Market Size of united kingdom dairy Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 23.03 Billion |
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Market Size (2029) | USD 27.34 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 3.49 % |
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Fastest Growing by Distribution Channel | Off-Trade |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
United Kingdom Dairy Market Analysis
The United Kingdom Dairy Market size is estimated at 23.03 billion USD in 2024, and is expected to reach 27.34 billion USD by 2029, growing at a CAGR of 3.49% during the forecast period (2024-2029).
23.03 Billion
Market Size in 2024 (USD)
27.34 Billion
Market Size in 2029 (USD)
2.41 %
CAGR (2017-2023)
3.49 %
CAGR (2024-2029)
Largest Market by Category
29.09 %
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 Distribution Channel
83.29 %
value share, Off-Trade, 2023
The product assortment and shelf space in off-trade retail channels is allowing consumers to compare the products, which has emerged to be one of the major factor driving segmental growth.
Fastest-growing Market by Category
5.82 %
Projected CAGR, Sour Milk Drinks, 2024-2029
Improved dietary choices due to rising health concerns among the country is one of the major factor driving the preference towards sour milk drinks in the region.
Fastest-growing Market by Distribution Channel
3.67 %
Projected CAGR, Off-Trade, 2024-2029
The wider range of dairy products provided by major off-trade channels like convenience stores with reliable shelf space and product assortment entices consumers with wider options.
Leading Market Player
6.95 %
market share, Arla Foods, 2022
Arla's strategic approach to target the specific consumers along with the reduced impact on the environment and climate with improved food safety is making company grow in the market.
Strong penetration of organized retail channels fueling the market growth
- In the United Kingdom, the off-trade distribution channel is the primary channel through which dairy products are more consumed in the country. Of all the sub-types of the off-trade channel, supermarkets and hypermarkets are the major channels. The growth of these retail formats, along with factors like business expansion and the increase in supermarkets and hypermarkets, positively impacted the dairy products market in the United Kingdom. As of 2022, Tesco has a total of 2,823 supercenter stores throughout the country.
- Different supermarket and hypermarket chains, like Tesco, Sainsbury, Asda, Morrisons, and Lidi, offer loyalty benefits to retain consumers. Tesco and Sainsbury's had the largest share, with a 43% share of the grocery market in 2021.
- The United Kingdom is the leading market in Europe when it comes to online shopping. Online retail stores as a sales channel are gaining popularity across the country. In 2021, the overall revenue of e-commerce in the United Kingdom reached a total of USD 156 billion from USD 135 billion in 2020.
- In 2020, there was a sudden fall in the growth trend of dairy products for the on-trade distribution channel in the United Kingdom due to the decline in the demand for foodservice channels. Post-COVID-19, the market has witnessed a speedy recovery. This is due to the increasing frequency of restaurants offering various ethnic foods, such as Asian, American, Chinese, Japanese, and Thai cuisines, coupled with a growing expat population. Spending on restaurants and cafes in the United Kingdom reached USD 111.34 billion in 2021 compared to USD 78.16 billion in 2020.
Understand The Key Trends Shaping This Market
