Dairy products are consumable food items that are derived from milk. They include milk, curd, butter, cheese, yogurt, ice cream, and cream. Dairy products are a rich source of various nutrients like calcium, phosphorus, protein, vitamins, and minerals. They help in maintaining bone and dental health, muscle growth, and reducing risks of chronic diseases.
The Global Dairy Products Market Demand is increasing owing to rise in health consciousness among people and awareness about various benefits of consuming dairy. Milk and other dairy foods have become an integral part of daily diet in many countries. Rapid urbanization and hectic lifestyle have also fueled the demand for packaged and processed dairy items that offer convenience. Moreover, dairy industry players are introducing innovative products like flavored yogurt, dairy-based beverages, and probiotic drinks to attract more consumers.
The Dairy Products MarketIs Estimated To Be Valued At USD 140.50 Bn In 2025 And Is Expected To Reach USD 247.26 Bn By 2032, Exhibiting A Compound Annual Growth Rate (CAGR) Of 8.4% From 2025 To 2032
Key Takeaways
Key players operating in the Dairy Products Marketare Nestle, Danone, Fonterra Co-operative Group, Lactalis Group, Dairy Farmers of America.
The growing health awareness among people regarding various benefits of consuming high protein dairy foods has significantly boosted the demand for dairy products globally. Rising per capita consumption of value-added and packaged dairy items is a key factor driving the market.
Continuous investments in dairy product innovation and adoption of advanced technologies by industry players are helping to meet dynamic consumer preferences. New product launches, combination of flavors, fortification with additional nutrients are some of the technological trends gaining popularity.
Market Trends
- Rising popularity of plant-based dairy alternatives like soy milk, almond milk and oat milk among vegan and lactose intolerant population is creating new market opportunities. Their nutrition value and variety of flavors offered is appealing many flexitarians and health conscious consumers.
- Significant rise in demand for dairy products especially flavored yogurt, cheese, butter from foodservice sector catering hotels, restaurants and cafes.
Innovation in packaging and formats suitable for on-the-go consumption are fueling the foodservice sales.
Market Opportunities
- Emerging economies offer lucrative growth prospects with rising disposable incomes and growing dairy consumption trends. Favorable government policies and initiatives will encourage investments to strengthen dairy infrastructure in developing nations.
- Continued focus on sustainable dairy farming practices, animal welfare, and reducing environmental footprint presents new revenue channels. Industry-academia tie-ups for advanced research can lead to development of superior quality and higher yielding dairy breeds.
Impact of Covid-19 on Dairy Products Market:
The Covid-19 pandemic has significantly impacted the dairy products market. During the initial phases of the pandemic, supply chain disruptions affected the availability of dairy products. Restrictions on travel and transport led to difficulties in collecting milk from farms and processing them at dairies. This lowered production of dairy items like milk, butter, cheese, yogurt etc. concurrently, panic buying by consumers also resulted in empty dairy shelves at grocery stores in early 2020.
However, as governments announced lockdowns, confined consumers upped their at-home milk, butter and cheese consumption. This compensated for some lost food service demand. Still, the closing of restaurants, cafes and limited operations of food outlets like schools dealt a blow. Dairy farmers had to dump excess raw milk supplies as processing plants were unable to cope. Gradually, producers adjusted operations, prioritizing household packs over foodservice sizes. E-commerce also grew in significance for dairy sales.
Looking ahead, the market is recovering steadily. Yet risks remain from future waves or variants. Producers are focusing on resilient packaging, precise demand forecasting and diversifying sales channels. Automation is aiding contactless production. Governments are supporting farmers through aid packages. Consumers are also increasingly conscious about nutrition, immunity and sustainability which can boost certain dairy segments long-term. Overall, while short-term fluctuations are expected, the market is well-placed to regain pre-pandemic growth levels by 2024.
Geographical Regions with Highest Dairy Products Value:
In terms of value, the Western Europe region accounts for the largest share of the global Dairy Products Marketcurrently. Countries like Germany, France, UK, Italy have robust dairy industries and a culture of dairy consumption. Advanced cold chain infrastructure ensures fresh milk and products reach both urban and rural populations. Rising health awareness is propelling demand for low-fat yogurt and probiotic drinks. The North American region also has high per capital dairy intake led by the United States. Changing lifestyles and busy schedules support consumption of dairy-based snack and breakfast items.
Fastest Growing Region for Dairy Products Market:
The Asia Pacific region, specifically South Asian countries like India and China offer immense untapped potential for Dairy Products Market growth. Rapid urbanisation, rising incomes, evolving food preferences are driving significant demand shifts. Once predominately tea drinkers, these nations are witnessing a huge uptick in milk, cheese and flavoured yogurt intake. Local players as well as MNCs are investing in modern processing facilities and tailored packing formats. Agro-climatic conditions also allow for dairy farming expansion. The region's large population makes even modest per capita gains translate into impressive volume growth. It is projected to become the fastest expanding market for dairy over the next decade.
Get More Insights On- Dairy Products Market
Get This Report In Japanese Language
Get This Report In Korean Language
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
(https://www.linkedin.com/in/money-singh-590844163)
