Global Dairy Market, By Product Type (Milk, Cheese, Butter, Yogurt, Dairy Desert, and Others), Brand Category (Branded and Private Label), Distribution Channel (Store-Based Retailing and Non-Store Retailing) – Industry Trends and Forecast to 2031.
Dairy Market Analysis
Rising consumer demand for nutrient-rich diets and increasing popularity of organic and clean-label dairy products are some of the driving factors expected to propel the market growth. The technological advancements in dairy farming and processing and rising innovations and new product launches in functional and nutrient-enriched dairy products are expected to create opportunities for the market growth.
Data Bridge Market Research analyzes that the global dairy market is expected to reach USD 1589.25 billion by 2031 from USD 1000.00 billion in 2023, growing with a CAGR of 6.5% during the forecast period of 2024 to 2031.
Dairy Market Trends
Rising Consumer Demand for Nutrient-Rich Diets
Dairy products are increasingly valued for their high content of essential nutrients such as calcium, protein, and vitamins as consumers become more health-conscious and seek to enhance their nutritional intake. This trend is reflected in the growing popularity of dairy products among health-focused consumers, who prioritize nutritional benefits in their dietary choices.
The demand for dairy products is also fuelled by the increasing awareness of their role in supporting bone health, muscle function, and overall well-being. Dairy products, including milk, cheese, and yogurt, are rich sources of calcium and protein, which are critical for maintaining bone density and muscle mass. This awareness is driving consumers to incorporate more dairy into their diets to meet their nutritional needs and support a healthy lifestyle. In addition, the dairy industry is witnessing growth due to the introduction of innovative dairy products that cater to specific health needs and dietary preferences. Products such as fortified milk, probiotic yogurt, and lactose-free options are gaining traction among consumers seeking tailored nutritional solutions. These innovations address various dietary requirements and preferences, further expanding the market for dairy products.
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016 – 2021)
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Quantitative Units
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Revenue in USD Billion
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Segments Covered
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Product Type (Milk, Cheese, Butter, Yogurt, Dairy Desert, and Others), Brand Category (Branded and Private Label), Distribution Channel (Store-Based Retailing and Non-Store Retailing)
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Countries Covered
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India, China, Japan, Australia, New Zealand, Indonesia, Thailand, Vietnam, Philippines, South Korea, Malaysia, Singapore, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, Germany, France, U.K., Russia, Netherlands, Italy, Poland, Denmark, Spain, Sweden, Belgium, Switzerland, Turkey, Rest of Europe, U.S., Canada, Mexico, Saudi Arabia, South Africa, U.A.E., Kuwait, Oman, Qatar, and Rest of Middle East and Africa
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Key Market Players
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DMK GROUP, Dairy Farmers of America, Inc., Nestlé, SAVENCIA SA, Glanbia plc, The Coca‑Cola Company, Yeo Valley Organic Limited, Arla Foods amba, Parmalat S.p.A. (A subsidiary of LACTALIS), Dana Dairy, Sodiaal, Milcobel CV, Unilever, Danone, Unternehmensgruppe Theo Müller, Valio Oy, Hochland SE, MEGGLE Group GmbH, Almarai, China Mengniu Dairy Company Limited, Tiviski pvt Ltd, Viju Industries, Ausnutria Dairy Corporation Ltd., Emmi Group, CapriLac, Castle Dairy s.a., among others
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Dairy Market Definition
Dairy refers to products made from milk, including milk itself, cheese, yogurt, butter, and cream. These products come from animals like cows, goats, and sheep. Dairy products are used in various meals, from breakfast to dessert. They provide essential nutrients like calcium, protein, and vitamins. The dairy industry focuses on producing and processing these items, often offering fresh and processed options.
Global Dairy Market Dynamics
Drivers
- Rising Consumer Demand for Nutrient-Rich Diets
Dairy products are increasingly valued for their high content of essential nutrients such as calcium, protein, and vitamins as consumers become more health-conscious and seek to enhance their nutritional intake. This trend is reflected in the growing popularity of dairy products among health-focused consumers, who prioritize nutritional benefits in their dietary choices.
The demand for dairy products is also fuelled by the increasing awareness of their role in supporting bone health, muscle function, and overall well-being. Dairy products, including milk, cheese, and yogurt, are rich sources of calcium and protein, which are critical for maintaining bone density and muscle mass. This awareness is driving consumers to incorporate more dairy into their diets to meet their nutritional needs and support a healthy lifestyle. In addition, the dairy industry is witnessing growth due to the introduction of innovative dairy products that cater to specific health needs and dietary preferences. Products such as fortified milk, probiotic yogurt, and lactose-free options are gaining traction among consumers seeking tailored nutritional solutions. These innovations address various dietary requirements and preferences, further expanding the market for dairy products.
- Increasing Popularity of Organic and Clean-Label Dairy Products
Consumers are becoming more health-conscious and are seeking products that align with their preferences for natural and minimally processed foods. Organic dairy products, which are produced without synthetic hormones, antibiotics or artificial additives, are seeing a surge in demand as they are perceived as healthier and more environmentally friendly compared to conventional options.
The clean-label trend, which emphasizes transparency in product ingredients and sourcing, is also contributing to this market growth. Consumers are increasingly demanding clarity on what is included in their food products, and dairy brands are responding by offering products with straightforward, natural ingredients. This trend aligns with a broader consumer shift towards understanding and controlling their dietary intake, which has become a significant factor in purchasing decisions.
Opportunities
- Technological Advancements in Dairy Farming and Processing
Modern technologies, such as automated milking systems, precision farming tools, and advanced feed management, have enhanced productivity and efficiency in dairy operations. Automated milking systems, for instance, streamline the milking process, reduce labor costs, and ensure consistent milk quality. These systems also provide real-time data on cow health and milk production, enabling farmers to make informed decisions that optimize yield and quality.
The integration of precision farming technologies, including GPS tracking and remote sensing, has further improved dairy farming practices. These technologies allow for more accurate monitoring of crop and pasture conditions, leading to better feed management and reduced waste. Precision agriculture also enables targeted application of nutrients and pesticides, improving the overall health and productivity of dairy herds. As a result, dairy farmers can achieve higher efficiency and profitability, driving market growth.
- Rising Innovations and New Product Launches in Functional and Nutrient-Enriched Dairy Products
Advances in dairy technology have led to the development of products that offer added health benefits beyond essential nutrition. For instance, the introduction of dairy products fortified with probiotics, vitamins, and minerals caters to the increasing consumer demand for health-conscious and functional foods. These innovations not only enhance the nutritional profile of dairy products but also address specific health needs, such as improving digestive health and boosting immune function. In addition, the development of low-fat, lactose-free, and plant-based dairy alternatives reflects a growing trend toward personalized nutrition and dietary inclusivity. The introduction of these products has expanded the market reach by accommodating various nutritional preferences and restrictions. Lactose intolerance and dietary restrictions have driven the demand for lactose-free and plant-based options, providing opportunities for dairy producers to diversify their product offerings and appeal to a broader consumer base.
Restraints/Challenges
- Increasing Prevalence of Lactose Intolerance and Dairy Allergies
Lactose intolerance, a condition where individuals are unable to digest lactose, a sugar found in milk and dairy products, affects a substantial portion of the global population. This intolerance leads to symptoms such as bloating, gas, and diarrhea, which discourages individuals from consuming dairy products. As awareness of lactose intolerance grows, more consumers are avoiding dairy, impacting the overall demand for traditional dairy products. Similarly, dairy allergies, particularly in children, have become more recognized and prevalent. These allergies, which result in immune system reactions to proteins found in milk, can cause severe symptoms ranging from hives and swelling to anaphylaxis. As the prevalence of dairy allergies rises, it compels consumers and manufacturers to seek alternative products, reducing the market share for conventional dairy goods. The need for allergen-free and hypoallergenic alternatives further drives consumers away from dairy, affecting market dynamics.
- Stringent Standards and Regulations for Dairy Products
Regulatory bodies impose strict guidelines on various aspects of dairy production, including hygiene, safety, and quality control. These regulations are designed to ensure consumer safety and product integrity, but they also require significant investment from dairy producers in compliance measures. Adhering to these standards often involves upgrading facilities, implementing rigorous testing protocols, and maintaining comprehensive documentation, which can be costly and complex for producers. In addition to compliance costs, the need for constant updates and adaptations to regulatory changes further strains dairy businesses. Regulations can vary significantly across regions and countries, creating additional hurdles for dairy companies that operate internationally. The complexity of navigating different regulatory environments can lead to increased operational costs and potential delays in product launches, impacting overall market growth. Companies must invest in legal and regulatory expertise to manage these challenges effectively.
Recent Developments
- In January 2022, The Michigan State University (MSU) Department of Animal Science awarded DFA family farm-owners Dennis and Doris Tubergen, founders of Tubergen Dairy Farm in Ionia, Mich., the 2022 Dairy Farmer of the Year title. MSU awards the Dairy Farmer of the Year to farmers who display excellence in management and leadership on their farms and in their communities
- In April 2024, Danone North America aimed to capitalize on the rise in consumer snacking with Remix, a new line of yogurt and dairy snacks. The Remix portfolio is spread across three Danone brands, featuring a yogurt or dairy base with mix-in toppings. Offerings included Oikos Remix in coco almond chocolate, s’mores, and salted caramel flavors; Too Good & Co. Remix with strawberry dark chocolate almond, banana dark chocolate almond, and blueberry almond oat crisp flavors; and Light + Fit Remix in strawberry cheesecake, Key lime, and brownie sundae varieties. New and innovative products such as Remix can attract new customers and encourage repeat purchases, boosting overall sales
- In August 2021, Savencia Cheese USA has announced the launch of CheeseLoverShop.com, a one-of-a-kind online destination for imported and domestic cheeses. Customers can now shop the wide array of award-winning cheeses under the Savencia Fromage & Dairy portfolio - as well as partnering brands to get their fix of specialty cheese. This helps company to become the ultimate resource for specialty cheese products and education
Global Dairy Market Scope
The global dairy market is segmented on the basis of product type, distribution channel, and brand category. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Product Type
- Milk
- Cheese
- Butter
- Yogurt
- Dairy Desert
- Others
On the basis of product type, the market is segmented into milk, cheese, butter, yogurt, dairy desert, and others.
Distribution Channel
- Store-Based Retailing
- Non-Store Retailing
On the basis of distribution channel, the market is segmented into store-based retailing and non-store retailing.
Brand Category
- Branded
- Private Label
On the basis of brand category the market is segmented into branded and private label.
Global Dairy Market Regional Analysis/Insights
The market is analyzed and market size insights and trends are provided by product type, brand category, and distribution channel.
The countries covered in the market are India, China, Japan, Australia, New Zealand, Indonesia, Thailand, Vietnam, Philippines, South Korea, Malaysia, Singapore, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, Germany, France, U.K., Russia, Netherlands, Italy, Poland, Denmark, Spain, Sweden, Belgium, Switzerland, Turkey, Rest of Europe, U.S., Canada, Mexico, Saudi Arabia, South Africa, U.A.E., Kuwait, Oman, Qatar, and Rest of Middle East and Africa.
Asia-Pacific is expected to dominate the market due to rapid urbanization, rising disposable incomes, and strong demand for affordable vehicles. India is expected to dominate in Asia-Pacific because growing focus on electric vehicles, supported by government incentives and technological advancements, also plays a crucial role. Germany is expected to dominate in Europe due to expanding infrastructure and manufacturing capabilities boost production and supply. U.S. is expected to dominate in North America due to increased investments in dairy infrastructure.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Dairy Market Share Analysis
The global dairy market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product approvals, product width and breadth, application dominance, and product type lifeline curve. The above data points provided are only related to the company’s focus on the market.
Some of the major players operating in the market are DMK GROUP, Dairy Farmers of America, Inc., Nestlé, SAVENCIA SA, Glanbia plc, The Coca‑Cola Company, Yeo Valley Organic Limited, Arla Foods amba, Parmalat S.p.A. (A subsidiary of LACTALIS), Dana Dairy, Sodiaal, Milcobel CV, Unilever, Danone, Unternehmensgruppe Theo Müller, Valio Oy, Hochland SE, MEGGLE Group GmbH, Almarai, China Mengniu Dairy Company Limited, Tiviski pvt Ltd, Viju Industries, Ausnutria Dairy Corporation Ltd., Emmi Group, CapriLac, and Castle Dairy s.a., among others.
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