Yogurt Powder Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Whole Yogurt Powder, Skimmed Yogurt Powder, Semi-Skimmed Yogurt Powder), By Packaging (Sachets/Pouches, Cans/Jars, Bulk Packaging), By End Use (HoReCa, Industrial, Household), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 737.16 Million
CAGR (2026-2031)	6.71%
Fastest Growing Segment	Skimmed Yogurt Powder
Largest Market	North America
Market Size (2031)	USD 1088.41 Million

Market Overview

The Global Yogurt Powder Market will grow from USD 737.16 Million in 2025 to USD 1088.41 Million by 2031 at a 6.71% CAGR. Yogurt powder is a dehydrated dairy ingredient produced by removing moisture from fresh yogurt, typically through spray drying, to create a shelf-stable product that retains the original culture's tart flavor and nutritional value. The market's growth is fundamentally supported by the industrial requirement for versatile, long-lasting ingredients that eliminate the cold-chain logistics and spoilage risks associated with fresh dairy, thereby enabling broader application in dry mixes, bakery goods, and nutritional beverages. This demand is reinforced by the enduring popularity of the yogurt category; according to the International Dairy Federation, in 2024, yogurt sales in South Africa increased by 7%, reflecting a robust consumer appetite for cultured dairy profiles that underpins the derivative powder market.

However, a significant challenge impeding market expansion is the susceptibility of heat-sensitive probiotic bacteria to degradation during the thermal drying process. This loss of bioactivity reduces the functional health appeal of the powder compared to fresh yogurt, often necessitating expensive microencapsulation technologies that can inflate production costs and limit accessibility in price-sensitive sectors.

Key Market Drivers

The Surge in Demand for High-Protein and Sports Nutrition Ingredients is a primary catalyst propelling the Global Yogurt Powder Market, as manufacturers increasingly seek shelf-stable dairy formats to fortify functional foods. Yogurt powder allows formulators to incorporate the nutritional profile of cultured dairy into dry applications—such as protein bars, ready-to-mix recovery shakes, and meal replacement powders—without the moisture content that complicates shelf life and texture in high-protein products. This trend is driven by health-conscious consumers prioritizing functional density; according to Glanbia Nutritionals, March 2024, in the 'Yoghurt trends to watch in 2024' report, 25% of recent global yogurt launches featured a "high source of protein" claim, reflecting the intense industrial focus on protein fortification that directly benefits the derivative powder sector.

Simultaneously, Expanding Applications in Bakery, Confectionery, and Beverage Sectors are widening the addressable market for dehydrated yogurt ingredients beyond traditional dairy uses. Food technologists are leveraging the acidity and distinct flavor profile of yogurt powder to create tangy coatings for pretzels, yogurt-filled confectionery, and shelf-stable smoothie mixes, effectively bypassing the cold-chain limitations of fresh yogurt. This diversification is critical as snacking behaviors evolve; according to Mondelēz International, March 2024, in the '2024 State of Snacking' report, 60% of global shoppers now prefer snacks or smaller meals over traditional meals, creating a robust environment for yogurt-infused snack innovations. The broader vitality of the dairy ingredient trade further underscores this growth; according to the U.S. Department of Agriculture (USDA), in 2025, U.S. dairy industry exports were reported to have reached $8.2 billion for the preceding year, highlighting the strong global demand for versatile dairy solids that underpins the yogurt powder supply chain.

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Key Market Challenges

The susceptibility of probiotic bacteria to thermal degradation significantly restricts the Global Yogurt Powder Market by eroding the product's primary value proposition as a functional health ingredient. When subjected to the high temperatures inherent in industrial spray drying, essential bacterial strains such as Lactobacillus and Bifidobacterium often suffer irreversible viability loss. This reduction in bioactivity forces manufacturers to label their products merely as yogurt-flavored rather than claiming the digestive health benefits that modern consumers aggressively seek. Consequently, the powder becomes less competitive in the lucrative health and wellness sector, limiting its adoption primarily to confectionery and bakery applications where functional attributes are secondary to taste profile.

This technical limitation creates a substantial divergence between the commercial performance of fresh cultured dairy and its dehydrated counterpart. While the demand for active probiotic foods continues to surge, standard yogurt powders fail to consistently deliver the live cultures required to capitalize on this trend. For instance, according to Dairy Australia, in 2024, the annual per capita consumption of yogurt in Australia reached 10 kilograms, underscoring the immense consumer preference for active cultured products. The yogurt powder segment struggles to mirror this robust category expansion because it cannot replicate the live probiotic efficacy that drives fresh sales without incurring production costs that render the final product competitively unviable.

Key Market Trends

The Emergence of Plant-Based and Vegan Yogurt Powder Alternatives is reshaping the market landscape as manufacturers adapt to the global shift away from animal-derived proteins. To capitalize on the rising demand for dairy-free formulations, suppliers are increasingly developing dehydrated yogurt bases derived from coconut, almond, oat, and soy milk that replicate the tartness and texture of traditional dairy. These plant-based powders are essential for formulators creating vegan-friendly dry mixes, smoothies, and baking ingredients where shelf stability and clean labeling are paramount. This segment's growing influence is evident in retail performance; according to the Good Food Institute, April 2025, in the '2024 State of the Industry' report, plant-based yogurt accounted for 3.5% of total yogurt sales in the retail market, highlighting a critical and expanding niche that directly drives the development of derivative powder alternatives.

Simultaneously, the Innovation in Exotic and Premium Flavor Profiles is driving value growth as brands move beyond standard fruit varieties to offer sophisticated, indulgence-oriented sensory experiences. Industrial users are leveraging yogurt powder as a carrier for complex, high-margin flavor systems—such as dessert-inspired profiles or ethnic-fusion tastes—to create premium confectionery fillings and beverage mixes that appeal to adventurous consumers. This trend aligns with the broader industrial strategy of prioritizing high-value products over commodities; according to Danone, June 2025, in the '2024 Integrated Annual Report', over 60% of the company's revenue was generated from high-value functional segments, including indulgence and gut health, reflecting the strong commercial imperative to innovate with premium, flavor-forward dairy ingredients.

Segmental Insights

The skimmed yogurt powder segment represents the fastest-growing category in the global market, primarily driven by rising consumer demand for low-fat and calorie-reduced food products. Manufacturers are increasingly utilizing this ingredient to formulate functional beverages and nutritional snacks that require specific nutritional profiles without compromising on flavor. Additionally, strict labeling regulations enforced by authorities like the U.S. Food and Drug Administration encourage the industry to adopt skimmed ingredients to validate low-fat product claims. Consequently, this segment is expanding rapidly as food processors seek to align their portfolios with health-centric market trends and regulatory compliance standards.

Regional Insights

North America holds a dominant position in the Global Yogurt Powder Market, primarily driven by the mature and extensive food processing industry in the United States. The region's leadership is attributed to rising consumer demand for convenient, shelf-stable dairy ingredients that retain the nutritional profile of fresh yogurt, such as probiotics and protein, without requiring refrigeration. Manufacturers widely utilize these powders in diverse applications, ranging from bakery products and nutritional supplements to dry beverage mixes. Furthermore, strict adherence to quality and safety standards monitored by regulatory bodies like the FDA reinforces market confidence, ensuring consistent adoption across commercial sectors.

Recent Developments

• In December 2025, FrieslandCampina Ingredients showcased a range of new functional yogurt concepts at the Food Ingredients Europe (FiE) exhibition in Paris. The company presented innovative solutions using its proprietary prebiotic and protein ingredients to transform standard yogurt applications into wellness products targeting gut, muscle, and cognitive health. The Global Marketing Lead at FrieslandCampina Ingredients emphasized that these concepts addressed the "protein plus" trend, combining high-quality dairy proteins with gut-health benefits. This showcase demonstrated the company's focus on advancing the functionality of fermented dairy ingredients and powders in the competitive global market.
• In November 2024, Kerry Group announced a definitive agreement to sell its dairy division, Kerry Dairy Ireland, to the Kerry Co-Operative Creameries for approximately €500 million. This strategic transaction included the transfer of dairy ingredient manufacturing assets, which produce functional dairy proteins and nutritional bases often used in the yogurt powder and fortified dairy market. The CEO of Kerry Group explained that this divestment would allow the company to become a pure-play taste and nutrition business while ensuring the dairy division continued its operations under a new ownership model. The deal represented a significant restructuring within the global dairy ingredients landscape.
• In October 2024, Batory Foods announced the expansion of its facility in Wilmington, Illinois, with the opening of a new Innovation Center dedicated to custom blending and application development. The 16,000-square-foot facility was designed to enhance the company’s capabilities in creating tailored ingredient solutions, including beverage and bakery formulations that often utilize functional dairy powders. The President of Batory Foods stated that the investment would allow the company to better serve its customers by providing testing, micro-dosing, and one-pack solutions. This expansion underscored the distributor's commitment to supporting innovation in the food and beverage sector, including the yogurt powder category.
• In January 2024, Epi Ingredients promoted its newly developed extra sour yogurt powder, designed to meet the growing consumer demand for natural and authentic dairy flavors in the healthy snacking sector. The company highlighted that this shelf-stable, clean-label ingredient was derived entirely from natural acidity, eliminating the need for artificial acidifiers in formulations. A Product Manager at Epi Ingredients noted that the powder was suitable for diverse applications, including fillings, coatings, and frozen desserts, offering a solution that replicates the sensory profile of fresh yogurt. This development aimed to support manufacturers in creating distinctive snack options with the tangy flavor profile characteristic of traditional fermented dairy.

Key Market Players

• Glanbia plc
• Epi Ingrédients
• Kerry Group P.L.C.
• Yogen Früz Canada Inc.
• Danone S.A.
• Prolactal GmbH
• CP Ingredients
• Nestle SA
• EasiYo Products Ltd
• Puramio India Private Limited

By Product Type	By Packaging	By End Use	By Region
Whole Yogurt Powder Skimmed Yogurt Powder Semi-Skimmed Yogurt Powder	Sachets/Pouches Cans/Jars Bulk Packaging	HoReCa Industrial Household	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Yogurt Powder Market, By Product Type:

• Whole Yogurt Powder
• Skimmed Yogurt Powder
• Semi-Skimmed Yogurt Powder

• Yogurt Powder Market, By Packaging:

• Sachets/Pouches
• Cans/Jars
• Bulk Packaging

• Yogurt Powder Market, By End Use:

• HoReCa
• Industrial
• Household

• Yogurt 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