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Report Overview

The global dairy market attained a value of approximately USD 561.66 Billion in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 3.60%, reaching a value of around USD 799.97 Billion by 2034.

2024

Base Year

2018-2024

Historical Year

2025-2034

Forecast Year

  • According to Dairy UK, 12,000 active dairy farmers produce nearly 15 billion litres of milk annually, contributing to a £9.2bn wholesale value of dairy products.
  • APEDA confirms India leads the world in milk production, producing approximately 230.58 million tonnes of milk in the 2022-23 period.
  • FAO reports global milk production reached 965.7 million tonnes in 2023, showing a 1.5% growth from the previous year.

Compound Annual Growth Rate

Value in USD Billion

3.6%

2025-2034


Dairy Market Outlook

*this image is indicative*

Global Dairy Market Report Summary Description Value
Base Year USD Billion 2023
Historical Period USD Billion 2018-2024
Forecast Period USD Billion 2025-2034
Market Size 2024 USD Billion 542.14
Market Size 2034 USD Billion 745.33
CAGR 2018-2024 Percentage XX%
CAGR 2025-2034 Percentage 3.6%
CAGR 2025-2034 - Market by Region Asia Pacific 4.2%
CAGR 2025-2034 - Market by Country India 4.6%
CAGR 2025-2034 - Market by Country China 4.4%
CAGR 2025-2034 - Market by Product Fluid/UHT/Flavoured Milk 4.1%
Market Share by Country 2023 France 4.5%

Dairy Market

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Global Dairy Market Growth

Dairy refers to milk and products derived from milk such as butter, cheese, yogurt, or cream. Dairy products are a key component of many diets globally due to their nutritional value. They contain calcium, proteins, vitamin A, vitamin B, vitamin B12, riboflavin and other nutrients and minerals, and are known for strengthening bones. Most commonly, dairy milk is obtained from cows, goats, camels, and sheep.

Dairy farming involves the breeding and raising of dairy animals, primarily cows, for milk production. Pasteurisation, homogenisation, fermentation, and ageing are some of the processes used to produce different dairy products, thus, boosting the dairy market demand.

Dairy products are integral to many cuisines and culinary traditions around the world. In some cultures, dairy animals and products hold religious or symbolic significance. The dairy sector is a major part of the agricultural economy in many countries. It provides livelihoods for millions of people worldwide, from farming to processing and retail.

Global Dairy Industry Outlook

According to FAO, Asia saw a 2.3% increase in milk production in 2023, the highest growth globally. Central America and the Caribbean experienced a 1.3% rise, indicating significant regional growth. South America's milk production grew by 0.7%, showing moderate improvement. Europe saw a modest 0.5% increase, reflecting stable dairy market demand growth. Oceania's milk production rose by 0.4%, demonstrating a slight uptick. North America's milk production increased by 0.3%, indicating minimal growth.

Regarding global dairy exports, skimmed milk powder (SMP) exports increased by 3.7% in 2023, leading to growth, while cheese exports saw a marginal 0.4% rise.

Dairy market dynamics and trends are being boosted as the European Union remains the top cheese exporter, consistently surpassing 1,500 thousand tons annually from 2019 to the 2023 forecast. The United States maintained a steady export volume of 300 to 400 thousand tons over the same period, while New Zealand's exports ranged between 300 to 400 thousand tons annually. Belarus consistently exported between 200 to 300 thousand tons each year.

FAO forecasts India's dairy production to increase from 226,090 to 231,740 thousand tons, with minimal imports. Indonesia shows a steady production rise from 1,600 to 1,611 thousand tons, with imports increasing slightly from 3,775 to 4,206 thousand tons.

As per dairy industry analysis, between 2020 and 2023, the Australian dairy industry showcased resilience and growth in key metrics. The value of farm production surged from USD 4,829 million to a projected USD 6,082 million, reflecting a strong CAGR of 8.0% for the 2020s. Per capita consumption increased from 319 litres to 327 litres, indicating a steady rise in domestic demand with a CAGR of 0.8%. Export value grew from USD 3,378 million to an estimated USD 3,707 million, demonstrating a healthy CAGR of 3.2% and a robust international market presence. The export share of production also slightly increased from 29% to 30%, highlighting the sector's growing export orientation according to ABS.

Market Competition in the Global Dairy Market

The growth of the dairy market features intense competition among key players from various regions, each striving for dominance through diverse strategies. The European Union, the United States, and New Zealand lead in cheese exports, leveraging advanced production technologies and established supply chains. Emerging markets like India and China are rapidly increasing production capacities to meet rising domestic demand and enter international markets.

Countries such as Saudi Arabia and Turkey are enhancing their export capabilities. Price volatility, shifting consumer preferences towards plant-based alternatives, and stringent regulatory standards add to the competitive landscape. The dairy market opportunities will be increasingly accelerated by focusing on innovation, sustainability, and branding to gain an edge.

Key Players in the Global Dairy Market and Their Key Initiatives

Danone S.A.

  • Launched plant-based dairy alternatives to cater to growing dairy demand. 
  • Invested in sustainable farming practices to reduce carbon footprint. 
  • Expanded its product portfolio with health-focused dairy products. 
  • Strengthened its presence in emerging markets through strategic acquisitions. 

Arla Foods amba

  • Arla Foods aims to achieve carbon net zero by 2050. 
  • Expansion of organic dairy products to meet rising consumer demand. 
  • Investment in new product development and digitalization. 
  • Initiatives to enhance farm efficiency and sustainability.

Nestlé S.A.

  • Commitment to achieve net-zero greenhouse gas emissions by 2050.
  • Launch of plant-based dairy alternatives boosting the growth of the dairy industry.
  • Strengthening presence in emerging markets, particularly in Asia and Africa. 
  • Development of fortified dairy products.

Fonterra Co-operative Group Limited

  • Commitment to achieve net-zero carbon emissions by 2050.
  • Expansion of value-added dairy products, including high-protein and specialised nutrition. 
  • Investment in sustainable farming practices and renewable energy. 
  • Strengthening global partnerships and supply chain resilience.

Dairy Farmers of America, Inc.

  • Investing in renewable energy projects and sustainable farming methods.
  • Expanding product lines to feature more organic and non-GMO options.
  • Forming strategic partnerships to improve supply chain efficiency and market reach.
  • Prioritising dairy innovation, such as lactose-free and high-protein products.

The global dairy market revenue benefits from growing consumption driven by population growth, increasing incomes, and urbanisation, especially in developing regions.

  • Dairy products cover a wide array, including milk, cheese, butter, and yoghurt, meeting various consumer preferences and dietary needs.
  • Advanced dairy farming techniques, processing technologies, and logistical enhancements improve efficiency and product quality, providing a competitive advantage in production and distribution.

Dairy farming contributes to environmental issues such as greenhouse gas emissions and water consumption, potentially leading to regulatory scrutiny and consumer activism.

  • Variable milk prices caused by supply disruptions, weather conditions, and geopolitical factors can affect profitability and industry stability.
  • Increasing awareness of health issues associated with dairy consumption, such as lactose intolerance and a shift towards plant-based alternatives is advancing the growth of the dairy market.

The expanding middle class in Asia-Pacific, Latin America, and Africa offers substantial growth opportunities for dairy products.

  • Increasing demand for functional, organic, sustainable, and fortified dairy products creates avenues for innovation and premium offerings, enhancing the dairy industry revenue.
  • Growth in online platforms facilitates broader market reach and direct-to-consumer sales, particularly advantageous during global supply chain disruptions.

The rising popularity of plant-based milk alternatives and vegan diets poses a threat to traditional dairy consumption patterns.

  • Trade disputes, tariffs, and regulatory barriers can disrupt global dairy supply chains and market access, impacting profitability and growth.
  • Outbreaks affecting livestock, such as foot-and-mouth disease or avian flu, can lead to supply shortages and price volatility in the dairy market.

Dairy Market by Segments

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Global Dairy Industry Segmentation

“Global Dairy Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

  • Fluid/UHT/Flavoured Milk
  • Cream
  • Butter
  • Ghee
  • Anhydrous Milk Fat (AMF)
  • Skimmed Milk Powder/Non-Fat Dry Milk
  • Whole Milk Powder
  • Whey Protein (Powder and Concentrate)
  • Indian Cheese (Paneer)
  • Lactose
  • Casein
  • Cheese
  • Yoghurt
  • Ice-Cream
  • Probiotic Dairy Products

Market Breakup by Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Dairy Market Share

Globally, fluid, UHT, and flavoured milk represent a significant portion of the dairy market share. Drinking milk daily is a common tradition in households worldwide, especially for children, often consumed plain, flavoured, or with cereals. UHT milk offers the advantage of a long shelf life and non-refrigerated storage, making it ideal for regions lacking consistent refrigeration or emergency food supplies.

Flavoured milk combines the nutritional benefits of milk with a sweetened, flavoured taste, appealing to those who prefer a more enjoyable option.

Cheese holds a significant share of the global dairy market enhances trends of dairy market and is widely used in cooking, especially in pasta, snacks, sandwiches, salads, and pizzas. Soft cheeses, milk, and yoghurt are favoured by health-conscious consumers. Dairy ice cream is extremely popular, capturing a substantial market share due to its delicious taste and nutritional content.

Global Dairy Market Share by Region

The Asia Pacific region dominates the dairy market in terms of revenue due to high milk production and consumption, growing populations, and rising disposable incomes. Major milk producers include India and China, with other key markets being Japan, Malaysia, Indonesia, and the Philippines. Increasing awareness of dairy’s nutritional benefits, especially its protein and calcium content, is driving higher consumption.

The influence of Western dietary habits has also boosted dairy consumption, which was not traditionally common in many Asian diets. Advances in cold chain logistics have facilitated the distribution of dairy products, even to remote areas, while the rise of online grocery shopping has made these products more accessible to consumers, thus, boosting the demand of the dairy market.

Europe also accounts for a considerable share of the global market, particularly for cheeses and butter. The European Union is a significant producer of cow milk, along with over 300 types of cheeses and other dairy products. In North America, the dairy market value is substantially growing, with increase in production and consumption levels. Historically, there has been a surplus in dairy production with extensive exports to regions with relatively lower production.

CAGR 2025-2034 - Market by Country
India 4.6%
China 4.4%
Mexico 4.1%
Brazil 4.0%
Canada 3.5%
USA XX%
Germany XX%
France 3.1%
Italy XX%
Japan XX%
Australia XX%
Saudi Arabia XX%
UK 2.9%

Dairy Market

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Global Dairy Market Analysis

The demand in the dairy market is driven by the rising consumer awareness of the health benefits of dairy products and the expanding range of available products. The versatile range of dairy products encourages their widespread consumption, including through direct products such as milk, yoghurt, and ice cream, as well as in cooking, in the form of butter and cheese. The growing trend of organic products is influencing the dairy demand, as more consumers seek organic dairy products that do not have any chemical components. An increase in distribution channels is further augmenting the market for dairy, with consumers able to access dairy products from local convenience stores, larger chain supermarkets/hypermarkets, and online retailers.

Competitive Landscape

Danone S.A.

Danone S.A. was founded in 1919 and has its headquarters in Paris, France. It is a multinational French food company that delivers healthy products like plant-based foods, medical nutrition, dairy products, bottled water, and early-life nutrition.

Arla Foods Amba

Arla Foods Amba is a Danish-Swedish dairy company which was established in 2000 and has its headquarters in Aarhus, Denmark. It is a farmer-owned company that produces most of the milk they supply. Their objective is to contribute to a sustainable future by providing naturally built solutions.

Nestlé S.A.

Nestlé S.A., founded in 1866, has its headquarters in Vevey, Switzerland. It is among the largest food and beverage companies in the world. With a company motto of ‘Good Food, Good Life’, they believe in discovering the power of food and then producing and supplying it to the world to improve the quality of everyone’s life.

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other market players include Royal FrieslandCampina N.V., Fonterra Co-operative Group Limited, Dairy Farmers of America, Inc., Lactalis Group, Saputo Inc., China Mengniu Dairy Company Limited, and Meiji Holdings Company, Ltd, among others.

Dairy Market Report Snapshots

Dairy Market Size

Dairy Market Growth

Dairy Market Analysis

Dairy Market Share

Dairy Companies

Dairy Market Regional Analysis

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

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Key Questions Answered in the Report

In 2024, the global dairy market attained a value of USD 561.66 Billion.

The global dairy market is expected to grow at a CAGR of 3.60% between 2025 and 2034.

The market is estimated to reach USD 799.97 Billion by 2034.

Increase in population, changing dietary habits, and awareness of benefits of dairy products are the major market drivers.

The key dairy market trends include development of new dairy products, new tastes and preferences of consumers, and growing usage by end-user sectors.

The market is broken down into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.

Dairy milk is mostly obtained from lactating mammals such as cows, goats, camels, and sheep.

The various products in the market for dairy are fluid/UHT/flavoured milk, cream, butter, ghee, anhydrous milk fat (AMF), skimmed milk powder/non-fat dry milk, whole milk powder, whey protein (powder and concentrate), Indian cheese (paneer), lactose, casein, cheese, yoghurt, ice-cream, and probiotic dairy products.

The market key players are Danone S.A., Royal FrieslandCampina N.V., Arla Foods amba, Nestlé S.A., Fonterra Co-operative Group Limited, Dairy Farmers of America, Inc., Lactalis Group, Saputo Inc., China Mengniu Dairy Company Limited, and Meiji Holdings Company, Ltd, among others.

Report Summary

Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.

Key Highlights of the Report

Please note that the figures mentioned in the description serve as estimates and may vary from the actual figures presented in the final report.

REPORT FEATURES DETAILS
Base Year 2024
Historical Period 2018-2024
Forecast Period 2025-2034
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Product
  • Region
Breakup by Product
  • Fluid/UHT/Flavoured Milk
  • Cream
  • Butter
  • Ghee
  • Anhydrous Milk Fat (AMF)
  • Skimmed Milk Powder/Non-Fat Dry Milk
  • Whole Milk Powder
  • Whey Protein (Powder and Concentrate)
  • Indian Cheese (Paneer)
  • Lactose
  • Casein
  • Cheese
  • Yoghurt
  • Ice-Cream
  • Probiotic Dairy Products
Breakup by Region
  • North America
    • United States of America 
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Australia
    • Others
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • South Africa
    • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Danone S.A.
  • Royal FrieslandCampina N.V.
  • Arla Foods amba
  • Nestlé S.A.
  • Fonterra Co-operative Group Limited
  • Dairy Farmers of America, Inc.
  • Lactalis Group
  • Saputo Inc.
  • China Mengniu Dairy Company Limited
  • Meiji Holdings Company, Ltd
  • Others

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