Milk Market Report 2026

The milk market size has grown strongly in recent years. It will grow from $789.51 billion in 2025 to $843.09 billion in 2026 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to growing global milk consumption, expansion of dairy farming, rising demand for infant nutrition products, development of cold storage infrastructure, increasing urbanization driving packaged milk usage.

The milk market size is expected to see strong growth in the next few years. It will grow to $1.09 trillion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to rising preference for protein-rich diets, increasing demand for functional dairy beverages, growing investment in dairy processing technologies, expanding online retail distribution, higher focus on sustainable dairy production. Major trends in the forecast period include rising demand for nutrient-rich dairy products, growing preference for organic and specialty milk varieties, expansion of value-added dairy product consumption, increasing focus on milk quality and safety standards, greater emphasis on efficient cold chain and distribution systems.

The growing demand for dairy products is expected to drive the growth of the milk market going forward. Dairy products include milk-based foods such as butter, cheese, ice cream, yogurt, and condensed and dried milk. Milk serves as the primary source for producing a wide range of dairy products and providing essential nutrition; therefore, increasing demand for dairy products leads to a higher demand for milk. For example, in January 2025, according to Stats NZ (Tatauranga Aotearoa), a New Zealand-based government data agency, exports of milk powder, butter, and cheese reached NZ$2.4 billion ($2.4B) in 2024, representing a 39% increase, or NZ$689 million ($0.69B) more than in 2023. Therefore, the growing demand for dairy products is driving the growth of the milk market.

Major companies in the milk market are increasingly forming strategic partnerships to offer products that preserve the familiar taste and nutritional profile of regular milk while reducing environmental impact through lower carbon emissions and resource use compared to conventional dairy. For instance, in June 2025, Albert Heijn, a Netherlands-based supermarket chain, collaborated with Farm Dairy, a Netherlands-based food-tech company, and PlanetDairy, a Denmark-based food-tech company, to introduce the first hybrid dairy and plant milk blends in the Netherlands. These innovative products combine traditional dairy with plant-based ingredients, providing consumers with the same taste and nutrition as regular milk while supporting sustainability. Produced using PlanetDairy’s precision fermentation technology, the milks are sold under Albert Heijn’s private label at a competitive price of approximately €1.39 per liter. This initiative reflects the growing movement toward sustainable dairy alternatives and caters to the flexitarian and environmentally conscious consumer segment. The partnership also aims to expand into hybrid yogurts, positioning Albert Heijn as a leader in sustainable dairy innovation within Dutch retail.

In January 2025, Hatsun Agro Product Limited, an India-based dairy company, acquired Milk Mantra Dairy Private Limited for an undisclosed amount. Through this acquisition, Hatsun Agro Product Limited aims to strategically expand and strengthen its presence in the fast-growing dairy market of Eastern India, particularly in Odisha. Milk Mantra Dairy Private Limited is an India-based company that manufactures and sells milk and milk products.

Major companies operating in the milk market are Danone SA, Arla Foods Amba, China Mengniu Dairy Company Limited, Land O’Lakes Inc., Meiji Holdings Co. Ltd., Almarai Company, Royal Friesland Campina NV, Armor Proteines SAS, Dairy Farmers of America Inc., Fonterra Co-operative Group Ltd., Foremost Farms USA Cooperative, Glanbia plc, Groupe Lactalis SA, Gujarat Cooperative Milk Marketing Federation, HP Hood LLC, Inner Mongolia Yili Industrial Group Co. Ltd., Kerry Group plc, Nestle SA, Lactalis Group SA, Saputo Inc., Dairy Farmers of Canada, Dairy Farmers of Ontario, California Dairies Inc., Agropur Cooperative, Anand Milk Union Limited.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the milk market by increasing import and export costs for skimmed milk powder, liquid milk, butter, whey protein, and infant nutrition products, creating price fluctuations across key regions such as Europe, Asia-Pacific, and North America. Tariff-related cost increases affect both primary producers and dairy processors, especially in cross-border dairy trade hubs. However, tariffs can incentivize domestic dairy production capacity, stimulate localized processing investments, and enhance regional value-chain development, offering long-term benefits despite short-term pricing pressures.

The milk market research report is one of a series of new reports that provides milk market statistics, including milk industry global market size, regional shares, competitors with a milk market share, detailed milk market segments, market trends, and opportunities, and any further data you may need to thrive in the milk industry. This milk market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Milk is characterized as an emulsion of protein and fat in water, produced by various mammals. The milk obtained from domesticated animals serves as a crucial food source for humans, providing essential nourishment.

The primary product types within the category of milk include skimmed milk powder, liquid milk, whey protein, butter, infant nutrition, and others. Skim milk specifically refers to milk from which the milk fat has been removed, containing less than 0.15% fat. Various animal sources contribute to milk production, including cows, sheep, buffalo, goats, and other species. Distribution occurs through diverse channels such as convenience stores, supermarkets, hypermarkets, online platforms, and others.Asia-Pacific was the largest region in the milk market in 2025. The regions covered in the milk market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the milk market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The milk market consists of sales of full-fat, toned, and mixed milk. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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