Buttermilk Powder Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 3.53 Billion
CAGR (2026-2031)	5.15%
Fastest Growing Segment	Organic
Largest Market	North America
Market Size (2031)	USD 4.77 Billion

Market Overview

The Global Buttermilk Powder Market will grow from USD 3.53 Billion in 2025 to USD 4.77 Billion by 2031 at a 5.15% CAGR. Buttermilk powder is a dehydrated dairy ingredient derived from the liquid by-product of butter manufacturing known as buttermilk. The market is fundamentally supported by the product's functional ability to improve texture and emulsification in bakery and confectionery applications while offering a significantly longer shelf life than its liquid counterpart. These drivers enable industrial food manufacturers to utilize the ingredient for cost-effective formulation and easier logistics compared to fresh dairy alternatives.

A significant challenge impeding market expansion is the inherent volatility of supply as production volumes are inextricably linked to butter manufacturing schedules rather than direct demand. This dependency often leads to fluctuating availability and pricing instability for large scale buyers. According to the United States Department of Agriculture, in 2024, the total production of dry buttermilk in the United States reached approximately 152 million pounds. Such variations in output underscore the procurement difficulties that can hinder consistent growth in the global sector.

Key Market Drivers

The increasing utilization of buttermilk powder in bakery and confectionery applications serves as a primary catalyst for market growth, leveraging the ingredient's natural phospholipid content to enhance emulsification and texture in premium baked goods. Industrial manufacturers are aggressively incorporating this dairy solid into formulations for biscuits, cakes, and pastry products to achieve superior crumb structure while managing formulation costs. This sustained industrial uptake is directly reflected in recent trading valuations; according to The Bullvine, January 2025, in the 'Global Dairy Trade Auction Kicks Off 2025' article, buttermilk powder prices registered a 0.9% increase specifically driven by bolstered demand from the baking and processed food sectors. This trend underscores the ingredient's transition from a byproduct to a strategic functional component.

Simultaneously, the rising adoption of buttermilk powder as a cost-effective substitute for skim milk powder is reshaping procurement strategies across the food processing industry. As manufacturers face volatile commodity costs, the functional similarity of buttermilk powder allows for seamless integration into dairy blends and prepared mixes, providing a reliable alternative when traditional milk powder supplies tighten. This substitution dynamic is amplified by production deficits in key regions; according to the United States Department of Agriculture, April 2025, in the 'Dairy Products 2024 Summary', domestic production of skim milk powders declined by 13.3% to 599 million pounds in 2024, creating a supply gap that incentivizes the switch to buttermilk derivatives. Broader supply chains remain robust to support this shift; according to Dairy Australia, in 2024, national milk production increased by 3% to 8,376 million litres during the 2023/24 season, ensuring stable raw material availability.

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Key Market Challenges

The primary impediment to the Global Buttermilk Powder Market is the inelasticity of supply resulting from its status as a secondary by-product of butter production. Because output volumes are dictated by butter manufacturing schedules rather than direct market demand for the powder itself, buyers face significant availability risks. This disconnect creates a volatile procurement environment where industrial users, such as bakeries and confectionery manufacturers, cannot rely on consistent supply levels to support large-scale product rollouts. Consequently, these supply chain uncertainties deter long-term formulation commitments and hamper overall market expansion.

This volatility is evident in inventory fluctuations that disrupt market stability. According to the United States Department of Agriculture, in 2024, manufacturers' ending stocks of dry buttermilk dropped significantly from a high of 35.6 million pounds in March to approximately 22.1 million pounds by October. Such a sharp contraction in available inventory within a single year forces buyers to contend with erratic pricing and supply shortages, directly limiting the sector's ability to maintain steady growth.

Key Market Trends

The increasing incorporation of buttermilk powder into functional foods and nutraceuticals is redefining the ingredient’s market value beyond traditional culinary uses. Manufacturers are aggressively exploiting the high concentration of milk fat globule membrane (MFGM) found in buttermilk to create premium formulations targeting cognitive development and gut health in adults. This shift allows producers to market buttermilk derivatives as high-value bioactive components rather than simple commodities. According to Arla Foods Ingredients, April 2025, in the 'Arla Foods Ingredients expands MFGM applications beyond infant nutrition' article, 53% of adults globally have expressed a direct interest in functional foods, prompting dairy processors to divert buttermilk supplies towards the production of specialized MFGM-enriched ingredients for the wellness sector.

Concurrently, innovation in fortified and high-protein product formulations is driving new demand for buttermilk powder within the active nutrition market. As consumers prioritize physical performance, buttermilk is being utilized in protein blends and recovery beverages to improve solubility and creamy flavor profiles that are often lacking in pure whey or casein products. This trend is fueled by the evolving needs of health-conscious demographics seeking functional benefits alongside palatability. According to Glanbia Nutritionals, October 2025, in the '2025 Nutrition Trends for Active Adults' report, 30% of consumers cited energy and stamina as their top motivation for increased protein intake, incentivizing brands to develop buttermilk-enhanced products that deliver both nutritional efficacy and superior taste.

Segmental Insights

The organic segment represents the fastest-growing category within the global buttermilk powder market, driven by escalating consumer demand for clean-label and chemical-free dairy ingredients. This expansion is primarily fueled by heightened awareness regarding the potential adverse effects of synthetic pesticides and antibiotics often associated with conventional dairy farming. Consequently, food manufacturers are increasingly incorporating organic buttermilk powder into premium bakery, confectionery, and sauce formulations to adhere to stringent certification standards set by authorities such as the USDA and the European Commission. This strategic shift toward transparent, natural ingredients secures the segment's accelerated upward trajectory.

Regional Insights

North America holds a commanding position in the Global Buttermilk Powder Market, driven by the extensive reach of its domestic food processing sector. The region exhibits sustained demand for buttermilk powder in dry pancake mixes, bakery blends, and salad dressings due to its functional emulsifying properties and distinct flavor profile. This market leadership is further supported by the industry-wide shift toward clean-label ingredients, as manufacturers prioritize natural dairy alternatives. Additionally, the United States Department of Agriculture establishes rigorous grading standards for dry dairy products, ensuring a consistent, high-quality supply chain that fortifies the region's commercial stability.

Recent Developments

In April 2025, Arla Foods Ingredients launched a new global campaign titled "Whey360" to promote the health benefits of milk fat globule membrane (MFGM) beyond early life nutrition. The initiative aimed to educate the industry on the potential of MFGM, a key component naturally found in buttermilk, for adult nutrition categories such as healthy aging and sports performance. This strategic move followed regulatory clarifications in the European Union that confirmed MFGM ingredients were not classified as novel foods, thereby facilitating their broader application in diverse food and beverage products for consumers of all ages.
In February 2025, FrieslandCampina Ingredients announced that it had received approval from the Food and Drug Administration of Thailand for its Vivinal MFGM ingredient. This regulatory milestone allowed the company to introduce its milk fat globule membrane (MFGM) ingredient, which is derived from whey and buttermilk streams, into infant milk formulas and other food products within the Thai market. The approval followed a comprehensive three-year evaluation process and enabled manufacturers in the region to incorporate this bioactive ingredient known for supporting cognitive development and immune health into their premium nutrition products.
In October 2024, Lactalis Ingredients participated in the SIAL Paris exhibition, where it showcased its comprehensive portfolio of dairy ingredients, including its range of buttermilk powders. During the event, the company highlighted the functional advantages of its buttermilk powders, emphasizing their natural richness in phospholipids and milk fat globule membrane (MFGM). These ingredients were presented as key solutions for the bakery and confectionery sectors, offering emulsifying properties and flavor enhancement. The exhibition provided a platform for the company to demonstrate the versatility of these high-value powders in creating clean-label and texturally superior food products.
In September 2024, Valio announced a significant investment of approximately EUR 70 million to modernize its production plant in Seinäjoki, Finland. The project focused on overhauling the powder plant's drying tower and processing systems to increase production capacity for specialty milk powders. The Seinäjoki facility, which also produces the company's butter, is a central hub for manufacturing industrial powders used by international customers in the confectionery and bakery industries. This modernization was designed to improve energy efficiency and secure the long-term supply of high-quality dairy ingredients, including those essential for the global ingredients market.

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

By Product Type	By Application	By Distribution Channel	By Region
Organic Conventional	Foodservice Household Dairy Products Bakery & Confectionery Food & Beverages Others	B2B B2C	North America Europe Asia Pacific South America Middle East & Africa

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:

Buttermilk Powder Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

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

Available Customizations:

Global Buttermilk Powder Market report with the given market data, TechSci Research 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).

Global Buttermilk Powder Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Buttermilk Powder Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Product Type (Organic, Conventional)

5.2.2. By Application (Foodservice, Household, Dairy Products, Bakery & Confectionery, Food & Beverages, Others)

5.2.3. By Distribution Channel (B2B, B2C)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Buttermilk Powder Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Product Type

6.2.2. By Application

6.2.3. By Distribution Channel

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Buttermilk Powder Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Product Type

6.3.1.2.2. By Application

6.3.1.2.3. By Distribution Channel

6.3.2. Canada Buttermilk Powder Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Product Type

6.3.2.2.2. By Application

6.3.2.2.3. By Distribution Channel

6.3.3. Mexico Buttermilk Powder Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Product Type

6.3.3.2.2. By Application

6.3.3.2.3. By Distribution Channel

7. Europe Buttermilk Powder Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Product Type

7.2.2. By Application

7.2.3. By Distribution Channel

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Buttermilk Powder Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Product Type

7.3.1.2.2. By Application

7.3.1.2.3. By Distribution Channel

7.3.2. France Buttermilk Powder Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Product Type

7.3.2.2.2. By Application

7.3.2.2.3. By Distribution Channel

7.3.3. United Kingdom Buttermilk Powder Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Product Type

7.3.3.2.2. By Application

7.3.3.2.3. By Distribution Channel

7.3.4. Italy Buttermilk Powder Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Product Type

7.3.4.2.2. By Application

7.3.4.2.3. By Distribution Channel

7.3.5. Spain Buttermilk Powder Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Product Type

7.3.5.2.2. By Application

7.3.5.2.3. By Distribution Channel

8. Asia Pacific Buttermilk Powder Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Product Type

8.2.2. By Application

8.2.3. By Distribution Channel

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Buttermilk Powder Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Product Type

8.3.1.2.2. By Application

8.3.1.2.3. By Distribution Channel

8.3.2. India Buttermilk Powder Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Product Type

8.3.2.2.2. By Application

8.3.2.2.3. By Distribution Channel

8.3.3. Japan Buttermilk Powder Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Product Type

8.3.3.2.2. By Application

8.3.3.2.3. By Distribution Channel

8.3.4. South Korea Buttermilk Powder Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Product Type

8.3.4.2.2. By Application

8.3.4.2.3. By Distribution Channel

8.3.5. Australia Buttermilk Powder Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Product Type

8.3.5.2.2. By Application

8.3.5.2.3. By Distribution Channel

9. Middle East & Africa Buttermilk Powder Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Product Type

9.2.2. By Application

9.2.3. By Distribution Channel

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Buttermilk Powder Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Product Type

9.3.1.2.2. By Application

9.3.1.2.3. By Distribution Channel

9.3.2. UAE Buttermilk Powder Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Product Type

9.3.2.2.2. By Application

9.3.2.2.3. By Distribution Channel

9.3.3. South Africa Buttermilk Powder Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Product Type

9.3.3.2.2. By Application

9.3.3.2.3. By Distribution Channel

10. South America Buttermilk Powder Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Product Type

10.2.2. By Application

10.2.3. By Distribution Channel

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Buttermilk Powder Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Product Type

10.3.1.2.2. By Application

10.3.1.2.3. By Distribution Channel

10.3.2. Colombia Buttermilk Powder Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Product Type

10.3.2.2.2. By Application

10.3.2.2.3. By Distribution Channel

10.3.3. Argentina Buttermilk Powder Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Product Type

10.3.3.2.2. By Application

10.3.3.2.3. By Distribution Channel

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Buttermilk Powder Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Agropur Cooperative

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Fonterra Co-operative Group Limited

15.3. Dairy Farmers of America, Inc.

15.4. Arla Foods amba

15.5. North Cork Creameries Ltd

15.6. NOW Health Group, Inc

15.7. Numidia BV

15.8. Lactalis Group

15.9. Valio Ltd

15.10. UELZENA eG

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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