Buttermilk Powder Market by Nature (Conventional, Organic), By Form (Powdered, Granulated), By Application (Food & beverages {Beverages, Bakery & confectionery, Dairy products, Others}, Foodservice, Household), By Distribution channel (Online, Offline {Supermarkets/hypermarkets, Specialty stores, Convenience stores, Others}), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles and Market Forecast, 2025 – 2035

Industry Outlook

The Buttermilk Powder Market accounted for USD 3.32 Billion in 2024 and is expected to reach USD 6.57 Billion by 2035, growing at a CAGR of around 6.4% between 2025 and 2035. The Buttermilk Powder Market is built on the manufacture and supply of dehydrated buttermilk, which is available in various forms. It therefore originates from the liquid that remains after churning butter. It is widely used in the beverage, confectionery, bakery, and animal feed industries due to its high protein, calcium, and vitamin content.

Consumer demand has been steadily increasing toward functional foods, convenience products, as well as clean-label ingredients. Its long shelf life and ease of storage make it a popular choice for both industrial and household applications.

Report Scope:

Market Dynamics

Increasing demand for functional foods rich in proteins and nutrients

The growing need for functional products enhanced with proteins and nutrients has contributed greatly to the Buttermilk Powder Market. Rich in probiotics, vital amino acids, calcium, and vitamins, buttermilk is well-known for its positive effects on bone structure, the immune system, and the digestive tract. To measure the growing trend towards a healthier welfare status, consumers gradually shifted their focus to buttermilk as an extra component and a nutritious beverage, which is also evident in densely populated places.

To the worldwide trends of renewed interest in natural, healthful products. It might be a result of the increasing usage of buttermilk in snacks, recipes, and even fast food. Backing this, the United States Department of Agriculture (USDA) explains that one cup of buttermilk has 8.1 g of protein and calcium essential for muscles and bones. This nutrient profile enhances buttermilk as a preferred product in the expanding functional food segment.

Rapid growth in bakery and confectionery sectors worldwide boosting demand.

The growing need for functional products enhanced with proteins and nutrients has contributed greatly to the Buttermilk Powder Market. Rich in probiotics, vital amino acids, calcium, and vitamins, buttermilk is well-known for its positive effects on bone structure, the immune system, and the digestive tract.

To measure the growing trend towards a healthier welfare status, consumers gradually shifted their focus to buttermilk as an extra component and a nutritious beverage, which is also evident in densely populated places. To the worldwide trends of renewed interest in natural, healthful products. It might be a result of the increasing usage of buttermilk in snacks, recipes, and even fast food. Backing this, the United States Department of Agriculture (USDA) explains that one cup of buttermilk has 8.1 g of protein and calcium essential for muscles and bones. This nutrient profile enhances buttermilk as a preferred product in the expanding functional food segment.

Low consumer awareness about buttermilk powder usage in developing regions

The major issue that the Buttermilk Powder Market faces is the fact that people, primarily from developing countries, are not acquainted with its advantages and uses. The majority of emerging countries are still ignorant about the uses of buttermilk powder, even though it is widely recognized in established markets like the US and Europe for its numerous health benefits.

Low marketing efforts, inadequate distribution networks, and strong demand for traditional milk products such as fresh milk or curd contribute to this circumstance. For instance, buttermilk powder is viewed as a specialized or industrial product in some countries, such as those in Africa and Southeast Asia, rather than as a typical or everyday product. Its use has also been restricted by people's ignorance about its application in functional meals, baked goods, and beverages.

Expansion of e-commerce platforms driving buttermilk powder sales across regions

E-commerce platforms and digital advancements have created a fantastic opportunity for the buttermilk powder market to attract increasing customers. Customers who are unable to readily access certain buttermilk powder items in their physical stores benefit from the fact that they are only offered online. E-commerce also personalizes marketing since brands can portray how buttermilk powder can be useful in nutrition, cooking, baking, and drinks. Furthermore, through buying products directly from the company’s website and social media pages, businesses have been able to create awareness among clients as to the uses of this product, thus increasing its demand. As internet usage increases and consumer dependence on the internet for their necessities rises, e-commerce is a useful tool for increasing the uptake of buttermilk powder across the world.

Untapped potential in Asia-Pacific markets with increasing dairy consumption

With the rising need for dairy products, population growth, and shifting consumer tastes, Asia-Pacific is a potential region for the Buttermilk Powder Market in terms of growth rates. As local consumers favor convenient and processed items like processed milk products, there is an increasing need for ingredients like buttermilk powder. The urbanization of places like China, India, and Southeast Asia has created a demand for bakery goods, confections, and functional foods that use buttermilk powder. Manufacturers can benefit from the opportunity by improving the product’s recognition of its nutritional values and expanding the customization of the company’s product portfolio to meet regional customer preferences. This identifies key market development opportunities in one of the world’s most burgeoning dairy markets.

Industry Experts Opinion

"Buttermilk powder is a convenient and versatile ingredient that not only enhances flavor but also provides nutritional benefits. It's rich in calcium, protein, and B vitamins, which contribute to bone health and overall nutrition. It's an excellent alternative for those looking to lower fat intake but still get the benefits of dairy"

• Dr. Elizabeth Pivonka, President of the Produce for Better Health FoundationJayen Mehta, MD, Amul India

Segment Analysis

Based on Nature, the Buttermilk Powder Market has been classified into conventional and organic. The conventional segment is the most dominant in the Buttermilk Powder Market because of its lower price, ease of scaling up, and peculiarities of its application. In contrast to the low-cost buttermilk process, traditional buttermilk powder is produced at high rates and reasonable prices through standard dairy farming practices, making it convenient for manufacturers and consumers.

It is extensively utilized in the food and beverage sector, particularly in the manufacturing of baked goods, confections, sauces, and processed foods, where issues like price and uniformity are crucial considerations. It also has the added benefit of enhancing the longevity, flavor, and texture of various items, making it the preferred choice of food processors and strengthening the company's position in the market. Furthermore, in areas where price-conscious consumers are searching for fabrics, gowning, and related products, the industry is mostly unaffected by decreased demand.

Based on Form, the Buttermilk Powder Market has been classified into Powdered and granulated. The powdered segment is the largest in the Buttermilk Powder Market due to its wide applicability and simple usage. Since powdered buttermilk is finely ground and readily dissolves in mixtures to provide consistency to the finished products, it is the last of the most widely used varieties of buttermilk in the food industry, particularly in the baking process as well as in the confectionery and dairy product sectors.

Compared to granular forms, this has the advantage of a longer shelf life and is easier to store, which makes it even more appealing to processors and end users. Because it takes up less room and comes in small containers, the powdered version is also less expensive to produce and transport. Its use in creating non-granular textures and enhancing flavor profiles supports its nearly uncontested market position, which satisfies a range of home and commercial needs.

Regional Analysis

The North American Buttermilk Powder Market is experiencing growth due to the versatility of the product in baking and confectionery products and is finding its way into the food service industries. Various functional qualities, such as heat stability and solubility, extended shelf life, and the capacity to add desired texture changes to processed meals like FRUITS buttermilk powder, are driving up demand. 

Canada’s dairy industry also ensures the provision of good-quality buttermilk powder for export and local use. In addition, buttermilk powder is steadily finding its place as a healthier dairy product compared to regular buttermilk; therefore, more and more people are adding it to their recipes. This regional growth is further backed by increasing technology in dairy processing and better distribution channels.

The Asia Pacific Buttermilk Powder Market is expanding quickly as a result of the increased demand for dairy products in Southeast Asian and South Asian nations like China and India. This is because people are becoming more urbanized and altering their diets to include more baked goods and confections that contain buttermilk powder.

Both the expansion of the food and beverage industry and the rise in the middle class in the area are driving market growth. The strong buttermilk culture in Indian cooking and the growing popularity of quick foods have led to a steady increase in the use of buttermilk powder in the country. On the consumer side, the increasing growth and popularity of bakeries and foods containing healthier functional ingredients are positive factors for China. Besides, progress in dairy production and processing technologies in the region improves product accessibility and quality.

Competitive Landscape

The Buttermilk Powder Market is highly competitive and populated by both international and domestic companies. Arla Foods, Nestlé, Friesland Campina, and Lactalis are market leaders in the dairy industry, owning the current distribution networks, differentiating their products, and having well-known brands. Given the growing customer interest in clean-label, organic, and fortified buttermilk powder, several companies aim to diversify their portfolios.

Because they provide specific meat products and take into account local tastes, closely associated smaller regional businesses are equally essential to the sector. The market is fairly saturated with ongoing developments in buttermilk powder's nutritional value and applications. To reach more customers in the market, new stores are also being sought after as a new sales channel. Other important strategies that businesses employ to strengthen their presence in a new geographic area include outsourcing, joint ventures, partnerships, associations, mergers, and acquisitions.

Buttermilk Powder Market, Company Shares Analysis, 2024

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Recent Developments:

• In April 2023, Sid‘s Farm entered the market with a new buttermilk drink in a bid to cash in on the summer season. The current stock is from fresh, quality ingredients and targets customers with a penchant for healthy beverages, which this buttermilk falls under. The product contains several kinds of probiotics and has multiple health-promoting associated interventions, including in the improvement of digestion and immunity.
• In March 2023, the company introduced a new line of buttermilk products under the brand ‘A-One and a line of milkshakes packed in single-serving carton folders. The Heritage A-One Spiced Buttermilk is an aerated, natural-flavored drink from the fresh fermented Heritage milk. The product is clear, thick, and has a nice feel in the mouth, and the sour and salty taste is equalized with green chili extract and natural ginger extract to make it easily drinkable on the go.

Report Coverage:

By Nature

• Conventional
• Organic

By Form

• Powdered
• Granulated

By Application

• Food & beverages
  • Beverages
  • Bakery & confectionery
  • Dairy products
  • Others
• Foodservice
• Household

By Distribution channel

• Online
• Offline
  • Supermarkets/hypermarkets
  • Specialty stores
  • Convenience stores
  • Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Arla Foods
• Amul
• Lactalis Ingredients
• Kraft Heinz Company
• Nestlé S.A.
• FrieslandCampina Ingredients
• Fonterra Co-operative Group Limited
• Saputo Inc.
• Agropur Dairy Cooperative
• Glanbia PLC
• Dairy Farmers of America
• Schreiber Foods
• Cargill, Incorporated
• Tatua Cooperative Dairy Company
• Valio Ltd.
• Ingredia S.A.
• Devondale Murray Goulburn Co-operative Co. Limited
• Milk Specialties Global
• Meadow Foods

Frequently Asked Questions (FAQs)