Rising Use of Buttermilk Powder in Baking and Confectionery Applications

The global buttermilk powdermarketis experiencinganotable upswing, largely fueled by its expandingrole in bakingand confectionery applications. Accordingto Persistence MarketResearch, the marketis forecastto grow from US$ 3.2 Bn in 2025 to US$ 5.2 Bn by 2032, registeringahealthy CAGR of 7.1% duringthe forecastperiod. A significantportion of this growth is attributed to the product’s functional benefits in baked goods, desserts, and sweettreats.

����������������������������������������:https://www.persistencemarketresearch.com/marketresearch/buttermilk-powder-market.asp

WhyButtermilk Powderis Becominga Baker’s Favorite

Buttermilk powderhas longbeen used as a secretingredientin various bakingrecipes, offeringboth functional and flavor-enhancingbenefits. Its slightly tangy profile adds depth to baked goods, while its acidic nature activates bakingsoda, resultingin betterleavening, lightertexture, and improved volume.

The powdered form also provides greaterconvenience and consistency forcommercial bakeries and industrial food processors, as it eliminates the need forrefrigeration and has a shelf life of up to 24 months. Itis easily incorporated into dry mixes formuffins, pancakes,biscuits, cookies, and cakes, makingita go-to choice forboth large-scale and small-batch bakingoperations.

Confectionery SectorSweetens the Demand

In confectionery, buttermilk powderis increasingly beingused to enhance the mouthfeel and creaminess of candies, caramels, and chocolate fillings. Its natural emulsifyingproperties help stabilize fatcontent, which is essential in achievingsmooth textures in truffles, ganache, and fudge products.

Its clean-label appeal, combined with nutritional benefits such as high protein and calcium content, is makingit a preferred choice forpremium and health-focused confections. As consumers continue

to seek indulgent yet nutritious treats, buttermilk powder offers an ideal solution for formulating products that balance both.

Global Bakery Boom Drives IngredientInnovation

The global bakery products market is projected to reach US$ 720 Bn by 2032, with growingdemand for artisanal, ready-to-eat, and functional bakery products. Buttermilk powder’s ability to enhance flavorand extend shelf life withoutartificial additives aligns perfectly with the clean-label movement sweepingthrough the industry.

Its use in bread, scones, doughnuts, and gluten-free items is increasing, especially in North America and Europe, where ingredienttransparency is atop consumerpriority. Organicvariants are also gainingtraction as health-conscious consumers prioritize natural sourcing.

Advantages of Buttermilk Powderin Bakingand Confectionery

 Improves crumb structure and overall textureof cakes and muffins

 Enhances flavorprofile in frostings, cream fillings, and icings

 Acts as a tenderizer forsoftand flaky baked goods

 Offers moisture retention thatkeeps products fresherlonger

 Reduces dependency on liquid dairy, simplifyingstorage and inventory management

These features make buttermilk powderamultifunctional ingredientthatsupports innovation across baked and sweetproducts.

Market SegmentInsights

In 2025, the food and beverage industry is expected to dominate with a72% marketshare, driven by increased use in processed food, baking, and sweetgoods. The conventional segment will likely hold an 82% share, benefitingfrom widespread availability and affordability.

Business-to-business (B2B) channels remain the primary distribution path, accountingfor 83% of sales in 2025. Bakeries, cafes, dessertmanufacturers, and cateringcompanies source buttermilk powderin bulk through these channels foruse in theirrecipes and productlines.

Technological Enhancements SupportMarketGrowth

Ongoingadvancements in spray drying, solubility improvement, and finepowderformation are makingbuttermilk powdereven more attractive to bakers and confectioners. Enhanced processing techniques resultin afinertexture, betterintegration into recipes, and improved flavorretention.

Packaginginnovations, such as vacuum-sealed and moisture-proofbags, are also extendingshelf life and productfreshness, reducingwaste and improvingcostefficiency.

Regional Market Outlook

 North Americais leadingthe charge, holdingaprojected 38.1% share in 2025. The region’s mature bakery and confectionery industry, coupled with strongdairy production, makes ita hotbed forbuttermilk powderconsumption.

 Europe follows closely, with increased use in specialty breads, pastries, and gourmet desserts.

 AsiaPacificis emergingas a fast-growingregion, with a growing appetite for Western-style baked goods and premium confections.

Challenges andConsiderations

Despite its wide adoption, challenges remain:

 Rising lactose intolerance rates are promptingsome consumers to seek alternatives, such as lactose-freedairy powders orplant-based ingredients.

 Price volatility in the dairy industry may affectproduction and supply consistency in certain regions

To counterthese challenges, manufacturers are investingin productinnovation, including lactosefree formulations, low-fatvariants, and organiclines to caterto evolvingconsumerneeds.

Strategic Partnerships and Product Launches

Companies are increasingly partneringwith bakery mix manufacturers and confectionery brands to incorporate buttermilk powderinto arange of new productlaunches. These collaborations aim to tap into niche markets such as functional cookies,gluten-freebaked snacks, and natural dessert options.

A key example is the September2024 collaboration between Agri-Mark, Upstate Niagara Cooperative, and Maryland &VirginiaMilk Producers, which formed Integrated Dairy Ingredients (IDI) to introduce specialty buttermilk powderproducts to foodservice and industrial clients.