Milk Powder Manufacturing in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC C1133bRevenue
$833.5m
Past 5-Year Growth
Profit
$X.Xm
Employees
1,222
Businesses
47
Wages
$XXX.Xm
Milk Powder Manufacturing in Australia industry analysis
Milk powder manufacturers have faced challenging conditions in recent years. Domestic raw milk production has fallen over the past five years, reducing the amount available for milk powder manufacturers. Furthermore, falling production of butter in favour of cheese has limited the production of butter by-products, skim milk powder and buttermilk powder. While milk powder prices have risen, the pace of changes in prices relative to changes in production volumes has led to volatile revenue movements over the period. Overall, revenue is expected to increase at an average annual rate of 2.5% over the five years through 2023-24, to $833.5 million. Falling milk powder prices and declining whole milk powder production is expected to result in a revenue fall of 10.2% in 2023-24.As a significant portion of the industry's revenue is derived from exports, the industry's performance is susceptible to changes in the global price of milk powder and exchange rates. A depreciation of the Australian dollar has made industry exports more price competitive over the past five years. The rising wealth of the middle class in Asia has helped drive demand for industry products over the period, and lower trade barriers have made Australian dairy products more affordable overseas. Free trade agreements with regional neighbours, such as Indonesia and China, have helped boost export revenue for the industry. Profit margins are expected to decline due to falling output and a substantial rise in farmgate milk prices.Milk powder manufacturing revenue is projected to recover. Domestic milk production is forecast to continue declining, constraining the output available to local and overseas markets. However, while global dairy product prices can be volatile and price fluctuations cannot be ruled out, milk powder prices are forecast to rise over the next five years. Rising prices are projected to mitigate revenue declines. Overall, industry revenue is forecast to decrease at an average annual rate of 1.6% over the five years through 2028-29, to $902.8 million.
Trends and Insights
- Milk powder production has plunged over the past five years. Unfavourable weather conditions have seen a sharp fall in raw milk production. Yet, revenue falls have been constrained by strong growth in milk powder prices.
- Skim milk powder has increased as a share of revenue over the past five years. While production has declined at a similar rate than whole milk production, prices have risen at a faster rate.
- Most milk powder manufacturers are located in Victoria. Victoria produces the largest amount of high quality, export grade milk.
- Market share concentration is high. The major dairy product manufacturers in Australia have consolidated their place in the industry through acquisitions.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 2.5 % over the past five years, to reach an estimated $833.5m in 2023.
Trends and Insights
Milk powder production has suffered amid a plunging raw milk supply
- Local milk powder production has plummeted over the past decade, in line with a fall in upstream milk production.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Milk powder production is set to continue falling
- Volatile operating conditions are projected to continue influencing the performance of milk powder manufacturers.
Biggest companies in the Milk Powder Manufacturing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Fonterra Co-op Group | 260.9 | |
Saputo Dairy Australia | 221.3 | |
Burra Foods | 182.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Whole milk powder , Skim milk powder and Buttermilk powder . Whole milk powder is the largest segment of the Milk Powder Manufacturing in Australia.
Trends and Insights
Surging export prices have offset declining production of skim milk powder (SMP)
- SMP is made by removing cream from whole milk, then evaporating and drying the skim milk.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Milk and Cream Processing in Australia
- Butter and Dairy Product Manufacturing in Australia
Complementors
- Dairy Cattle Farming in Australia
- Dairy Produce Wholesaling in Australia
International industries
- Global Milk & Cream Manufacturing
- Dairy Product Production in the US
- Coffee Creamer Production in the US
- Dairy Product Production in Canada
- Cheese, Butter and Milk Powder Manufacturing in New Zealand
Table of Contents
About this industry
Industry definition
Industry operators manufacture milk powder, powdered milk-based beverages and baby foods in powder form.
What's included in this industry?
Skim milk powderWhole milk powderButtermilk powderCompanies
Fonterra Co-op GroupSaputo Dairy AustraliaBurra FoodsPurchase this report to view all 4 major companies in this industry.
Related Terms
SKIM MILK POWDERWHOLE MILK POWDERGLOBAL DAIRY TRADEIndustry Code
ANZSIC 1133 - Milk Powder Manufacturing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Milk powder production has plunged over the past five years. Unfavourable weather conditions have seen a sharp fall in raw milk production. Yet, revenue falls have been const...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Skim milk powder has increased as a share of revenue over the past five years. While production has declined at a similar rate than whole milk production, prices have risen a...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most milk powder manufacturers are located in Victoria. Victoria produces the largest amount of high quality, export grade milk.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Market share concentration is high. The major dairy product manufacturers in Australia have consolidated their place in the industry through acquisitions.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The major players have looked to expand through acquisition. Saputo acquired Murray Goulburn in 2018. Bega acquired the Koroit milk processing facility from Saputo in 2018.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Fonterra Co-op Group's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Saputo Dairy Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Burra Foods's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Fonterra Co-op Group, and factors influencing its performance in the industry
- Description and key data for Saputo Dairy Australia, and factors influencing its performance in the industry
- Description and key data for Burra Foods, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
In January 2020, a national Dairy Industry Code of Conduct was implemented, setting out mandatory conditions for all contracts. Among these conditions is the requirement for ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have declined over the past five years. Farmgate milk prices have risen strongly as upstream milk production has fallen sharply.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Milk Powder Manufacturing industry in Australia in 2024?
The market size of the Milk Powder Manufacturing industry in Australia is $833.5m in 2024.
How many businesses are there in the Milk Powder Manufacturing in Australia industry in 2023?
There are 47 businesses in the Milk Powder Manufacturing industry in Australia, which has declined at a CAGR of 0.0 % between 2018 and 2023.
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 2.5 % between 2018 and 2023.
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 grow.
What are the biggest companies in the Milk Powder Manufacturing market in Australia?
The biggest companies operating in the Milk Powder Manufacturing market in Australia are Fonterra Co-op Group, Saputo Dairy Australia and Burra Foods
What does the Milk Powder Manufacturing in Australia include?
Skim milk powder and Whole milk powder are part of the Milk Powder Manufacturing industry.
Which companies have the highest market share in the Milk Powder Manufacturing in Australia?
The company holding the most market share 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.
