Dairy Market Size
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Study Period | 2017 - 2030 |
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Market Size (2025) | USD 649.9 Billion |
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Market Size (2030) | USD 813.6 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2025 - 2030) | 4.60 % |
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Largest Share by Region | Europe |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Dairy Market Analysis
The Dairy Market size is estimated at 649.9 billion USD in 2025, and is expected to reach 813.6 billion USD by 2030, growing at a CAGR of 4.60% during the forecast period (2025-2030).
649.9 Billion
Market Size in 2025 (USD)
813.6 Billion
Market Size in 2030 (USD)
2.93 %
CAGR (2017-2024)
4.60 %
CAGR (2025-2030)
Largest Market by Category
32.96 %
value share, Milk, 2024
Some of the key factors driving the segment in the market include population growth, rising health consciousness, increasing demand from emerging markets, value addition, etc
Largest Market by Country
31.63 %
value share, Europe, 2024
Rising health consciousness with increasing flexiterian diet in the region majorly among younger generations in Europe is driving the regional growth in the study period.
Fastest-growing Market by Category
5.39 %
Projected CAGR, Yogurt, 2025-2030
The global yogurt segment is largely driven by the health benefits associated with consuming yogurt and increase in awareness among people for losing weight globally.
Fastest-growing Market by Country
6.08 %
Projected CAGR, Africa, 2025-2030
Irrespective of the falling weaker demand globally and milk prices, Africa is perceived to be a high growth with the rising middle class and younger demographic catering to growth.
Leading Market Player
2.64 %
market share, Inner Mongolia Yili Industrial Group Co. Ltd,
The stringent food safety aspects followed by the manufacturer along with innovation in product categories is largely driving Inner Mongolia Yili Industrial Group Co Ltd's dominance in the market.
The capability to influence consumer decision is driving the demand through Supermarkets/ Hypermarkets.
- Compared to other retail channels, supermarkets and hypermarkets dominate the dairy market. Europe topped the place with the most sales of dairy products in Supermarkets and Hypermarkets. As of 2022, the sales of dairy products through supermarkets and hypermarkets accounted for 41.6% of the value share in Europe. The proximity factor of Supermarkets and Hypermarkets, especially in large cities and metropolitan areas, provides them with an added advantage of influencing the consumer's decision to make the purchase among the large variety of products available in the market.
- Increasing demand for dairy-based recipes from food service channels is boosting the growth of the global dairy market. The sales of dairy through on-trade channels are anticipated to grow by 9% in 2025 compared to the year 2022. The segment's growth is attributed to consuming food prepared away from home. In 2022, 47% of consumers globally consumed meals at restaurants, and 31% of consumers ordered their food from food service channels.
- Asia-Pacific is one of the largest markets for the sales of dairy products through online channels globally, growing by 10.2% in terms of value from 2018 to 2022. Advantages like free deliveries, ease of canceling orders, refund process, and coupon codes offered by these platforms provide consumers with a hassle-free shopping experience.
- Among all dairy products, dairy desserts accounted for the majority of share in off-trade channels. In 2022, dairy desserts accounted for 40.24% of the total dairy industry, followed by cheese, with a 24.6% value share.
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The demand from Europe followed by Asia-Pacific is dominating the global market
- The global dairy market grew by 11% in terms of value from 2019 to 2023. South America is expected to see a substantial spike of 12% in dairy consumption in 2023 compared to 2019, mainly due to government investments, product innovations from manufacturers, and the growing awareness of healthier choices.
- Europe dominates the market with a value share of 33.76%, which was 10.9% more than North America in 2023. High production of cow's milk and the growing government investments in the milk industry are driving the market's growth in Europe. Much of the dairy consumed in Europe is produced locally. In 2021, European dairy farms produced 161 million metric tons of raw milk, of which 96% was cow's milk. The European governments' investments in organic farming are creating opportunities for organic milk production. The European Commission's Green Deal Industry Plan set a target of utilizing at least 25% of the European Union's agricultural land under organic farming by 2030.
- Asia-Pacific is the second-largest dairy market globally. The region is anticipated to register a growth rate of 14% by value during 2024-2027. In Asia-Pacific, the dairy market is expanding rigorously due to the strong demand for dairy products and the presence of countries with the world's leading dairy producers. India is the largest producer of milk in the world, contributing 24% of the global milk production from 2021-2022. The Government of India permitted 100% FDI (Foreign Direct Investment) through an automatic route for food processing. The dairy industry recorded a substantial FDI constituting about 40% of FDIs in the Indian food industry, thus boosting the market's growth in the region.
Global Dairy Market Trends
The consumption of milk and milk-related products is driven by increasing health-consciousness, awareness of nutritional benefits, and preference for organic and natural products
- Consumption of milk and milk-related products is growing due to health-conscious consumers, along with awareness of the nutritional benefits of different dairy products. In 2022, the per capita consumption of the European dairy industry observed a growth rate of 1.35% compared to 2021. Consumers in developed countries like the United States, Germany, and the United Kingdom have gradually become more interested in consuming milk and other dairy products produced organically or using other natural techniques as they believe them to be more natural and healthy.
- Dairy products play a vital part in the diets of Americans as they use cheese, dairy desserts, and butter significantly in different food items like pizza, pasta, and burgers. This has led to increased demand for different dairy products across the region. Owing to high domestic consumption, there is significant growth in terms of the production and import of dairy products. In 2021, the United States imported USD 3.3 billion worth of dairy products. Production of cheese also increased by 2.8% to 13.6 billion pounds in 2021.
- Strong growth is projected for free-from dairy products, including yogurt, in developed countries like the United States, Australia, the United Kingdom, and Germany. Products with low sugar content, high protein or fiber, and zero or minimally processed sugar are increasingly desired by consumers. Owing to the growing per capita consumption of yogurt, production has also witnessed significant growth. For example, the production volume of yogurt was approximately 463,000 tonnes in the United Kingdom in 2021.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Butter production is driven by improvements in animal husbandry practices, increased milk production, favorable weather conditions, and rising domestic demand
- Rising number of pounds of milk per cow, coupled with weather conditions, is among the major factors impacting milk production
- Cheese production is driven by factors such as the growth in milk production, increasing demand for cheese-based foods, rising incomes, and urbanization
Dairy Industry Overview
The Dairy Market is fragmented, with the top five companies occupying 9.49%. The major players in this market are China Mengniu Dairy Company Ltd, Danone SA, Inner Mongolia Yili Industrial Group Co. Ltd, Nestlé SA and Unilever PLC (sorted alphabetically).
Dairy Market Leaders
China Mengniu Dairy Company Ltd
Danone SA
Inner Mongolia Yili Industrial Group Co. Ltd
Nestlé SA
Unilever PLC
Other important companies include Almarai Company, Arla Foods Amba, Dairy Farmers of America Inc., Fonterra Co-operative Group Limited, Groupe Lactalis, Gujarat Co-operative Milk Marketing Federation Ltd, Saputo Inc..
*Disclaimer: Major Players sorted in alphabetical order.
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Dairy Market News
- September 2023: China Mengniu acquired organic infant formula producer Bellamy's Australia for USD 1 billion.
- October 2022: Unilever partnered with ASAP for the distribution of its ice cream goods. As per the partnership, ASAP will also deliver ice cream and treats from Unilever's virtual storefront, The Ice Cream Shop.
- August 2022: Dairy Farmers of America acquired two shelf-extended facilities of SmithFoods. The strategy of this acquisition was to assist the corporation in capitalizing on the market's growing demand for products with extended shelf lives.
Dairy Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. KEY INDUSTRY TRENDS
- 4.1 Per Capita Consumption
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4.2 Raw Material/commodity Production
- 4.2.1 Butter
- 4.2.2 Cheese
- 4.2.3 Milk
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4.3 Regulatory Framework
- 4.3.1 Argentina
- 4.3.2 Australia
- 4.3.3 Brazil
- 4.3.4 Canada
- 4.3.5 China
- 4.3.6 France
- 4.3.7 Germany
- 4.3.8 India
- 4.3.9 Italy
- 4.3.10 Japan
- 4.3.11 Mexico
- 4.3.12 Saudi Arabia
- 4.3.13 United Arab Emirates
- 4.3.14 United Kingdom
- 4.3.15 United States
- 4.4 Value Chain & Distribution Channel Analysis
5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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5.1 Category
- 5.1.1 Butter
- 5.1.1.1 By Product Type
- 5.1.1.1.1 Cultured Butter
- 5.1.1.1.2 Uncultured Butter
- 5.1.2 Cheese
- 5.1.2.1 By Product Type
- 5.1.2.1.1 Natural Cheese
- 5.1.2.1.2 Processed Cheese
- 5.1.3 Cream
- 5.1.3.1 By Product Type
- 5.1.3.1.1 Double Cream
- 5.1.3.1.2 Single Cream
- 5.1.3.1.3 Whipping Cream
- 5.1.3.1.4 Others
- 5.1.4 Dairy Desserts
- 5.1.4.1 By Product Type
- 5.1.4.1.1 Cheesecakes
- 5.1.4.1.2 Frozen Desserts
- 5.1.4.1.3 Ice Cream
- 5.1.4.1.4 Mousses
- 5.1.4.1.5 Others
- 5.1.5 Milk
- 5.1.5.1 By Product Type
- 5.1.5.1.1 Condensed milk
- 5.1.5.1.2 Flavored Milk
- 5.1.5.1.3 Fresh Milk
- 5.1.5.1.4 Powdered Milk
- 5.1.5.1.5 UHT Milk
- 5.1.6 Sour Milk Drinks
- 5.1.7 Yogurt
- 5.1.7.1 By Product Type
- 5.1.7.1.1 Flavored Yogurt
- 5.1.7.1.2 Unflavored Yogurt
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5.2 Distribution Channel
- 5.2.1 Off-Trade
- 5.2.1.1 Convenience Stores
- 5.2.1.2 Online Retail
- 5.2.1.3 Specialist Retailers
- 5.2.1.4 Supermarkets and Hypermarkets
- 5.2.1.5 Others (Warehouse clubs, gas stations, etc.)
- 5.2.2 On-Trade
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5.3 Region
- 5.3.1 Africa
- 5.3.1.1 By Category
- 5.3.1.2 By Distribution Channel
- 5.3.1.3 By Country
- 5.3.1.3.1 Egypt
- 5.3.1.3.2 Nigeria
- 5.3.1.3.3 South Africa
- 5.3.1.3.4 Rest of Africa
- 5.3.2 Asia-Pacific
- 5.3.2.1 By Category
- 5.3.2.2 By Distribution Channel
- 5.3.2.3 By Country
- 5.3.2.3.1 Australia
- 5.3.2.3.2 China
- 5.3.2.3.3 India
- 5.3.2.3.4 Indonesia
- 5.3.2.3.5 Japan
- 5.3.2.3.6 Malaysia
- 5.3.2.3.7 New Zealand
- 5.3.2.3.8 Pakistan
- 5.3.2.3.9 South Korea
- 5.3.2.3.10 Rest of Asia Pacific
- 5.3.3 Europe
- 5.3.3.1 By Category
- 5.3.3.2 By Distribution Channel
- 5.3.3.3 By Country
- 5.3.3.3.1 Belgium
- 5.3.3.3.2 France
- 5.3.3.3.3 Germany
- 5.3.3.3.4 Italy
- 5.3.3.3.5 Netherlands
- 5.3.3.3.6 Russia
- 5.3.3.3.7 Spain
- 5.3.3.3.8 Turkey
- 5.3.3.3.9 United Kingdom
- 5.3.3.3.10 Rest of Europe
- 5.3.4 Middle East
- 5.3.4.1 By Category
- 5.3.4.2 By Distribution Channel
- 5.3.4.3 By Country
- 5.3.4.3.1 Bahrain
- 5.3.4.3.2 Iran
- 5.3.4.3.3 Kuwait
- 5.3.4.3.4 Oman
- 5.3.4.3.5 Qatar
- 5.3.4.3.6 Saudi Arabia
- 5.3.4.3.7 United Arab Emirates
- 5.3.4.3.8 Rest of Middle East
- 5.3.5 North America
- 5.3.5.1 By Category
- 5.3.5.2 By Distribution Channel
- 5.3.5.3 By Country
- 5.3.5.3.1 Canada
- 5.3.5.3.2 Mexico
- 5.3.5.3.3 United States
- 5.3.5.3.4 Rest of North America
- 5.3.6 South America
- 5.3.6.1 By Category
- 5.3.6.2 By Distribution Channel
- 5.3.6.3 By Country
- 5.3.6.3.1 Argentina
- 5.3.6.3.2 Brazil
- 5.3.6.3.3 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategic Moves
- 6.2 Market Share Analysis
- 6.3 Company Landscape
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6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 6.4.1 Almarai Company
- 6.4.2 Arla Foods Amba
- 6.4.3 China Mengniu Dairy Company Ltd
- 6.4.4 Dairy Farmers of America Inc.
- 6.4.5 Danone SA
- 6.4.6 Fonterra Co-operative Group Limited
- 6.4.7 Groupe Lactalis
- 6.4.8 Gujarat Co-operative Milk Marketing Federation Ltd
- 6.4.9 Inner Mongolia Yili Industrial Group Co. Ltd
- 6.4.10 Nestlé SA
- 6.4.11 Saputo Inc.
- 6.4.12 Unilever PLC
7. KEY STRATEGIC QUESTIONS FOR DAIRY AND DAIRY ALTERNATIVE CEOS
8. APPENDIX
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8.1 Global Overview
- 8.1.1 Overview
- 8.1.2 Porter’s Five Forces Framework
- 8.1.3 Global Value Chain Analysis
- 8.1.4 Market Dynamics (DROs)
- 8.2 Sources & References
- 8.3 List of Tables & Figures
- 8.4 Primary Insights
- 8.5 Data Pack
- 8.6 Glossary of Terms
Dairy Industry Segmentation
Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel. Africa, Asia-Pacific, Europe, Middle East, North America, South America are covered as segments by Region.
- Compared to other retail channels, supermarkets and hypermarkets dominate the dairy market. Europe topped the place with the most sales of dairy products in Supermarkets and Hypermarkets. As of 2022, the sales of dairy products through supermarkets and hypermarkets accounted for 41.6% of the value share in Europe. The proximity factor of Supermarkets and Hypermarkets, especially in large cities and metropolitan areas, provides them with an added advantage of influencing the consumer's decision to make the purchase among the large variety of products available in the market.
- Increasing demand for dairy-based recipes from food service channels is boosting the growth of the global dairy market. The sales of dairy through on-trade channels are anticipated to grow by 9% in 2025 compared to the year 2022. The segment's growth is attributed to consuming food prepared away from home. In 2022, 47% of consumers globally consumed meals at restaurants, and 31% of consumers ordered their food from food service channels.
- Asia-Pacific is one of the largest markets for the sales of dairy products through online channels globally, growing by 10.2% in terms of value from 2018 to 2022. Advantages like free deliveries, ease of canceling orders, refund process, and coupon codes offered by these platforms provide consumers with a hassle-free shopping experience.
- Among all dairy products, dairy desserts accounted for the majority of share in off-trade channels. In 2022, dairy desserts accounted for 40.24% of the total dairy industry, followed by cheese, with a 24.6% value share.
| Category | Butter | By Product Type | Cultured Butter |
| Uncultured Butter | |||
| Cheese | By Product Type | Natural Cheese | |
| Processed Cheese | |||
| Cream | By Product Type | Double Cream | |
| Single Cream | |||
| Whipping Cream | |||
| Others | |||
| Dairy Desserts | By Product Type | Cheesecakes | |
| Frozen Desserts | |||
| Ice Cream | |||
| Mousses | |||
| Others | |||
| Milk | By Product Type | Condensed milk | |
| Flavored Milk | |||
| Fresh Milk | |||
| Powdered Milk | |||
| UHT Milk | |||
| Sour Milk Drinks | |||
| Yogurt | By Product Type | Flavored Yogurt | |
| Unflavored Yogurt | |||
| Distribution Channel | Off-Trade | Convenience Stores | |
| Online Retail | |||
| Specialist Retailers | |||
| Supermarkets and Hypermarkets | |||
| Others (Warehouse clubs, gas stations, etc.) | |||
| On-Trade | |||
| Region | Africa | By Category | |
| By Distribution Channel | |||
| By Country | Egypt | ||
| Nigeria | |||
| South Africa | |||
| Rest of Africa | |||
| Asia-Pacific | By Category | ||
| By Distribution Channel | |||
| Australia | |||
| China | |||
| India | |||
| Indonesia | |||
| Japan | |||
| Malaysia | |||
| New Zealand | |||
| Pakistan | |||
| South Korea | |||
| Rest of Asia Pacific | |||
| Europe | By Category | ||
| By Distribution Channel | |||
| Belgium | |||
| France | |||
| Germany | |||
| Italy | |||
| Netherlands | |||
| Russia | |||
| Spain | |||
| Turkey | |||
| United Kingdom | |||
| Rest of Europe | |||
| Middle East | By Category | ||
| By Distribution Channel | |||
| Bahrain | |||
| Iran | |||
| Kuwait | |||
| Oman | |||
| Qatar | |||
| Saudi Arabia | |||
| United Arab Emirates | |||
| Rest of Middle East | |||
| North America | By Category | ||
| By Distribution Channel | |||
| Canada | |||
| Mexico | |||
| United States | |||
| Rest of North America | |||
| South America | By Category | ||
| By Distribution Channel | |||
| Argentina | |||
| Brazil | |||
| Rest of South America | |||
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Market Definition
- Butter - Butter is a yellow-to-white solid emulsion of fat globules, water, and inorganic salts produced by churning the cream from cows’ milk
- Dairy - Dairy product include milk and any of the foods made from milk, including butter, cheese, ice cream, yogurt, and condensed and dried milk.
- Frozen Desserts - Frozen dairy dessert means and includes products containing milk or cream and other ingredients which are frozen or semi-frozen prior to consumption, such as ice milk or sherbet, including frozen dairy desserts for special dietary purposes, and sorbet
- Sour Milk Drinks - Sour milk is thick, curdled milk, with a sour taste, obtained from the fermentation of milk. Sour milk drinks such as kefir, laban, buttermilk have been considered in the study
| Keyword | Definition |
|---|---|
| Cultured Butter | Cultured butter is prepared by having the raw butter go through chemical processing and has been added with certain emulsifiers and foreign ingredients. |
| Uncultured Butter | This type of butter is one which has not been processed in any way |
| Natural Cheese | The type of cheese in its most natural form. It is made from natural and simple products and ingredients, including fresh and natural salts, natural colors, enzymes, and high-quality milk. |
| Processed Cheese | Processed cheese undergoes the same processes as natural cheese; however, it requires more steps and many different forms of ingredients. Making processed cheese involves melting natural cheese, emulsifying it, and adding preservatives and other artificial ingredients or colorings. |
| Single Cream | Single cream contains around 18% fat. It’s a single layer of cream that appears over boiled milk. |
| Double Cream | Double cream contains 48% fat, more than double the amount of fat of single cream. It’s heavier and thicker than single cream |
| Whipping Cream | This has a much higher fat percentage than single cream (36%). Used to top cakes, pies, and puddings and as a thickener for sauces, soups, and fillings. |
| Frozen Desserts | Desserts that are meant to be eaten in frozen condition. E.g., sherbets, sorbets, frozen yogurts |
| UHT Milk (Ultra-high temperature milk) | Milk heated at a very high temperature. Ultra-high-temperature processing (UHT) of milk involves heating for 1–8 sec at 135–154°C. which kills the spore-forming pathogenic microorganism, resulting in a product with a shelf-life of several months. |
| Non-dairy butter/Plant-based butter | Butter made from plant-derived oil such as coconut, palm, etc. |
| Non-dairy Yogurt | Yogurt made from typically made from nuts, like almonds, cashews, coconuts, and even other foods like soybeans, plantains, oats, and peas |
| On-trade | It refers to restaurants, QSRs, and bars. |
| Off-trade | It refers to supermarkets, hypermarkets, on-line channels, etc. |
| Neufchatel cheese | One of the oldest kinds of cheese in France. It is a soft, slightly crumbly, mold-ripened, bloomy-rind cheese made in the Neufchâtel-en-Bray region of Normandy. |
| Flexitarian | It refers to a consumer preferring a semi-vegetarian diet, that is centered on plant foods with limited or occasional inclusion of meat. |
| Lactose Intolerance | Lactose intolerance is a reaction in digestive system to lactose, the sugar in milk. It causes uncomfortable symptoms in response to the consumption of dairy products. |
| Cream Cheese | Cream cheese is a soft and creamy fresh cheese with a tangy taste made from milk and cream. |
| Sorbets | Sorbet is a frozen dessert made using ice combined with fruit juice, fruit purée, or other ingredients, such as wine, liqueur, or honey. |
| Sherbet | Sherbet is a sweetened frozen dessert made with fruit and some sort of dairy product such as milk or cream. |
| Shelf stable | Foods that can be safely stored at room temperature, or "on the shelf," for at least one year and do not have to be cooked or refrigerated to eat safely. |
| DSD | Direct Store Delivery is the process in supply chain management wherein the product is delivered from manufacturing plant directly to the retailer. |
| OU Kosher | Orthodox Union Kosher is a kosher certification agency based in New York City. |
| Gelato | Gelato is a frozen creamy dessert made with milk, heavy cream and sugar. |
| Grass-fed Cows | Grass-fed cows are allowed to graze in pastures, where they eat a variety of grasses and clover. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step 1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set, and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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