Organic Milk Powder Market By Type (Whole Milk, Skimmed Milk, Whey, Dairy Whitener, Buttermilk, Others), By Application (Nutritional Food, Infant Formulas, Confectionaries, Baked Sweets, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
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This report was compiled by Shreyas Rokade Shreyas Rokade is a seasoned Research Analyst with CMFE, bringing extensive expertise in market research and consulting, with a strong background in Chemical Engineering. Correspondence Team Lead-CMFE Linkedin | Detailed Market research Methodology Our methodology involves a mix of primary research, including interviews with leading mental health experts, and secondary research from reputable medical journals and databases. View Detailed Methodology Page
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Report Overview
The Global Organic Milk Powder Market was valued at USD 3.1 Bn in 2023. It is expected to reach USD 5.5 Bn by 2033, with a CAGR of 6.3% during the forecast period from 2024 to 2033.
The Organic Milk Powder Market involves the production, distribution, and consumption of milk powder derived from organically raised cows. This market is driven by the increasing consumer preference for organic and clean-label products, reflecting broader trends in health and wellness. Organic milk powder is used in a variety of applications, including infant formula, confectionery, bakery products, and nutritional supplements. Key factors contributing to market growth include rising awareness of organic farming benefits, stringent regulatory standards, and expanding product availability. As demand for sustainable and health-conscious food products grows, the Organic Milk Powder Market is expected to experience significant expansion. The Organic Milk Powder Market is experiencing robust growth, driven by the increasing consumer demand for organic and clean-label dairy products. This market is underpinned by a growing awareness of the health benefits associated with organic farming practices, which exclude synthetic pesticides and fertilizers. Full Cream Milk Powder (FCMP), containing 28% butterfat and produced from high-quality raw milk, represents a key segment, offering a creamy, nutrient-rich option for consumers seeking premium dairy products.
The convenience of powdered milk made with real Horizon Organic® milk, which delivers 50% more calcium than standard dry whole milk and is fortified with vitamins A and D, caters to the rising demand for nutrient-rich, organic options. This trend is particularly evident among health-conscious consumers and those seeking sustainable food products.
The market's expansion is further supported by stringent regulatory standards that ensure the integrity and quality of organic milk powder. These regulations foster consumer trust and drive the adoption of organic dairy products. Moreover, the broad application of organic milk powder in infant formula, confectionery, bakery products, and nutritional supplements highlights its versatility and growing market penetration.
Key Takeaways
- Market Value: The Global Organic Milk Powder Market was valued at USD 3.1 Bn in 2023. It is expected to reach USD 5.5 Bn by 2033, with a CAGR of 6.3% during the forecast period from 2024 to 2033.
- By Type: By Type, whole milk constitutes 35% of the Organic Milk Powder Market.
- By Application: By Application, infant formulas make up 30% of the Organic Milk Powder Market.
- Regional Dominance: Europe leads the Organic Milk Powder Market with nearly 30% of the global share.
- Growth Opportunity: The expanding awareness of health benefits associated with organic products and the growing demand for infant nutrition create lucrative growth opportunities in the Organic Milk Powder Market.
Driving factors
Awareness of Health Benefits
The rising awareness of health benefits associated with organic milk powder is a major driving factor for the market's growth. Consumers are increasingly informed about the nutritional advantages of organic milk powder, which is free from synthetic hormones, antibiotics, and pesticides.
Organic milk powder is perceived to contain higher levels of beneficial nutrients, such as omega-3 fatty acids, vitamins, and antioxidants, compared to conventional milk powder. This health-conscious shift is particularly strong among parents seeking healthier options for their children, as well as individuals with dietary restrictions or sensitivities.
Convenient Dairy Products
The increasing demand for convenient dairy products significantly contributes to the growth of the organic milk powder market. As lifestyles become busier, consumers seek dairy products that are easy to store, transport, and use. Organic milk powder offers a convenient alternative to fresh milk, with a longer shelf life and no need for refrigeration.
It can be easily reconstituted with water, making it an ideal choice for busy families, travelers, and outdoor enthusiasts. The convenience factor is further amplified by the rise in e-commerce, allowing consumers to purchase organic milk powder online and have it delivered to their doorstep. This trend towards convenience is expected to continue driving market growth.
Trend of Organic Farming Supports Market Development
The growing trend of organic farming supports the expansion of the organic milk powder market. Organic farming practices emphasize sustainability, animal welfare, and the avoidance of synthetic chemicals, aligning with the values of a growing segment of environmentally conscious consumers.
The increased availability of organically produced milk due to the rise in organic dairy farming facilitates the production of organic milk powder, meeting the rising consumer demand. This trend not only ensures a consistent supply of high-quality raw materials but also resonates with consumers who prioritize sustainable and ethical food choices.
Restraining Factors
Higher Cost Compared to Conventional Milk Powder
One significant challenge facing the organic milk powder market in 2024 is its higher cost compared to conventional milk powder. Organic farming practices, which avoid synthetic pesticides and hormones, generally incur higher production costs. These costs are passed on to consumers, making organic milk powder more expensive.
For price-sensitive consumers, especially in emerging markets, this price differential can be a deterrent. Despite the growing awareness of the health and environmental benefits of organic products, the premium price of organic milk powder remains a barrier to wider adoption.
Limited Availability of Raw Materials Constrains
Another challenge impacting the organic milk powder market is the limited availability of raw materials. Organic dairy farming requires stringent adherence to organic farming practices, which can limit the supply of organic milk. Factors such as the smaller scale of organic farms, higher costs of organic feed, and stringent certification processes contribute to this limited supply.
Climatic conditions and the health of livestock can further affect the availability of organic milk. This supply constraint can hinder the ability of producers to meet rising demand, potentially slowing market growth.
By Type Analysis
By Type Whole milk powder held a dominant market position, capturing more than a 35% share.
In 2023, whole milk powder held a dominant market position in the by type segment of the organic milk powder market, capturing more than a 35% share. The substantial market share of whole milk powder can be attributed to its high nutritional content, rich food flavor, and versatility in various culinary applications. Whole milk powder is preferred for its ability to retain the natural creaminess and fat content of milk, making it a popular choice among consumers seeking organic and wholesome dairy products. Its extensive use in the food and beverage industry, including in bakery products, confectionery, and dairy-based desserts, further supports its dominant market position.Skimmed milk powder, which offers a low-fat alternative, represents another significant segment of the organic milk powder market. The increasing health consciousness among consumers and the growing demand for low-fat dairy products drive the adoption of skimmed milk powder.
Whey, a by-product of vegan cheese production, is also a vital segment within the organic milk powder market. Organic whey powder is highly valued for its protein content and is extensively used in nutritional supplements, sports nutrition, and infant formulas.
Dairy whitener, buttermilk, and other types of organic milk powders make up the remaining segments. Dairy whitener, often used as a substitute for liquid milk in beverages such as tea and coffee, is favored for its convenience and longer shelf life. Buttermilk powder, known for its tangy flavor, is used in baking and cooking to enhance the taste and texture of various recipes.
By Application Analysis
By Application Infant formulas held a dominant market position, capturing more than a 30% share.
In 2023, infant formulas held a dominant market position in the by application segment of the organic milk powder market, capturing more than a 30% share. The significant market share of infant formulas can be attributed to the increasing awareness among parents regarding the health benefits of organic products for their infants. Organic milk powder in infant formulas is preferred due to its lack of synthetic additives, pesticides, and hormones, ensuring a healthier and safer option for infant nutrition.
Nutritional food represents another important application segment of the organic milk powder market. Organic milk powder is widely used in nutritional supplements and health foods, driven by the rising demand for organic ingredients that promote health and well-being.
Confectioneries and baked sweets also constitute significant segments within the organic milk powder market. Organic milk powder is favored in the production of confectioneries and baked goods for its ability to enhance flavor, texture, and nutritional value.
The "others" category, encompassing various additional applications such as beverages and savory snacks, also holds a notable share in the organic milk powder market.
Key Market Segments
By Type
- Whole Milk
- Skimmed Milk
- Whey
- Dairy Whitener
- Buttermilk
- Others
By Application
- Nutritional Food
- Infant Formulas
- Confectionaries
- Baked Sweets
- Others
Growth Opportunity
Emerging Markets with Health-Conscious Populations
Emerging markets present a significant growth opportunity for the organic milk powder market in 2024. Countries in Asia, Latin America, and Africa are experiencing a rise in health-conscious populations who are increasingly aware of the benefits of organic products. These regions are witnessing a growing middle class with disposable incomes and a willingness to invest in healthier food options.
The rising internet penetration and increased access to information about organic foods further drive this demand. As these markets continue to develop, the demand for organic milk powder is expected to increase, providing a lucrative opportunity for market players to expand their presence and cater to a new, health-aware customer base.
New Formulations for Niche Markets
Developing new formulations to cater to niche markets represents another promising opportunity for the organic milk powder market in 2024. There is an increasing demand for specialized products such as lactose-free, fortified, and flavored organic milk powders.
These niche markets cater to specific consumer needs, such as those with lactose intolerance, dietary preferences for enhanced nutritional content, or a desire for varied taste options. By innovating and introducing new product formulations, companies can attract a broader audience and meet the diverse needs of consumers. This approach not only enhances market differentiation but also drives customer loyalty and repeat purchases.
Latest Trends
Use in Food and Beverage Applications
The integration of organic milk powder in various food and beverage applications is a prominent trend driving the market in 2024. Organic milk powder is increasingly being used as an ingredient in products such as infant formulas, baked goods, confectionery, beverages, and ready-to-eat meals. This trend is fueled by the growing consumer demand for organic and clean-label products, which are perceived as healthier and more sustainable.
Manufacturers are leveraging organic milk powder to enhance the nutritional profile and appeal of their products. The versatility of organic milk powder, combined with its health benefits, makes it an attractive ingredient for the food and beverage industry, thus driving market growth.
Popularity of Plant-Based and Lactose-Free Alternatives
The rising popularity of plant-based and lactose-free alternatives presents both a challenge and an opportunity for the organic milk powder market. As more consumers adopt plant-based diets and seek lactose-free options due to dietary restrictions or preferences, the demand for traditional dairy products faces competition.
This trend also opens up opportunities for innovation within the organic milk powder market. Companies can develop lactose-free organic milk powders and blend them with plant-based ingredients to create hybrid products that cater to diverse consumer needs. By addressing the demand for alternative dairy products, the market can attract a broader audience and tap into the growing segment of health-conscious and environmentally aware consumers.
Regional Analysis
Europe dominates the Organic Milk Powder Market, holding 30% of the global market share. This is driven by high consumer demand for organic and natural products, supported by stringent regulations and standards for organic certification. Strong distribution networks and numerous organic dairy farms ensure a steady supply of raw materials, while the increasing adoption of organic milk powder in infant formulas, dietary supplements, and functional foods further propels market growth.
North America holds a significant share in the Organic Milk Powder Market, fueled by growing awareness of the health benefits of organic products. The market is bolstered by a strong presence of organic dairy farms and favorable government policies promoting organic farming. Increased demand for organic infant formula and dietary supplements, along with the expanding e-commerce sector, facilitates easy access to organic milk powder products, boosting market growth.
The Asia Pacific region is experiencing rapid growth in the Organic Milk Powder Market, driven by increasing disposable incomes and growing health consciousness among consumers. The expanding middle class and adoption of Western dietary habits contribute to market growth. Robust e-commerce infrastructure and increased availability of organic products in retail stores support market expansion.
The Middle East & Africa region is gradually expanding its presence in the Organic Milk Powder Market, driven by growing awareness of the health benefits of organic products. Challenges such as limited local production and higher prices compared to conventional milk powder may hinder growth.
Latin America is witnessing steady growth in the Organic Milk Powder Market, driven by increasing demand for organic food products and a focus on health and wellness. Major markets like Brazil, Mexico, and Argentina benefit from a strong agricultural base and improving organic farming practices. The growing middle class and rising disposable incomes enhance the affordability of organic products.
Key Regions and Countries
North America
- US
- Canada
- Mexico
Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Players Analysis
The global Organic Milk Powder Market in 2024 is poised for robust growth, driven by rising consumer awareness of health benefits and an increasing preference for organic products. Key players in this market are well-positioned to capitalize on these trends through innovative product offerings, strategic expansions, and strong supply chain management.
GMP Dairy Limited and Organic Valley are expected to lead the market due to their established reputations and comprehensive organic product lines. GMP Dairy Limited's focus on quality and sustainability, combined with Organic Valley's cooperative model and extensive product range, will continue to attract health-conscious consumers.
Bayerische Milchindustrie eG and Aurora Foods Dairy Corp. are anticipated to strengthen their market positions through strategic investments in organic dairy farming and advanced production techniques. Their commitment to maintaining high organic standards and expanding their product portfolios will drive market growth.
Fonterra Co-operative Group and Sodiaal Union SCA will leverage their large-scale operations and global distribution networks to capture significant market share. Fonterra’s focus on innovation and sustainability, along with Sodiaal’s emphasis on quality and traceability, will enhance their competitive edge.
NuManna and NOW Foods are likely to benefit from their niche positioning and strong emphasis on health and wellness. Their organic milk powders cater to a growing segment of consumers seeking clean-label and non-GMO products.
Organic Farm and Organic West Milk, Inc. are expected to grow through regional market penetration and expanding their organic product offerings. Their focus on local sourcing and sustainable practices will appeal to environmentally conscious consumers.
Sommerbjerg FITSA Group and Organic Denmark will continue to dominate in the European market, driven by strong consumer demand for organic products and robust regulatory support. Their strategic focus on innovation and product diversification will support their growth.
Castle Dairy and SOLAREC are poised to expand their market presence through strategic partnerships and investments in organic dairy farming. Their emphasis on quality control and sustainable practices will attract a loyal customer base.
Market Key Players
- GMP Dairy Limited
- Organic Valley
- Bayerische Milchindustrie eG
- Aurora Foods Dairy Corp.
- Fonterra Co-operative Group
- Sodiaal Union SCA
- NuManna
- NOW Foods
- Organic Farm
- Organic West Milk, Inc.
- Sommerbjerg FITSA Group
- Organic Denmark
- Castle Dairy
- SOLAREC
Recent Development
- May 2024: Horizon Organic expanded its production capacity, introducing innovative packaging solutions designed to extend shelf life and enhance the freshness of organic milk powders.
- March 2024: Organic Valley launched a new line of organic milk powders, targeting health-conscious consumers with sustainable and traceable dairy products.
Report Scope
Report Features Description Market Value (2023) USD 3.1 Bn Forecast Revenue (2033) USD 5.5 Bn CAGR (2024-2033) 6.3% Base Year for Estimation 2023 Historic Period 2018-2023 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Type (Whole Milk, Skimmed Milk, Whey, Dairy Whitener, Buttermilk, Others), By Application (Nutritional Food, Infant Formulas, Confectionaries, Baked Sweets, Others) Regional Analysis North America - The US, Canada, & Mexico; Western Europe - Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe - Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC - China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America - Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa - Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape GMP Dairy Limited, Organic Valley, Bayerische Milchindustrie eG, Aurora Foods Dairy Corp., Fonterra Co-operative Group, Sodiaal Union SCA, NuManna, NOW Foods, Organic Farm, Organic West Milk, Inc., Sommerbjerg FITSA Group, Organic Denmark, Castle Dairy, SOLAREC Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) -
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- GMP Dairy Limited
- Organic Valley
- Bayerische Milchindustrie eG
- Aurora Foods Dairy Corp.
- Fonterra Co-operative Group
- Sodiaal Union SCA
- NuManna
- NOW Foods
- Organic Farm
- Organic West Milk, Inc.
- Sommerbjerg FITSA Group
- Organic Denmark
- Castle Dairy
- SOLAREC