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Report Overview

The dairy products market was valued at USD 944.93 Billion in 2024. The industry is expected to grow at a CAGR of 7.80% during the forecast period of 2025-2034. The market growth is bolstered majorly by the increased disposable incomes in the Asia Pacific and African regions that have triggered the demand for premium, nutritional dairy products. In turn, all these factors have resulted in the market attaining a valuation of USD 2002.57 Billion by 2034.

2024

Base Year

2018-2024

Historical Year

2025-2034

Forecast Year

  • The U.S. Department of Agriculture (USDA) announced a grant of USD 23 million on June 28th, 2023, to support the dairy businesses in the region for their business development plans, marketing strategies, and innovative production techniques. This insight is indicative of several opportunities for companies to leverage and promote the health benefits of organic products that do not contain any harmful pesticides and synthetic hormones, to further drive growth in the dairy products market.
  • New technology in dairy processing-such as ultra-high-temperature (UHT) treatment and membrane filtration, keeps extending shelf life and enriching nutrition. Such technology allows manufacturers to assure better product quality and to make their way into emerging markets, particularly where shelf stability is in critical need for distribution.
  • With the increasing consumer awareness on health benefits in the dairy industry including probiotics and calcium, among others, is expected to keep fueling functional dairy product demand. Dairy manufacturers can hence continue shifting attention towards nutrition enhancement and clean-label products appealing to health-conscious consumers.

Compound Annual Growth Rate

Value in USD Billion

7.8%

2025-2034


Dairy Products Market Outlook

*this image is indicative*

Global Dairy Products Market Report Summary Description Value
Base Year USD Billion 2024
Historical Period USD Billion 2018-2024
Forecast Period USD Billion 2025-2034
Market Size 2024 USD Billion 944.93
Market Size 2034 USD Billion 2002.57
CAGR 2018-2024 Percentage XX%
CAGR 2025-2034 Percentage 7.80%
CAGR 2025-2034 - Market by Region Asia Pacific 10.1%
CAGR 2025-2034 - Market by Country India 11.6%
CAGR 2025-2034 - Market by Country Brazil 8.5%
CAGR 2025-2034 - Market by Product Yoghurt 8.8%
CAGR 2025-2034 - Market by Distribution Channel Online Channels 8.6%
Market Share by Country 2024 India 12.5%

Dairy Products Market Overview

Consumer demand for dairy and new dairy products is majorly boosting growth in the global dairy product market. The market experiences heavy demand in the emerging markets of the Asia Pacific and Africa regions, housing a growing number of consumers with rapid urbanization and rising disposable incomes. Key trends that are observed in the market include growth in premium and organic dairy products and innovations in functional foods such as protein-enriched dairy and fortified dairy drinks. The market is also being influenced by sustainability concerns whereby such companies focus on environmentally friendly packages or sustainable sourcing. Key players like Nestlé, Danone, and Lactalis have invested heavily in product differentiation and regional expansion. Such vast investments are primarily driven by shifting consumer preferences to increase regional presence.

Dairy Products Market Growth

There has been a significant awareness of gut health that has propelled demand for probiotic dairy products such as yogurt and kefir. These products containing live bacterial cultures produce a digestive benefit. Indeed, these added attributes are increasingly appealing to health-conscious consumers. Brands like Chobani and Danone are taking advantage of the specialized niche, enhancing their probiotics to cater to the growing demand for functional foods responsible for immune support and digestive health. Increasing prevalence of lactose intolerance plus veganism have made dairy-free and lactose-free alternatives popular, bolstering the dairy products market value. These can include yogurt, cheeses, and milk produced without any additional animal-derived components. Dairy is being replaced with plant-based components from oats, almonds, and coconuts that are growing as sustainable alternatives in the market.

Key Trends and Developments

Dairy Products Market Opportunities

Major opportunities to be addressed in the global market include the increasing demand for plant-based dairy alternatives, which comes with growing health awareness and veganism as well as adoption of lactose-free diets. In this regard, companies can focus on innovation and the development of new nutrient-enriched plant-based dairy items. Emerging markets also rank high in terms of potential growth opportunities in the dairy products market. The main drivers here are changing lifestyles, urbanization, and increasing incomes that boost demand for dairy items. As consumers adopt the eating habits of the West, demand for dairy products increases. This shift provides companies an opportunity to expand their scope and establish a strong presence in these developing economies.

Dairy Products Market Trends

The growing awareness of the health benefits of dairy products which include calcium, protein, and probiotics, is set to boost the dairy products demand forecast. Consumers are increasingly prioritizing dairy for its benefits regarding bone health, digestion, and overall nutrition. This trend spurs demand for fortified and functional dairy products, such as low-fat, protein-rich, and probiotic-rich selections, particularly among health-conscious consumers. Furthermore, significant technological advancements in dairy processing are increasing the quality of the product right from taste to shelf-life. All these advancements allow companies to expand their range of dairy products with greater freshness and nutritional value. This drives major market growth.

Dairy Products Market Restraints

The growing prevalence of lactose intolerance across the globe has shifted consumers to opt for plant-based diets, which could limit the space for traditional dairy. This is one of the most significant challenges in the dairy products market.
The environmental footprint of the dairy sector, including the use of water, methane emissions, and waste management, is now under greater pressure. Stricter regulations and customer demand for environmentally friendly practices are likely to disrupt growth in traditional dairy production.

Global Dairy Products Industry Segmentation

The EMR’s report titled “Dairy Products Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

  • Butter
  • Milk
  • Dairy Desserts
  • Yoghurt
  • Cheese
  • Cream
  • Others

Market Breakup by Distribution Channel

  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Online Channels
  • Others

Market Breakup by Region

  • North America
  • Europe
  • Asia pacific
  • Latin America
  • Middle east and Africa

Dairy Products Market Share

Market Analysis by Product Type

The global dairy products market is witnessing significant traction across various segments. Butter is growing due to rising demand for premium and organic variants. Milk remains a staple, driven by increasing health consciousness and lactose-free alternatives. As per dairy products market analysis, dairy desserts are gaining popularity due to indulgence trends and innovative flavors. Yoghurt is expanding due to probiotic benefits and functional ingredients. Cheese sees strong demand from foodservice and snacking trends. Cream is rising in demand for culinary applications, while others include specialty dairy items catering to niche consumers.

By Distribution Channel Analysis

The global dairy products market is experiencing notable growth across distribution channels. Hypermarkets/Supermarkets dominate due to wide product availability, competitive pricing, and consumer preference for one-stop shopping. Convenience stores are gaining traction for their accessibility and impulse purchases. Online channels are expanding rapidly, driven by e-commerce growth, doorstep delivery, and subscription models. Other channels, including specialty stores and direct-to-consumer platforms, are flourishing as consumers seek niche, organic, and premium dairy products with enhanced traceability and quality assurance.

Dairy Products Market Regional Analysis

North America Dairy Products Market Opportunities

A growing functional, organic, and plant-based dairy demand is fueling the North America dairy market. With a region highly focused on health and wellness, the food and beverage industry remains a strong sector expanding fortified dairy products, probiotics, and protein-enriched dairy alternatives. The eco-conscious consumer segment is further driving demand, fueled by innovative sustainable packaging innovations.

Europe Dairy Products Market Insights

The growing preference for good quality, premium, and organic dairy is boosting the dairy products demand growth in Europe.  Focus on sustainability makes the region even more serious about organic dairy, probiotic-rich yogurts, and lactose-free milk options, which further boost the demand. Moreover, the shifting preference towards plant-based dairy alternatives that align well with the health consciousness and sustainability concerns of consumers are gaining momentum in the European market.

Asia Pacific Dairy Products Market Growth

The Asia Pacific market is currently experiencing rapid dairy products consumption. This growth is the result of rising urbanization, increased disposable incomes, and changing dietary habits. Increase in consumer demand for functional foods like probiotic yogurt, along with the uptake of Western-style dairy products, is fueling further demand in the Asia Pacific dairy products market. Dairy-free and lactose-free alternatives are also gaining popularity, especially in China and India, due to the growing trends of plant-based diets for vegan or lactose-intolerant consumers.

CAGR 2025-2034 - Market by Country
India 11.6%
Brazil 8.5%
Canada 7.4%
UK 7.1%
Australia 6.9%
USA XX%
Germany XX%
China XX%
Japan 6.0%
Saudi Arabia XX%
Mexico XX%
France 5.5%
Italy 4.9%

Latin America Dairy Products Market Outlook

The dairy products market in Latin America is experiencing rapid growth as economies start to develop and consumers shift their dairy consumption towards higher-quality, value-added dairy products. Growth is also driven by increasing demand for protein-rich dairy and functional products like yogurt, cheese, and fortified milk. This drive towards urbanization and rise of the middle-class populations is accelerating further demand for convenience-led dairy products and solutions, such as on-the-go ready-to-drink beverages and dairy-based snacks.

Middle East Dairy Products Market Dynamics

The Middle East and Africa dairy products market growth is supported by increased levels of urbanization, population, and lifestyle change. Demand for more processed and packaged dairy is likely to expand into flavored milk, yogurt, and cheese. Consumers are looking for more premium and functional dairy products, and with growing health and wellness consciousness. Growth is also coming through increased adoption of plant-based and lactose-free dairy alternatives in the region.

Competitive Landscape

Key strategies of dairy products market players include diversifying their products with innovation and sustainability. Dairy products companies are focusing on meeting the ever-growing demand for functionality, nutritional value, and plant-based dairy coupled with eco-friendly packaging that appeal to health-conscious consumers.

Nestlé S.A.

Located in Vevey, Switzerland, Nestlé S.A. is a multinational food and drink processing conglomerate firm. Since 2014, based on revenue and other indicators, it has been the world's largest publicly traded food company.

Danone S.A.

Established in Paris, Danone S.A. is a multinational food products company of French origin. It was ...

Fonterra Co-operative Group

Based in Auckland, New Zealand, Fonterra Co-operative Group was established in 2001 and is a promine...

Dairy Farmers of America, Inc.

Dairy Farmers of America, Inc. is a cooperative founded in the United States in 1998. It distributes...

*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 key players in the dairy products market report are Arla Foods amba, Royal FrieslandCampina, GCMMF, DMK Group, Lactalis International, Meiji Holdings Co., Ltd., among others.

Startup Scenario in the Dairy Products Market

In the global dairy products market, creative businesses are developing sustainable packaging options, functional foods with an added health component, and plant-based dairy substitutes. In order to meet the needs of consumers who seek transparency, health, and environmental consciousness while making food choices, they also consider clean-label, organic, and fortified dairy products.

Country Delight

In 2015, the dairy product manufacturing business Country Delight was established in India. Customers can get fresh cow and buffalo milk delivered right to their door by the platform. A customer who subscribes to the platform's subscription model takes milk every day.

*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 dairy products market reached an approximate value of USD 944.93 Billion.

The market is projected to grow at a CAGR of 7.80% between 2025 and 2034.

The market is estimated to witness healthy growth in the forecast period of 2025-2034 to reach a value of around USD 2002.57 Billion by 2034.

The major drivers of the market are increased disposable incomes in the Asia Pacific and African regions, growing awareness of the health benefits, and technological advancements in dairy processing.

The key trends of the market include plant-based alternatives, probiotics, sustainable packaging, plus premium organic offerings, serving health-conscious eco-friendly consumers.

The major regions in the market are North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

The various types considered in the market report are butter, milk, dairy desserts, yoghurt, cheese, cream, and others.

The various distribution channels considered in the market report are hypermarkets/supermarkets, convenience stores, online channels, and others.

The major players in the market are Nestle SA, Danone S.A., Fonterra Co-operative Group, Dairy Farmers of America, Inc., Arla Foods amba, Royal FrieslandCampina, GCMMF, DMK Group, Lactalis International, Meiji Holdings Co., 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 Type
  • Distribution Channel
  • Region
Breakup by Product Type
  • Butter
  • Milk
  • Dairy Desserts
  • Yoghurt
  • Cheese
  • Cream
  • Others
Breakup by Distribution Channel
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Online Channels
  • Others
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
  • Nestle SA
  • Danone S.A.
  • Fonterra Co-operative Group
  • Dairy Farmers of America, Inc.
  • Arla Foods amba
  • Royal FrieslandCampina
  • GCMMF
  • DMK Group
  • Lactalis International
  • Meiji Holdings Co., Ltd.
  • Others

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