DataString Consulting Company Logo
DataString Consulting Company Logo
Dried Buttermilk Market
Home»Recent Reports»Dried Buttermilk Market

Dried Buttermilk Market

Author: Debadatta Patel - Senior Consultant, Report ID - DS1901127, Published - March 2025

Segmented in Form (Powder, Granules, Flakes), Application (Baking, Health Supplements, Dairy Products, Others), Packaging Type, Distribution Channel, End-User and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

Share this report:

Global Dried Buttermilk Market Outlook

The market, for Dried buttermilk was estimated at $780.0 million in 2024; and it is anticipated to increase to $2.7 billion by 2030 with projections indicating a growth to around $7.6 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 23.0% over the forecast period. The growing importance of buttermilk in today's markets showcases its impact across different sectors and industries. Its rising popularity is attributed to factors like storage options that are more environmentally friendly ease of transportation and longer shelf life when compared to liquid buttermilk. The convenience of using buttermilk in a variety of products such as baked goods, sweets and dairy items underscores its enduring significance, in the food and beverage sectors. Moreover its nutritional content, with amounts of important vitamins and minerals makes it a sought after component for health conscious individuals and, in the creation of dietary supplements.


Dry buttermilk offers advantages in the food processing sector such as bakery goods​ processed snacks​, sauces​ spice blends​ and dressings​. Particularly​ there has been a noticeable rise in the confectioneryindustry'sinterest, in dry buttermilk given its decadent creamy taste and its capacity to amplify the flavors of chocolates​, candies​ and other delectable treats.


Market Size Forecast & Key Insights

2019
$780M2024
2029
$6.2B2034

Absolute Growth Opportunity = $5.4B

The Dried Buttermilk market is projected to grow from $780.0 million in 2024 to $6.18 billion in 2034. This represents a CAGR of 23.0%, reflecting rising demand across Bakery Products, Confectionery and Dietary Supplements.

The Dried Buttermilk market is set to add $5.4 billion between 2024 and 2034, with manufacturer targeting Health Supplements & Dairy Products Application projected to gain a larger market share.

With Increased demand in bakery and confectionery sector, and Expansion of the dairy industry and innovative technologies, Dried Buttermilk market to expand 693% between 2024 and 2034.

Opportunities in the Dried Buttermilk Market

Expanding the Scope with Strategic Collaborations

Establish partnerships between major industry stakeholders and regional food producers to enhance the dried buttermilk market growth potential by securing a consistent supply of raw materials and exploring untapped markets for expanded production opportunities, in the dried buttermilk sector.

The Rich Potential in Health Conscious Audience and Technological Innovations Boosting the Dried Buttermilk Industry

There has been an increase, in health conscious individuals who recognize the nutritional advantages of dried buttermilk in recent times. Dried buttermilk is praised for its high protein content and low fat levels which make it a desirable dietary addition. By focusing on this quality of dried buttermilk in their products companies can attract more customers from this expanding health aware consumer base and increase their market presence substantially.

Recent progress in food processing technologies has led to the development of quality dried buttermilk products, with extended shelf life and improved nutritional content. Businesses that leverage these advancements can provide top notch products. Gain a competitive advantage in the market.

Growth Opportunities in North America and Asia Pacific

Asia Pacific Outlook

The Asia Pacific region is experiencing increased attention towards dairy byproducts like buttermilk with a focus especially in countries such as India and China that are emerging economies due to factors such as population growth and improved purchasing power along with a shift towards Western eating habits leading to a rise in demand for these products. The use of buttermilk in different culinary creations and food preparations is creating a competitive yet promising market environment overall. Moreover the growing recognition of the health advantages associated with buttermilk including aiding digestion and high calcium levels is fuel, to the markets growth. Despite facing competition, from brands​​​​​​​ there is significant potential for global players to thrive in the market by offering unique and high quality products.

North America Outlook

North America stands out as the consumer of dairy products and offers great potential for the dried buttermilk sector to thrive in the market here due to its health conscious consumers seeking natural ingredients like dried buttermilk over artificial additives – a trend that has propelled significant growth in this region. The main applications of dried buttermilk include food processing and baking; however the market encounters competition, from well known brands that focus on efficient and eco friendly manufacturing methods. The demand for applications of dried buttermilk is growing due to factors like its rising popularity in the foodservice sector and the increasing trend of home baking. This presents growth opportunities for companies that are investing in research and development, in this region.

North America Outlook

North America stands out as the consumer of dairy products and offers great potential for the dried buttermilk sector to thrive in the market here due to its health conscious consumers seeking natural ingredients like dried buttermilk over artificial additives – a trend that has propelled significant growth in this region. The main applications of dried buttermilk include food processing and baking; however the market encounters competition, from well known brands that focus on efficient and eco friendly manufacturing methods. The demand for applications of dried buttermilk is growing due to factors like its rising popularity in the foodservice sector and the increasing trend of home baking. This presents growth opportunities for companies that are investing in research and development, in this region.

Asia Pacific Outlook

The Asia Pacific region is experiencing increased attention towards dairy byproducts like buttermilk with a focus especially in countries such as India and China that are emerging economies due to factors such as population growth and improved purchasing power along with a shift towards Western eating habits leading to a rise in demand for these products. The use of buttermilk in different culinary creations and food preparations is creating a competitive yet promising market environment overall. Moreover the growing recognition of the health advantages associated with buttermilk including aiding digestion and high calcium levels is fuel, to the markets growth. Despite facing competition, from brands​​​​​​​ there is significant potential for global players to thrive in the market by offering unique and high quality products.

Growth Opportunities in North America and Asia Pacific

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : United States, Germany, China, Australia, Canada are expected to grow at 22.1% to 32.2% CAGR

2

Emerging Markets : Brazil, India, Saudi Arabia are expected to grow at 17.3% to 23.9% CAGR

Market Analysis Chart

The market for dried buttermilk has been on a rise due to various factors driving its growth momentum forward. One notable driver is the growing presence of dried buttermilk in the bakery sector as it plays a role in enhancing the texture and flavor of baked goods. Moreover the popularity of dried buttermilk as a flavor enhancer in savory snacks and convenience foods has also contributed to an increase, in its demand.

Recent Developments and Technological Advancement

December 2024

Acme Dairy Inc introduced a range of dehydrated buttermilk items tailored for bakeries to expand its market presence, in the industry.

October 2024

Holstein Foods acquired Heifer Milk Co., a known producer of dried buttermilk. This acquisition is part of their efforts to expand and diversify their product offerings.

August 2024

Macro FoodTech unveiled a technology advancement in the production of dried buttermilk that has notably extended the shelf life of the product.

Lately there has been an increase worldwide in the desire for dehydrated buttermilk. This rise is mainly due to its nutritional advantages. With its protein levels and low fat content dehydrated buttermilk has become more popular as a healthier alternative to fresh milk, in dietary regimens.

Impact of Industry Transitions on the Dried Buttermilk Market

As a core segment of the Food & Beverage industry, the Dried Buttermilk market develops in line with broader industry shifts. Over recent years, transitions such as Shift towards Healthy Eating and Technological Innovation in Production Processes have redefined priorities across the Food & Beverage sector, influencing how the Dried Buttermilk market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

1

Shift towards Healthy Eating:

The growing awareness of the importance of eating among customers has brought about a notable shift in the dried buttermilkindustry'slandscape. This health conscious trend has pushed manufacturers to promote dried buttermilk as a protein and low fat alternative to fresh buttermilk. Consequently the demand for dried buttermilk has surged in the realms of meal preparation and dietary supplements. An increasing number of health focused individuals are now integrating dried buttermilk into their nutrition routines resultantly boosting its consumption, in both household and commercial settings.

2

Technological Innovation in Production Processes:

In years the dried buttermilk sector has seen significant changes due to technological progress. Manufacturers are now using cutting edge dehydration methods to improve the quality and longevity of their products. For example enhancements, in spray drying techniques help preserve the nutrients and flavors of buttermilk. Additionally these technological advancements simplify transportation and storage processes while reducing costs significantly.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the Food & Beverage industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the Food & Beverage industry cascade into the Dried Buttermilk market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

Driver: Increased demand in bakery and confectionery sector

The increasing inclination of consumers towards nutritious baked goods has also led to a rise in the need for dried buttermilk. Dried buttermilk also serves as a reservoir of proteins and essential nutrients that are also extensively utilized in the making of bakery and confectionery products to enrich their flavor profile and nutritional content. This pattern is also projected to persist due to a health population and a surge, in the practice of home baking prompted by the recent pandemic.
The dairy industry has also made strides in technology resulting in the creation of premium dried buttermilk that lasts longer and offers better nutrition value. New methods like spray drying and microencapsulation have also improved how dried buttermilk can also be used in food and drinks showing how the industry is also evolving and expanding its capabilities, for dried buttermilk products.

Restraint: High Production Cost

As a notch dairy item in the market scene¸ dried buttermilk undergoes a meticulous production process that escalates its production expenses significantly¸ which in turn poses challenges to its market expansion potential due to the resultant high price point that narrows down the customer base¸ particularly in regions where pricing sensitivity is a key factor to consider¸ and There is also the added burden of maintaining the essential cold storage conditions, for dried buttermilk which contributes to its overall cost and restricts its reach in the market space.

Challenge: Limited Consumer Awareness

One significant factor hindering the expansion of the dried buttermilk market is the lack of consumer knowledge about this dairy products benefits for cooking and health purposes. Most consumers are not only familiar with the advantages of using dried buttermilk in recipes or its potential health benefits which results in demand for this product in the market. This lack of awareness is especially noticeable in developing markets where dried buttermilk could have an impact if consumers were better informed about its uses and benefits. This highlights the importance for companies operating in this market to focus on educating consumers and implementing marketing strategies to increase awareness and drive up demand, for dried buttermilk products.

Supply Chain Landscape

Raw Material Procurement

Dairy Farmers of America

Fonterra Co-operative Group

Ingredient Processing

Arla Foods Ingredients

Hoogwegt Group

Production
Bluegrass Dairy & Food / Agri-Mark Inc
Distribution & Sales
The Kroger Co. / Amazon / Walmart
Raw Material Procurement

Dairy Farmers of America

Fonterra Co-operative Group

Ingredient Processing

Arla Foods Ingredients

Hoogwegt Group

Production

Bluegrass Dairy & Food

Agri-Mark Inc

Distribution & Sales

The Kroger Co.

Amazon

Walmart

Banner LogoBanner Logo

Leading Providers and Their Strategies

Application AreaIndustryLeading Providers / ConsumersProvider Strategies
Bakery products
Food & Beverage
Cargill Incorporated
Leveraging the excellent baking properties of dried buttermilk to enhance the taste and texture of bakery goods
Skin-care products
Beauty & Personal Care
Este Lauder Companies
Incorporating dried buttermilk into skincare products to offer gentle exfoliation and nourishing benefits to the skin
Animal feed
Agriculture
Archer-Daniels-Midland Company
Utilizing the high protein content of dried buttermilk to boost nutritional values in animal feeds
Pharmaceuticals
Pharmaceuticals
Royal DSM
Formulating dried buttermilk in pharmaceutical products to improve gut-health and immunity

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Dried Buttermilk market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Dried Buttermilk in Dietary Supplements, Confectionery and Bakery Products

Dietary Supplements

Dry buttermilk is commonly used in supplements for its high protein content and mix of essential vitamins and minerals. It is favored by both manufacturers and consumers for its convenience in storage, cost effectiveness and nutritional benefits. Popular brands, like Bobs Red Mill Natural Foods have incorporated buttermilk into their protein packed supplements to solidify their presence in the market.

Confectionery

In the world of treats like candies and chocolates dried buttermilk plays a crucial role as an ingredient. It adds an rich taste to these delectable delights while also enhancing their texture. Big players in the candy industry such as Nestle and Hershey often use dried buttermilk in their production process to craft notch and delicious treats, with unique flavors.

Bakery Products

In the making of baked goods like cakes and cookies as well as bread products; dried buttermilk is commonly utilized to improve their texture and flavor while maintaining their quality standards intact. Powdered buttermilk is preferred due to its shelf life compared to the liquid form; this makes it a perfect choice for use, in commercial baking purposes. In the dried buttermilk sector focusing on bakery uses stand out industry leaders such, as Dairy America and SAC O. These companies are recognized for their top notch offerings and significant market influence.

Dried Buttermilk vs. Substitutes:
Performance and Positioning Analysis

Dried buttermilk, esteemed for its long shelf-life and versatile culinary use, deftly outshines its substitutes like yogurt and sour cream. Market forecasts indicate a promising surge in its popularity, driven by its unique attributes and expanding applications. These Alternatives specially Yogurt Powder has experienced a rapid growth as detailed in our latest report.

Dried Buttermilk
  • Dried whole milk /
  • Yogurt Powder
    Long shelf life, versatile in baking and cooking
    Flavors may not suit everyone, needs reconstitution before use
    Highly versatile, wide variety of uses
    Can affect the overall flavor of the product, often contains additives

Dried Buttermilk vs. Substitutes:
Performance and Positioning Analysis

Dried Buttermilk

  • Long shelf life, versatile in baking and cooking
  • Flavors may not suit everyone, needs reconstitution before use

Dried whole milk / Yogurt Powder

  • Highly versatile, wide variety of uses
  • Can affect the overall flavor of the product, often contains additives

Dried buttermilk, esteemed for its long shelf-life and versatile culinary use, deftly outshines its substitutes like yogurt and sour cream. Market forecasts indicate a promising surge in its popularity, driven by its unique attributes and expanding applications. These Alternatives specially Yogurt Powder has experienced a rapid growth as detailed in our latest report.

Loading...

Research Methodology

This market research methodology defines the Dried Buttermilk market scope, gathers reliable data, and validates findings using integrated primary and secondary research. Our systematic framework ensures precise market sizing, growth trend analysis, and competitive benchmarking.


Secondary Research Approach


We begin secondary research by defining the targeted market at macro and micro levels. As part of the Food & Beverage ecosystem, we analyze Dried Buttermilk across Industrial Use, Commercial Use, and Residential Use Applications. Our team gathers data systematically from country level ministerial sources, industry associations & federations, trade databases, company annual & quarterly reports and other credential sources, enabling us to map global and regional market size, pricing trends, regulatory standards, and technology advancements.



Key Sources Referenced:

Food and Agriculture Organization (FAO)

Food Substances - FDA

Prodcom / Census US / Statcan / e-stat Japan / ABS Australia / KOSIS Korea

USA Trade Census

DEFRA UK / Ifastat

Climate.gov

Annual Reports / Industry Magazines / Country Level Ministerial Sources

We benchmark competitors such as Bob's Red Mill, Dairy America Inc, and Extra Tangy by reviewing company financial statements, and regulatory filings. Our secondary insights identify key market drivers and constraints, forming the analytical foundation for primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Raw Material Procurement, Ingredient Processing, and Production. Our geographic coverage spans Americas (40%), Europe (30%), Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally achieve a response rate of above 65%, and telephone interviews yield 60%, resulting in above 92% confidence level with a ±7% margin of error.


Through targeted questionnaires and in-depth interviews, we capture purchase intent, adoption barriers, brand perception across Segment Type. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering & Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down & Bottom-Up Process


In Top-down approach, we disaggregate global Food & Beverage revenues to estimate the Dried Buttermilk segment, using historical growth patterns to set baseline trends. Simultaneously, in Bottom-up approach, we aggregate Country-Level Demand Data to derive regional and global forecasts, which provide granular consumption insights. By reconciling both approaches, we ensure statistical precision and cross-validation accuracy.


We evaluate the supply chain, spanning Raw Material Procurement (Dairy Farmers of America, Fonterra Co-operative Group), Ingredient Processing (Arla Foods Ingredients, Hoogwegt Group), and Production. Our parallel substitute analysis examines Dried whole milk and Yogurt Powder, highlighting diversification opportunities and competitive risks.


Company Market Share & Benchmarking


We benchmark leading companies such as Bob's Red Mill, Dairy America Inc, and Extra Tangy, analyzing their capabilities in pricing, product features, technology adoption, and distribution reach. By assessing company-level revenues and product portfolios, we derive market share comparisons, clarifying competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, supply chain evaluation, and company benchmarking, supported by our proprietary Directional Superposition methodology enables us to deliver precise forecasts and actionable strategic insights into the Dried Buttermilk market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

rm

Dried Buttermilk Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 959 million
Revenue Forecast in 2034USD 6.18 billion
Growth RateCAGR of 23.0% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 2024780 million
Growth OpportunityUSD 5.4 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD million and Industry Statistics
Market Size 2024780 million USD
Market Size 20271.45 billion USD
Market Size 20292.20 billion USD
Market Size 20302.70 billion USD
Market Size 20346.18 billion USD
Market Size 20357.60 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredForm, Application, Packaging Type, Distribution Channel, End-User
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledBob's Red Mill, Dairy America Inc, Extra Tangy, FCMP, Fayrefield Foods Ltd, Saco Cultured, Barry Farm, Farm & Ranch, Hormel Thick & Easy, Judee's, Pure Organic Ingredients and The Prepared Pantry
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

Explore Report Features and Data Packages

Industry Insight Report

$ 4200
Unlock Multi-User Access for just $999 more
i
No Payment Before Report Delivery
Flexible Payment Options
Additional Features
Customization Available
i
Excel Data Pack Included
Free Analyst Support
i
Industry Expert-Validated Insights
100% Confidentiality Guaranteed
Fast Delivery (24–72 hours)
i
Get Report Now

Strategic Growth Advisory

Unrivaled Custom Market Intelligence & Strategic Advisory for Business Growth and Competitive Excellence

  • Assess and prioritize high-value markets with precision
  • Craft tailored entry and expansion roadmaps
  • De-risk investments through rigorous market intelligence
  • Architect dynamic pricing frameworks aligned to value creation
  • Unlock sustainable margin enhancement opportunities
  • Benchmark performance against global industry leaders
  • Strategically realign portfolios to future growth drivers
  • Accelerate commercialization of breakthrough offerings
  • Harness market foresight and technology shifts to fuel innovation

Discover our Strategic Growth Advisory Services »

Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Dried Buttermilk Market Size, Opportunities & Strategic Insights, by Form

4.1Powder
4.2Granules
4.3Flakes
Chapter 5

Dried Buttermilk Market Size, Opportunities & Strategic Insights, by Application

5.1Baking
5.2Health Supplements
5.3Dairy Products
5.4Others
Chapter 6

Dried Buttermilk Market Size, Opportunities & Strategic Insights, by Packaging Type

6.1Pouches
6.2Cans
6.3Bags
Chapter 7

Dried Buttermilk Market Size, Opportunities & Strategic Insights, by Distribution Channel

7.1Supermarkets
7.2Online Stores
7.3Retail Outlets
Chapter 8

Dried Buttermilk Market Size, Opportunities & Strategic Insights, by End-User

8.1Industrial Use
8.2Commercial Use
8.3Residential Use
8.4Others
Chapter 9

Dried Buttermilk Market, by Region

9.1North America Dried Buttermilk Market Size, Opportunities, Key Trends & Strategic Insights
9.1.1U.S.
9.1.2Canada
9.2Europe Dried Buttermilk Market Size, Opportunities, Key Trends & Strategic Insights
9.2.1Germany
9.2.2France
9.2.3UK
9.2.4Italy
9.2.5The Netherlands
9.2.6Rest of EU
9.3Asia Pacific Dried Buttermilk Market Size, Opportunities, Key Trends & Strategic Insights
9.3.1China
9.3.2Japan
9.3.3South Korea
9.3.4India
9.3.5Australia
9.3.6Thailand
9.3.7Rest of APAC
9.4Middle East & Africa Dried Buttermilk Market Size, Opportunities, Key Trends & Strategic Insights
9.4.1Saudi Arabia
9.4.2United Arab Emirates
9.4.3South Africa
9.4.4Rest of MEA
9.5Latin America Dried Buttermilk Market Size, Opportunities, Key Trends & Strategic Insights
9.5.1Brazil
9.5.2Mexico
9.5.3Rest of LA
9.6CIS Dried Buttermilk Market Size, Opportunities, Key Trends & Strategic Insights
9.6.1Russia
9.6.2Rest of CIS
Chapter 10

Competitive Landscape

10.1Competitive Dashboard & Market Share Analysis
10.2Company Profiles (Overview, Financials, Developments, SWOT)
10.2.1Bob's Red Mill
10.2.2Dairy America Inc
10.2.3Extra Tangy
10.2.4FCMP
10.2.5Fayrefield Foods Ltd
10.2.6Saco Cultured
10.2.7Barry Farm
10.2.8Farm & Ranch
10.2.9Hormel Thick & Easy
10.2.10Judee's
10.2.11Pure Organic Ingredients
10.2.12The Prepared Pantry