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Dairy Market

ID: MRFR/FnB/9963-CR
200 Pages
Snehal Singh
July 2025

Dairy Market Research Report By Product Type (Milk, Cheese, Yogurt, Butter, Ice Cream), By Source (Cow, Buffalo, Goat, Sheep, Camel), By Distribution Channel (Supermarkets, Convenience Stores, Online Stores, Specialty Stores, Direct Sale), By Application (Food Industry, Beverages, Nutraceuticals, Cosmetics, Animal Feed), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Dairy Market Summary

As per MRFR analysis, the Dairy Market Size was estimated at 690.0 USD Billion in 2024. The Dairy industry is projected to grow from 699.32 USD Billion in 2025 to 799.67 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 1.35 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Dairy Market is experiencing a dynamic transformation driven by evolving consumer preferences and health trends.

  • North America remains the largest market for dairy products, characterized by a strong demand for traditional dairy offerings.
  • The Asia-Pacific region is emerging as the fastest-growing market, fueled by increasing urbanization and changing dietary habits.
  • Milk continues to dominate the dairy segment, while yogurt is witnessing rapid growth due to its perceived health benefits.
  • Key market drivers include rising health consciousness and sustainability initiatives in dairy production, influencing consumer choices.

Market Size & Forecast

2024 Market Size 690.0 (USD Billion)
2035 Market Size 799.67 (USD Billion)
CAGR (2025 - 2035) 1.35%

Major Players

Nestle (CH), Lactalis (FR), Dairy Farmers of America (US), Fonterra (NZ), Danone (FR), Saputo (CA), FrieslandCampina (NL), Arla Foods (DK), China Mengniu Dairy (CN)

Dairy Market Trends

The Dairy Market is currently experiencing a dynamic transformation, influenced by evolving consumer preferences and increasing health consciousness. There is a noticeable shift towards organic and plant-based alternatives, as consumers seek products that align with their dietary choices and ethical considerations. This trend appears to be driven by a growing awareness of sustainability and animal welfare, prompting traditional dairy producers to adapt their offerings. Additionally, innovations in processing and packaging are enhancing product appeal, making dairy items more convenient and accessible to a broader audience. Moreover, the Dairy Market is witnessing a rise in demand for functional dairy products, which are perceived to offer health benefits beyond basic nutrition. Probiotics, fortified options, and low-fat varieties are gaining traction as consumers become more health-oriented. This inclination towards functional foods suggests a potential for growth in niche segments, as brands strive to meet the diverse needs of health-conscious individuals. Overall, the Dairy Market is poised for continued evolution, with opportunities for both established players and new entrants to capitalize on these emerging trends.

Shift Towards Plant-Based Alternatives

The Dairy Market is observing a significant movement towards plant-based substitutes. This trend reflects a growing consumer preference for dairy alternatives made from nuts, soy, and oats, driven by health and environmental concerns. As a result, traditional dairy producers are increasingly diversifying their product lines to include these alternatives.

Rise of Functional Dairy Market Products

There is a notable increase in the demand for functional dairy items that offer additional health benefits. Products enriched with probiotics, vitamins, and minerals are becoming more popular among consumers seeking to enhance their overall well-being. This trend indicates a shift towards more health-focused consumption patterns.

Sustainability and Ethical Sourcing

Sustainability is becoming a central theme in the Dairy Market, with consumers showing a preference for products that are ethically sourced and environmentally friendly. This trend is prompting dairy companies to adopt more sustainable practices in their production processes, thereby appealing to a conscientious consumer base.

Dairy Market Drivers

Evolving Consumer Preferences

Evolving consumer preferences significantly influence the Dairy Market. There is a marked shift towards convenience and ready-to-eat dairy products, as busy lifestyles drive demand for on-the-go options. Products such as single-serve yogurts and cheese snacks are increasingly popular among consumers seeking quick and nutritious choices. Additionally, the trend towards clean label products, which emphasize transparency and minimal processing, is reshaping the Dairy Market. Consumers are more inclined to choose dairy items with simple ingredient lists, reflecting a desire for authenticity and quality. This evolution in preferences compels dairy manufacturers to adapt their offerings, ensuring they align with consumer expectations for convenience and quality.

Increasing Health Consciousness

The Dairy Market experiences a notable shift as consumers become increasingly health-conscious. This trend is reflected in the rising demand for low-fat and organic dairy products, which are perceived as healthier options. According to recent data, the organic dairy segment has seen a growth rate of approximately 10% annually, indicating a strong consumer preference for products that align with health and wellness goals. Additionally, the popularity of probiotic-rich dairy items, such as yogurt, continues to rise, as consumers seek functional foods that support gut health. This growing awareness of health benefits associated with dairy consumption is likely to drive innovation and product development within the Dairy Market, as manufacturers strive to meet evolving consumer preferences.

Rising Demand for Dairy Alternatives

The Dairy Market is witnessing a rising demand for dairy alternatives, driven by changing consumer preferences and dietary restrictions. Plant-based milk alternatives, such as almond, soy, and oat milk, have gained substantial market share, appealing to lactose-intolerant individuals and those adopting vegan lifestyles. Recent statistics indicate that the plant-based milk segment has grown by over 20% in the past year, reflecting a shift in consumer behavior. This trend prompts traditional dairy producers to diversify their product offerings, incorporating plant-based options to capture a broader audience. As the market for dairy alternatives expands, it presents both challenges and opportunities for the Dairy Market, necessitating adaptation and innovation.

Sustainability Initiatives in Dairy Production

Sustainability initiatives are becoming a focal point within the Dairy Market, as consumers and regulators alike emphasize environmentally friendly practices. Dairy Market producers are increasingly adopting sustainable farming methods, such as regenerative agriculture and waste reduction strategies, to minimize their environmental footprint. Recent data suggests that dairy farms implementing sustainable practices can reduce greenhouse gas emissions by up to 30%. This commitment to sustainability not only addresses consumer concerns but also enhances brand reputation and loyalty. As the demand for sustainably produced dairy products rises, the Dairy Market is likely to see a shift towards more eco-friendly practices, influencing production methods and consumer choices.

Technological Advancements in Dairy Production

Technological advancements play a crucial role in shaping the Dairy Market. Innovations in dairy farming techniques, such as precision agriculture and automated milking systems, enhance efficiency and productivity. These technologies not only improve milk yield but also ensure better animal welfare and sustainability. For instance, the implementation of data analytics in herd management allows farmers to optimize feeding and breeding practices, leading to healthier livestock and higher-quality milk. Furthermore, advancements in processing technologies enable the production of a wider variety of dairy products, catering to diverse consumer tastes. As these technologies continue to evolve, they are expected to significantly impact the Dairy Market, driving growth and competitiveness.

Market Segment Insights

By Type: Milk (Largest) vs. Yogurt (Fastest-Growing)

The Dairy Market is prominently driven by the consumption of milk, which currently holds the largest market share among various dairy products. Milk is a staple in many households and is utilized in various forms such as fluid milk, powdered milk, and milk-based beverages. Following milk, cheese also represents a significant portion of the market, as it complements various cuisines and serves as a main ingredient in many dishes. Other segments like yogurt, butter, and ice cream are experiencing steady growth, contributing to the diverse portfolio of dairy products available to consumers.

Cheese (Dominant) vs. Ice Cream (Emerging)

Cheese remains the dominant segment in the Dairy Market due to its widespread versatility in culinary applications and its varied types that cater to different palates. Its consumption not only spans from everyday meals to gourmet recipes but also benefits from the increasing demand for natural and artisanal products. Conversely, ice cream has emerged as a significant player, characterized by innovative flavors and premium offerings that appeal to the growing consumer trend towards indulgence and specialty products. This shift in consumer preferences is supported by an increase in disposable incomes, leading to new opportunities for market growth in the ice cream sector.

By Source: Cow (Largest) vs. Goat (Fastest-Growing)

In the Dairy Market, the source segmentation reveals that cow’s milk dominates the market, representing the largest share due to its extensive consumption and the established infrastructure for cow dairy production. Buffalo milk is also significant, particularly in regions such as South Asia, contributing to its strong presence. Goat, sheep, and camel milk, although lesser-known, are showing potential for growth, especially in niche markets driven by health trends and unique flavor profiles. Market growth trends indicate a shift towards alternative dairy sources, with goat and sheep milk gaining popularity for their perceived health benefits. Factors driving this trend include rising lactose intolerance awareness and increased consumer interest in organic and specialty dairy products. The unique nutritional profiles of goat and sheep milk are attracting health-conscious consumers, thereby positioning them as fast-growing segments within the Dairy Market.

Cow (Dominant) vs. Camel (Emerging)

Cow milk remains the dominant source of dairy, benefiting from established supply chains and widespread consumer acceptance across various cultures. It is preferred for its rich nutritional value and versatility in dairy products such as cheese, yogurt, and butter. Conversely, camel milk is emerging as a unique and healthy alternative, notable for its lower lactose levels and higher vitamin content. While traditionally consumed in specific regions, its popularity is rising globally due to growing awareness of its potential health benefits, and niche markets are forming around it. As consumers increasingly seek alternatives to conventional dairy, camel milk is carving a space for itself within the Dairy Market, appealing to those looking for unique flavors and health options.

By Distribution Channel: Supermarkets (Largest) vs. Online Stores (Fastest-Growing)

The distribution of dairy products across various channels highlights Supermarkets as the largest player, capturing significant market share due to their wide reach and established customer base. Convenience Stores and Specialty Stores also contribute, but their shares are relatively smaller. Online Stores, however, have been gaining traction, driven by the convenience of home delivery and a growing trend towards e-commerce interactions among consumers seeking dairy products.

Supermarkets (Dominant) vs. Online Stores (Emerging)

Supermarkets are the dominant distribution channel in the dairy market, benefitting from their extensive geographic coverage and ability to offer a wide range of dairy products, including both fresh and processed items. They attract a large customer base due to convenience and the ability to provide multiple product choices in one visit. In contrast, Online Stores represent an emerging channel, leveraging digital platforms to reach tech-savvy consumers. This segment is rapidly growing as consumers seek convenience and flexibility in shopping, highlighting shifts in purchasing behavior, especially among younger demographics who prefer online grocery shopping.

By Application: Food Industry (Largest) vs. Beverages (Fastest-Growing)

The Dairy Market is notably diverse, with the Food Industry segment commanding the largest share due to its established practices and consumer demand for dairy products in food manufacturing. Categories such as cheese, yogurt, and butter form the backbone of this segment, reflecting significant consumer purchasing behaviors that underline its dominance. On the other hand, the Beverages segment is witnessing rapid growth, driven by increasing health consciousness and the popularity of dairy-based drinks like flavored milk and yogurt smoothies. This emerging trend highlights the shifting consumer preferences toward nutritious and convenient beverage options, positioning it as the fastest-growing segment in the dairy sector.

Food Industry: Cheese (Dominant) vs. Yogurt Drinks (Emerging)

Within the Food Industry segment of the Dairy Market, cheese stands out as the dominant product due to its versatility and widespread usage in various culinary applications. Cheese not only enhances flavors but also caters to various consumer preferences and dietary requirements, making it a staple in both household and commercial kitchens. Conversely, yogurt drinks are emerging as a popular choice among health-conscious consumers seeking convenient and nutritious options. Their rise is supported by trends such as probiotic consumption and on-the-go lifestyles, allowing yogurt drinks to carve out a significant niche within the dairy beverage category.

Get more detailed insights about Dairy Market

Regional Insights

North America : Dairy Market Leader

North America is the largest market for dairy products, holding approximately 35% of the global market share. Key growth drivers include increasing health consciousness among consumers, rising demand for organic dairy products, and innovations in dairy processing technologies. Regulatory support, such as the USDA's initiatives to promote dairy consumption, further catalyzes market growth. The United States is the dominant player in this region, accounting for a significant portion of the market, followed by Canada. Major companies like Dairy Market Farmers of America and Nestle are leading the competitive landscape, focusing on product diversification and sustainability initiatives to meet evolving consumer preferences.

Europe : Diverse Dairy Market Landscape

Europe is the second-largest dairy market, holding around 30% of the global share. The region's growth is driven by increasing demand for high-quality dairy products, a shift towards sustainable farming practices, and stringent regulations promoting food safety. The European Union's Common Agricultural Policy plays a crucial role in supporting dairy farmers and ensuring product quality. Leading countries include Germany, France, and the Netherlands, with key players like Lactalis and FrieslandCampina dominating the market. The competitive landscape is characterized by a focus on innovation, with companies investing in plant-based alternatives and organic dairy products to cater to changing consumer preferences.

Asia-Pacific : Emerging Dairy Market Powerhouse

Asia-Pacific is witnessing rapid growth in the dairy market, accounting for approximately 25% of the global share. The region's growth is fueled by rising disposable incomes, urbanization, and changing dietary habits that favor dairy consumption. Government initiatives to enhance dairy production and quality standards are also significant growth drivers. China is the largest market in this region, followed by India and Australia. Key players like China Mengniu Dairy Market and Fonterra are expanding their presence through strategic partnerships and product innovations. The competitive landscape is evolving, with a growing emphasis on health-oriented dairy products to meet consumer demands.

Middle East and Africa : Untapped Dairy Market Potential

The Middle East and Africa region is emerging as a significant player in the dairy market, holding about 10% of the global share. The growth is driven by increasing population, urbanization, and a rising middle class that is demanding more dairy products. Regulatory frameworks are gradually improving, supporting local dairy production and import standards. Leading countries include South Africa and Egypt, with key players like Arla Foods and local cooperatives expanding their market presence. The competitive landscape is characterized by a mix of multinational corporations and local producers, focusing on affordability and accessibility to cater to diverse consumer needs.

Dairy Market Regional Image

Key Players and Competitive Insights

The Dairy Market is characterized by its dynamic nature and diverse product offerings, driven by changing consumer preferences and a growing demand for dairy alternatives. The competition within this market is intense, with players striving to innovate and differentiate themselves through product quality, sustainability initiatives, technology adoption, and expanding distribution channels.

Consumer awareness regarding health, nutrition, and sustainability plays a significant role in shaping market strategies. Additionally, the rise of plant-based dairy alternatives has introduced new competition and challenges to traditional dairy companies, prompting them to adapt to new trends and consumer demands.

This competitive landscape constantly evolves, influenced by regulatory changes, market access opportunities, and shifting trade dynamics on a global scale.FrieslandCampina stands out in the Dairy Market with a robust presence built on a heritage of excellence in dairy production and distribution. The company leverages its strong cooperative structure, allowing it to harness the resources and expertise of its member farmers while ensuring a steady supply of high-quality milk.

FrieslandCampina focuses on product innovation and sustainability, enabling it to meet diverse consumer demands across various regions. Its extensive portfolio includes milk, cheese, yogurt, and infant nutrition products tailored to different markets, further strengthening its competitive position.

The company's strong emphasis on research and development helps drive continuous improvements in product offerings while maintaining rigorous quality standards. FrieslandCampina’s commitment to sustainable practices and ethical sourcing resonates with consumers, enhancing its brand reputation and loyalty in a crowded marketplace.

Unilever also plays a significant role in the Dairy Market with its diverse product lineup that includes dairy-based products like yogurt, ice cream, and cheese. The company's strategy emphasizes expanding its presence in emerging markets while innovating existing product lines to meet changing consumer preferences.

Unilever’s strength lies in its ability to leverage a strong global distribution network along with well-established brand recognition, making its dairy products widely accessible. The company continuously invests in research and development to create healthier and more sustainable product options, which are receiving positive responses from consumers.

Unilever has also engaged in various mergers and acquisitions to expand its dairy segment capabilities, allowing it to diversify its offerings and strengthen its competitive edge in the dairy sector worldwide. Its commitment to sustainability and responsible sourcing further enhances Unilever's position, as it aligns with the increasing consumer demand for transparency and eco-conscious products.

Key Companies in the Dairy Market market include

Industry Developments

With aspirations to expand to the UK and EU, Antler Bio received £3.2 million in June 2025 to extend its epigenomics-based Epiherd platform, which evaluates cow gene responses to environmental conditions including stress and dehydration.The technology now serves over 100 farms in Europe, mostly in the Nordic region. Halter, a New Zealand agri-tech startup, became a unicorn on June 23, 2025, following a $100 million Series D at a $1 billion valuation.

The company's cattle-management system uses virtual fencing and smart collars to minimize environmental impact and maximize grazing, with plans to expand operations in 18 U.S. states. Rabobank said in June 2025 that the minor 0.5% increase in output in Q1 had caused a jump in global dairy commodity prices in early 2025.However, Rabobank cautioned that an increase in supply (estimated at 1.1% in Q2 and 1.4% in Q3) and a decline in demand might cause the market to rebalance in H2.

Even as the EU and Oceania stabilize and Africa experiences modest reductions, the FAO predicted on June 18, 2025, that worldwide milk output will climb by 1% in 2025, driven by gains in Asia, the Americas, and recovery in Argentina and the U.S. Arla Foods announced a little increase in sales from €13.7 billion to €13.8 billion in February 2025, predicting more growth in the year but warning about supply-chain concerns and geopolitical challenges.

Earlier in September 2024, Ajinomoto and Danone joined up to improve cow digestion and manure management in order to lower dairy CO₂ and methane emissions.

Future Outlook

Dairy Market Future Outlook

The Dairy Market is projected to grow at a 1.35% CAGR from 2024 to 2035, driven by rising health consciousness, innovative product offerings, and increasing demand for dairy alternatives.

New opportunities lie in:

  • Expansion of plant-based dairy alternatives in emerging markets.
  • Investment in automated dairy processing technologies for efficiency.
  • Development of personalized nutrition products leveraging dairy ingredients.

By 2035, the Dairy Market is expected to maintain steady growth, adapting to evolving consumer preferences.

Market Segmentation

Dairy Market Type Outlook

  • Milk
  • Cheese
  • Yogurt
  • Butter
  • Ice Cream

Dairy Market Source Outlook

  • Cow
  • Buffalo
  • Goat
  • Sheep
  • Camel

Dairy Market Application Outlook

  • Food Industry
  • Beverages
  • Nutraceuticals
  • Cosmetics
  • Animal Feed

Dairy Market Distribution Channel Outlook

  • Supermarkets
  • Convenience Stores
  • Online Stores
  • Specialty Stores
  • Direct Sale

Report Scope

MARKET SIZE 2024690.0(USD Billion)
MARKET SIZE 2025699.32(USD Billion)
MARKET SIZE 2035799.67(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)1.35% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesAdoption of plant-based dairy alternatives driven by changing consumer preferences and health consciousness.
Key Market DynamicsRising consumer demand for plant-based alternatives is reshaping traditional dairy market dynamics and competitive strategies.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Snehal Singh
Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the current valuation of the Dairy Market in 2024?

The Dairy Market was valued at 690.0 USD Billion in 2024.

What is the projected market valuation for the Dairy Market by 2035?

The Dairy Market is projected to reach 799.67 USD Billion by 2035.

What is the expected CAGR for the Dairy Market during the forecast period 2025 - 2035?

The expected CAGR for the Dairy Market during 2025 - 2035 is 1.35%.

Which segment of the Dairy Market had the highest valuation in 2024?

In 2024, the Milk segment had the highest valuation at 250.0 USD Billion.

How does the Cheese segment's valuation compare to that of Yogurt in 2024?

In 2024, the Cheese segment was valued at 150.0 USD Billion, while Yogurt was valued at 100.0 USD Billion.

What are the leading distribution channels for Dairy products in 2024?

Supermarkets led the distribution channels with a valuation of 276.0 USD Billion in 2024.

Which source of milk is projected to have the highest valuation by 2035?

By 2035, Cow milk is projected to have the highest valuation, estimated between 345.0 and 410.0 USD Billion.

What is the valuation range for the Ice Cream segment in 2024?

The Ice Cream segment was valued at approximately 110.0 USD Billion in 2024.

Which key players dominate the Dairy Market?

Key players in the Dairy Market include Nestle, Lactalis, and Dairy Farmers of America, among others.

What is the projected valuation for the Butter segment by 2035?

The Butter segment is projected to reach a valuation between 80.0 and 90.0 USD Billion by 2035.

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