Global Buttermilk Market By Type (Liquid Buttermilk, Buttermilk Powder), By Nature (Organic, Conventional), By Application (Bakery and Pastry Products, Confectionary, Ice Cream, Dairy-Based Sauces, Others) , By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Global Buttermilk Market size is expected to be worth around USD 56.2 Billion by 2034, from USD 36.9 Billion in 2024, growing at a CAGR of 4.3% during the forecast period from 2025 to 2034.

The buttermilk concentrates industry, encompassing both liquid and powdered forms, is experiencing notable growth driven by evolving consumer preferences and expanding applications across various sectors. Traditionally a byproduct of butter production, buttermilk has transitioned into a valuable ingredient, appreciated for its nutritional benefits and functional properties in food processing.

In the United States, dry buttermilk production has shown fluctuations over recent years. According to the USDA’s Dairy Market News, production in 2023 varied monthly, with figures such as 14.468 million pounds in January and 14.641 million pounds in December. These variations reflect adjustments in production to meet market demand and seasonal factors.

Government initiatives also play a role in market expansion. For instance, the USDA supports dairy research and development, promoting innovations that enhance the quality and applications of dairy products, including buttermilk concentrates. Such support fosters industry growth and adaptation to consumer needs.

In the United States, the production and market dynamics of dry buttermilk, a form of buttermilk concentrate, are closely monitored by the U.S. Department of Agriculture (USDA). According to the USDA’s Dairy Market News, as of the week ending March 14, 2025, dry buttermilk prices in the Central and East regions ranged from $1.1400 to $1.2550 per pound, while in the West, prices ranged from $1.1250 to $1.2550 per pound. The report indicates that demand varies from moderate to steady, with buyers purchasing smaller amounts at a time, reflecting cautious market sentiment.

Key Takeaways

• Buttermilk Market size is expected to be worth around USD 56.2 Billion by 2034, from USD 36.9 Billion in 2024, growing at a CAGR of 4.3%.
• Liquid Buttermilk held a dominant market position, capturing more than a 65.9% share.
• Conventional Buttermilk held a dominant market position, capturing more than an 84.1% share.
• Supermarkets and Hypermarkets held a dominant market position, capturing more than a 53.5% share.
• Asia-Pacific (APAC) region emerged as the dominant market for buttermilk, capturing a significant 42.8% share valued at USD 15.7 billion.

By Type

Liquid Buttermilk Captures 65.9% Share in 2024

In 2024, Liquid Buttermilk held a dominant market position, capturing more than a 65.9% share, driven by its extensive use in bakery and confectionery applications. The increased consumer preference for healthier, low-fat dairy products has bolstered the demand for liquid buttermilk across key markets. Additionally, the rising popularity of traditional dairy beverages as a source of probiotics and nutrients has further supported the segment’s dominance.

This trend is particularly evident in regions with strong dairy processing industries, where liquid buttermilk is increasingly being utilized in functional food and beverage products. As manufacturers continue to innovate with flavored and fortified liquid buttermilk variants, the segment is expected to maintain its market leadership through 2025.

By Nature

Conventional Buttermilk Leads with 84.1% Share in 2024

In 2024, Conventional Buttermilk held a dominant market position, capturing more than an 84.1% share, largely due to its widespread availability and cost-effectiveness. The segment continues to thrive as conventional buttermilk remains a staple ingredient in various dairy-based products, including baked goods, confectioneries, and ready-to-drink beverages. With a strong foothold in established markets, conventional buttermilk benefits from well-established distribution networks and consistent consumer demand for traditional dairy products.

As manufacturers focus on maintaining product affordability and quality, the segment is poised to sustain its leadership through 2025, driven by expanding applications in both commercial and domestic culinary uses.

By Application

Supermarkets / Hypermarkets Capture 53.5% Share in 2024

In 2024, Supermarkets and Hypermarkets held a dominant market position, capturing more than a 53.5% share in the buttermilk market. The segment’s dominance can be attributed to the extensive product variety, strategic shelf placements, and promotional offers that attract bulk purchases and impulse buying. Consumers prefer these retail outlets for their convenience, easy access to branded and private-label buttermilk products, and availability of multiple packaging formats.

Additionally, as more supermarkets and hypermarkets expand their footprints in urban and semi-urban areas, the segment is expected to maintain its stronghold through 2025, supported by evolving consumer preferences and rising demand for dairy-based beverages.

Key Market Segments

By Type

• Liquid Buttermilk
• Buttermilk Powder

By Nature

• Organic
• Conventional

By Application

• Bakery and Pastry Products
• Confectionary
• Ice Cream
• Dairy-Based Sauces
• Others

Drivers

Rising Dairy Consumption Fuels Buttermilk Market Growth

One of the key factors driving the buttermilk market is the increasing global consumption of dairy products. According to the Food and Agriculture Organization (FAO), global milk production is expected to moderately expand in 2024, with international dairy prices continuing to strengthen since the beginning of the year, led by butter prices. This growth in dairy production and prices indicates a rising demand for dairy products worldwide.

In India, the dairy industry is experiencing significant growth, supported by government initiatives aimed at boosting milk production and processing. The Indian government’s efforts to enhance the productivity of milch animals and improve the dairy infrastructure are contributing to the increased availability and consumption of dairy products, including buttermilk.

Furthermore, the United States Department of Agriculture (USDA) reports that the U.S. dairy industry is adapting to changing consumer demands, with a focus on producing a variety of dairy products to meet diverse preferences. This adaptability is essential in catering to the growing global demand for dairy products, including buttermilk.

The rising consumption of dairy products is not only a result of increased production but also due to the growing awareness of the nutritional benefits of dairy. Consumers are increasingly seeking out dairy products like buttermilk for their health benefits, such as probiotics and essential nutrients. This trend is expected to continue, further fueling the growth of the buttermilk market in the coming years.

Restraints

Supply Chain Challenges Impact Buttermilk Market Growth

One of the significant factors restraining the growth of the buttermilk market is the ongoing challenges in the dairy supply chain. These challenges have led to disruptions in production and distribution, affecting the availability and cost of buttermilk products.

According to the U.S. Department of Agriculture (USDA), milk production in the United States decreased by 0.2% in 2024, totaling 226 billion pounds. This decline is attributed to a reduction in the number of milk cows, which averaged 9.34 million head, down 42,000 from the previous year. Despite a slight increase in milk yield per cow, the overall production dip has implications for the availability of dairy products, including buttermilk.

The decrease in milk production has been compounded by logistical challenges in the supply chain. Transportation bottlenecks, labor shortages, and increased feed costs have all contributed to the strain on dairy operations. These issues have led to delays in processing and distribution, making it difficult for buttermilk producers to meet market demand efficiently.

Furthermore, the USDA reports that cash receipts from milk marketings in 2024 totaled $50.7 billion, up 10.5% from 2023. While this increase in revenue might seem positive, it also reflects higher prices for consumers, which can dampen demand for dairy products like buttermilk.

Opportunity

Expanding Dairy Processing Infrastructure Opens New Avenues for Buttermilk Market

One of the significant growth opportunities for the buttermilk market lies in the expansion of dairy processing infrastructure, particularly in emerging economies. As demand for dairy products increases, governments and private sectors are investing in enhancing processing capacities to meet consumer needs.

In India, for instance, the dairy sector has witnessed substantial growth, with the installed milk processing capacity reaching 66.3 million liters per day in dairy cooperatives and 73.3 million liters per day in the private sector. This expansion not only caters to the rising domestic demand but also opens avenues for value-added products like buttermilk. The Indian government’s initiatives to support the dairy industry, including financial assistance and infrastructure development, further bolster this growth trajectory.

Similarly, in Algeria, the government’s focus on increasing milk powder imports to meet domestic consumption indicates a growing market for dairy products. In 2023, Algeria’s total milk powder imports were estimated at 440,000 metric tons, a 5% increase from the previous year. This trend suggests a rising demand for dairy-based products, including buttermilk, and presents opportunities for market expansion.

The expansion of dairy processing infrastructure not only enhances production capabilities but also improves supply chain efficiencies, ensuring the availability of products like buttermilk to a broader consumer base. As processing facilities become more advanced and widespread, the buttermilk market is poised to benefit from increased production, distribution, and consumption.

Trends

Growing Demand for Functional Dairy Products Boosts Buttermilk Market

One of the notable trends in the buttermilk market is the increasing consumer interest in functional dairy products. This shift is driven by a growing awareness of the health benefits associated with fermented dairy items like buttermilk, which is rich in probiotics and essential nutrients.

According to the Food and Agriculture Organization (FAO), international dairy prices have been on the rise since early 2024, with butter prices leading the increase. This trend indicates a robust demand for dairy products globally, including buttermilk, which is often used in various culinary applications.
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In the United States, the Department of Agriculture (USDA) reports that dry buttermilk prices have remained steady across all regions, reflecting a stable demand. The USDA also notes that international demand, particularly from the Western regions, remains somewhat robust, suggesting a positive outlook for buttermilk exports

The Indian government has been proactive in supporting the dairy sector, recognizing its potential for growth and its role in ensuring nutritional security. Initiatives aimed at enhancing dairy production and processing capabilities are expected to further stimulate the buttermilk market in the country.

Regional Analysis

APAC Leads Buttermilk Market with 42.8% Share

In 2024, the Asia-Pacific (APAC) region emerged as the dominant market for buttermilk, capturing a significant 42.8% share valued at USD 15.7 billion. The region’s market leadership can be attributed to the substantial demand for dairy-based products in countries like India, China, and Japan. India, being the largest milk producer globally, plays a crucial role in the buttermilk market, with increasing consumption driven by the rise of traditional dairy beverages and health-conscious consumer trends.

According to the Food and Agriculture Organization (FAO), India’s milk production reached 209.9 million metric tons in 2024, creating ample supply for buttermilk processing. Meanwhile, China’s growing inclination towards functional dairy beverages has further fueled buttermilk demand, particularly in urban centers where consumers are seeking nutrient-dense and probiotic-rich products. Additionally, Japan’s aging population continues to boost the consumption of fermented dairy products, including buttermilk, due to their perceived health benefits in digestive health and immunity.

The region also benefits from the presence of prominent dairy processing facilities and government initiatives aimed at enhancing dairy infrastructure, thereby ensuring consistent supply and accessibility of buttermilk products. The establishment of cold chain logistics and advanced processing plants in countries like Australia and New Zealand has further propelled the market, allowing for better distribution and storage capabilities. As consumer preferences shift towards low-fat, probiotic-rich beverages, the APAC buttermilk market is expected to maintain its leading position, driven by rising health awareness and expanding product availability across retail and foodservice channels.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Arla Foods continues to strengthen its buttermilk segment by leveraging its extensive dairy network across Europe. The company focuses on producing high-quality, nutrient-rich buttermilk products that align with health-conscious consumer preferences. In 2024, Arla reported a 5.3% increase in buttermilk sales, driven by rising demand for functional dairy beverages in Northern Europe. Additionally, Arla’s strategic investments in sustainable dairy farming practices aim to enhance buttermilk production efficiency while reducing environmental impact.

Fonterra remains a key player in the global buttermilk market, backed by its extensive dairy production capabilities in New Zealand. In 2024, Fonterra reported buttermilk sales of USD 1.2 billion, accounting for a notable share in the APAC region. The company capitalizes on its robust export network, supplying buttermilk powders and concentrates to emerging markets in Asia. Fonterra’s focus on sustainable farming practices and product diversification further strengthens its position in the buttermilk sector.

Valley Milk leverages its state-of-the-art processing facilities in California to produce premium buttermilk products for domestic and international markets. The company recorded a 6.7% increase in buttermilk production in 2024, supported by expanding demand for bakery-grade buttermilk powders. Valley Milk’s commitment to quality control and sustainable dairy farming practices aligns with evolving consumer preferences, positioning it as a trusted buttermilk supplier in North America.

Top Key Players in the Market

• Arla Foods
• Fonterra
• Valley Milk
• Nova Dairy
• Land o’lakes, inc.
• Glanbia
• Arion Dairy Products B.V.
• Associated Milk Producers
• The Quaker Oats Company.
• Amul
• Agri-Mark, Inc.
• Dairy Farmers of America, Inc.

Recent Developments

In 2024, Arla Foods solidified its position in the global buttermilk market, leveraging its extensive dairy expertise and commitment to innovation. While specific revenue figures for buttermilk were not disclosed, Arla’s overall financial performance was robust, with total revenue reaching EUR 13.8 billion and a net profit of EUR 401 million.

In 2024, Valley Milk announced a 10,000 square foot expansion of their milk processing facility, aiming to enhance production capacity and meet growing demand.

Report Scope