The global organic dairy market value reached around USD 24.99 Billion in 2023 due to large consumer shift towards healthier beverages. Government support through subsidies and educational initiatives promoting organic farming practices further facilitates market expansion by encouraging farmers to adopt these methods. As a result, the industry is expected to grow at a CAGR of 8.30% during the forecast period of 2024-2032 to attain a value of USD 51.22 Billion by 2032. Technological innovations in product development, such as energy-boosting organic drinks from brands like Oikos and Siggi’s, enhance market offerings.
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Organic dairy products are the products procured from livestock, which are raised through organic farming methods. These products are preservative-free and are rich in antioxidants, omega-3 fatty acids, vitamins, and conjugated linoleic acid. Also, these products offer numerous health benefits such as strengthening immunity, boosting metabolism, reducing joint and muscle pain, and minimising the risk of heart and cancer diseases.
Organic dairy farming involves the integration of animal-pasture-crop production to yield wholesome milk as well as milk products free from pesticides, chemical fertilisers, and hormones. The governments of many countries are encouraging organic farming as it has several health benefits for livestock and humans. It is estimated that organic milk has approx. 61.8% more omega-3 fats and less damaging omega-6 fats in comparison to conventional milk.
As a result, it helps in reducing health problems like cardiovascular diseases, depression, cancer, Alzheimer's, rheumatoid arthritis, and diabetes, among others. These factors are expected to favourably drive the growth of the organic dairy market in the coming years. Due to the growing prevalence of chronic diseases and changes in lifestyles, consumers are becoming more aware of the harmful effects of consuming synthetic ingredients, thus, leading to a greater adoption of organic dairy products in recent years.
Value in USD Billion
2024-2032
Organic Dairy Market Outlook
*this image is indicative*
Innovations in the market, rising trend of sustainability in the organic dairy sector, and growth of plant-based alternatives are the key trends aiding the market growth.
Technological advancements in the manufacturing of low-fat products and reduced levels of sugar are expected to drive the demand for the product in the coming years. For instance, Nestlé announced the launch of an innovative protein aggregation technology in July 2024 that reduces milk fat content by up to 60%, while maintaining the desired creamy texture and flavour that appeals to consumers. This innovation enables the development of healthier dairy alternatives with fewer calories, catering to those who seek low-fat and organic choices without compromising on taste and can enhance the organic dairy market value. This technology has been utilised in products such as Ninho Adulto, a milk powder sold in Brazil, which provides the richness of full-fat milk with less fat and a smaller environmental impact. The increasing consumer emphasis on health and wellness is also driving innovations in dairy protein products. For example, Glanbia Nutritionals announced the launch of UltraHi™ Protein Yogurt Technology, enabling the production of yoghurt with up to 50 grams of protein per serving.
The dairy sector accounts for around 10% of the methane emissions in the United States, which fuels the demand for sustainability measures that can reduce the emission. In organic dairy farming, research is focused on using essential oils and feed additives such as red seaweed to reduce methane emissions from dairy cows, thereby promoting environmental sustainability and enhancing organic dairy market opportunities. This strategy aligns with consumer demand for organic products that contribute to both health and ecological well-being. The use of this feed further increased the milk fat and milk somatic cell count which indicates good quality in milk. As per Cargill’s 2023 Sustainability Consumer Survey, more than half of consumers stated that they would prefer to incorporate more eco-friendly and sustainable food and beverages in their diet, meanwhile, 53% of shoppers stated that they prefer to purchase food and beverage products with low carbon content.
The rise of plant-based alternatives is reshaping the organic dairy market landscape as many consumers are opting for non-dairy options for health or dietary reasons. According to recent surveys, over 30% of U.S. consumers are incorporating plant-based milks into their diets, reflecting a significant shift in preferences. Companies like Califia Farms have responded to this shift by launching products such as Organic Coconut Milk and Organic Vanilla Almond milk. Additionally, a study found that 45% of consumers choose plant-based alternatives due to perceived health benefits, such as lower calorie counts and reduced saturated fat content. The growing availability of these alternatives not only expands the market but also encourages traditional dairy brands to innovate and diversify their product lines to remain competitive.
Ethical considerations surrounding animal welfare are increasingly influencing consumer choices in the organic dairy market. Many consumers believe that organic dairy farms adhere to higher animal welfare standards, such as providing pasture access and avoiding growth hormones. A review of organic dairy practices found that cows in organic systems have better welfare outcomes, as they are required to graze on pasture, which is associated with lower stress levels and improved overall health. In a survey conducted across various European countries, it was reported that up to 70% of consumers prefer dairy products from farms that focus on animal welfare. Brands like Oakhurst Dairy actively promote their commitment to humane farming practices. This trend not only fosters consumer trust but also encourages producers to adopt more humane practices.
High-protein organic dairy products, including yoghurt and nutritional shakes, are experiencing significant growth. These offerings appeal to consumers focused on muscle support and overall health. The launch of lactose-free organic dairy products also addresses the needs of consumers with dietary restrictions, while still providing the nutritional advantages associated with milk, which can positively impact the organic dairy demand forecast. For instance, Clover Sonoma announced that it has expanded its range of organic lactose-free milk by adding flavoured options like vanilla, chocolate, and strawberry. This development offers lactose-intolerant consumers more choices, enabling them to enjoy organic milk without any digestive discomfort.
The market is also expanding its range of value-added products, such as fortified and lactose-free milk alternatives. For instance, organic milk enhanced with lactoferrin and probiotics is becoming increasingly popular due to its immune-boosting properties. Furthermore, the premium cheese segment is introducing new products that may incorporate functional ingredients like omega-3 fatty acids and probiotics, appealing to consumers seeking dairy options that offer health benefits beyond basic nutrition.
The United States Department of Agriculture (USDA) has introduced the Organic Dairy Marketing Assistance Program (ODMAP) for 2024, under which it allocated USD 58 million in funding to support organic dairy producers in managing their marketing expenses and stabilising their operations. This initiative aims to address challenges such as market fluctuations and rising input costs, which can pose challenges for organic farmers, boosting the organic dairy market revenue. Additionally, the program provides higher production limits and payment rates to improve the financial stability of organic dairy companies.
As per the USDA Dairy Business Innovation Initiatives, in 2024, the USDA allocated USD 11.04 million to several regional centres, including the University of Tennessee, the Vermont Agency of Agriculture, and California State University. This funding aimed to aid organic dairy farmers in adopting sustainable practices and developing innovative products, like artisanal cheeses, to improve their market visibility.
Organic dairy farming generally involves higher costs compared to conventional farming methods, primarily due to the increased price of organic feed, which can represent over 40% of total expenses. The scarcity of certified organic feed grains in the United States has led some farmers to grow their own or import these supplies, further driving up operational costs. In 2021, the estimated cost of organic feed was USD 16.35 per hundredweight, marking a rise from previous years. As per the organic dairy industry analysis, costs associated with organic certification, animal welfare, and sustainable practices add to the financial difficulties faced by these farmers.
The organic dairy sector experiences the same price fluctuations as the overall dairy market. Prices for organic milk can fluctuate significantly due to imbalances in supply and demand, and organic producers often face pricing challenges like those of conventional producers. For example, in the first half of 2024, organic cream sales dropped by 7%, which can be due to high retail prices and changes in consumer buying behaviour driven by current economic conditions.
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“Organic Dairy Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Based on the product type, the organic dairy market is divided into:
On the basis of packaging type, the global organic dairy market can be broadly categorised into:
Based on the distribution channel, the industry can be segmented into:
By region, the market is divided into:
Market Analysis by Product Type
Organic fluid milk accounted for the largest market share, due to the rising demand for clean-label milk which can offer a healthier alternative to traditional dairy milk. The demand for organic fluid milk is especially more prevalent among families with specific dietary needs which further boosts organic dairy market expansion.
Organic yoghurt has also gained prominence in the market in recent years due to its rich probiotic content, which can improve gut health and digestion. The rising trend towards functional foods also aids its demand as they can be fortified with vitamins, fibre, and proteins. Some of the most prominent organic yoghurts are Greek and plant-based yoghurts which cater to a specific group of consumers.
Market Analysis by Packaging Type
Pouches are finding widespread use in the market due to their versatility, user-friendliness, and environmental benefits. They are commonly used for products like yoghurt and milk and especially appeal to consumers looking for convenient on-the-go consumption solutions.
As per the organic dairy market dynamics and trends, the tetra-packs segment dominated the market as they are considered ideal for the packaging of dairy products since they help preserve their overall nutritional value for a longer time. Tetra packs can preserve the quality of dairy products for the long term without being refrigerated, which makes it ideal for long-range transit and shipment of organic dairy products. These packs are also sustainable in nature and align with the long-term sustainability goals.
Market Analysis by Distribution Channel
The supermarkets/ hypermarkets segment accounted for most of the organic dairy market and is expected to retain its dominance over the forecast period of 2024-2032. The segment growth is attributed to the availability of more shelf space and a wider choice among many products. Supermarkets are generally located in the central part of the cities, which in turn attracts more buyers.
Organic speciality stores that offer health-oriented products have become increasingly popular among consumers who prioritise quality and sustainability. These stores usually provide a carefully selected collection of organic dairy items and emphasise transparency in their sourcing and production processes, appealing to both health-conscious and eco-conscious customers.
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North America Organic Dairy Market Dynamics
The demand for organic dairy products in the region is fuelled by health-conscious consumers who prefer natural options that are free from hormones and pesticides. The USA is boosting the demand of organic dairy market with the presence of major brands such as Horizon Organic and Organic Valley which can enhance their offerings to include lactose-free and fortified milk products. Furthermore, strong retail networks in both the United States and Canada enhance the accessibility of organic dairy products through supermarkets and speciality shops. For example, as per the preliminary data from the U.S. Bureau of Labor Statistics, there were around 1,076,931 private retail establishments in the USA as of the third quarter of 2023.
Asia Pacific Organic Dairy Market Drivers
The organic dairy demand in this region is fuelled by rising incomes and a growing awareness of the health benefits linked to organic products. Countries such as China, Japan, and India are experiencing a shift in consumer preferences towards high-quality dairy products that are free from genetically modified organisms (GMOs) and artificial additives. For instance, India produced around 3.6 million metric tonnes of certified organic products, including organic dairy products, in the fiscal year 2023-2024.
Furthermore, rapid urbanisation and the expansion of the middle class are driving the growth of the organic dairy sector in Asia, leading to increased access to organic milk in urban retail stores.
Europe Organic Dairy Market Growth
Regionally, Europe dominated the global organic dairy market share owing to the increasing demand for organic food products in the region. Moreover, to manage the current supply and rising demand for these products, a large part of Europe's agricultural land is being utilised for organic farming. European consumers have also shown an increased preference for sustainable and ethically sourced products, due to rising environmental awareness and stringent government regulations.
For instance, the EU Organic Action Plan aims to increase the share of agricultural land allocated to organic farming to 25% by 2030. This ambitious target is a key element of the broader Farm to Fork (F2F) strategy, which focuses on developing a sustainable food system.
Latin America Organic Dairy Market Outlook
The regional market is witnessing substantial growth due to rising consumer awareness of health and environmental issues. Brazil and Argentina are two of the prominent markets, where rising incomes and an increased interest in sustainable agricultural practices are driving the organic dairy demand growth.
Furthermore, regional governments are supporting organic farming initiatives to promote sustainability and reduce environmental impact. For example, in Argentina, WIPO GREEN helps link local farmers with sustainable agricultural solutions, including bio-inputs such as biofertilisers and biopesticides, which reduce dependence on synthetic chemicals. This can help organic dairy farms maintain their organic standards.
Middle East and Africa Organic Dairy Market Trends
This region is emerging as an important market for organic dairy, primarily driven by the increasing purchasing power of wealthy consumers. Countries such as Saudi Arabia and the United Arab Emirates are witnessing a rise in organic dairy consumption, which can be due to rising awareness of health and a growing preference for imported organic products. The limited local production has led to a greater dependence on imports to satisfy the demand in these regions and increase the organic dairy industry revenue.
With a young population and increasing health awareness, the demand for organic dairy is expected to grow, especially in urban regions such as Riyadh and Jeddah.
Several startups are leveraging synthetic biology to create dairy proteins without traditional animal farming. By using precision fermentation, these startups produce milk proteins such as casein, which can be used in cheese production and various dairy alternatives. This approach appeals to consumers who favour plant-based and cruelty-free options, which are gaining traction in the organic dairy market. Furthermore, these companies are adopting high-end processing technologies such as ultra-high temperature (UHT) processing and microfiltration, to improve product safety and extend shelf life, making organic dairy products more accessible in remote areas.
Akshayakalpa Organic
Akshayakalpa Organic, based in India, is committed to producing organic milk and dairy products by partnering with local farmers to ensure the delivery of high-quality, chemical-free milk. The company emphasises sustainable farming practices, animal welfare, and a commitment to providing nutritious dairy options. Moreover, in 2022, the startup raised USD 15 million in funding to expand its operations in major Indian cities such as Chennai, Hyderabad, and Bengaluru.
Nutropy
This French startup in the organic dairy market specialises in the development of animal-free dairy alternatives through precision fermentation. Nutropy produces dairy proteins such as casein that are molecularly identical to those found in traditional dairy, but without involving animals in the process. Their products are designed to mimic the taste and texture of traditional dairy products, catering to consumers who prioritise sustainable, ethical, and health-conscious choices.
The report presents a detailed analysis of the following key players in the global organic dairy market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions. Several companies in the market are adopting sustainable agricultural technologies. Essential green practices such as precision agriculture, the use of renewable energy, and efficient waste management are playing a crucial role in minimising environmental impacts. For instance, these farms are using solar and wind energy and improving water efficiency through advanced irrigation techniques.
Founded in 1991, Horizon Organic is a leading organic dairy brand in the United States, known for its commitment to organic and sustainable farming practices. The company offers a wide range of dairy products such as milk, creamers, yoghurt, cheese, and butter, among others, all produced without synthetic growth hormones or antibiotics.
Aurora Organic Dairy, based in Colorado, the United States, is a vertically integrated dairy company in organi...
General Mills, a global food company headquartered in Minnesota, the United States, owns a diverse portfolio o...
*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 major players in the organic dairy market are Arla Foods Amba, and Organic Valley, among others.
*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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In 2023, the market reached an approximate value of USD 24.99 Billion.
The organic dairy market is assessed to grow at a CAGR of 8.30% between 2024 and 2032.
The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach a value of around USD 51.22 Billion by 2032.
The major market drivers include the growing demand for organic fluid milk, the increasing preference for organic products, and the introduction of favourable government initiatives aimed at boosting organic farming.
Rising government investments in the dairy sector and technological advancements are the major trends positively influencing the market.
The major regions in the market are North America, the Asia Pacific, Europe, Latin America, and the Middle East and Africa.
Organic fluid milk, organic yoghurt, organic cheese, organic butter, and organic cream, among others, are the various product types of organic dairy.
The significant packaging types of organic dairy include pouches, tetra-packs, bottles, and cans, among others.
The major distribution channels in the market are supermarkets/hypermarkets, discount stores, convenience and grocery stores, organic speciality stores, online/e-retailing, and direct sales, among others.
The major players in the market are Horizon Organic, Aurora Organic Dairy, General Mills Inc., Arla Foods Amba, and Organic Valley, among others.
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.
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Product Type |
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| Breakup by Packaging Type |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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