Powdered milk is frequently used in the manufacture of infant formula, confectionery such as chocolate and caramel candy, and in recipes for baked goods where adding liquid milk would render the product too thin. 

Powdered milk is also a common item in UN food aid supplies, fallout shelters, warehouses, and wherever fresh milk is not a viable option. It is widely used in many developing countries because of reduced transport and storage costs (reduced bulk and weight, no refrigerated vehicles). Like other dry foods, it is considered nonperishable, and is favored by survivalists, hikers, and others requiring nonperishable, easy-to-prepare food.

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