The Victorian Government says it will move to ban powdered alcohol, following concerns overseas manufacturers will try to launch their product in the state in the coming months.

The United States government has just approved the sale of "Palcohol" and its manufacturer has reportedly indicated its interest in the Australian market.

To make an instant standard drink, one pouch of the powder is added to three-quarters of a cup of water.

Minister for Liquor Regulation Jane Garrett said she will write to her interstate and federal counterparts on Monday about stopping the powder from flooding the market.

"This product is dangerous," Ms Garrett said.

"It will be easy to get into venues, easy to carry around in backpacks, it's obviously a bit of a novelty.

"Regulating the amount that's used is really difficult.

"How this thing is measured, if it's poured into a punch bowl, what does it do?

"There's concerns that people might be snorting it."

The Victorian president of the Australian Medical Association, Dr Tony Bartone, said he supported moves to ban the powder.

"It just lends itself to an unwanted possibility of abuse and excess that sends the wrong message of excess in a culture that is seeking to promote alcohol in moderation," Dr Bartone said.

He said any labels or warnings on the product would not stop people abusing the product.

"It's about ensuring we have a reliable, predictable amount of alcohol in what we consume," he said.

"It's the message that we're sending. This would be able to go through to places where you would normally not allow alcohol to be.

"The possibility of taking it to school ... and hiding it in containers. It just lends itself to abuse and misuse.

"There is a plethora of alcohol products available on the shelves, we don't need additional products such as this."

Ms Garrett said she had the power to ban the product in Victoria, but wanted a national approach.

"We have a lot of alcohol products available in this country that are regulated and made by local manufacturers," she said.

"This is a really unwanted element ... and we will be doing everything we can to deal with it.

"The ways in which this product can be misused is limited only to the imagination."

She said governments had an obligation to make sure "dangerous products" were not available to young people.