Yogurt Powder Market
The market for Yogurt Powder was estimated at $902 million in 2024; it is anticipated to increase to $1.38 billion by 2030, with projections indicating growth to around $1.96 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Yogurt Powder Market Outlook
Revenue, 2024
$902M
Forecast, 2034
$1.83B
CAGR, 2025 - 2034
7.3%
The Yogurt Powder industry revenue is expected to be around $968.0 million in 2025 and expected to showcase growth with 7.3% CAGR between 2025 and 2034. This impressive growth trend showcases the market importance of Yogurt Powder driven by various factors in demand for healthier and convenient food choices propelling its popularity surge among consumers today due to its longer shelf life and ease of use in diverse recipes within the evolving food sector landscape Yogurt Powders ability to improve food texture and nutritional value along with its probiotic properties further solidify its appeal, to consumers
Dried yogurt powder is made by extracting water from yogurt to create an easily pourable dairy ingredient with key nutrients akin to fresh yogurt. It is commonly incorporated in baking recipes and cooked dishes well as in instant meals and nutritious drinks. Current preferences show a growing interest in using yogurt powder in health and wellness goods due, to the increasing number of health individuals.
Market Key Insights
- The Yogurt Powder market is projected to grow from $902.2 million in 2024 to $1.83 billion in 2034. This represents a CAGR of 7.3%, reflecting rising demand across Bakery and Confectionery Products, Cosmetic and Personal Care and Nutritional Supplements.
- Epi Ingredients, C.P. Ingredients Ltd, Batory Foods are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Yogurt Powder market and are expected to observe the growth CAGR of 4.7% to 7.0% between 2024 and 2030.
- Emerging markets including Brazil, UAE and South Africa are expected to observe highest growth with CAGR ranging between 8.4% to 10.1%.
- Transition like Shift Towards Healthy Eating is expected to add $42 million to the Yogurt Powder market growth by 2030.
- The Yogurt Powder market is set to add $923 million between 2024 and 2034, with manufacturer targeting Dairy Products & Dietary Supplements Application projected to gain a larger market share.
- With The surging demand for dairy alternatives, and The rising health consciousness, Yogurt Powder market to expand 102% between 2024 and 2034.
Opportunities in the Yogurt Powder
Manufacturers in the yogurt powder industry could also partner with companies in sectors like baking and sweets to take advantage of the growing demand for ingredients, in those areas and enhance their products nutritional content by incorporating yogurt powder for a distinctive flavor profile and added nutritional benefits through strategic partnerships that foster innovation and help reach new customer segments.
Growth Opportunities in North America and Europe
In North America's market scenario today Yogurt Powder has gained popularity as an ingredient in various food items like pastries and protein drinks. The strong consumer demand for nutritious food options plays a significant role in driving this trend. Furthermore the growing fitness and wellness industries have spurred the use of Yogurt Powder as people look for protein rich alternatives, to conventional protein supplements. Rigorous rivalry among leading companies such as Nestle and General Mills plays a role in shaping the market dynamics by driving ongoing product advancements and expansion efforts on their end. Simultaneously there are opportunities for newcomers and small scale producers due to the increasing consumer interest, in locally sourced and organically produced foods that align with ethical standards.
In the global Yogurt Powder markets landscape Europe. Western Europe. Stands out as a strong player. The regions leading position can be linked in part to the held European custom of including dairy items in their meals and also to the increasing trend of veganism and vegetarianism in the region. The introduction of dairy Yogurt Powder with its use in dairy free yogurts and desserts as well as baked goods offers substantial growth prospects, for businesses operating in this market sector. The market competition consists of a combination of industry leaders and local businesses. It is characterized by innovation and research activities aimed at satisfying the growing need for snacks that are low in fat and high, in protein while also being healthier options.
Market Dynamics and Supply Chain
01
Driver: The Surging Demand for Dairy Alternatives, and Technological Advancements in Food Processing
As lactose intolerance and the popularity of veganism continue to rise in society today individuals are also increasingly looking for substitutes for dairy products. Yogurt powder has also emerged as an option to meet this demand as it offers easy digestion abundant nutrients and flexibility in its usage making it a favored option among consumers. The adaptable characteristics of yogurt powder have also seamlessly integrated it into sectors of the food industry including baking and beverage production owing to its seamless blending capabilities, with diverse ingredients. also advances in technology in the food and beverage industry, like spray drying and freeze drying methods have also boosted the manufacturing and use of yogurt.
The increasing focus on health and well being is also influencing decisions in the food and drink sector these days. Equipped with probiotics that are also beneficial for gut health yogurt powder has also captured the interest of a considerable number of health conscious individuals. Research highlighting the advantages of probiotics in fighting illnesses and enhancing immunity is also driving the growth of the yogurt powder market. It is also not only a key component in dietary supplements but also finds applications, in nutraceuticals and pharmaceutical products.
02
Restraint: Restrictions on Additives
The yogurt powder sector is encountering a hurdle due to strict rules surrounding the incorporation of additives and potentially harmful substances in the production process of yogurt powder products. today's consumers are more mindful of their well being and dietary choices by preferring minimally processed food options. This shift in consumer preferences has led to a growing desire for yogurt powder variations that are devoid of preservatives and artificial flavors. As a result of this trend manufacturers are facing pressure to invest substantially in research and development efforts to uphold product quality and longevity without resort, to additives. This issue is turning out to be a limitation in the market affecting market trends and reducing the demand, for powdered yogurt.
03
Opportunity: Overcoming Freshness Constraints and Catering to the On-the-Go Consumer
The process of freeze drying or spray drying employed in creating powder transforms it into a product that can be stored without refrigeration requirements – a significant advantage over fresh dairy items that need to be kept chilled at all times to maintain their quality and freshness levels intact. This presents an opportunity for businesses to reach out to consumers in areas where access, to reliable refrigeration facilities is limited or inconsistent. Additionally the extended shelf life of yogurt powder contributes to minimizing food wastage by enabling storage periods.
In today's moving world where people are constantly on the go and looking for quick and easy meal choices to fit their busy schedules and lifestyles there is a rising demand for convenient food options that can be prepared rapidly. The versatility of yogurt powder in being added to a variety of dishes and drinks perfectly meets this demand suggesting significant opportunities, for market expansion ahead.
04
Challenge: High Production Cost
The yogurt powder industry faces a hurdle in terms of expensive production processes. The creation of yogurt powder entails steps like fermentation, drying and packaging. This requires investments in machinery and technology. High energy consumption, rising raw material costs and labor expenses all contribute to the production expenses. Furthermore enforcing top notch quality, at every stage of the process involves a financial outlay.
Supply Chain Landscape
1
Raw Material Suppliers
FonterraArla Foods
2
Production Plants
Kerry GroupGlanbia Plc
3
Warehouse & Logistics
DHLFedEx
4
End Users
Bakery IndustryDairy IndustryConfectionery Industry
1
Raw Material Suppliers
FonterraArla Foods
2
Production Plants
Kerry GroupGlanbia Plc
3
Warehouse & Logistics
DHLFedEx
4
End Users
Bakery IndustryDairy IndustryConfectionery Industry
Use Cases of Yogurt Powder in Bakery & Confectionery Products
Bakery and Confectionery Products : Yogurt Powder finds use in the bakery and confectionery sector as both a flavor enhancer and a sour component added to baked goods for a tangy twist. The acidified and sweetened variation of yogurt powder is particularly popular for its versatility in enhancing the taste of treats. Market leaders, like Lactalis Ingredients and Epi Ingredients have strengthened their market presence by offering top notch yogurt powders that enhance the texture and flavor of bakery products.
Nutritional Supplements : Yogurt powder is commonly used in creating nutritional supplements because of its high protein content which makes it a popular choice for health and wellness products. Probiotic yogurt powder is well known for its effects on gut health and has gained recognition in the industry. Health conscious companies such, as Kerry Inc. and Fonterra take advantage of the benefits of yogurt powder to develop top notch health supplements preferred by consumers who prioritize their well being.
Cosmetic and Personal Care : Many beauty and personal care products utilize Yogurt Powder as an ingredient as it offers skin enhancing benefits and moisturizing properties that are highly sought after in the skincare industry today. Companies like AOBiome Therapeutics and Galactic have successfully incorporated Yogurt Powder into their skincare products to enhance skin health and provide moisturization, for their customers.
Recent Developments
The rise of Yogurt Powder signifies an efficient answer in the ever changing food sector by capturing the true nature of yogurt in a condensed and adaptable format Its increasing fame is expected to persist as the worldwide demand for health focused and easy, to access food choices expands.
December 2024 : DairyBest introduced a manufacturing line for lactose free yogurt powder to meet the increasing need for products, without lactose.
October 2024 : Global company YogiDust introduced a probiotic yogurt powder aimed at enhancing digestive health in the market.
August 2024 : Graindale revealed a collaboration with Healthdrops to introduce yogurt powder into a fresh range of health bars. This move aims to tap into the growing health consciousness and nutritional focus, among customers.
Impact of Industry Transitions on the Yogurt Powder Market
As a core segment of the Packaged & Processed F&B industry,
the Yogurt Powder market develops in line with broader industry shifts.
Over recent years, transitions such as Shift Towards Healthy Eating and Technological Advancements in Production have redefined priorities
across the Packaged & Processed F&B sector,
influencing how the Yogurt Powder market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift Towards Healthy Eating
The global trend towards wellness has had an influence on the yogurt powder industry. A growing understanding of how diet affects health has caused a rise in the popularity of powder due to its high protein content, probiotic advantages and versatility. Compared to yogurt powdered yogurt offers an convenient and durable option that maintains its health benefits making it attractive, to health conscious individuals. Companies have had to adjust their marketing strategies to emphasize the health benefits of their products due to this change, in consumer preferences.
02
Technological Advancements in Production
The yogurt powder sector has undergone a transformation due to the incorporation of cutting edge technologies, into the manufacturing procedures. Firms are embracing spray drying methods that enable them to create yogurt powder with flavors and textures closely resembling those of made yogurt while preserving its nutritional benefits.