United Kingdom Dairy Market Report and Forecast 2025-2034

United Kingdom Dairy Market Outlook

 The United Kingdom dairy market size is projected to grow at a CAGR of 0.9% between 2024 and 2032, reaching a value of USD 18.92 billion by 2032.

Key Takeaways:

• Based on product type, the United Kingdom dairy market share is dominated by cow milk.

• 12,000 active dairy farmers yield nearly 15 billion liters of milk annually, contributing to £9.2 bn wholesale value of dairy products, according to dairy UK.

• The varied cheese production offers individuals the opportunity to savor more than 700 distinct British cheese varieties.

The United Kingdom dairy market consists of the processing of milk and milk products in dairy facilities as well as the production of milk on dairy farms. The industry produces ice cream, butter, cheese, yoghurt, and many types of milk such as whole milk, semi-skimmed milk, skimmed milk, flavored milk, powdered milk, and condensed milk.

The market is routed through hypermarkets, supermarkets, convenience stores, internet merchants, dollar stores, variety stores, specialty food and beverage outlets, cash and carry businesses, and warehouse clubs.

DAIRY RETAIL VOLUME CHANGE

Key Trends and Developments

Changing lifestyle of individuals, increasing presence of e-commerce platforms, boosting employment, and government initiatives are increasing the United Kingdom dairy market growth.

September 2023

Yoplait launched its first SKYR range of high-protein low-fat yoghurt containing Vitamin B6, Vitamin D, and fruit pieces.

September 2023

Snack Sticks, an adult snack cheese collection was launched by the brand Pilgrims Choice.

May 2023

Iceland, a UK supermarket, launched the world's first frozen protein meal vending machine in partnership with Myprotein.

March 2023

Tim Dairy, a Greek Yoghurt brand, invested in the market by boosting its manufacturing capacity by 60%.

Change in lifestyle of the individuals

Growing awareness of health and well-being is fueling the demand for dairy products. Informed consumers recognise dairy as a vital nutritional component due to its protein, calcium, and probiotic content, supporting digestive health and providing essential nutrients in a healthy diet.

Increasing presence of e-commerce platforms

The extensive availability of dairy products in retail has streamlined the purchasing process, aiding the United Kingdom dairy market development. Consumers can effortlessly order their preferred dairy items, with swift doorstep delivery. Online delivery services like Milk & More and Getir ensure one-hour delivery of dairy products such as yogurt, cheese, butter, and milk.

Boosting Employment

Dairy UK emphasises the pivotal role in improving the product demand, highlighting the essential contributions of processing members who employ 24,000 individuals across the nation. Furthermore, dairy farms significantly contribute to employment, engaging 50,000 people directly and in associated industries.

Government Initiative

Government efforts to boost dairy product usage have strengthened the United Kingdom dairy market growth. Advocacy campaigns position the dairy market as a remedy for health issues and nutritional deficiencies, cultivating a positive atmosphere and consequently boosting demand for dairy products.

The UK government launched the Dairy Export Program to strengthen the dairy market and improve its outlook. New regulations aim to bring increased fairness and transparency to the sector, allowing farmers to challenge prices and express concerns in supply contracts to ensure fair compensation.

Market Segmentation

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

Market Breakup by Product Type

• Fluid/UHT/Flavoured Milk

• Cream

• Butter

• Milk Powder

• Whey Protein

• Cheese

• Yoghurt

• Ice-Cream

• Others

Market Breakup by End Use

• Residential

• Commercial

Market Breakup by Region

• England

• Wales

• Scotland

• Northern Ireland

Varied flavors, nutritional advantages, and convenience are propelling the dairy market in the United Kingdom

Health-conscious consumers increasingly choose flavored milk over sugary drinks, as it provides the goodness of dairy with diverse flavors such as caramel, coffee, vanilla, mango, and others, essential nutrients, and dietary options like low-fat. They offer convenience for on-the-go consumption providing swift means to access the nutritional advantage of milk.

Whey protein, derived from the liquid residue of milk curdling during cheese production, is a favored supplement for individuals seeking a convenient means to boost daily protein intake. It comprises various proteins and all essential amino acids, offering diverse flavors like chocolate, vanilla, coffee, strawberry, and mango.

Cheese is a concentrated dairy product, made by coagulating milk proteins with rennet or other agents, partially draining the resulting whey. It includes various types such as Parmesan, Mozzarella, and Cream Cheese, each with distinct physical, chemical, and sensory attributes. The diverse cheese manufacturing sector, which adds an extra 3 billion liters of milk, provides people with the chance to enjoy over 700 different types of British cheeses.

Yogurt offers protein and calcium, supports beneficial probiotic gut bacteria, and is available in various flavors and varieties. In contrast, ice cream is a frozen dairy treat composed of cream or butterfat, milk, sugar, and flavorings. According to the Companies House register, as of 2022, there are 701 companies in the UK involved in the manufacturing of ice cream.

Powdered milk is made by spray drying milk and removing water. Cream is derived from the high-fat layer atop milk before homogenization. Butter is produced by separating milk or cream into fat and buttermilk, condensing the fat into solid blocks.

The United Kingdom dairy market, based on end-use, is witnessing moderate growth within the commercial sector

Quick service restaurants (QSRs), and food and beverage outlets are seeing an increase in demand for dairy products including milk, cheese, whey protein, and yoghurt in the commercial sector. The creation of different foods and drinks such as milkshakes, coffee, ice cream, sandwiches, pizzas, and burgers.

Dairy products, including milk, butter, cheese, cream, and milk powder, are commonly utilized in households across various age demographics for their nutritional benefits and versatile use in cooking.

Competitive Landscape

Dairy companies are focusing on introducing healthy consumables to enhance daily nutrition for customers and treading new avenues to boost their position in the dairy market in United Kingdom.

Arla Foods was founded in 2000 and is headquartered in Denmark. It produces a diverse range of products for bakery, beverages, dairy, medical, infant, and sports nutrition. Their offerings include cheese, ice cream, and high-protein dairy drinks like Nutrilac® and Lacprodan®.

Danone SA was founded in 1919 and is headquartered in France. It is a world-leading food company pioneered in innovative food, drinks & specialized nutrition that has a positive impact on health. It makes flavoured milk, yoghurt, ice cream, and others.

Unilever PLC was founded in 1929 and is headquartered in the United Kingdom. Unilever is a creator of renowned brands and is committed to reducing environmental impact and amplifying positive influence. Responding to growing demand, it is further diversifying its ice cream range with non-dairy and vegan alternatives. It has many brands of dairy products such as Ben & Jerry's, Magnum, and Wall’s for Ice cream.

Glanbia PLC was founded in 1997 and is headquartered in Ireland. It is a leading nutrition enterprise, offering consumer brands and ingredients worldwide, empowering individuals to thrive, stay nourished, and excel at any life stage. Their products involve cheese, nutritional and functional nutrition solutions, and dairy and non-dairy flavourings.

Other key players in the United Kingdom dairy market report are Royal Friesland Campina N.V., Lactalis Group, Saputo Inc., Nestlé S.A, Unternehmensgruppe Theo Müller, Country Milk Products Limited, and others.

United Kingdom Dairy Market Analysis by Region

England plays a crucial role in market growth due to its significant population of dairy cows.

Based on statistics, in 2019, the United Kingdom ranked as the 13th leading global producer of milk. In 2020, milk constituted 16.4% of the overall agricultural output in the UK, valued at £4.4 billion based on market prices. The United Kingdom dairy market growth is further fueled by the presence of 1,850,000 dairy cows.

DAIRY COW NUMBERS IN THOUSANDS, 2020

Key Highlights of the Report