As Eid approaches each year, Indonesia’s food and beverage industry typically enters a period of significantly higher production compared to other months. Demand for products such as cookies, biscuits, wafers, chocolate, and various desserts rises sharply, driven by traditions of sharing food, gifting hampers, and serving snacks during family gatherings.
Behind this seasonal surge in production lies an important raw material widely used in food formulation: milk powder for the food industry. Among the most commonly used dairy ingredients are skimmed milk powder for food industry applications and whole milk powder for food industry formulations.
Both ingredients play an essential role in bakery and confectionery products, helping manufacturers achieve soft textures, rich dairy flavor, and stable product performance during processing and distribution.
Milk Powder Demand in Indonesia Continues to Grow
The milk powder demand in Indonesia has shown consistent growth in recent years, largely supported by the rapid expansion of the processed food sector.
According to data from the United States Department of Agriculture (USDA), Indonesia's milk powder consumption is projected to reach approximately 158 thousand metric tons in 2025, positioning the country as one of the larger milk powder markets globally.
A significant portion of this demand comes from the food manufacturing sector, where milk powder is widely used as a key ingredient in product development.
In the bakery industry, milk powder contributes to several important functional benefits, including:
Improving softness and texture in baked products
Enhancing creamy dairy flavor
Maintaining product stability during baking
Extending product shelf life
Because of these properties, milk powder for bakery industry applications has become a critical ingredient in products such as cookies, biscuits, wafers, and a wide range of modern desserts.
Skim Milk Powder and Whole Milk Powder for Food Industry Applications
Within Indonesia's food manufacturing sector, two types of milk powder are most commonly utilized: skimmed milk powder for the food industry and whole milk powder for food industry formulations.
Skim Milk Powder (SMP) contains very low fat content while maintaining a high level of milk protein. This ingredient is frequently used in bakery products, powdered beverages, and food applications that require dairy functionality without additional fat.
On the other hand, Whole Milk Powder (WMP) retains the natural fat content of milk, which provides a richer taste and creamier mouthfeel in food products. WMP is often used in confectionery products, chocolate, dairy desserts, and premium baked goods.
By combining SMP and WMP in different ratios, food manufacturers can optimize product formulations based on the desired flavor, texture, and nutritional characteristics.
Indonesia's Dependence on Imported Milk Powder
One of the major challenges in Indonesia's dairy supply chain is the limited capacity of domestic milk production.
Local fresh milk production is estimated to supply only a small portion of the country's industrial needs. As a result, a large share of skimmed milk powder for the food industry and whole milk powder for food industry applications is fulfilled through imports.
This reliance on imported dairy ingredients means that global price movements and international supply conditions play an important role in shaping the cost structure for Indonesian food manufacturers.
The Importance of Dairy Products from the Perspective of the U.S. Dietary Guidelines
In line with the approach outlined in the Dietary Guidelines for Americans (DGA) 2025-2030, dairy products play a crucial role in supporting an Eat Real Foods–based dietary pattern. The guidelines position milk and dairy products—particularly full-fat dairy—as essential sources of nutrition that provide not only high-quality protein, but also calcium, vitamin D, and natural fats that contribute to bone health, support muscle function, and help optimize metabolic processes.
The shift toward recommending natural fats from dairy reflects the evolution of modern nutrition science, which places greater emphasis on the quality of nutrient sources rather than broadly restricting fat intake. In addition, the protein content in dairy products contributes to maintaining muscle mass, aligning with the DGA's focus on increased daily protein intake.
With a comprehensive nutritional profile and minimal processing, dairy products have become an integral part of a balanced diet—supporting not only short-term health but also long-term well-being and overall quality of life.
Seasonal Surge in Milk Powder Demand After Eid
The weeks leading up to Eid often bring a noticeable increase in production across the bakery, snack, and confectionery sectors.
This seasonal trend directly contributes to higher milk powder demand in Indonesia, as manufacturers ramp up production to meet consumer demand.
To prepare for this peak season, many food manufacturers begin securing dairy ingredients for food manufacturing several months in advance. Early procurement helps ensure stable production and adequate product availability during the holiday period.
Products such as butter cookies, milk wafers, premium biscuits, and a wide range of desserts rely heavily on milk-based ingredients to achieve consistent flavor and texture.
For this reason, milk powder for bakery industry applications becomes one of the most sought-after ingredients in the food sector ahead of Eid.
Future Outlook for Milk Powder Demand in Indonesia
With a large population and strong food consumption culture during festive seasons, the milk powder demand in Indonesia is expected to continue growing in the coming years.
For food manufacturers, understanding seasonal demand patterns and monitoring global dairy price trends are essential for maintaining efficient procurement strategies and supply chain stability.
Produk seperti butter cookies, wafer susu, biskuit premium, hingga berbagai dessert modern sangat bergantung pada bahan baku berbasis susu untuk menghasilkan kualitas rasa dan tekstur yang konsisten.
Looking ahead, skimmed milk powder for the food industry and whole milk powder for food industry applications will remain strategic ingredients that support the continued growth of Indonesia's food manufacturing sector, particularly in bakery, snack, and confectionery production.