Buttermilk Powder Market Size To Reach $4.68 Billion By 2030

Buttermilk Powder Market Growth & Trends

The global buttermilk powder market is expected to reach USD 4.68 billion by 2030, expanding at a CAGR of 6.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. The increasing use of buttermilk powder in various food and beverage applications, such as recombined milk, UHT milk, dairy spreads, infant formula, desserts, bakery products, soups, sauces, flavored milk, and ready-to-drink milk, is a significant industry trend. This growth is driven by the rising consumer demand for ready-to-eat and convenience foods, with buttermilk powder enhancing flavor, texture, and nutritional value.

Buttermilk powder's emulsification properties and creamy flavor benefit the bakery and confectionery segments. Innovations in food processing and new product formulations, including potential hybrid products combining dairy and plant-based ingredients, present opportunities for manufacturers. Advances in production technology, such as improved spray drying techniques, are enhancing the quality and efficiency of buttermilk powder, leading to better heat stability and emulsification properties. These innovations support the production of high-quality, UHT-grade products that meet stringent food safety standards.

Investment in research and development, focusing on drying technology and clean-label products, is driving market growth. A robust distribution network and the presence of major food and beverage manufacturers ensure a steady supply and widespread availability. The growing awareness and demand for sustainable and ethically produced food products further boost the market, with U.S. producers focusing on sustainable practices. These factors combined are expected to maintain the leading position of buttermilk powder in global sales throughout the forecast period.

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Buttermilk Powder Market Report Highlights

• Conventional buttermilk powder accounted for 85.60% in 2023. It is generally more affordable than its organic counterpart, making it an attractive option for budget-conscious consumers and manufacturers. This cost advantage enables wider adoption across various food and beverage applications

• Foodservice is expected to grow at a CAGR of 6.5% from 2024 to 2030. Buttermilk powder can be used in a wide range of recipes, from baking to cooking and dressings. This versatility allows foodservice kitchens to use it in various dishes, such as pancakes, biscuits, marinades, sauces, and dressings, enhancing the flavor and texture of these items

• B2B accounted for a share of 81.34% in 2023. Buttermilk powder is rich in proteins, vitamins, and minerals, which can improve the nutritional value of various food products. Its functional properties, such as emulsification and moisture retention, make it an attractive ingredient for enhancing product quality in large-scale food production

• North America is expected to grow at a CAGR of 6.1% from 2024 to 2030. The rise in home cooking and baking, especially influenced by trends during the COVID-19 pandemic, has led to increased use of ingredients like buttermilk powder. Consumers are exploring new recipes and enhancing their culinary creations, boosting demand for versatile pantry staples 

Buttermilk Powder Market Report Segmentation

Grand View Research has segmented the global buttermilk powder market based on nature, application, distribution channel, and region:

Buttermilk Powder Nature Outlook (Revenue, USD Million, 2018 - 2030)

• Organic

• Conventional

Buttermilk Powder Application Outlook (Revenue, USD Million, 2018 - 2030)

• Food & Beverages

  • Beverages

  • Bakery & Confectionery

  • Dairy Products

  • Others

• Foodservice

• Household

Buttermilk Powder Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

• B2B

• B2C

  • Hypermarkets & Supermarkets

  • Convenience stores

  • Online

  • Others

Buttermilk Powder Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia & New Zealand

• Central & South America

  • Brazil

• Middle East & Africa

  • South Africa

List of Key Players in the Buttermilk Powder Market

• Agropur

• Fonterra Co-operative Group Limited

• Dairy Farmers of America, Inc.

• Arla Foods Ingredients Group P/S

• North Cork Creameries Ltd

• NOW Foods

• NUMIDIA BV

• California Dairies, Inc

• Valio Oy

• UELZENA eG