Dairy Market Report, By Product Type (Milk, Cheese, Butter, Yogurt, Ice-Cream, Others), By Packaging (Plastic Tubs, Glass Bottles, Others), By Distribution Channel (Online Retail, Convenience Stores, Supermarkets, Specialty Retailers, Others) and Regions 2024-2032

Market Brief

The dairy market size reached US$ 901.2 Billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 1,484.2 Billion by 2032, exhibiting a growth rate (CAGR) of 5.7% during 2024-2032.

Dairy farming is a sector of agriculture that involves the production of milk and dairy products such as cheese, butter, yogurt, and others. It encompasses the breeding and management of dairy cattle, such as cows, goats, and sheep, for milk production. Dairy products are rich sources of essential nutrients, including calcium and protein in many diets as they are known for their high nutritional value, providing essential nutrients such as calcium, vitamin D, protein, and various minerals.

However, the dairy industry has faced challenges to its environmental impact, including greenhouse gas emissions, water usage, and land use. Sustainable and ethical dairy production is increasingly emphasized to address environmental and animal welfare concerns.

Dairy farming plays a significant economic role in many countries, providing livelihoods for farmers and supporting a diverse industry of dairy processors. However, challenges such as fluctuating milk prices, animal health, and environmental impacts have driven ongoing efforts to improve sustainability and efficiency in the dairy sector.

Analysis and insights reveal a shift towards proactive strategies, emphasizing risk assessment and rapid incident response. As threats evolve, the dairy market remains dynamic with need for constant innovation. Comprehensive analysis provides insights into market evolution and potential, and extensive analysis and insights available in the report will enable businesses to make more well-informed decisions in this constantly evolving industry.

Dairy Market Report Overview:

The global dairy market report provides comprehensive insights into driving factors, restraints, opportunities, and trends, with provision of in-depth supporting information, data, and statistics and actionable insights. Though covered and provided extensively across the report, the data and information format are simple, yet dynamic in order to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use.

Dairy market share and revenues are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based. Dairy market growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others.

Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, strategies, product launches, agreements, expansion, mergers & acquisitions, and others.

The global dairy market report is segmented according to product, packaging, distribution channel and regions. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of MEA).

Dairy Market Research and Insights: 

Global dairy market research is comprehensive and the report provides in-depth details of the various factors, trends, patterns, and scenarios and aspects that have a direct or indirect impact, near-term or far-term on the market and products and services etc. 

Some more detailed insights on positive factors in the global dairy market: 

Multiplicity of dairy products: The innovation in dairy products such as dairy alternatives, lactose-free options, and functional dairy products increases consumer preferences that reflect the demand and popularity of dairy products in the market. Furthermore, the availability of an array of choices not only expands market potential but also fosters high expansion of products, addressing dietary restrictions and lifestyle choices. This diversity in dairy products aligns with the changing tastes and health-conscious attitudes of consumers, shaping the industry's growth.

Increasing population: The global dairy market is observing a significant increase due to the global population. As the world's population continues to grow, there's a rising demand for dairy products like milk, cheese, and yogurt. This demographic expansion presents a significant opportunity for the dairy industry, as it taps into a larger consumer base seeking protein-rich and nutritious foods. Moreover, this upward trend in dairy consumption is closely linked to the demographic shift, reflecting a fundamental driver of growth within the dairy market. It underscores the industry's role in meeting the nutritional needs of a growing and diverse global population.

Sustainable Practices: With the increasing environmental and consumer eco-friendly product concerns, the adoption and trend of sustainable practices increased in the dairy market. This includes initiatives such as improved waste management, reduced greenhouse gas emissions, and enhanced animal welfare standards. Such practices align with global sustainability goals and environmentally-conscious consumers increase the demand for dairy products in the market.

Dairy alternatives: The global dairy market is growing with traditional dairy products facing competition from a wide range of dairy alternatives. The increasing consumer demand for lactose-free, vegan, and sustainably sourced products, as well as functional dairy items are the key trends for dairy market. Also, the rise of alternative milks, such as almond, soy, and oat, reflects changing dietary preferences driven by health and environmental concerns. Additionally, there's a focus on dairy product diversification, offering consumers a wider choice, and technology-driven advancements in dairy farming and processing, promoting quality, sustainability, and animal welfare, shaping the industry's future. For instance, the dietary guidelines for Americans classify only encouraged soy beverages as part of the dairy group due to their similarity in key nutrients to dairy milk. These guidelines recommend milk and soy beverages as they provide essential nutrients like calcium, protein, vitamins (A, D, B-12), minerals (magnesium, phosphorus, potassium), and other micronutrients (zinc, choline, selenium).

Dairy farming technology: The dairy market is observing a technological revolution as dairy farming embraces modern innovation. Robotics and smart sensors are reshaping milking and feeding processes, and vertical integration is streamlining the supply chain. Further, technological advancements and digitalization are transforming the dairy sector, improving efficiency, quality, and sustainability. For instance, Dairymaster, an Irish company, offered a range of dairy equipment, including milking machines and automated feeding systems. Their MooMonitor+ system uses wearable technology to monitor cow health and fertility. It provides insights into each cow’s individual needs, optimizing their care and productivity. 

What factors are restraining growth of dairy market?

Health Concerns: Health concerns pose a significant restraint on the dairy market's growth. Consumers are increasingly aware of the saturated fats, cholesterol, and potential health risks associated with traditional dairy products. Moreover, these concerns lead many individuals to seek healthier alternatives, including dairy substitutes, which are perceived as more heart-healthy. The connection between dairy consumption and conditions like heart disease has fueled this shift. Additionally, lactose intolerance in a significant portion of the population limits dairy intake. While the dairy industry has responded with low-fat and lactose-free options, it must continue to address these health-related concerns and adapt to changing consumer preferences to foster market growth.

Lactose Intolerance: A substantial portion of the global population is unable to digest lactose, the sugar naturally present in dairy products, leading to gastrointestinal discomfort. This condition has fueled the demand for lactose-free dairy alternatives and milk, cheese, and yogurt. Further, as lactose-intolerant consumers seek alternatives, traditional dairy products face challenges in retaining market share. To ease this constraint, the dairy industry has been developing lactose-free options, but ongoing innovation and marketing efforts are required to cater to this growing market segment and sustain growth in the dairy industry.

Quality control issues: Regulatory and quality control issues present notable restraints on the dairy market's growth. The dairy industry is subject to stringent regulations aimed at ensuring food safety and product quality. Compliance with these standards can be expensive and time-consuming, particularly for smaller dairy producers. Additionally, variations in regulations across regions and countries can complicate international trade. The need for rigorous quality control to maintain product consistency and safety adds costs and complexities to dairy production. Overcoming these challenges involves ongoing efforts to streamline compliance, complement standards, and ensure that quality control practices do not hinder market access and growth for dairy businesses.

What are the opportunities for leading dairy manufacturers?  

Collaboration and Partnership: Dairy manufacturers can work with local farmers to secure a stable supply of high-quality milk, fostering strong relationships while ensuring a consistent source of raw materials. They can collaborate with research institutions and technology companies for innovation in production methods, enhancing efficiency and sustainability. Furthermore, partnerships with retailers, both online and offline, create avenues for wider market reach and consumer engagement. Additionally, collaborating on marketing campaigns with health and wellness organizations can promote the nutritional benefits of dairy products, while alliances with sustainability-focused entities can help meet eco-conscious consumer demands. Such partnerships can drive the dairy market growth.

Diversification of products: Leading dairy manufacturers can expand beyond traditional offerings to include a diverse range of products, such as dairy alternatives, lactose-free options, and value-added functional dairy items. These innovations provide consumer preferences, dietary restrictions, and health-conscious choices that enhance brand relevance, foster loyalty, and strengthen market positioning, aligning with the growing demand for variety and convenience in dairy products. This diversification of products can drive the demand and growth of dairy products in the market.

Innovation in packaging: The innovation in packaging solutions such as eco-friendly, and sustainable that extend product shelf-life, enhance consumer convenience, and reduce environmental impact can offer an opportunity in the dairy market. Additionally, eco-friendly packaging such as recyclable or biodegradable materials, aligns with consumer demands for sustainability. Furthermore, smart packaging with features like freshness indicators and QR codes for product information can enhance the overall consumer experience. By embracing packaging innovation, dairy companies can not only differentiate their products but also reduce waste, improve product safety, and meet evolving consumer expectations, thus increasing their market competitiveness and sustainability.

Why is US the largest market for dairy in North America region?

The United States is the largest market for global dairy due to a combination of factors. Firstly, it has a large and wealthy population with a high per capita consumption of dairy products. Also, a well-developed dairy industry with advanced production and distribution systems. Additionally, the diverse consumer preferences in the US for dairy items, including milk, cheese, and yogurt, contribute to its significant market size. Moreover, these factors collectively make the US a dominant force in the global dairy market. For instance, the Food and Agriculture Organization of the United Nations revealed that milk production in North America is expected to remain steady at 112.6 million tonnes. This is because of a slight rise in milk production in the United States. However, factors like better yields and favorable weather conditions in certain regions may lead to a small increase in milk production that affects the dairy market as well.

Which key trends will drive dairy sales in Europe?

Several key trends are expected to drive dairy sales in Europe. First, health and wellness concerns are leading consumers to seek dairy products with added functional benefits, like probiotics and low-fat options. Second, sustainable and environmentally friendly practices are becoming more important, with consumers favoring products from companies that focus on animal welfare and eco-friendly packaging. Plant-based alternatives to traditional dairy are also on the rise, as more people explore vegan and lactose-free options. Additionally, convenience and snacking options in dairy, such as single-serving portions and on-the-go formats, are gaining popularity as busy lifestyles continue to shape consumer preferences in the region. 

Why investment in China and India is key to growth of the global dairy market? 

Investment in China and India is crucial for the growth of the global dairy market due to their immense populations and evolving consumer preferences. Both countries collectively represent over a third of the world's population, and as their economies grow, so do their purchasing power and demand for dairy products. Further, meeting this demand presents a significant growth opportunity for both local and international dairy companies. Additionally, as dietary habits shift towards more protein-rich and dairy-based foods, these markets offer substantial potential for increased consumption, making them essential drivers for the global dairy industry's expansion.

What is the outlook on dairy sales in Middle East and Africa? 

In the Middle East and Africa, the outlook on dairy sales is favorable but diverse. While the region faces challenges like economic instability and political conflicts, it also experiences population growth and rising incomes. Moreover, consumers are increasingly seeking dairy products due to their nutritional benefits and convenience. The growing interest in Western diets and dairy-based cuisines is driving demand. Dairy producers are capitalizing on these trends by introducing innovative and specialized products. However, challenges related to supply chain issues, distribution, and affordability remain, making it a mixed outlook with significant growth potential in the long term.

Which Latin American countries will be at the forefront of growth for dairy solutions providers? 

In Latin America, several countries are dignified to be at the forefront of growth for dairy solutions providers. Brazil, as the region's largest economy and population, presents significant opportunities due to rising middle-class consumers seeking dairy products. Mexico is another key market, given its large population and growing demand for dairy items. Argentina, with its strong agricultural sector and export potential, also plays a vital role. Additionally, countries like Chile and Colombia are emerging as capable markets, driven by urbanization and changing dietary habits. These nations collectively represent a dynamic growth landscape for dairy solution providers in the region.

Leading Dairy Manufacturers & Competitive Landscape:

The Dairy market is highly competitive, with several key players vying for market share and actively engaging in strategic initiatives. These companies focus on product innovation, technological advancements, and expanding their product portfolios to gain a competitive edge. These companies are continuously investing in research and development activities to enhance their product offerings and cater to the evolving needs of customers in terms of efficiency, performance, and sustainability.

Recent Developments:

  • February 2023: The startup located in Barcelona investigated various types of melons for potential use in its products and intends to integrate melon seed milk into its other vegan cheese offerings. New innovations in the vegan dairy space from previously untapped sources such as lettuce and melon seeds stand to vastly improve dairy-free cheeses.
  • April 2023: India's leading milk and milk product company, Mother Dairy Fruit and Vegetable Pvt. Ltd released 15 new products. The new products included a ready-to-consume Custard, 2 Cold Coffees and over 10 Ice Cream variants. In addition, the company has enriched its Nutrifit Curd offering with Vitamins A & D.
  • May 2023: Coca Cola proclaimed a new dairy production facility in the town of Webster. This facility will be operated by the fourth quarter of 2025 Fairlife, produced a variety of milk-based beverages. The company's products include Fairlife ultra-filtered milk, Core Power protein shakes, and Fairlife Nutrition Plan meal replacement shakes.

Company List:

  • Nestlé
  • Fonterra Cooperative Group
  • Arla Foods amba
  • Lactalis Group
  • Danone
  • Dairy Farmers of America
  • Amul
  • Savencia Fromage & Dairy
  • Unilever
  • Schreiber Foods
  • Froneri

Research Scope

Report Metric

Report Details

Market size available for the years   


Base Year


Forecast Period       


Compound Annual Growth Rate (CAGR)


Segment covered 

Product type, Packaging, Distribution Channel, and Regions

Regions Covered

North America:  The U.S. & Canada

Latin America: Brazil, Mexico, Argentina, & Rest of Latin America

Asia Pacific: China, India, Japan, Australia & New Zealand, ASEAN, & Rest of Asia Pacific

Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, & Rest of Europe

The Middle East & Africa:  Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA 

Fastest Growing Country in Europe


Largest Market

North America

Key Players

Nestlé, Fonterra Cooperative Group, Arla Foods amba, Lactalis Group, Danone, Dairy Farmers of America, Amul, Savencia Fromage & Dairy, Unilever, Schreiber Foods, Froneri, and among others

Dairy Market Segmentation:

By Product Type:

  • Milk
  • Cheese
  • Butter
  • Yogurt
  • Ice cream
  • Others

By Packaging:

  • Plastic tubs
  • Glass bottles
  • Others

By Distribution Channel:

  • Online Retail
  • Convenience Stores
  • Supermarkets
  • Specialty Retailers
  • Others

By Region

North America

  • United States
  • Canada


  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • Poland
  • Benelux
  • Nordic
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • South Korea
  • Australia & New Zealand
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Mexico
  • Argentina

Middle East & Africa

  • Saudi Arabia
  • South Africa
  • United Arab Emirates
  • Israel
  • Rest of MEA

Frequently Asked Question

What are some key factors driving revenue growth of the dairy market?

Some key factors driving revenue growth of the dairy market are multiplicity of dairy product, increasing population, sustainable practices, dairy alternatives, dairy farming technology and many more.

What are some major challenges faced by companies in the dairy market?

Some major challenges faced by companies in the dairy market are health concerns, lactose intolerance and quality control issues and many more.

How is the competitive landscape in the global dairy market?

The market is competitive, with key players focusing on technological advancements, product innovation, and strategic partnerships. Factors such as product quality, reliability, after-sales services, and customization capabilities play a significant role in determining competitiveness.

What are the potential opportunities for companies in the dairy market?

The potential opportunities for companies in the dairy market are collaboration and partnership, diversification of products, innovation in packaging and many more.

How is the dairy market segmented?

The market is segmented based on factors such as product type, packaging, distribution channel and regions.

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