Buttermilk Powder Market Size - By Composition, By Application, By Distribution channel & Forecast, 2024-2032

Buttermilk Powder Market Size

The global buttermilk powder market size was valued at USD 3.5 billion in 2023 and is anticipated to grow at 6.1% CAGR from 2024 to 2032, driven by its applications in the food and beverage industry, particularly in bakery products, sauces, and dairy formulations. Its extended shelf life, rich flavor, and ability to enhance texture make it a key ingredient in processed foods. Growth trends indicate an increasing demand for buttermilk powder in the foodservice sector, owing to its convenience in large-scale preparations.
 

Additionally, rising consumer preference for clean-label and natural products, particularly in Europe and North America, further boosts market demand. The Asia-Pacific region is seeing robust growth due to expanding bakery and dairy industries.
 

The growth of the buttermilk powder market is primarily driven by the increasing demand for convenient and shelf-stable dairy products. As consumers seek healthy, versatile ingredients for baking and cooking, buttermilk powder offers a rich flavor and nutritional benefits without the need for refrigeration. Additionally, the rise in popularity of clean-label products and natural ingredients has fueled interest in buttermilk powder, particularly among health-conscious consumers. The expanding food and beverage industry, including applications in snacks, baked goods, and dressings, further contributes to market growth, as manufacturers look to enhance flavor profiles and nutritional value.
 

For instance, in April 2023, Sid's Farm launched a new buttermilk product as a refreshing summer drink, targeting health-conscious consumers. This introduction aligns with the growing demand in the buttermilk powder market, driven by consumer interest in nutritious and probiotic-rich beverages. As more brands, like Sid's Farm, focus on high-quality ingredients and health benefits, the market for buttermilk powder is expected to expand further, catering to a rising preference for convenient, health-oriented dairy options.
 

Ongoing innovation and technological advancements in the buttermilk powder market are focused on improving processing techniques and enhancing product quality. Advances in spray-drying technology have optimized powder consistency, resulting in better solubility and extended shelf life. Additionally, there is a growing trend towards developing organic and clean-label buttermilk powders to meet consumer demand for natural ingredients. Innovative packaging solutions that preserve freshness and reduce waste are also being adopted. In terms of functionality, manufacturers are exploring methods to fortify buttermilk powder with additional nutrients like proteins, making it a versatile ingredient for health-conscious consumers and foodservice providers.  
 

The buttermilk powder market faces significant challenges due to high competition from alternative dairy and plant-based ingredients. As consumer preferences shift towards plant-based diets for health and sustainability reasons, products like almond, soy, and oat milk are increasingly favored, posing a direct threat to traditional dairy offerings, including buttermilk powder. This competitive landscape can lead to price pressure and reduced market share for conventional dairy products.
 

Additionally, volatile raw material prices in the dairy industry further complicate the situation. Factors such as fluctuations in feed costs, changing weather patterns, and global supply chain disruptions can significantly impact the cost of milk production. Consequently, these price instabilities can erode profit margins for manufacturers of buttermilk powder, making it difficult for them to maintain stable pricing and competitive advantage. This combination of competition from alternatives and raw material volatility creates a challenging environment for the growth of the market.
 

Buttermilk Powder Market Trends

Current trends in the buttermilk powder industry include rising consumer demand for clean-label and organic products, driven by health-conscious eating habits and sustainability concerns. The food and beverage industry is increasingly incorporating buttermilk powder into dairy, bakery, and snack formulations for its functional properties and flavor enhancement. Upcoming trends point towards the development of high-protein, fortified buttermilk powders and increased usage in emerging markets, particularly in Asia-Pacific. There’s also a growing focus on innovation in sustainable packaging and ingredient transparency, aligned with global sustainability initiatives and consumer preferences for traceable, natural ingredients.
 

Buttermilk Powder Market Analysis

By composition, conventional buttermilk powder segment will capture USD 4.5 billion and demonstrate a 6.2% CAGR by 2032. Conventional buttermilk powder continues to dominate the buttermilk powder market due to its widespread acceptance and established applications in various food products. As a staple ingredient in baking, sauces, and dressings, conventional buttermilk powder is favored for its rich flavor and functional properties, such as moisture retention and emulsification. Its availability and cost-effectiveness make it a preferred choice among manufacturers in the food industry.
 

Additionally, the strong consumer familiarity with traditional dairy products reinforces the demand for conventional options. This dominance is further supported by the well-developed supply chain and infrastructure for conventional dairy, ensuring consistent quality and reliability in sourcing.
 

By application, food and beverage industry will expand to USD 2.4 billion and garner 6.3% CAGR by 2032. The food and beverage sector dominates the buttermilk powder market due to its versatile applications in various culinary processes Additionally, buttermilk powder serves as a key component in salad dressings, sauces, and dips, providing creaminess and depth. Its ability to blend seamlessly into dry mixes makes it popular in snack foods and ready-to-eat meals.
 

The growing trend toward convenient, ready-to-use products further amplifies its importance, as manufacturers seek to incorporate buttermilk powder to improve taste and nutritional value in diverse food applications.
 

By distribution channel, offline segment will expand to USD 5.1 billion and garner 6.1% CAGR by 2032. The offline segment dominates the buttermilk powder market primarily due to established distribution channels, including supermarkets, hypermarkets, and specialty grocery stores. These traditional retail outlets provide consumers with the opportunity to examine product packaging and make informed purchasing decisions.
 

Additionally, offline stores often offer a wider range of brands and formats, catering to diverse consumer preferences. The convenience of purchasing buttermilk powder alongside other grocery items enhances its visibility and accessibility, further driving sales. Furthermore, in regions where e-commerce penetration is lower, offline retail remains a crucial channel, ensuring consistent availability and fostering brand loyalty among consumers.
 

North America buttermilk powder market will record 6.1% CAGR and USD 1.8 billion by 2032, driven by its robust dairy industry and established processing infrastructure. The region benefits from high consumer demand for convenience foods, leading to increased use of buttermilk powder in baking, snacks, and dressings.
 

Furthermore, the growing trend of clean-label products has prompted manufacturers to incorporate buttermilk powder for its natural flavor and nutritional benefits. The presence of major dairy producers and a well-developed distribution network also contribute to North America's market leadership. Additionally, innovations in product formulations and applications continue to bolster growth in this key region.
 

Buttermilk Powder Market Share

The competitive landscape for the buttermilk powder industry features key players like Agropur, NOW Foods, NUMIDIA BV, California Dairies, Inc., Valio Oy, and UELZENA eG. Agropur, a leading dairy cooperative in North America, leverages its extensive distribution network and product innovation to cater to diverse consumer needs. NOW Foods focuses on health-conscious consumers, emphasizing natural and organic products, which enhances its market appeal.
 

NUMIDIA BV, while smaller, capitalizes on niche markets and specialized formulations. California Dairies, Inc. benefits from its strong regional presence and robust supply chain, allowing for competitive pricing. Valio Oy stands out with its high-quality dairy products and strong brand reputation in Europe. UELZENA eG emphasizes sustainability and regional sourcing, appealing to eco-conscious buyers. Overall, the market is characterized by a blend of innovation, regional strengths, and an increasing demand for high-quality, sustainably produced buttermilk powder.
 

Buttermilk Powder Market Companies

Top companies operating in the buttermilk powder industry include:

• Agropur
• NOW Foods
• NUMIDIA BV
• California Dairies, Inc
• Valio Oy
• UELZENA eG 
• Dairygold Deutschland Handels GmbH
• Westland Milk Products
• Fonterra Co-operative Group Limited
• Dairy Farmers of America, Inc.
• Arla Foods Ingredients Group P/S
• North Cork Creameries Ltd
   

Buttermilk Powder Industry News

• In March 2023, Heritage Foods Ltd. introduced a new line of buttermilk products branded as A-One, along with a selection of milkshakes packaged in convenient single-serve cartons. Heritage A-One Spiced Buttermilk is a low-calorie, naturally refreshing drink made from fermented fresh Heritage milk. It boasts a smooth, creamy consistency and a balanced sour and salty flavor, enhanced with natural extracts of green chilies and ginger, making it an ideal on-the-go beverage.
   

The buttermilk powder market research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Billion) (Units) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Composition

• Organic buttermilk powder
• Conventional buttermilk powder

Market, By Application

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

Market, By Distribution channel

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

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  •  
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA