Dairy Products Market Report 2025

The dairy products market size has grown steadily in recent years. It will grow from $524.15 billion in 2024 to $548.57 billion in 2025 at a compound annual growth rate (CAGR) of 4.7%. The growth in the historic period can be attributed to urbanization and changing lifestyles, rising disposable income, population growth and demographic shifts, innovation in product offerings, trade liberalization.

The dairy products market size is expected to see steady growth in the next few years. It will grow to $657.27 billion in 2029 at a compound annual growth rate (CAGR) of 4.6%. The growth in the forecast period can be attributed to cultural diversity and adaptation, global trade and market expansion, health and nutrition trends, plant-based alternatives growth, premiumization and specialty offerings. Major trends in the forecast period include cultural preferences and diversity, nutritional awareness, clean label and transparency, globalization and international markets, convenience and snacking.

The increasing demand for cheese is anticipated to drive growth in the dairy products market. Cheese is a dairy product made from curds derived from soured milk, which are pressed together to form a soft or hard solid as they ripen. It typically consists of coagulated and compressed milk, along with ripened curds. As demand for cheese rises, it positively impacts market growth. For example, in November 2023, the Cheese Reporter, a US-based publication focused on cheese and related products, reported that U.S. cheese production reached 1.15 billion pounds in 2023, reflecting a modest increase of 0.1% compared to September 2022. Over the first nine months of 2023, cheese production totaled 10.55 billion pounds, representing a 0.2% rise from the same period in 2022. This trend indicates consistent growth in cheese production amid varying market conditions. Thus, the growing demand for cheese is driving the dairy products market.

The growing demand for an array of dairy products is a driving factor in market advancement. Dairy products encompass a wide spectrum of foodstuffs derived from milk, sourced from various mammals such as cows, goats, sheep, and buffalo. Rich in vital nutrients such as calcium, protein, vitamins, and minerals, these products undergo diverse processing methods to yield consumables such as milk, cheese, butter, and milk powder. Statistics from Stats NZ Tatauranga Aotearoa in September 2022 revealed a substantial uptick in the combined export value of milk powder, butter, and cheese, surging by $2.8 billion, marking a 17% increase to hit $18.8 billion by the fiscal year ending July 2022 compared to the previous year. This heightened demand for a variety of dairy products is a significant driver fostering the expansion of the dairy products market.

Product innovation stands as a pivotal trend reshaping the dairy products market. Leading companies are channeling efforts into innovating products to fortify their market foothold. For instance, in July 2022, Danone SA introduced Aptamil, an industry-first dairy and plant blend baby formula. This unique formula combines a blend of 60% plant protein and 40% dairy protein, incorporating selected plant proteins, fats, and fibers, resulting in a product with a 30% lower carbon footprint. Aptamil utilizes recyclable packaging and supports regenerative agriculture methods, catering to vegetarian and plant-based diets while meeting the nutritional needs of infants. Such innovations underscore a trend toward sustainable, diversified, and nutritionally tailored dairy products, reshaping the market landscape.

Major players within the dairy products market are directing their focus towards the development of advanced technological processes, exemplified by innovations such as 'DelvoONE,' aimed at fortifying their market presence. This new platform integrates artificial intelligence (AI) and machine learning, offering yogurt manufacturers cutting-edge solutions. In October 2022, Koninklijke DSM N.V., a Netherlands-based nutritional ingredients manufacturer, introduced the 'DelvoONE' product portfolio through the 'Culture Co-Creation Platform.' This innovative platform streamlines the development of all-in-one cultures for fermented milk products. It enhances precision and efficiency in new product development for dairy producers by simplifying the complexity of trials in the culture selection process, marking a significant advancement in the industry's technological capabilities.

In August 2022, Dairy Farmers of America (DFA), a US-based company specializing in dairy products, acquired two extended shelf-life (ESL) processing facilities from SmithFoods. This acquisition is intended to strengthen DFA's capabilities in producing high-quality dairy products with extended shelf lives, addressing the growing consumer demand for convenience and longer freshness. SmithFoods is a US-based company that offers both dairy and non-dairy products.

Major companies operating in the dairy products market include Arla Foods amba, Fonterra Co-operative Group Limited, Nestlé S.A., Danone S.A., Royal FrieslandCampina N.V., Dairy Farmers of America Inc., DMK Group, Gujarat Cooperative Milk Marketing Federation Ltd., Meiji Holdings Co. Ltd., Parmalat S.p.A., Sodiaal Group, Inner Mongolia Yili Industrial Group Co. Ltd., China Mengniu Dairy Co. Ltd., Megmilk Snow Brand Co. Ltd., Saputo Inc., Lactalis International, Agropur Cooperative, Kaira District Co-operative Milk Producers' Union Limited., Arion Dairy Products BV, Bel Group S.A., Savencia SA, Cabot Creamery Cooperative Inc., California Dairies Inc., Clover Sonoma Inc., Darigold Inc., Davisco Foods International Inc., Foremost Farms USA, Glanbia plc., Hilmar Cheese Company Inc., Idaho Milk Products, Kerry Group plc., Land O'Lakes Inc., Leprino Foods Company.

Asia-Pacific was the largest region in the dairy products market in 2024. Asia-Pacific is expected to be the fastest-growing region in the dairy products market during the forecast period. The regions covered in the dairy products market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the dairy products market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Dairy products encompass a range of food items derived from milk and its derivatives obtained through the secretion of glands in mammals such as cows, sheep, or goats. The milk undergoes processing to produce various products that serve as sources of nutrients and health benefits, contributing to the development and maintenance of robust bones.

Key categories of dairy products include milk, cheese, butter, desserts, yogurt, and others. Milk is a liquid produced by the mammary glands of female mammals, providing essential nourishment to their offspring immediately after birth. These products are distributed through diverse channels such as supermarkets, hypermarkets, specialty stores, online retail, and others. Dairy items find applications in bakery and confectionery, clinical nutrition, frozen foods, and various other sectors.

The dairy products market research report is one of a series of new reports that provides dairy products market statistics, including dairy products industry global market size, regional shares, competitors with a dairy products market share, detailed dairy products market segments, market trends and opportunities, and any further data you may need to thrive in the dairy products industry. This dairy products 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.

The dairy products market consists of sales of paneer, ice cream, whey protein, and condensed 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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