Dairy Beverages Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

In 2024, the world market for dairy products is expected to be worth $ 167.7 billion, which will rise to $ 235 billion in 2035. This represents a CAGR of 2.7% from 2025 to 2035. This growth can be attributed to a number of factors, including the increasing demand for convenient and nutritious drinks, the growing popularity of dairy products with added nutrients, and the development of new product formulas that meet the needs of health-conscious consumers. Also driving growth is the use of new technology in dairy production and packaging. Also, the introduction of lactose-free dairy products and plant-based dairy alternatives have widened the customer base by appealing to consumers with dietary restrictions or preferences. In addition, major players such as Danone, Nestlé, and Lactalis are investing heavily in research and development to improve their product offerings and increase their market share. Strategic alliances and acquisitions will further strengthen their position in the dairy industry.

Regional Market Size

Regional Deep Dive

The dairy drinks market is experiencing dynamic growth across the globe, driven by the changing preferences of consumers, growing health consciousness, and innovations in product offerings. North America is characterised by a strong demand for dairy drinks with added health benefits, while in Europe the trend is towards organic and plant-based alternatives. The Asia-Pacific region is characterised by fast urbanisation and the rise of a large middle class, which is driving an increase in the consumption of dairy products. Middle East and Africa are seeing rising consumption of dairy drinks due to population growth and changing dietary habits, while Latin America is focusing on bringing a modern twist to traditional dairy drinks. Each region offers its own unique opportunities and challenges, which are influenced by cultural, economic and regulatory factors.

Europe

• The European market is seeing a significant shift towards organic dairy beverages, with brands like Arla Foods and Müller investing heavily in organic product lines to meet consumer demand.
• The European Union's stringent regulations on food safety and labeling are pushing dairy beverage manufacturers to adopt higher quality standards, which is expected to enhance consumer trust and market growth.

Asia Pacific

• In Asia-Pacific, the increasing popularity of probiotic drinks is reshaping the dairy beverage landscape, with companies like Yakult and Nestlé expanding their offerings to include functional dairy products.
• Government initiatives in countries like India are promoting dairy farming and processing, which is expected to boost local production and availability of dairy beverages in the region.

Latin America

• In Latin America, traditional beverages like 'leche condensada' are being modernized with new flavors and packaging, as seen with brands like Laive and Parmalat, appealing to both local and international markets.
• The region's economic recovery post-pandemic is leading to increased disposable income, which is expected to boost the consumption of premium dairy beverages.

North America

• The rise of health-conscious consumers has led to an increased demand for low-fat and fortified dairy beverages, with companies like Danone and Lactalis launching new products to cater to this trend.
• Recent regulatory changes in the U.S. have encouraged the labeling of dairy alternatives, prompting traditional dairy companies to innovate and differentiate their products, thus enhancing market competition.

Middle East And Africa

• The growing youth population in the Middle East and Africa is driving demand for flavored dairy beverages, with brands like Almarai and Dairy Craft introducing innovative flavors to attract younger consumers.
• Regulatory support for dairy farming in countries like South Africa is enhancing local production capabilities, which is expected to reduce reliance on imports and strengthen the regional dairy beverage market.

Did You Know?

“Did you know that the global dairy beverage market is projected to reach over $200 billion by 2025, driven largely by the increasing popularity of functional and fortified dairy products?” — Market Research Future

Segmental Market Size

The dairy market is growing steadily, driven by the rising demand for health-conscious consumers. Among the main reasons for this are the increasing awareness of the nutritional value of dairy products, mainly in terms of their high content of protein and calcium, as well as the growing trend of plant-based dairy alternatives. In addition, various regulations promoting the consumption of dairy products in certain regions also support the stability of the market. In the meantime, the market has reached a stage of maturity, with companies such as Danone and Nestlé leading the way in terms of product development and distribution. Product innovations, such as the introduction of pro- and fortified milk, have met the health-conscious demands of consumers. In addition, the distribution of ready-to-drink dairy beverages, yogurt drinks and flavored milks has been expanded and is now available in most major food chains and convenience stores. In terms of growth, trends such as the growing focus on sustainability and clean-label products are driving the market, while technological developments such as advanced fermentation processes and packaging innovations are shaping the industry.

Future Outlook

From 2024 to 2035, the dairy beverage market is expected to increase from $171.46 billion to $230 billion, at a compound annual growth rate (CAGR) of 2.71%. This growth is driven by rising consumer demand for convenient and nutritious drinks and an increasing awareness of the health benefits of dairy products. In the developed and developing countries, the market penetration of dairy beverages, such as flavored milk, yogurt drinks and fortified dairy beverages, is expected to increase. In 2035, dairy beverages are expected to account for about 13% of the total beverage market, driven by innovations in product formulations and packaging that cater to the on-the-go lifestyle. The dairy industry is expected to be influenced by technological and policy changes. The integration of smart packaging and the adoption of sustainable farming practices are expected to meet the expectations of consumers. The regulatory support for the fortification and health claims of dairy products is expected to increase. Plant-based dairy alternatives and lactose-free products are also expected to influence the consumption patterns of consumers and prompt dairy manufacturers to diversify their product lines. In short, the dairy beverage market will evolve, driven by the influence of health trends, technological developments and changes in consumer behavior. The dairy beverage market is expected to remain robust and dynamic until 2035.