The United States (US) Milk Powder Market size is expected to reach $8.7 Billion by 2030, rising at a market growth of 3.8% CAGR during the forecast period. In the year 2022, the market attained a volume of 1807.1 Kilo Tonnes, experiencing a growth of 4.0% (2019-2022).
The milk powder market in the United States has witnessed significant growth and transformation over the years, driven by various factors, including changing consumer preferences, technological advancements, and evolving dietary patterns. One of the key drivers fueling the growth of the milk powder market in the U.S. is the increasing demand for convenience and shelf-stable dairy products. Milk powder is rich in essential nutrients such as protein, calcium, vitamins, and minerals, making it a valuable dietary supplement for children, athletes, and individuals with specific nutritional needs. As a result, there has been a growing demand for milk powder-based products in the U.S., including fortified milk, protein shakes, and meal replacements.
Furthermore, the increasing adoption of milk powder by food manufacturers and the food service industry has significantly boosted milk powder market growth. Milk powder serves as a versatile ingredient in the food processing sector, offering functional properties such as emulsification, foaming, and texture enhancement. It is extensively used to produce baked goods, chocolates, ice creams, soups, sauces, and ready-to-eat meals to improve taste, texture, and nutritional content while extending product shelf life.
The COVID-19 pandemic has significantly impacted the milk powder market in the United States. There has been a surge in demand for long-lasting pantry staples, including milk powder, as U.S. consumers stocked up on essential items during periods of uncertainty. This increased demand resulted in temporary shortages and supply chain bottlenecks as manufacturers struggled to keep up with the sudden spike in orders. Conversely, the closure of food service establishments such as restaurants, cafes, and schools due to lockdown measures resulted in declining demand for dairy products, including milk powder, in the food service sector.
The milk powder market in the United States has experienced a notable surge in demand for dairy products in recent years, driven by various factors ranging from convenience to nutritional considerations. One of the primary drivers behind the increasing demand for milk powder products is the growing awareness among U.S. consumers about the nutritional benefits of dairy products. The convenience offered by milk powder products has contributed to their rising popularity. Powdered milk can be easily stored without refrigeration, making it an ideal option for Americans seeking long-lasting dairy solutions.
The increasing demand for milk powder in the U.S. is also driven by its diverse applications across various food and beverage segments. Milk powder serves as a key ingredient in the manufacturing of a wide range of products, including baked goods, confectionery items, infant formula, and dairy-based beverages. The versatility of milk powder makes it an essential component in the food processing industry, further fueling its demand.
Moreover, changing consumer preferences and dietary habits have contributed to the growing demand for dairy products, including milk powder. As U.S. consumers increasingly prioritize natural and wholesome ingredients in their diets, milk powder, with its minimal processing and simple ingredient list, aligns well with these preferences. Additionally, the rise of plant-based alternatives has spurred innovation and product development within the dairy industry, introducing new milk powder formulations tailored to meet evolving consumer demands.
According to the United States Census Bureau, in November 2022, milk production in the 24 major states of the United States amounted to 17.3 billion pounds. This underscores the significance of the milk powder market in the U.S., reflecting a growing demand for dairy products. Thus, the surging demand for milk powder in the United States is driven by convenience, nutritional awareness, diverse applications in the food industry, and alignment with evolving consumer preferences for natural ingredients.
In recent years, the milk powder market in the United States has witnessed a significant shift in consumer preferences and purchasing patterns, driven primarily by the growing influence of supermarkets and convenience stores. With their extensive product offerings and convenient shopping experiences, supermarkets have become dominant players in the milk powder market. These large-scale retailers leverage their purchasing power to negotiate favorable deals with suppliers, allowing them to offer competitive prices and a wide variety of milk powder products to U.S. consumers.
Convenience stores cater to Americans seeking quick and easy shopping solutions. With their strategic locations and extended operating hours, convenience stores provide unparalleled accessibility for busy consumers looking to purchase milk powder on the go. These stores often stock a selection of popular milk powder brands, catering to the immediate needs of shoppers and capitalizing on impulse purchases.
According to the U.S. Department of Agriculture, in 2020, the collective worth of retail food service sales reached $483 billion, with supermarkets dominating the industry by contributing 70% of total sales. The convenience store sector also played a significant role, accounting for another 14% of the overall sales. This underscores the growing influence of supermarkets and convenience stores in shaping the landscape of the milk powder market in the United States.
Furthermore, the rise of e-commerce has expanded the reach of supermarkets and convenience stores, enabling them to tap into new industries and attract a broader customer base in the U.S. Online platforms operated by these retailers offer the convenience of doorstep delivery and a seamless shopping experience, further enhancing their competitive edge in the milk powder market. Hence, the evolving preferences of U.S. consumers, coupled with the dominance of supermarkets and convenience stores, have profoundly reshaped the milk powder market.
The milk powder market in the United States is a vital segment of the dairy industry, catering to a diverse range of consumers and applications. From infant formula to baking and cooking, milk powder serves various purposes, making it an essential commodity in American households and businesses. Several companies dominate this industry, each contributing to its growth and evolution. Nestlé, a global powerhouse in the food and beverage industry, is significant in the U.S. milk powder market. With popular brands like Carnation, Nestlé offers a wide range of milk powder products tailored to consumer needs. From everyday use in coffee to specialized infant formula, Nestlé's products are trusted by millions of Americans for their quality and reliability.
Another key player in the U.S. milk powder market is Danone North America, a subsidiary of the French multinational company Danone. With brands like Horizon Organic, Danone caters to the growing demand for organic and sustainably sourced dairy products. Horizon Organic milk powder provides consumers with a convenient and nutritious alternative to conventional milk, aligning with the increasing emphasis on health and wellness in the U.S.
Abbott Laboratories is renowned for its expertise in nutritional products, including infant formula and adult nutritional supplements. In the U.S., Abbott's Similac brand is a household name, offering a range of milk powder formulas designed to support infant growth and development. With a focus on scientific research and innovation, Abbott continues to drive advancements in the milk powder market, meeting the evolving needs of consumers and healthcare professionals.
Private-label brands also play a significant role in the U.S. milk powder market, offering consumers affordable alternatives to national brands. Retail giants like Walmart and Costco have their private label milk powder products, competing with established brands on price and quality. These private-label offerings appeal to budget-conscious consumers while providing retailers higher profit margins and greater control over their product assortment. From global giants like Nestlé and Danone to local dairy processors and private-label brands, each player contributes to the vibrancy and competitiveness of the industry. With ongoing innovation and a focus on quality and sustainability, the U.S. milk powder market is poised for continued growth and evolution in the years ahead.
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