Dairy Products Market Expands with Growing Demand for Nutrient-Rich Foods

Dairy Products Market Size and Forecast 2025 to 2034

The global dairy products market size was estimated at USD 528.50 billion in 2024 and is predicted to increase from USD 546.30 billion in 2025 to approximately USD 719.00 billion by 2034, expanding at a CAGR of 3.13% from 2025 to 2034.

Dairy Products Market Key Takeaways

• North America dairy product market size was valued at USD 62.8 billion in 2024 and is expected to grow at a CAGR of 2.9% from 2025 to 2034.
• Europe dairy products market size was valued at USD 136.8 billion in 2024 and it is growing at a CAGr of 3.3% from 2025 to 2034.
• China dairy product market was estimated at USD 63.4 billion in 2024 and is anticipated to reach at a CAGR of 3.6% from 2025 to 2034.
• India dairy product size was reached at USD 55.7 billion in 2024 and is predicted to grow at a CAGR of 4% from 2025 to 2034.

What is the role of AI in the Dairy Products Market?

Artificial intelligence (AI) allows farmers to access the best bull (male) genetics from all across the globe. Animal health is improved through the use of AI. AI-based machines milk cows with precision and consistency schedules are strictly adhered to, which can enhance milk yield and quality. The key benefit of production systems in AI is their ability to handle complex, multi-step workflows with minimal human oversight. AI technologies have simplified dairy processes, improving production, labor costs, and efficiency. Accurate farming, using modern sensors and data analytics, improves feed and water, leading to better milk quality and increased production.

Asia Pacific Dairy Products Market Size and Growth 2025 to 2034

The Asia Pacific dairy products market size was estimated at USD 241.80 billion in 2024 and is projected to surpass around USD 336.05 billion by 2034 at a CAGR of 3.35% from 2025 to 2034.

Based on the region, the Asia Pacific dominated the global dairy products market in 2024 with revenue share of 45.66% and is estimated to sustain its dominance during the forecast period. The region is expected to generate revenue of USD 297.5 billion by 2030.

The region is characterized by huge population, increased demand for milk, increasing milk production, rising government initiatives for boosting milk production, rising disposable income, and rapid urbanization. The rising consumer awareness regarding the health benefits of dairy products is fueling the market growth. Moreover, the increased usage of milk in almost every household in nation like India and China had significantly contributed towards the dairy products consumption. Therefore, the Asia Pacific region is expected to sustain its dominance throughout the forecast period.

On the other hand, North America is estimated to be the most opportunistic market during the forecast period. This is due to the increased penetration of restaurants and fast food chains such as Burger King, Pizza Hut, Domino’s, and Yum Brands. These restaurants extensively use cheese and butter in the majority of its products. Furthermore the growing popularity of yogurt and dairy desserts among the North American consumers is boosting the growth of the North America dairy products market during the forecast period. The rising consumer awareness regarding A2 milk is expected to fuel the market growth in North America.

• In June 2025, to launch Amul Milk in Spain and the EU, the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) announced its collaboration with cooperative Ganadera del Valle de los Pedroches (COVAP), Spain’s first-tier cooperative. Through this collaboration, Amul Milk will be launched initially in Madrid, Barcelona, and subsequently it will be launched in Malaga, Valencia, Alicante, Seville, Cordoba, and Lisbon in Portugal.

GCMMF launches Amul Milk in Spain - Daily Excelsior

• In September 2025, Vivitein BLG in the U.S. market was launched by Vivici, a Dutch ingredients startup. The flagship ingredient under its Vivitein protein platform, Vivitein BLG, is available now, enabling B2B customers to launch “disruptive and differentiated products to consumers in the U.S. market.”

New protein launches in the U.S. | Dairy Foods

Growth Factors

The rising demand for the dairy products is driven by several factors such as growing population, rising personal disposable income of the consumer, rising health awareness, increasing production of milk in developing nations, and rising consumption of protein enriched food. According to the Population Reference Bureau, the global population is expected to reach around 9.9 billion by 2050. The growing population is expected to drive the demand for milk, butter, yogurt, various other dairy products owing to its extensive uses in various dishes and direct consumption. Dairy products provide high value protein and essential micronutrients to the consumers. Studies have shown that cheese is good for the heart health. The rising awareness regarding the health benefits of dairy products is further boosting the demand for the dairy products across the globe. Moreover consumers shifting preference from meat to dairy-based products for micronutrients and proteins, the demand is estimated to rise significantly in the upcoming years.

The dairy products market is expected to grow owing to the rising government schemes and initiatives regarding milk production and improving cattle productivity. For instance, National Dairy Program by the government of India, focuses on the development of cattle and milk production. The rising penetration of fast food chains is significantly boosting the consumption of dairy products such as cheese, dairy desserts, and butter. These dairy products are extensively used in various dishes like pasta, burger, pizza, and many more. The delicious taste and protein content of the dairy products is propelling the consumption of dairy products in households. Further, milk is now considered as an essential and daily use product in majority of the households. Therefore, the global dairy products market is expected to grow at a considerable rate during the forecast period.

Growing Demand for Alternatives such as Plant Protein

The demand for plant-based food alternatives is increasing among consumers, owing to growing awareness about animal welfare. Plant-based dairy products alternatives such as soy milk, almond milk, non-dairy ice-creams, cheese analogues, and whipped cream are rapidly moving into the mainstream retail market, owing to the growing perception that plant-based products are healthier and safer.

The rapidly developing dairy alternatives industry with new product innovations such as non-dairy ice-creams, cheese analogues, and whipped creams is expected to hamper the global dairy products market growth. Increasing number of people who do not consume lactose is a major restraining factor for the growth of global dairy products market. Additionally, increasing incidence of lactose intolerance such as allergies from milk or milk-based products, and a shift toward vegan diets due to potential health benefits offered by vegan diet and healthy lifestyles are also expected to restrain the market growth during the forecast period. For instance, according to the Survey conducted by National Institutes of Health (NIH) in 2020, in the U.S., Europe, and China, more than 5%, 10%, and 90% of the population are intolerant to lactose, respectively. Thus aforementioned factors are expected to restrain the market growth during the forecast period.

Additionally, dairy product manufacturers require high capital investments to install processing equipment. This processing equipment has high installation costs and requires timely maintenance, which is a costly addition affecting the operating margins of dairy product processors. Hence, high capital investment is also expected to restrain the market growth.

Sustainable Dairy: A Green Revolution Creates a New Global Market 

The dairy industry is moving to a more sustainable economy than just a few years ago, creating new avenues for growth. Companies in Europe and North America are allocating funds to invest in climate-friendly and carbon-neutral milk, plant-based packaging, and renewable energy for dairy processing. For example, Arla Foods has started with some climate-friendly farms, and Danone is strengthening regenerative farming practices.  

Meanwhile, dairy product exports are experiencing a resurgence, particularly in demand from emerging markets and health-oriented consumers. This parallel growth offers opportunities for innovation in green technologies, sustainable supply chains, and value-added products around the world. According to the Foreign Agricultural Service (FAS), dairy product export is significantly increased in 2024, where Mexico, with USD 2.47 billion in exports, leads the market, followed by Canada (USD 1.14 billion), China (USD 584 million), and Japan (USD 394.61 million).

Market Scope

Market Dynamics

Driver

Rising consumer demand for functional foods:

Functional foods offer a wide range of health benefits beyond basic nutrition by providing additional nutrients and bioactive compounds that can help prevent or manage chronic diseases. These foods can enhance gut health, reduce inflammation, aid in weight management, and support cardiovascular & cognitive function. They can prevent nutrient deficiencies and also protect against disease and promote proper growth and development. Functional foods play an important role in maintaining a healthy lifestyle and reducing the risk factors of many diseases. Several foods have functional elements which is responsible for enhancing the healthy state.  

Restraint

Competition from plant-based alternatives:

The advantages of plant-based alternatives to dairy products include that they are generally lower in calories and saturated fats compared to dairy milk, making them a heart-healthy option. In addition, plant-based milks are fortified with essential nutrients like vitamin B12, vitamin D, and calcium, ensuring they provide a balanced nutritional profile. With 65-70% of the global population experiencing some level of lactose intolerance, non-dairy alternatives offer a more digestible, lactose-free option. Other benefits including, various plant-based milks are naturally lower in calories and saturated fat than whole milk.

Opportunity

Preference for fewer artificial additives:

Real dairy products are packed with nutrients that each person needs. In comparison, artificial dairy products may depend on calcium fortifications and other synthetic nutrients like milk’s unique package of proteins, vitamins, and essential minerals like phosphorous. Most of the time, these imitation products still fall short. Milk additives include carrageenan, flavor enhancers, preservatives, acidity regulators, vitamin fortifiers, emulsifiers, and stabilizers.

Product Type Insights

The milk segment held a dominant presence in the dairy products market in 2024 and is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.

• In July 2025, a new range for kids in the UK, starting with low sugar milk and yoghurt alternatives, was introduced by Danone-owned plant-based dairy leader Alpro. The new Alpro Kids comprises chocolate oat milk, strawberry soy milk, and vanilla and strawberry soy yogurts, which contain 30% less sugar than the market average for similar products, according to the brand.
  

Alpro Launches Low-Sugar Plant-Based Milk & Yoghurt Range for Kids

The yogurt segment is estimated to be the most opportunistic segment during the forecast period.

• In July 2025, a new product line targeted at children, responding to concerns from parents about healthy food options, was introduced by Alpro, a plant-based brand owned by Danone. The new range includes a chocolate-flavored oat-based drink, a strawberry-flavored soya drink, and soya-based yogurt alternatives in vanilla and strawberry flavors.
  

Alpro Launches Fortified Plant-Based Drinks and Yogurts for Kids - vegconomist - the vegan business magazine

Distribution Channel Insights

The supermarkets/hypermarkets segment is expected to account for a considerable share of the market in 2024.

• In April 2025, an own-name sub-brand-named Vege, which offers an affordable range of vegan foods, was introduced by the French hypermarket chain E.Leclerc. The new Vege line aims to make plant-based foods more accessible to French consumers with a strategic approach to pricing the products and by increasing the availability of vegan food across the country.
  

E.Leclerc Launches Major New Plant-Based Line

The other segment is projected to experience the highest growth rate in the market between 2025 and 2034.

• In May 2025, a new whole milk product that is said to be ‘indistinguishable’ from traditional animal-derived options was launched by Californian plant-based dairy brand Eclipse Foods. According to Eclipse, its Non-Dairy Whole Milk “truly replicates milk” by taking isolated proteins from peas and chickpeas and replicating the molecular structure of dairy.
  

Eclipse Foods Launches Plant-Based Whole Milk 'Indistinguishable' From Dairy

Key Companies & Market Share Insights

The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improvedproducts. Moreover, they are also focusing on maintaining competitive pricing.

In March 2019, Danone launched Australian style yogurt named Wallaby. It is a no sugar added yogurt introduced to serve the health conscious consumers. It was launched in the US in three flavors.

In August 2019, Arla Foods entered into a partnership with Walki, for providing sustainable and recyclable packaging solution in order to contribute towards the mission of reducing carbon footprint.

These developmental strategies adopted by the top market players are expected to boost the growth of the dairy products market in the foreseeable future and provide lucrative growth opportunities.

Dairy Products Market Companies

• Arla Foods Amba
• Nestle
• Danone
• Fonterra
• Lactalis
• Frieslandcampina
• DMK Group
• GCMMF
• Dairy Farmers of America, Inc.
• Meiji Holdings Co. Ltd.
• The Kraft Heinz Company

Recent Development 

• In August 2025, to develop a Breast Milk scoop that is freshly expressed and oddly familiar sweet, salty, and smooth with hints of honey and many of the nutrients included in breast milk, like colostrum, the company Frida teamed with OddFellows.
  Frida Breast Milk Ice Cream to officially launch in NYC | Dairy Foods
• In July 2025, dairy and cooperative projects worth over Rs. 400 Crore in Gujarat, which urge transparency and technology adoption, were launched by Amit Shah. Amit Shah virtually inaugurated the expansion of Amul’s Rs. 105 crore chocolate plant at Tribhuvandas Food Complex, Mogar, and the Rs. 260 crore Dr. Verghese Kurien Cheese Plant in Khatraj.
  Amit Shah Launches Dairy and Cooperative Projects Worth Over Rs 400 Crore in Gujarat, Urges Transparency and Technology Adoption

Segments Covered in the Report

By Product Type

• Milk
• Cheese
• Butter
• Desserts
• Yogurt
• Others

By Distribution Channel

• Supermarket/Hypermarket
• Specialty Stores
• Convenience Stores
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa