Dairy Food Market Report 2025

The dairy food market size has grown strongly in recent years. It will grow from $859.63 billion in 2024 to $917 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to global population growth, a rise in disposable income, growing number of health-conscious consumers, and low interest rate environment.

The dairy food market size is expected to see strong growth in the next few years. It will grow to $1.18 trillion in 2029 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to the COVID-19 pandemic, rising population, rising penetration of organized retail, improvement in cold chains, increased dietary consciousness and increasing product launches. Major trends in the forecast period include internet of things (IoT) technology, increasing dairy food companies’ collaboration with e-commerce companies, increasing demand for clean label products, robotics and automation in dairy industry, partnerships and acquisition for brand expansions.

The growing demand for local, sustainable, and organic food production is anticipated to positively influence the dairy food market throughout the forecast period. Organic food production, including organic dairy products, emphasizes consumer health, environmental sustainability, and animal welfare. Consumers are increasingly concerned about how their food is produced and prepared, often willing to pay a premium for items they perceive as healthier. In Europe, there is a notably high import rate, particularly for fruits and vegetables, due to production levels being significantly lower than consumer demand for organic produce. For example, in 2023, the Organic Trade Association reported that sales of organic food in the United States exceeded $60 billion for the first time, marking a new peak for the robust organic sector. Total organic sales, including non-food items, reached a record $67.6 billion, as noted in 2023.

The increasing development of cold chains is expected to boost the growth of the dairy food market. Cold chains refer to specialized supply chain systems designed to maintain and manage temperature-controlled storage, transportation, and distribution of products, especially temperature-sensitive items such as perishable foods, pharmaceuticals, vaccines, and chemicals. Cold chains are essential for preserving product freshness, enabling geographic expansion, promoting product diversity, facilitating global trade, extending shelf life, ensuring food safety compliance, and enhancing consumer convenience. For instance, in September 2024, the Cold Chain Federation, a UK-based association, reported that energy costs in the cold chain sector rose by 46% in 2023 compared to 2022, raising concerns within the industry. Moreover, the number of cold storage facilities using blast freezers increased by 3%, while the use of CO2 as a primary refrigerant grew by 4%, with ammonia and HFCs each declining by 2%. Thus, the ongoing development of cold chains is driving the growth of the dairy food market moving forward.

The adoption of Internet of Things (IoT) technology is on the rise for tracking dairy products and ensuring secure product handling. IoT comprises a network of interconnected devices, vehicles, or other items that continuously exchange data, providing insights into various processes or systems. This technology is utilized to monitor the ingredients used in dairy products. Internet-connected equipment in trucks and storage coolers enables the tracking of dairy items, allowing for the tagging of environmental conditions such as temperature or location. This information is crucial for ensuring safe product handling during transportation. For example, 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.

Leading companies in the dairy food market are concentrating on developing technologically advanced solutions, such as the Go High in Protein initiative, to satisfy the increasing consumer demand for health-oriented products and improve nutritional value. Go High in Protein refers to a product line or dietary trend that highlights elevated protein content, primarily aimed at health-conscious consumers, athletes, and individuals looking to enhance their overall nutrition. These products usually encompass dairy items like yogurt, milk, and cheese that are fortified with higher protein levels compared to standard offerings. For example, in September 2024, Arla Foods Group, a Denmark-based food company, launched the Go High in Protein campaign to encourage dairy manufacturers to create innovative high-protein products. This campaign provides manufacturers with the opportunity to enhance their dairy offerings using Arla’s Nutrilac Protein Boost solutions, emphasizing the improvement of protein content while preserving appealing taste and texture. Additionally, it features educational resources, including a virtual seminar to assist industry professionals in effectively utilizing these innovative products.

Major companies operating in the dairy food market include Groupe Lactalis S.A., Danone S.A., Fonterra Co-operative Group Limited, Inner Mongolia Yili Industrial Group Co., Ltd., Nestle S.A., Saputo Inc, Arla Foods amba, Dairy Farmers of America, Amul, Pacific Dairy, China Mengniu Dairy Company Limited, Milk Powder Co.Ltd, China Shengmu Organic Milk Limited, Mother Dairy, Kwality Limited, Dynamix Dairy, AAVIN, MILMA, Dudhsagar Dairy, Bates Dairy, Müller UK & Ireland, Dairy Crest, Meadow Foods, Dale Farm, Yeo Valley, Glanbia Cheese, Lactalis International, Kompaniya Pavlov, Olam, Rusmolco, CLAL, Siemens Dairy industry, Gabrovo Milk Ltd., JOSSI Ltd., Kondov Ecoproductia, Sofia, Agropur Cooperative, Schreiber Foods, Kraft Heinz Co., ConAgra Brands, Prairie Farms Dairy Inc., California Dairies Inc., Italac, Piracanjuba, La Serenísima, Colun, Ilolay, Earth’s Own Food Company, Eden Foods, Inc, Nada Dairy, Nadec, Saudia Dairy and Foodstuff Company, Ornua, Danya Foods Ltd, Al Amoudi Group, Almarai, Freisland, Pinar Dairy Food Co, Tara Dairy, Bandini Cheese (Pty) Ltd., Clover SA (Pty) Ltd., Coega Dairy (Pty) Ltd., Douglasdale Dairy (Pty) Ltd., Dewfresh (Pty) Ltd.

Asia-Pacific was the largest region in the dairy food market in 2024. Western Europe was the second-largest region in the dairy food market. The regions covered in the dairy food market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the dairy food 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 dairy food market consists of sales of buttermilk, cheese, cream, soy milk, whipping cream, butter, and other dairy food. The companies in the industry package and distribute their products through various distribution channels to both individual customers and commercial establishments. 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.

Dairy food encompasses products derived from the milk of mammals, including cows, goats, and sheep. These foods are important for delivering essential nutrients such as calcium, protein, and vitamins, which are vital for a balanced diet. Common dairy items include milk, cheese, yogurt, and butter, all of which are enjoyed across various cuisines globally.

The primary categories of dairy foods include milk and butter, cheese, dry, condensed, and evaporated dairy products, as well as ice cream and frozen desserts. Milk and butter, in their solidified form, play a crucial role in cheese production. Dairy products are sourced from animals such as cattle, sheep, goats, and camels, and are made available to consumers through diverse distribution channels, including supermarkets and hypermarkets, convenience stores, e-commerce platforms, and other retail outlets.

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