Overview:

The global buttermilk powder market is set for notable expansion, with projections indicating a value of USD 2.79 billion in 2025, increasing to USD 3.94 billion by 2035. This trajectory reflects a Compound Annual Growth Rate (CAGR) of 3.5% over the forecast period. The primary catalysts for this market growth include a burgeoning consumer preference for natural and minimally processed food ingredients, coupled with a rising awareness of the health benefits associated with dairy products like buttermilk powder.

Consumers are increasingly seeking products aligned with healthier lifestyles and clean-label claims. Buttermilk powder, known for its nutritional profile which includes probiotics and beneficial proteins, fits well within this demand. This trend is driving manufacturers to not only boost production capacities but also to innovate in product formulations and expand their geographical presence to cater to key dairy consumption hubs across North America, Europe, and parts of Asia.

Major industry participants are strategically investing in advanced processing technologies and dedicating resources to research and development. These efforts are aimed at enhancing the intrinsic quality of buttermilk powder and extending its shelf life, meeting critical requirements for both large-scale food and beverage manufacturers and individual consumers.

A significant driver is the consumer shift towards foods made with natural components. As consumers become more discerning about the composition of their food, products devoid of artificial colors, flavors, and preservatives are gaining traction. Buttermilk powder, being a natural dairy derivative, directly benefits from this preference among health-aware individuals.

Consequently, processors are capitalizing on this by promoting organic and clean-label buttermilk powder options, presenting them not just as natural alternatives to artificial additives but as standalone products with inherent appeal. The versatility of buttermilk powder is also contributing to its wider integration into various food categories.

It is increasingly utilized across baked goods, confectionery, sauces, salad dressings, and dietary supplements. The business-to-business (B2B) segment is experiencing robust growth, particularly within the foodservice sector, where hotels, restaurants, and cafes use buttermilk powder extensively in culinary applications. Simultaneously, business-to-consumer (B2C) sales are also thriving due to the enhanced accessibility of buttermilk powder products through various retail channels, including large format stores and online marketplaces.

This confluence of factors—heightened consumer interest, expanded production capabilities, and diverse applications across industries—underpins the positive growth outlook for the global buttermilk powder sector.

The market continues its steady upward trend, largely sustained by the increasing call for natural components and the evolving consumer inclination towards clean-label offerings. The market forecast remains optimistic, anticipating consistent expansion through both the initial and latter halves of 2025.

Momentum observed during the first half of the year highlights robust demand stemming from both B2B and B2C channels. By the year’s end, market growth is expected to accelerate, supported by enlarged production capacities and a greater awareness of the health advantages linked to buttermilk powder consumption. Furthermore, the rising popularity of plant-based and organic food choices is predicted to fuel ongoing market development.