Buttermilk Powder Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2019-2029F

The Buttermilk Powder Market was valued at USD 3.07 Billion in 2023, and is expected to reach USD 4.38 Billion by 2029, rising at a CAGR of 5.10%.This market growth is propelled by a surge in health consciousness among consumers, leading to an increased demand for nutritious and low-fat foods. Buttermilk powder, owing to its rich nutrient profile, is becoming increasingly popular, particularly in bakery and confectionery applications. The expanding middle-class population, especially in Asia, provides ample opportunities for food manufacturers.

Dry buttermilk is produced by evaporating water from liquid buttermilk, which is obtained from churning cream into butter and is pasteurized before condensing. It typically contains 5% or less moisture and at least 4.5% milkfat by weight. Additionally, dry buttermilk must have a minimum protein content of 30%. This differs from dry buttermilk products, which have a protein content of less than 30%. Customers are advised to consult with suppliers to ensure they meet specific product requirements.

As more individuals prioritize health and wellness, they are gravitating towards products that are both nutritious and convenient, such as buttermilk powder. This product’s nutritional benefits, including high levels of calcium, potassium, B vitamins, and protein, along with its low-fat content, make it appealing to health-conscious consumers. Additionally, its probiotic content supports digestive health.

The versatility of buttermilk powder also enhances its appeal across various culinary uses. The trend towards clean label products, the consumer preference for organic, non-GMO variants, and the convenience and shelf-stability of buttermilk powder are further contributing to market growth. Moreover, the rise in home cooking and baking, accelerated by the COVID-19 pandemic, has driven up demand. As the food and beverage industries expand and applications for buttermilk powder widen, the market trajectory remains competitive and positive.

Key Market Drivers

Growing Health Consciousness

The increasing awareness of health among consumers worldwide is significantly boosting the demand for low-fat and nutritious products such as buttermilk powder. Its nutritional properties make it a popular choice in bakery and confectionery products. The growing middle-class population in regions like Asia presents lucrative opportunities for food processing manufacturers. Additionally, the working population's heightened awareness of health and wellness has resulted in a preference for nutritious, healthy, and ready-to-cook products.

Several factors and trends contribute to the rising demand and consumption of buttermilk powder. Key among them is its health and nutritional benefits. Buttermilk powder is rich in essential nutrients like calcium, potassium, B vitamins, and proteins, while being low in fat compared to other dairy products. Furthermore, its probiotic content aids in promoting gut health and digestion. Its lower lactose content makes it suitable for lactose-intolerant consumers, expanding its appeal.

Versatility in Culinary Applications

The versatility of buttermilk powder in culinary applications is a significant driver of its market demand. It enhances the texture and flavor of baked goods such as cakes, bread, muffins, and pancakes, making it a staple ingredient in bakery and confectionery products. Additionally, it adds creaminess and flavor to sauces, dressings, marinades, and gravies, and is a valuable ingredient in smoothies, protein shakes, and other beverages. Its application extends to various processed foods, including snacks, ready-to-eat meals, and instant mixes. This wide range of uses makes buttermilk powder an attractive ingredient for both home cooks and professional food manufacturers, thereby driving its demand.

Key Market Challenges

Increased Emphasis on Clean Label Products

The trend towards clean labels and natural products is bolstering the popularity of buttermilk powder. Consumers increasingly prefer products with simple, natural ingredients, and buttermilk powder, which typically lacks artificial additives and preservatives, aligns well with this preference. However, adhering to clean label requirements can be challenging due to the need for transparency in sourcing and production processes. The availability of organic and non-GMO buttermilk powder appeals to health-conscious consumers who demand transparency and purity in their food choices, presenting both an opportunity and a challenge for manufacturers.

Market Competition and Innovation

The buttermilk powder market faces intense competition and the constant need for innovation. As more brands enter the market, differentiation through unique value propositions becomes crucial. Innovation in product formulation, packaging, and marketing strategies is essential to capture and retain market share. Additionally, maintaining product consistency and quality while scaling production poses a significant challenge for both new and existing players. The need to continually innovate and differentiate their offerings to stay competitive in the market is a significant challenge faced by companies.

Key Market Trends

Rise of Home Cooking

The surge in home cooking and baking, especially driven by the COVID-19 pandemic, has heightened the demand for buttermilk powder as consumers seek to improve their homemade baked goods and experiment with DIY recipes. This trend is anticipated to persist as people remain health-conscious. The convenience of using buttermilk powder, which boasts a longer shelf life than liquid buttermilk, makes it a favored choice for home cooks, further driving demand.

The distinctive composition endows buttermilk powder with various functional properties that make it a versatile ingredient in many applications. The proteins in buttermilk powder act as emulsifiers, stabilizing oil-water interfaces in products like sauces, dressings, and ice creams. They also contribute to foam formation and stability in baked goods and facilitate browning through the Maillard reaction. Its water-binding capabilities enhance the viscosity of items like puddings and help maintain product freshness. Additionally, the rich, milky flavor of buttermilk powder enhances the dairy taste in various products and is frequently used in seasonings. As a producer of dairy milk powders, we offer buttermilk powder with fat content ranging from 4% to 8%, and it can be certified Kosher or vegetarian.

Increasing Urbanization and Disposable Incomes

The growth of the food and beverage industry, coupled with expanding applications for buttermilk powder, is another factor driving market demand. Food manufacturers are continually innovating, incorporating buttermilk powder into dairy blends, health drinks, and specialty foods. Moreover, increasing urbanization and rising disposable incomes in emerging markets contribute to the demand for diverse, high-quality food ingredients like buttermilk powder. As urban populations grow and consumer incomes rise, there is a greater inclination towards purchasing premium food products, including those containing buttermilk powder.

Segmental Insights

Product Type Insights

In 2023, conventional buttermilk powder represented the dominating revenue share. It is widely used across a variety of products, such as bakery items, confectionery, sauces, dressings, and ready-to-eat meals. Its multifunctionality makes it an essential ingredient in numerous food processing operations. Additionally, it is more readily available due to established production and distribution networks, ensuring that consumers and manufacturers can easily source the product, which contributes to its growing demand. Conventional buttermilk powder, produced through traditional dairy processing methods, is favored for its reliability and consistent quality. It remains a staple ingredient in numerous products, including bakery goods, sauces, and snacks, due to its functional benefits and affordability. Despite the growing interest in organic alternatives, conventional buttermilk powder continues to lead the market, driven by its strong production base and extensive utilization across the food industry.

Regional Insights

In 2023, the North American market for buttermilk powder accounted for the largest revenue share. Recently, North America has witnessed a substantial shift towards healthier eating and drinking habits. Increasing awareness of dietary choices has fueled the popularity of buttermilk powder across the region. Its high versatility, applicable in baking, cooking, flavoring, and thickening, makes it a valuable ingredient in American kitchens and food products, driving its growing demand. This increased interest in healthier food options has significantly boosted market revenue in the region. The U.S. buttermilk powder market is characterized by intense competition and continuous innovation.

As more Americans seek clean-label products with minimal additives and preservatives, the natural composition and absence of artificial ingredients in buttermilk powder align well with these preferences. This trend supports its increasing use in both homemade and commercially processed foods. Moreover, the U.S. market observes continuous product innovations and the introduction of organic and non-GMO buttermilk powder to meet the evolving needs of health-conscious consumers. These innovations are crucial in capturing and retaining market share in a highly competitive landscape.

Key Market Players

• Agropur Cooperative
• Fonterra Co-operative Group Limited
• Dairy Farmers of America, Inc.
• Arla Foods amba
• North Cork Creameries Ltd
• NOW Health Group, Inc
• Numidia BV
• Lactalis Group
• Valio Ltd
• UELZENA eG

Report Scope:

In this report, the global Buttermilk Powder Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Buttermilk Powder Market, By Product Type:

• Organic
• Conventional

Buttermilk Powder Market, By Application:

• Foodservice
• Household
• Dairy Products
• Bakery & Confectionery
• Food & Beverages
• Others

Buttermilk Powder Market, By Distribution Channel:

• B2B
• B2C

Buttermilk Powder Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• Germany
• Spain
• Italy
• United Kingdom
• Asia-Pacific
• China
• Japan
• India
• Vietnam
• South Korea
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE
• Turkey
• Kuwait
• Egypt
• South America
• Brazil
• Argentina
• Colombia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the global Buttermilk Powder Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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