Powdered Milk Market - Forecast(2023 - 2028)

As per an estimation by UNICEF, 386,000 is the number of births per day which brings the global rate per annum to be around 141 million. Owing to effective measures by elite organizations and governments, infant mortality rate has decreased from 8.8 million in 1990 to 4.1 million in 2017 (WHO). UN Population Division released a periodic report for 2017 stating the number of children below 15 years to be 1.9 billion, constituting a major 27% of the world population. Milk is the main source of nutrition for infants and children and the powdered milk market is gaining traction due to its far longer shelf life than liquid milk. Cooling units or refrigerators are yet to enter the developing economies’ households and retail-markets, augmenting the application of powdered milk as it does not need to be refrigerated being low in moisture.

IndustryARC business intelligence report ratifies the global powdered milk market size to be ranging from $10.0 - $10.4 billion as of 2018. This multi-billion dollar nutritional arcade includes various types of dried milk such as skimmed milk powder, whole milk powder, and milk permeate.

In this segment, whole milk is gaining traction owing to its application in the robustly growing F&B industry worldwide and is progressing at a CAGR of 1.5%-2.5% going through 2025.

As per the International Dairy Federation, milk production is escalating every year at 2.3% and the consumption of dairy products is expected to witness a surge of 25% by 2024. With 750 million of population engaged in milk production, the gross production value of raw milk across the world was $328.4 billion in 2013. Now with growing adoption of powdered milk owing to its beneficial traits such as longer shelf life, independent of refrigeration, mobility and easy-to-use, the powdered milk market is all set to divert a huge chunk of revenue from global milk marketplace into its own revenue pocket.

The United States confectionery industry registers around $35billion in retail sales each year, according to Forbes. Brazil is another key country emerging as the top 10 largest markets for confections and candy and recorded a retail sales of $ 2.5 billion in 2014, forecast to grow over by 10% totaling $2.26 billion. Powdered milk that contain high free fat can interact directly with the cocoa butter in chocolate reducing its viscosity making the process economical and the end-products nutritional. Thus the application of milk in the untamed chocolate industry is all set to stroke the powdered milk market with abundant demand.

In 2018, WHO factsheet on malnutrition stated an alarming fact that 45% of deaths among children are linked to under nutrition and 462 million adults are underweight. Maximum of these circumstances are pertinent to huge number of low- and middle-income countries. Milk is the basic source of nutrition and milk powder due to its economical traits such as easy-to-transport and preservation has all the obligatory potential to capture the fluid milk market and penetrate the enormous number of economies below the apt nutrition radar.

After an acute regional-analysis of the powdered milk market, Europe is stated to hold the apex position. The European market held a major 30%-33% of the global powdered milk market share as of 2018. As per the European Dairy Association annual report of 2018, there are more than 12,000 milk production sites in Europe which brings in more than $11.2 billion to the overall EU trade balance. Milk powder and cheese have been the top performer among EU-exports of different dairy products, with skimmed milk powder reaching a new all-time-record of nearly 800,000 tonnes in 2017. On 8th December, 2017 EU and Japan reached an agreement to reduce export tariffs on EU for skimmed milk powder by 95%.

Some of the key players of the global powdered milk market referred in the report are Nestle, Danone, Lactalis, Frieslandcampina, Fonterra, Dean Foods, Arla Foods, Dairy Farmers Of America, Kraft Foods, Saputo and Parmalat.

Milk is an integral part of diet among the people of all age groups ranging from infants to geriatric.

Milk powder is among the several pasteurized form of fresh milk with all the necessary efficient nutrients such as standard amino acids, the building blocks of proteins, and are high in soluble vitamins and minerals. Due to its powder form and mobility it is a common item in the UN food supply program addressing hunger and food security and it longer shelf life augments its retail value in supermarkets. Increasing number of births and child population are the major factors affecting the global powdered milk market size.