Milk and Butter Market Report 2025

This Milk and Butter market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The milk and butter market size has grown strongly in recent years. It will grow from $336.84 billion in 2024 to $355.72 billion in 2025 at a compound annual growth rate (CAGR) of 5.6%. The growth in the historic period can be attributed to dairy farming, basic nutritional staples, dairy industry growth, traditional culinary use, global trade.

The milk and butter market size is expected to see strong growth in the next few years. It will grow to $441.2 billion in 2029 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to diverse dairy alternatives, health and wellness trends, sustainability and ethical practices, digital marketing and e-commerce, global market expansion. Major trends in the forecast period include plant-based milk and butter, lactose-free and dairy-free options, butter blends and spreads, functional and fortified dairy, sustainable packaging.

The growing demand for locally-sourced, sustainable, and organic food production is poised to have a positive influence on the milk and butter manufacturing market in the foreseeable future. The organic food production sector, including organic dairy products, places a strong emphasis on factors such as consumer health, environmental sustainability, and animal welfare. Consumers are increasingly showing concern about the methods of food production and are willing to pay a premium for products they perceive as healthier and more responsible. As an illustration, in June 2022, the Organic Trade Association, a US-based organization representing organic businesses, reported an 11% increase in sales of organic dairy products and eggs compared to previous years. This rising demand for organic products presents significant opportunities for dairy product producers in both developed and developing nations, and it is likely to drive market growth in the coming years.

The increasing global demand for food is expected to drive the growth of the milk and butter market. This demand is being fueled by factors such as population growth, rising incomes, climate change, food security concerns, changing dietary habits, and increasing per capita consumption. As consumer preferences evolve, there is a boost in the development of flavored milk, dairy spreads, flavored butter, and other value-added dairy products. For example, in April 2023, the International Food Information Council, a US-based nonprofit organization providing science-based information on food safety, nutrition, and health, conducted a survey revealing that 52% of Americans adhered to specific eating patterns or diets in the past year, maintaining the same rate as the previous year. Notably, Gen Z (66%) and Millennials (63%) were more likely than Gen X (50%) and Boomers (41%) to follow such dietary practices. Boomers, however, showed a significant increase in diet adherence, rising from 29% in 2022 to 41% in 2023. Popular eating patterns included high-protein diets (18%), mindful eating (17%), calorie counting (12%), clean eating (12%), and intermittent fasting (12%). As a result, the growing demand in the food sector is contributing to the expansion of the milk and butter market.

The adoption of Internet of Things (IoT) technology is becoming increasingly prevalent in monitoring dairy products, including milk and butter, to ensure safe handling and quality. IoT technology comprises a network of interconnected devices, vehicles, or objects that continuously exchange data, providing insights into various processes and systems. This technology is being utilized to track the ingredients used in dairy products. Internet-connected equipment within trucks and storage coolers allows for the monitoring of dairy products and the recording of environmental conditions like temperature and location. This data offers valuable information regarding the safe handling of products during transportation. For instance, the Chinese government has implemented the National Food Quality Safety Traceability Platform, utilizing IoT technology to enhance the quality and safety of food production supply chains.

Prominent companies operating in the milk and butter market are actively engaged in innovating new products to enhance their market profitability. These innovative food products often incorporate advanced freezing technologies or methods that preserve the quality, texture, and nutritional value of the food. As an example, in March 2023, Lactalis, a France-based dairy company, introduced a light butter in the UK and Ireland. This newly launched product is aimed at the market for lighter spreadable butter and is devoid of vegetable oil. The introduction of this product by Lactalis is in response to the growing demand for healthier dietary options. The new light butter offers reduced fat content and is crafted using premium ingredients, catering to the preferences of health-conscious consumers.

Major companies operating in the milk and butter market include Danone S.A., Inner Mongolia Yili Industrial Group Co. Ltd., Fonterra Group Cooperative Limited, Groupe Lactalis S.A., Saputo Inc., Arla Foods amba, Frieslandcampina, Yakult Honsha Co. Ltd., Louis Dreyfus, Savencia Fromage & Dairy, Nestle S.A., Dairy Farmers of America Inc., Yili Group, China Mengniu Dairy Company Limited, Land O'Lakes Inc., Dean Foods, DMK Deutsches Milchkontor GmbH, Meiji Holdings Company Ltd., The Kraft Heinz Company, The Agropur Diary Co-operative, Sodiaal, Amul, Schreiber Foods Inc., Müller, Foremost Farms, Hiland Dairy, Prairie Farms Diary, St. Mary's Farm, St. Pete's Select, The Turner Dairies, Tillamook Country Creamy Association, Alpenrose Dairy, Challenge Diary.

Milk is a liquid food produced by mammals, containing essential nutrients such as lactose and protein. In contrast, butter is a solid emulsion composed of fat globules, air, and water, crafted by churning cream and commonly used for cooking or as a spread.

The primary categories within the realm of milk and butter encompass dairy milk and butter. Butter, a dairy product, is derived from the fat and protein components of churned cream. These products find a wide array of applications in food, beverages, intermediate products, condiments, and various other distribution channels. They are typically distributed through a variety of channels, including supermarkets, hypermarkets, convenience stores, e-commerce, and other distribution outlets.

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

Asia-Pacific was the largest region in the milk and butter market in 2024. Western Europe was the second largest region in milk and butter market. The regions covered in the milk and butter market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the milk and butter market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The milk and butter market consists of sales of sweet buttermilk, sour buttermilk, skimmed milk powder, fat-filled milk powder, whole milk powder, dairy whiteners, reduced-fat milk (2%), whole milk, lactose-free milk, low-fat milk(1%), skim milk, evaporated milk, condensed milk, creamery butter, whey butter. 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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