The China Milk Powder Market in 2026 will be driven by local milk supply, evolving dairy consumption trends, infant formula needs, uses in food processing, import needs, and the processors' transition to higher value-added dairy products. In 2025, China’s milk production reached 40.91 million tonnes, rising by 0.3% year on year, according to the National Bureau of Statistics of China.

What is happening in the China milk powder market in 2026? China's milk powder industry sees a product mix realignment, whereby processors redirect more milk into products such as butter and cheese, while output of whole milk powder is expected to drop slightly. According to USDA Foreign Agricultural Service reporting, China’s whole milk powder production in 2026 will reach about 1.12 million tonnes, against 1.14 million tonnes in 2025.

How much milk powder does China produce? For whole milk powder, USDA FAS forecasts about 1.12 million tonnes of Chinese production in 2026. Production is affected by local milk availability and economic considerations, as well as processors’ product mix considerations and demand by food and beverage producers.

Why is milk powder significant in China? Milk powder provides a dairy ingredient which can be stored and used in infant formula, processed foods, bakery products, dairy beverages, confectionery, and other food products. The use of milk powder by processors gives them the ability to handle milk supplies during situations when immediate demand for liquid dairy products do not use all raw milk.

Is China dependent on milk powder imports? China continues to be an important global dairy market despite domestic milk production meeting much of its dairy needs. In 2026, the USDA FAS forecasts 420,000 tonnes of whole milk powder imports in China, reflecting the continued need for imported milk powder for particular specifications and processing applications.

What drives demand for milk powder in China? Demand is driven by infant formula and other specialized dairy products, processed foods, bakery products, dairy beverages, confectionery and food manufacturing. The USDA also highlights continued demand for specification milk powder used for infant formula and other processing applications.

What are the main trends in the China milk powder market? Trends in the market include increased optimization of product mix, specification milk powders and value-added dairy applications.

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