Reconstituted Milk Market size was over USD 246.4 billion in 2024 and is estimated to reach USD 670.4 billion by the end of 2037, expanding at a CAGR of 8.7 % during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of reconstituted milk is evaluated at USD 267.8 billion.
Increasing awareness of the nutritional benefits of dairy products is driving the demand for reconstituted milk. According to analysts at Research Nester, 73% of consumers purchased probiotic dairy products for their health and nutritional benefits. With the rising global population and urbanization, consumers are seeking convenient and cost-effective alternatives to fresh milk, boosting the reconstituted milk market for powdered and reconstituted milk products.
Furthermore, as more consumers become health-conscious, they prefer reconstituted milk for its ability to provide essential nutrients like calcium and protein often at a lower cost than fresh milk, making it a popular choice for the health-conscious demographic. Moreover, dairy products and milk accounted for 9.1% of the overall energy supply. The percentages of calcium (54.7%), riboflavin (28.1%), vitamin B12 (26.1%), and phosphorus (24.6%) in the nutrient supply were found to be high (over 20%).
Growth Drivers
Challenges
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
8.7% |
|
Base Year Market Size (2024) |
USD 246.4 billion |
|
Forecast Year Market Size (2037) |
USD 670.4 billion |
|
Regional Scope |
|
Application (Milk, Cheese, Yogurt, Ice Cream, Others)
By Application, the milk segment is anticipated to dominate around 27.4% reconstituted milk market share by the end of 2037. The is due to its versatility and alignment with evolving consumer preferences. From 524 million tonnes in 1992 to 930 million tonnes in 2022, the world's milk production has grown by more than 77%. It provides a cost-effective and long-lasting alternative to fresh milk, appealing to households seeking convenience amid busy lifestyles.
In Japan, the aging population drives demand for nutrient-rich options like reconstituted milk, which is often fortified with essential vitamins and minerals. Additionally, advancements in processing technologies have improved its taste and quality, fostering consumer trust. Its suitability for regions with limited access to fresh dairy and its role in emergency food supplies further boost its growth, especially in import-dependent markets like Japan.
Source (Skimmed Milk, Whole Milk, Anhydrous Milk Fat)
As per the division by source, the skimmed milk segment is estimated to hold the majority of the reconstituted milk market share over the forecast period. The segment’s growth is due to its appeal among health-conscious consumers seeking low-fat and calorie options. With rising awareness of the benefits of reduced fat diets, skimmed milk is gaining traction for its ability to provide essential nutrients like protein and calcium without the added fat content of whole milk.
It was predicted that the amount of skim milk powder consumed in the EU would rise by a total of 39 thousand tonnes between 2023 and 2033. Its extended shelf and affordability make it a practical choice for consumers in both developed and emerging markets. In Japan, the aging population and increased focus on managing lifestyle-related conditions, such as obesity and health, further drive demand for skimmed reconstituted milk products.
Our in-depth analysis of the global reconstituted milk market includes the following segments:
|
Application |
|
|
Source |
|
|
Distribution Channel |
|
APAC Market Statistics
Asia Pacific in reconstituted milk market is anticipated to dominate over 48.2% revenue share by 2037. The region is experiencing rapid urbanization, leading to increased demand for convenient and long-lasting food products. With 6114 convenience food product launches between 2019 and 2023, Japan tops the Asia Pacific area in New Product Launches (NPLs). South Korea comes in second with 3273 NPLs and China with 4302 NPLs. Reconstituted milk, with its ease of storage and preparation, is well-suited to the fast-paced lifestyles of urban regions.
China is solidifying its growth in E-commerce channels. The proliferation of e-commerce platforms in China has made reconstituted milk more accessible to a wider audience. By 2029, the milk consumer volume is anticipated to reach 23.49 billion kg. In 2025, the demand for milk is anticipated to expand by 6.9% in volume. Online sales channels offer convenience and competitive pricing, enabling consumers to purchase these products easily, and driving reconstituted milk market growth.
India homes booming food and beverage industry uses reconstituted milk as an ingredient in products like bakery goods, beverages, and confectionery. It is anticipated that India produced 195 MMT of fluid milk in CY 2020, up from an expected 191 MMT in CY 2019. Its long shelf life and consistent quality make it ideal for large-scale manufacturing, driving demand in the commercial sector.
Europe Market Analysis
Europe reconstituted milk market is also presenting lucrative growth opportunities. European consumers increasingly prefer shelf–stable products due to their convenience and reduced dependency on refrigeration. Overall, 55% of European consumers (compared to 74% of UK consumers) believe that food goods are typically safe. Reconstituted milk, with its extended shelf life, fits the needs of both urban and rural households, particularly in regions with inconsistent fresh milk availability.
Commitment to sustainable practices in Germany is driving demand for reconstituted milk. By using milk powder, manufacturers can reduce the carbon footprint associated with transporting fresh milk, aligning with consumer and government priorities for environmental responsibility. QM-Milch's participation in the Sustainable Dairy Partnership will encourage broader adoption of the SDP among German processors and make it easier to share on-farm sustainability performances with international dairy buyers, as the company covers an impressive 92% of dairy farms and 95% of milk production in Germany.
Furthermore, the busy lifestyles in urban France are driving demand for convenient food options, including reconstituted milk. It is anticipated that the average revenue per user (ARPU) will be USD 76 million Its long shelf life, easy storage, and quick preparation make it a preferred choice for modern households and food service establishments.
Key players dominating the reconstituted milk market are exploring several growth and expansion strategies. Nestle focuses on fortifying its reconstituted milk products to cater to health-conscious consumers, while Danone emphasizes sustainability by improving its supply chain and packaging. FrieslandCapina invested in advanced processing technologies to enhance product quality. In June 2024, Saputo Inc. completed the sale of two fresh milk processing facilities in Laverton North, Victoria, and Erskine Park, New South Wales, to Coles Group Limited for approximately USD 105 million. This sale supports the Company’s network optimization strategy outlined in its Global Strategic Plan.
These companies drive innovation, ensuring reconstituted milk market growth and customer satisfaction.
Author Credits: Parul Atri
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?