Market Size of europe dairy Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 206.52 Billion |
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Market Size (2029) | USD 253.08 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 4.15 % |
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Largest Share by Country | France |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Europe Dairy Market Analysis
The Europe Dairy Market size is estimated at 206.52 billion USD in 2024, and is expected to reach 253.08 billion USD by 2029, growing at a CAGR of 4.15% during the forecast period (2024-2029).
206.52 Billion
Market Size in 2024 (USD)
253.08 Billion
Market Size in 2029 (USD)
2.77 %
CAGR (2017-2023)
4.15 %
CAGR (2024-2029)
Largest Market by Category
35.38 %
value share, Cheese, 2023
Product consistency, surge in regional production and increasing cheese use in different cuisines are some of the major factors influencing the higher cheese consumption.
Largest Market by Country
22.92 %
value share, France, 2023
France being the Europe's 2nd largest producer of milk after Germany with 54% run as farm companies is largely influencing the consumption of milk during the study period.
Fastest-growing Market by Category
4.56 %
Projected CAGR, Yogurt, 2024-2029
The demand for yogurt is fuelled by the availability of numerous flavors growing consumer indulgence in exotic flavors, and significant investments by manufacturers.
Fastest-growing Market by Country
5.32 %
Projected CAGR, Belgium, 2024-2029
Milk processing capacity has increased sharply in Belgium (38% more milk is processed in 2022 than in 2012) which is emerged to be one of the major factor driving the market.
Leading Market Player
4.91 %
market share, Groupe Lactalis, 2022
The strict quality inspection measures for the products of Lactalis and constant review of its supplies on a regular basis is largely making Groupe Lactalis outstand its' competitors.
Strong presence of supermarkets and convenience stores is boosting the dairy sales
- The off-trade retail channel plays a major role in sales of Dairy products in Europe. Among the off-trade channels, supermarkets and hypermarkets accounted for the major market share as they provide them with the added advantage of influencing the consumer’s decision to make the purchase among the large variety of products available in the market. This channel is considered the primary sales channel for the sales of dairy products as it holds more than 58.45% of overall sales across Europe.
- In Europe, convenience stores stand in second place in the sales of dairy products, behind Supermarkets and Hypermarkets. In 2022, the sales value of dairy products through convenience stores increased by 2.9% compared to 2021. Many convenience stores stay open for longer hours than traditional retail stores, resulting in more time in the day for the company’s products to be sold.
- Online retail is the fastest-growing retail sales channel in the off-trade category. Online retailers, including Amazon, Sainsbury’s, Asda, and Tesco, represent the most dominant platforms in terms of the sales of overall groceries, including dairy products, across the country. Milk and cheese have the highest sales through online retail channels. In 2022, cheese accounted for 66.3% of the value share in online retail channels.
- There is an increasing demand for dairy-based recipes from food service channels, further boosting market growth. The dairy sales in the on-trade channel are anticipated to grow by USD 36,245 million in 2024, compared to USD 33,579 million in 2022.
Understand The Key Trends Shaping This Market
Well-established dairy farms with adequate milk processing capacity fuels the industry growth
- Germany and Russia are identified as the major markets in the region, followed by the United Kingdom and France. Germany and Russia collectively accounted for 29.40% of the overall dairy products volume sales across the region in 2022. High production of raw milk, rising consumer preference for quality dairy products, and adequate industry regulation to facilitate the manufacturing of these products are identified as the key driving factors. Russia was the fifth-largest producer of raw milk globally in 2021. In 2020, industrialized dairy farms represented 41% of cow inventories, 42% of backyard farms, and small peasant farms accounted for 17% of cow inventories in Russia.
- Belgium and France are identified as the fastest-growing dairy markets in Europe. The Belgium market is anticipated to expand at a CAGR of 4.36% during the forecast period in terms of volume. Milk and cheese are the leading categories in the Belgium market, collectively accounting for 73.27% market volume share in 2022. Milk and cheese are important components of the daily diet in Belgian households. In Belgium, households spent 3.13 billion on dairy products between 1 July 2020 and 30 June 2021. This represented an increase of 5 % compared to the previous year.
- Demand for healthy dairy variants, such as no or reduced sugar, low-fat content, grass-fed, and organic, is anticipated to drive market growth in France during the forecast period. In 2022, Biolait, one of the leading suppliers of raw organic milk in France, represented 30% of organic milk collection in the country. In 2021, grass represented 97% of the feed for heifers and 73% of cow feed at the company's Belin farm.
