Market Research Report: Global Milk Powder Market Analysis and Forecast, 2026–2036
1. Executive Summary
The global milk powder market is a mature yet steadily growing sector, underpinned by its role as a staple, shelf-stable dairy ingredient and a critical component of global food security. This report provides a comprehensive analysis of market trends, competitive dynamics, segmentation, and strategic outlook. Characterized by robust demand from the food processing industry, infant nutrition, and regions with underdeveloped cold chains, the market is influenced by fluctuating raw milk prices, evolving dietary trends, and significant technological advancements in drying and processing to enhance functionality and nutritional retention.
2. Market Overview
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Market Valuation: The global milk powder market was valued at an estimated US$ XX billion in 2020 and is projected to reach US$ YY billion by the end of 2036, growing at a Compound Annual Growth Rate (CAGR) of Z.Z% during the forecast period 2026–2036.
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Base Year: 2025
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Forecast Period: 2026–2036
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Historical Data: 2020–2024
3. Key Market Players
The market is dominated by multinational dairy cooperatives and corporations with integrated supply chains.
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Nestlé S.A.
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Danone S.A.
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Lactalis International
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Fonterra Co-operative Group
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Arla Foods amba
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FrieslandCampina
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Dairy Farmers of America (DFA)
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Saputo Inc.
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Mead Johnson Nutrition (Reckitt Benckiser)
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The a2 Milk Company
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Murray Goulburn (Saputo)
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Müller Group
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Land O'Lakes, Inc.
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Synlait Milk Ltd.
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Vreugdenhil Dairy Foods
4. Market Segmentation
4.1 By Product Type
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Skimmed Milk Powder (SMP): High-protein, low-fat powder; widely used in bakery, confectionery, and as a base for reconstitution.
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Whole Milk Powder (WMP): Contains milk fat, used in chocolate, ice cream, and direct consumer retail.
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Buttermilk Powder: Used for flavor and texture in baked goods, dressings, and processed cheeses.
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Whey Powder & Derivatives: Including Whey Protein Concentrate (WPC) and Isolate (WPI), driven by sports nutrition and functional foods.
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Specialty & Fortified Milk Powders:
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Infant Formula Powder (Largest value segment)
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Instant/Agglomerated Milk Powder (Improved solubility for retail)
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Fortified Milk Powders (with vitamins, minerals, DHA/Omega-3)
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4.2 By Processing Technology
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Spray Dried
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Drum/Roller Dried
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Freeze Dried
4.3 By Application
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Food & Beverage Industry (Bakery, Confectionery, Dairy Blends, Prepared Foods)
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Infant Nutrition & Baby Food
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Sports & Clinical Nutrition
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Direct Retail/Consumer Use (Household consumption)
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Animal Feed
4.4 By Distribution Channel
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Business-to-Business (B2B)/Industrial
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Supermarkets/Hypermarkets
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Convenience Stores
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Online Retail
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Pharmacy Stores (for infant formula)
5. Regional Analysis
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North America: Mature market with steady demand, primarily driven by the food processing industry and sports nutrition. The U.S. is a major producer and consumer.
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Europe: Significant market with strong production and consumption, particularly in Germany, France, the Netherlands, and Poland. Demand is linked to bakery, confectionery, and infant food sectors.
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Asia-Pacific: Largest and fastest-growing market, driven by massive population, rising disposable incomes, urbanization, and growing demand for dairy-based nutrition, especially infant formula and processed foods in China, India, and Southeast Asia.
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Latin America: Key production and growth region, with Brazil and Argentina as major exporters. Local consumption is driven by bakery and dairy applications.
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Middle East & Africa: Major import-dependent region due to limited local production. High demand is driven by population growth, food security needs, and infant nutrition in the GCC and North Africa.
6. Market Dynamics
6.1 Drivers
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Rising Global Population & Urbanization: Increases demand for convenient, shelf-stable, and transportable dairy nutrition.
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Growth of the Food Processing Industry: Milk powder is a versatile, cost-effective functional ingredient in countless products.
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Expanding Middle Class in Emerging Economies: Drives consumption of packaged foods, bakery items, and premium infant nutrition.
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Superior Shelf Life & Logistics Efficiency: Crucial for supplying dairy to regions with inadequate cold storage infrastructure.
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Innovation in Nutritional Fortification: Development of value-added powders for specific health needs (elderly nutrition, medical foods).
6.2 Challenges
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Volatility in Raw Milk Prices: Directly impacts production costs and profit margins for manufacturers.
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Stringent Food Safety & Quality Regulations: Particularly stringent for infant formula, requiring heavy investment in compliance and traceability.
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Growing Popularity of Plant-Based Alternatives: Almond, soy, and oat milk powders compete in certain applications (beverages, bakery).
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Perception as a "Processed" Food: Some consumers prefer fresh dairy, perceiving powder as inferior.
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Environmental Concerns: Dairy farming's carbon footprint and water usage are under scrutiny, affecting brand image.
6.3 Trends
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Clean Label & Organic Demand: Growth in certified organic, non-GMO, and minimally processed milk powders.
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Grass-fed & Origin-Specific Powders: Premiumization through provenance marketing (e.g., New Zealand grass-fed).
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A2 Beta-Casein Protein Milk Powder: Niche growth segment targeting consumers with dairy sensitivities.
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Advanced Instantization Techniques: Improving solubility, wettability, and dispersibility for better consumer experience.
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Sustainability Initiatives: Focus on reducing water and energy consumption in spray-drying processes, and sustainable packaging.
7. Strategic Analysis
7.1 Porter’s Five Forces Analysis
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Competitive Rivalry: High. Intense competition among large global players on price, quality, and supply chain reliability. High fixed costs encourage high-volume production.
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Bargaining Power of Suppliers (Dairy Farmers): Low to Moderate in regions with many small farms; High for large dairy cooperatives that are integrated upstream.
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Bargaining Power of Buyers: High for large food & beverage multinationals (e.g., Unilever, Mondelēz) who purchase in bulk; lower for smaller regional processors.
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Threat of New Entrants: Low. Extremely high capital intensity for large-scale processing plants, need for consistent milk supply, and established brand loyalty are significant barriers.
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Threat of Substitutes: Moderate. Substitute products include fresh/fluid milk, condensed milk, and plant-based protein powders. However, milk powder's functional properties and shelf life provide strong defense in many applications.
7.2 SWOT Analysis
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Strengths: Essential global commodity, long shelf-life, versatile functional properties, established global trade and logistics.
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Weaknesses: Commodity-like price volatility, energy-intensive production, negative environmental perception in some segments.
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Opportunities: Premiumization (organic, A2, grass-fed), growth in infant nutrition in APAC, innovation in nutritional delivery.
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Threats: Volatile farmgate milk prices, climate change impacting dairy farming, strong growth of plant-based alternatives, trade wars and export restrictions.
7.3 Value Chain Analysis
The value chain spans Dairy Farming & Raw Milk Production, Collection & Transportation, Processing (Standardization, Pasteurization, Evaporation, Drying), Blending & Fortification, Packaging, Distribution & Logistics (global trade is critical), and End-Use Manufacturing/Retail. Value addition is highest in the processing and blending/fortification stages, especially for specialty and infant nutrition powders.
8. Quick Recommendations for Stakeholders
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For Manufacturers & Processors: Invest in product diversification and premiumization to move beyond commodity cycles. Optimize energy and water efficiency in drying plants to reduce costs and improve sustainability credentials. Secure long-term, stable milk supply through cooperative models or strategic partnerships with farmers. Develop strong B2B technical sales teams to co-create solutions with food manufacturers.
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For Dairy Farmers & Cooperatives: Focus on herd management and milk quality to secure better premiums. Consider value-add through certification (organic, grass-fed) for supply contracts. Explore vertical integration into downstream processing where feasible.
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For Food & Beverage Companies (Buyers): Diversify sourcing geographies to mitigate supply and price risk. Work with suppliers on custom blends for specific functional needs. Conduct thorough due diligence on infant formula suppliers for quality and regulatory compliance.
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For Investors: Focus on companies with strong positions in high-value segments (infant formula, specialty nutrition), vertically integrated and efficient supply chains, and a clear strategy for growth in Asia-Pacific. Consider firms leading in sustainability and clean-label innovation.
Table of Contents
Global Milk Powder Market Research Report 2026
1 Industry Overview of Milk Powder
1.1 Definition and Specifications of Milk Powder
1.1.1 Definition of Milk Powder
1.1.2 Specifications of Milk Powder
1.2 Classification of Milk Powder
1.2.1 Ordinary Milk Powder
1.2.2 Formula Milk Powder
1.2.3 Culture Milk Powder
1.3 Applications of Milk Powder
1.3.1 Baby
1.3.2 Old Man
1.3.3 Pregnant Woman
1.4 Market Segment by Regions
1.4.1 North America
1.4.2 Europe
1.4.3 China
1.4.4 Japan
1.4.5 Southeast Asia
1.4.6 India
2 Manufacturing Cost Structure Analysis of Milk Powder
2.1 Raw Material and Suppliers
2.2 Manufacturing Cost Structure Analysis of Milk Powder
2.3 Manufacturing Process Analysis of Milk Powder
2.4 Industry Chain Structure of Milk Powder
3 Technical Data and Manufacturing Plants Analysis of Milk Powder
3.1 Capacity and Commercial Production Date of Global Milk Powder Major Manufacturers
3.2 Manufacturing Plants Distribution of Global Milk Powder Major Manufacturers
3.3 R&D Status and Technology Source of Global Milk Powder Major Manufacturers
3.4 Raw Materials Sources Analysis of Global Milk Powder Major Manufacturers
4 Global Milk Powder Overall Market Overview
4.1 E Overall Market Analysis
4.2 Capacity Analysis
4.2.1 E Global Milk Powder Capacity and Growth Rate Analysis
4.2.2 Milk Powder Capacity Analysis (Company Segment)
4.3 Sales Analysis
4.3.1 E Global Milk Powder Sales and Growth Rate Analysis
4.3.2 Milk Powder Sales Analysis (Company Segment)
4.4 Sales Price Analysis
4.4.1 E Global Milk Powder Sales Price
4.4.2 Milk Powder Sales Price Analysis (Company Segment)
5 Milk Powder Regional Market Analysis
5.1 North America Milk Powder Market Analysis
5.1.1 North America Milk Powder Market Overview
5.1.2 North America E Milk Powder Local Supply, Import, Export, Local Consumption Analysis
5.1.3 North America E Milk Powder Sales Price Analysis
5.1.4 North America Milk Powder Market Share Analysis
5.2 Europe Milk Powder Market Analysis
5.2.1 Europe Milk Powder Market Overview
5.2.2 Europe E Milk Powder Local Supply, Import, Export, Local Consumption Analysis
5.2.3 Europe E Milk Powder Sales Price Analysis
5.2.4 Europe Milk Powder Market Share Analysis
5.3 China Milk Powder Market Analysis
5.3.1 China Milk Powder Market Overview
5.3.2 China E Milk Powder Local Supply, Import, Export, Local Consumption Analysis
5.3.3 China E Milk Powder Sales Price Analysis
5.3.4 China Milk Powder Market Share Analysis
5.4 Japan Milk Powder Market Analysis
5.4.1 Japan Milk Powder Market Overview
5.4.2 Japan E Milk Powder Local Supply, Import, Export, Local Consumption Analysis
5.4.3 Japan E Milk Powder Sales Price Analysis
5.4.4 Japan Milk Powder Market Share Analysis
5.5 Southeast Asia Milk Powder Market Analysis
5.5.1 Southeast Asia Milk Powder Market Overview
5.5.2 Southeast Asia E Milk Powder Local Supply, Import, Export, Local Consumption Analysis
5.5.3 Southeast Asia E Milk Powder Sales Price Analysis
5.5.4 Southeast Asia Milk Powder Market Share Analysis
5.6 India Milk Powder Market Analysis
5.6.1 India Milk Powder Market Overview
5.6.2 India E Milk Powder Local Supply, Import, Export, Local Consumption Analysis
5.6.3 India E Milk Powder Sales Price Analysis
5.6.4 India Milk Powder Market Share Analysis
6 Global E Milk Powder Segment Market Analysis (by Type)
6.1 Global E Milk Powder Sales by Type
6.2 Different Types of Milk Powder Product Interview Price Analysis
6.3 Different Types of Milk Powder Product Driving Factors Analysis
6.3.1 Ordinary Milk Powder Growth Driving Factor Analysis
6.3.2 Formula Milk Powder Growth Driving Factor Analysis
6.3.3 Culture Milk Powder Growth Driving Factor Analysis
7 Global E Milk Powder Segment Market Analysis (by Application)
7.1 Global E Milk Powder Consumption by Application
7.2 Different Application of Milk Powder Product Interview Price Analysis
7.3 Different Application of Milk Powder Product Driving Factors Analysis
7.3.1 Baby of Milk Powder Growth Driving Factor Analysis
7.3.2 Old Man of Milk Powder Growth Driving Factor Analysis
7.3.3 Pregnant Woman of Milk Powder Growth Driving Factor Analysis
8 Major Manufacturers Analysis of Milk Powder
8.1 Danone
8.1.1 Company Profile
8.1.2 Product Picture and Specifications
8.1.2.1 Product A
8.1.2.2 Product B
8.1.3 Danone Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.1.4 Danone Milk Powder Business Region Distribution Analysis
8.2 Nestle
8.2.1 Company Profile
8.2.2 Product Picture and Specifications
8.2.2.1 Product A
8.2.2.2 Product B
8.2.3 Nestle Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.2.4 Nestle Milk Powder Business Region Distribution Analysis
8.3 FrieslandCampina
8.3.1 Company Profile
8.3.2 Product Picture and Specifications
8.3.2.1 Product A
8.3.2.2 Product B
8.3.3 FrieslandCampina Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.3.4 FrieslandCampina Milk Powder Business Region Distribution Analysis
8.4 Arla
8.4.1 Company Profile
8.4.2 Product Picture and Specifications
8.4.2.1 Product A
8.4.2.2 Product B
8.4.3 Arla Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.4.4 Arla Milk Powder Business Region Distribution Analysis
8.5 Vreugdenhil Dairy
8.5.1 Company Profile
8.5.2 Product Picture and Specifications
8.5.2.1 Product A
8.5.2.2 Product B
8.5.3 Vreugdenhil Dairy Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.5.4 Vreugdenhil Dairy Milk Powder Business Region Distribution Analysis
8.6 Alpen Dairies
8.6.1 Company Profile
8.6.2 Product Picture and Specifications
8.6.2.1 Product A
8.6.2.2 Product B
8.6.3 Alpen Dairies Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.6.4 Alpen Dairies Milk Powder Business Region Distribution Analysis
8.7 California Dairies
8.7.1 Company Profile
8.7.2 Product Picture and Specifications
8.7.2.1 Product A
8.7.2.2 Product B
8.7.3 California Dairies Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.7.4 California Dairies Milk Powder Business Region Distribution Analysis
8.8 DFA
8.8.1 Company Profile
8.8.2 Product Picture and Specifications
8.8.2.1 Product A
8.8.2.2 Product B
8.8.3 DFA Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.8.4 DFA Milk Powder Business Region Distribution Analysis
8.9 Lactalis
8.9.1 Company Profile
8.9.2 Product Picture and Specifications
8.9.2.1 Product A
8.9.2.2 Product B
8.9.3 Lactalis Milk Powder Sales, Ex-factory Price, Revenue, Gross Margin Analysis
8.9.4 Lactalis Milk Powder Business Region Distribution Analysis
8.10 Land O
Key Market Players
The market is dominated by multinational dairy cooperatives and corporations with integrated supply chains.
-
Nestlé S.A.
-
Danone S.A.
-
Lactalis International
-
Fonterra Co-operative Group
-
Arla Foods amba
-
FrieslandCampina
-
Dairy Farmers of America (DFA)
-
Saputo Inc.
-
Mead Johnson Nutrition (Reckitt Benckiser)
-
The a2 Milk Company
-
Murray Goulburn (Saputo)
-
Müller Group
-
Land O'Lakes, Inc.
-
Synlait Milk Ltd.
-
Vreugdenhil Dairy Foods
4. Market Segmentation
4.1 By Product Type
-
Skimmed Milk Powder (SMP): High-protein, low-fat powder; widely used in bakery, confectionery, and as a base for reconstitution.
-
Whole Milk Powder (WMP): Contains milk fat, used in chocolate, ice cream, and direct consumer retail.
-
Buttermilk Powder: Used for flavor and texture in baked goods, dressings, and processed cheeses.
-
Whey Powder & Derivatives: Including Whey Protein Concentrate (WPC) and Isolate (WPI), driven by sports nutrition and functional foods.
-
Specialty & Fortified Milk Powders:
-
Infant Formula Powder (Largest value segment)
-
Instant/Agglomerated Milk Powder (Improved solubility for retail)
-
Fortified Milk Powders (with vitamins, minerals, DHA/Omega-3)
-
4.2 By Processing Technology
-
Spray Dried
-
Drum/Roller Dried
-
Freeze Dried
4.3 By Application
-
Food & Beverage Industry (Bakery, Confectionery, Dairy Blends, Prepared Foods)
-
Infant Nutrition & Baby Food
-
Sports & Clinical Nutrition
-
Direct Retail/Consumer Use (Household consumption)
-
Animal Feed
4.4 By Distribution Channel
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Business-to-Business (B2B)/Industrial
-
Supermarkets/Hypermarkets
-
Convenience Stores
-
Online Retail
-
Pharmacy Stores (for infant formula)
