Table of Contents
Overview
New York, NY – June 18, 2025 – The Global Organic Milk Powder Market is positioned for steady expansion, with the market size projected to grow from USD 3.2 billion in 2024 to approximately USD 4.0 billion by 2034, representing a compound annual growth rate (CAGR) of 3.3% during 2025–2034.
This rising demand reflects a growing consumer preference for organic, clean‑label dairy ingredients, driven by increasing health awareness, nutritional benefits, and environmental concerns. Organic milk powder has gained popularity as a wholesome addition to bakery goods, confectioneries, infant formulas, and nutritional supplements, thanks to its superior nutrient profile and chemical‑free nature. Key growth factors include heightened interest in premium, additive‑free foods, supportive certification frameworks, expansion of organic dairy farming practices, and government initiatives that bolster sustainable agriculture.
In 2024, the global organic milk powder market saw the whole milk powder segment dominate the type category with a 58.3% revenue share, driven by its rich nutritional profile and widespread use in infant formula, bakery, and confectionery products. Dairy-based sources led the market with an 87.4% share, owing to consumer trust in traditional cow milk for its protein, calcium, and essential nutrients. In terms of application, the bakery & confectionery segment held the largest share at 38.4%, supported by rising demand for clean-label and organic ingredients in premium baked goods. Distribution was primarily through the B2B channel, which accounted for 72.3% of the market, reflecting strong demand from food and beverage manufacturers seeking bulk, shelf-stable, and high-quality organic milk powder for consistent formulation needs.
How Growth is Impacting the Economy
The organic milk powder market is contributing positively to the global economy by fostering demand for sustainable agriculture, encouraging organic dairy farming, and supporting rural economic development. The rise in organic dairy production is generating new employment opportunities in farming, processing, and logistics, particularly in regions with strong dairy infrastructures like North America and Europe. Additionally, the market supports ancillary sectors including packaging, certification, and cold-chain logistics. As consumer spending shifts toward healthier food options, organic dairy sales are enhancing revenue streams for both large food manufacturers and small-scale organic producers.
The value-added nature of organic products also enables premium pricing, resulting in increased profit margins and tax contributions. Countries with supportive regulatory frameworks are witnessing enhanced foreign direct investment in organic dairy processing. The increasing use of organic milk powder in nutraceuticals, bakery, and infant formula industries is also strengthening the broader food economy by promoting innovation and long-term product diversification.
Key Takeaways
- In 2024, the global organic milk powder market was valued at USD 3.2 billion.
- The market is projected to grow at a CAGR of 3.3%, reaching USD 4.0 billion by 2034.
- Whole milk powder held the largest share among types, accounting for 58.3% of the market.
- Among sources, dairy-based products dominated with a market share of 87.4%.
- By application, bakery & confectionery led the market with a 38.4% share.
- Based on distribution channel, the B2B segment accounted for 72.3% of the total market.
- North America emerged as the largest regional market, holding a 36.3% share in 2024.
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Experts Review
At present, the organic milk powder market is showing stable, demand-driven growth, especially in premium food categories and infant nutrition. This trend is supported by rising global awareness of food safety, animal welfare, and sustainable consumption. Moving forward, the market is expected to benefit from improved organic certification systems, technological advancements in dairy processing, and growing investments in clean-label food innovation. Analysts view the future positively, with strong potential in Asia-Pacific and Latin America due to expanding middle-class populations and shifting dietary habits. Overall, organic milk powder is positioned as a resilient, long-term growth sector within the broader dairy industry.
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Key Market Segments
By Type
- Whole Milk Powder
- Skimmed Milk Powder
- Buttermilk & Whey
By Source
- Dairy-based
- Non-dairy based
By Application
- Bakery & Confectionery
- Infant Formula
- Nutritional Products
- Dairy Desserts
- Beverages
- Others
By Distribution Channel
- B2B
- B2C
- Supermarkets/Hypermarkets
- Specialty Stores
- Online Retail
- Others
Regional Analysis
In 2024, North America led the global organic milk powder market with a dominant 36.3% share, supported by its advanced dairy infrastructure, stringent organic certification standards, and high consumer demand for clean-label, sustainable products. The region benefits from strong supply chain systems and the presence of major producers, ensuring consistent quality and distribution.
According to the Organic Trade Association, 82% of U.S. households reported buying organic products in 2022, highlighting the region’s widespread preference for health-conscious and eco-friendly options. Government initiatives promoting organic agriculture and collaborations such as the Innovation Center for U.S. Dairy have further reinforced North America’s leadership by enhancing food safety, sustainability practices, and regulatory compliance across the dairy sector.
Top Use Cases
- Infant Nutrition: Organic milk powder is used in infant formulas to provide essential proteins, vitamins, minerals, and healthy fats without synthetic additives. Its clean-label reputation and high digestibility make it appealing to parents seeking nutritional assurance. Premium organic infant formulas are gaining traction due to concerns over food safety and infant well‑being.
- Bakery & Confectionery: The ingredient enhances texture, flavor, and nutritional content of baked goods and sweets. Incorporating organic milk powder allows manufacturers to promote cleaner ingredient lists, longer shelf life, and rich creamy notes. This aligns with consumer demand for premium, artisanal products, and supports bakery operations by delivering consistent functionality and taste.
- Nutritional Supplements & Beverages: Organic milk powder is used in protein shakes, health drinks, and dietary supplements due to its balanced amino acid profile and natural fat content. It offers a clean-source alternative to synthetic proteins and is popular among fitness-conscious consumers. High bioavailability and organic provenance strengthen the product’s appeal in health‑oriented markets.
- Dairy-Based Food Products: Organic milk powder is reconstituted for use in yogurts, dairy desserts, soups, sauces, and ready‑to‑eat meals. It provides a stable, long‑shelf‑life dairy base while ensuring organic authenticity. Manufacturers benefit from its versatility and ease of handling compared to fresh milk, especially for large‑scale food processing.
Recent Developments
1. Fonterra Co Operative Group Limited: Fonterra has recently announced a record NZD 12.30/kg midpoint forecast payout to its organic milk suppliers for the 2024–25 season, driven by increasing global demand and constrained organic supply. Additionally, the co operative strengthened its sustainability agenda through its 2023 Climate Roadmap, committing to science-based emissions reductions aligned with SBTi’s 1.5°C pathway. These strategic moves reinforce Fonterra’s commitment to support organic dairy farmers and expand its premium organic milk powder business.
2. Lactalis Ingredients: Lactalis Ingredients has expanded its product portfolio by launching a new organic whole milk powder produced in France from certified-organic herds, free from additives and antibiotics. Complementing sustainability goals, the company unveiled France’s largest solar thermal power plant at a dairy production facility in January 2024, reducing CO2 emissions by approximately 2,000 tonnes annually. Lactalis’s investments reflect a dual focus on organic product range expansion and greener manufacturing processes.
3. Horizon Organic Dairy, LLC: Horizon Organic has relaunched its organic instant dry whole milk line, fortified with vitamins A, D, and 50% more calcium, offering consumers convenient powder milk solutions. Ownership transitioned in April 2024 when Platinum Equity acquired a controlling stake, signaling new investment and strategic direction. The brand remains focused on sustainability, continuing prior commitments toward carbon-positive operations under its environmental agenda.
4. AGRANA Group: AGRANA has strengthened its organic infant-nutrition portfolio, offering 100% organic baby milk formulas—including goat-based variants—compliant with EU/WHO Codex standards. Most recently (2025), the firm introduced a vegan, organic, sustainable toddler drink powder at BIOFACH, targeting eco-conscious consumers with dairy alternatives. This diversification reflects AGRANA’s strategy to combine organic dairy heritage with plant-based solutions.
5. NOW Foods: NOW Foods continues to promote its USDA certified Organic NonFat Dry Milk Powder, emphasizing its long shelf life and suitability for baking and reconstitution. The company has also expanded its plant-based range with organic Oat Milk Powder, offering 4g protein per serving with no added sugar and targeting coffee and tea applications. These moves highlight NOW Foods’s growing focus on both conventional and alternative organic milk powders.
Conclusion
The organic milk powder market is showing resilient and steady growth, driven by the global shift toward health-oriented, sustainable food choices. With rising demand from sectors like bakery, infant nutrition, and functional beverages, the industry is unlocking new revenue streams and supporting organic dairy farming. It brings economic benefits through higher-value products, rural employment, and strengthened supply chains. Looking ahead, the market is expected to leverage ongoing consumer preferences, regulatory support, and processing innovations to maintain upward momentum. Businesses focusing on quality, traceability, and market expansion are well positioned to capitalize on these trends, ensuring long-term value and industry stability.
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