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Milk Powder Manufacturing in Australia Industry Data and Analysis
The Milk Powder Manufacturing industry has faced challenging conditions in recent years. Domestic milk production has declined, reducing industry output and lifting milk prices. Unfavourable weather conditions, like flooding in 2022-23, and mandatory minimum farmgate milk price disclosure under the Dairy Industry Code of Conduct 2020 have further elevated prices. Supply-side pressures have driven manufacturers to sell almost all products overseas, with exports contributing significantly to revenue. Free trade agreements with countries like Indonesia and China have provided attractive tariffs, boosting foreign demand. Asia’s rising middle class has driven consumers to seek high-quality milk powder from premium dairy-producing countries, favouring Australian products like infant formula and adult milk powder. Although pandemic-induced stockpiling in China temporarily boosted exports, a stronger Australian dollar, along with sluggish economic conditions and low household income in China, has recently diminished export sales. Overall, industry revenue is expected to have fallen at an annualised 7.5% over the five years through 2024-25, to $768.2 million. This includes an anticipated 5.6% plunge in 2024-25 due to falling prices and production across product segments.
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What's included in this industry analysis
IBISWorld's research coverage on the Milk Powder Manufacturing industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released February 2025.
About this industry
What's this industry report about?
The Milk Powder Manufacturing industry in Australia operates under the ANZSIC industry code C1133b. Industry operators manufacture milk powder, powdered milk-based beverages and baby foods in powder form. Related terms covered in the Milk Powder Manufacturing industry in Australia include skim milk powder, whole milk powder and global dairy trade.
What's included in this industry?
Products and services covered in Milk Powder Manufacturing industry in Australia include Whole milk powder, Skim milk powder and Buttermilk powder.
What companies are included in this industry?
Companies covered in the Milk Powder Manufacturing industry in Australia include Fonterra Co-op Group, Saputo Dairy Australia and Burra Foods.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Milk Powder Manufacturing industry in Australia.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Milk Powder Manufacturing industry in Australia.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Milk Powder Manufacturing industry in Australia.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Milk Powder Manufacturing industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Milk Powder Manufacturing industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Milk Powder Manufacturing industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Milk Powder Manufacturing industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Milk Powder Manufacturing industry in Australia.
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Frequently Asked Questions
What is the market size of the Milk Powder Manufacturing industry in Australia in 2026?
The market size of the Milk Powder Manufacturing industry in Australia is $768.2m in 2026.
How many businesses are there in the Milk Powder Manufacturing industry in Australia in 2025?
There are 45 businesses in the Milk Powder Manufacturing industry in Australia, which has declined at a CAGR of 0.9 % between 2020 and 2025.
How may import tariffs affect the Milk Powder Manufacturing industry in Australia?
The Milk Powder Manufacturing industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Milk Powder Manufacturing industry in Australia?
The Milk Powder Manufacturing industry in Australia is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.
Has the Milk Powder Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Milk Powder Manufacturing industry in Australia has been declining at a CAGR of 7.5 % between 2020 and 2025.
What is the forecast growth of the Milk Powder Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Milk Powder Manufacturing industry in Australia is expected to decline.
What are the biggest companies in the Milk Powder Manufacturing industry in Australia?
The biggest companies operating in the Milk Powder Manufacturing industry in Australia are Fonterra Co-op Group, Saputo Dairy Australia and Burra Foods
What does the Milk Powder Manufacturing industry in Australia include?
Skim milk powder and Whole milk powder are part of the Milk Powder Manufacturing industry in Australia.
Which companies have the highest market share in the Milk Powder Manufacturing industry in Australia?
The company holding the most market share in the Milk Powder Manufacturing industry in Australia is Fonterra Co-op Group.
How competitive is the Milk Powder Manufacturing industry in Australia?
The level of competition is moderate and increasing in the Milk Powder Manufacturing industry in Australia.
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