milk replacers, specialty milk replacers, acidified milk replacers, and non-dairy milk replacers. 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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