Buttermilk Powder Market Report 2025: Growth Driven by Government Incentives and Partnerships

Key Insights

The size of the Buttermilk Powder Market was valued at USD 3.5 Billion in 2023 and is projected to reach USD 5.30 Billion by 2032, with an expected CAGR of 6.1% during the forecast period.  Buttermilk powder is a dehydrated form of buttermilk, which is the liquid left behind after churning curd or cream to make butter. It is produced by evaporating the water content from fresh buttermilk, leaving behind a fine, dry powder that retains most of the nutritional and functional properties of its liquid counterpart. The process involves removing excess moisture through spray drying or drum drying techniques, which helps preserve the shelf life of buttermilk while retaining its distinctive tangy flavor, creamy texture, and beneficial nutrients. Buttermilk powder has a long shelf life, making it a convenient and versatile ingredient for various food applications. It is commonly used in the production of baked goods, dairy products, salad dressings, sauces, soups, and snack foods. Its acidic nature helps in the leavening process, particularly in baking, where it reacts with baking soda to create a light, airy texture in cakes, pancakes, and muffins. Additionally, it serves as an emulsifier in salad dressings and sauces, providing creaminess and smoothness to these products. Factors driving this growth include increasing consumer demand for dairy products, growing health consciousness, and rising disposable incomes. Buttermilk powder is a versatile ingredient used in various food applications, including beverages, bakery, confectionery, dairy products, and foodservice.

Buttermilk Powder Market Concentration & Characteristics

The buttermilk powder market is concentrated in a few key regions, with North America, Europe, and Asia-Pacific accounting for a significant share. Major players in the market focus on innovation to meet the changing demands of consumers. Regulatory compliance and product substitutes influence the market landscape. End-user concentration is high in the food and beverage industry, while the level of M&A activity is moderate.

Buttermilk Powder Market Trends

• Growing Health Consciousness: Consumers are becoming increasingly health-conscious and seek natural and nutritious food products. Buttermilk powder is a rich source of protein, calcium, and other essential nutrients, contributing to its popularity in the health-conscious population.
• Expansion of Foodservice Industry: The burgeoning foodservice industry is driving the demand for buttermilk powder. It is extensively used in restaurants, cafes, and bakeries in applications such as sauces, dressings, and baked goods.
• Technological Advancements: Technological advancements in buttermilk powder production have led to improved functionality and shelf life. New formulations and processing techniques are enhancing the powder's dispersibility, solubility, and flavor profile.

Key Region or Country & Segment to Dominate the Market

Key Regions:

• North America: U.S. and Canada
• Europe: Germany, UK, France, Italy, Spain
• Asia-Pacific: China, India, Japan, South Korea, Australia

Key Segments:

• Application: Food & beverages, foodservice, household
• Composition: Organic buttermilk powder, conventional buttermilk powder

Buttermilk Powder Market Product Insights Report Coverage & Deliverables

This report provides comprehensive insights into the buttermilk powder market, including market size, market share, growth drivers, challenges, and trends. It also provides regional insights, industry news, and company profiles of leading players.

Buttermilk Powder Market Analysis

Market Size: The global buttermilk powder market is valued at 3.5 Billion in 2023 and is projected to reach 6.2 Billion by 2030.

Market Share: Major players hold a significant market share in the global buttermilk powder market. Agropur, NOW Foods, and California Dairies, Inc. are among the leading companies in the industry.

Growth Drivers: The market is driven by factors such as increasing demand for dairy products, rising disposable incomes, and growing health consciousness.

Buttermilk Powder Market Regional Insights

North America

• Largest regional market, accounting for a significant share of global consumption
• High demand from the food and beverage industry
• Strong presence of leading players such as Agropur and California Dairies, Inc.

Europe

• Second largest regional market, with high consumption in Germany and the UK
• Growing health consciousness and the demand for organic buttermilk powder
• Presence of major players such as Valio Oy and UELZENA eG

Asia-Pacific

• Fastest-growing regional market, driven by rising disposable incomes and changing dietary habits
• China and India are major consumers of buttermilk powder
• Local players are emerging to meet the growing demand

Driving Forces: What's Propelling the Buttermilk Powder Market

• Rising demand for dairy products
• Growing health consciousness
• Technological advancements in buttermilk powder production
• Expansion of foodservice industry

Challenges and Restraints in Buttermilk Powder Market

• Price fluctuations in dairy products
• Challenges in maintaining the quality and consistency of buttermilk powder
• Competition from alternative dairy products

Emerging Trends in Buttermilk Powder Market

• Growing popularity of organic buttermilk powder
• Development of new formulations and applications
• Sustainability initiatives in buttermilk powder production

Buttermilk Powder Industry News

• March 2023: Heritage Foods Ltd. launches a new line of buttermilk products branded as A-One.
• January 2023: Fonterra Co-operative Group Limited announces plans to invest in a new buttermilk powder plant in New Zealand.
• December 2022: Agropur acquires the buttermilk powder operations of Dairy Farmers of America, Inc.

Leading Players in the Buttermilk Powder Market

• 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 Market Segmentation

• 1. Composition
  • 1.1. Organic buttermilk powder
  • 1.2. Conventional buttermilk powder
• 2. Application
  • 2.1. Food & beverages
    • 2.1.1. Beverages
    • 2.1.2. Bakery & confectionery
    • 2.1.3. Dairy products
    • 2.1.4. Others
  • 2.2. Foodservice
  • 2.3. Household
  • 2.4. Others
• 3. Distribution channel
  • 3.1. Online retail
  • 3.2. Offline retail
    • 3.2.1. Supermarkets/hypermarkets
    • 3.2.2. Specialty stores
    • 3.2.3. Convenience stores
    • 3.2.4. Others

Buttermilk Powder Market Segmentation By Geography

• 1. North America
  • 1.1. U.S.
  • 1.2. Canada
• 2. Europe
  • 2.1.
  • 2.2. Germany
  • 2.3. UK
  • 2.4. France
  • 2.5. Italy
  • 2.6. Spain
  • 2.7. Rest of Europe
• 3. Asia Pacific
  • 3.1. China
  • 3.2. India
  • 3.3. Japan
  • 3.4. South Korea
  • 3.5. Australia
  • 3.6. Rest of Asia Pacific
• 4. Latin America
  • 4.1. Brazil
  • 4.2. Mexico
  • 4.3. Argentina
  • 4.4. Rest of Latin America
• 5. MEA
  • 5.1. Saudi Arabia
  • 5.2. UAE
  • 5.3. South Africa
  • 5.4. Rest of MEA