PUBLISHER: TechSci Research | PRODUCT CODE: 1637310
PUBLISHER: TechSci Research | PRODUCT CODE: 1637310
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Global Dairy Product market was valued at USD 651.02 billion in 2024 and is expected to grow to USD 923.54 billion by 2030 with a CAGR of 4.21% during the forecast period. The Dairy Product market is influenced by the increasing health awareness among consumers which in turn is pushing demand for nutritious dairy options, as these products are rich in essential vitamins, proteins, and calcium. Also, the popularity of functional foods, such as probiotic yogurts, is further boosting the dairy sector. Innovations in product offerings, including lactose-free, organic, and plant-based alternatives, are meeting the diverse needs of consumers, including those with dietary restrictions or preferences for sustainability. Urbanization and busy lifestyles also contribute to the demand for convenient, ready-to-eat dairy products like flavored milk, cheese, and yogurt. Also, population growth, particularly in emerging economies, is expanding the consumer base, while evolving taste preferences leading to a wider variety of dairy-based snacks. Together, these factors continue to shape the dynamic growth of the dairy market.
Market Overview | |
---|---|
Forecast Period | 2026-2030 |
Market Size 2024 | USD 651.02 Billion |
Market Size 2030 | USD 923.54 Billion |
CAGR 2025-2030 | 4.21% |
Fastest Growing Segment | Online |
Largest Market | Europe |
Key Market Drivers
Growing Consumption of Dairy Products
The growing consumption of dairy products is driven by various factors that reflect evolving consumer preferences and lifestyle changes. Increasing awareness of the nutritional benefits of dairy, including high-quality protein, calcium, and vitamins, is encouraging more people to incorporate dairy into their diets. As a part of this, according to the International Dairy Federation, more than 80% of the global population, or around 6 billion people, eat liquid milk or other dairy products on a regular basis. Dairy production and processing are critical to national economies and personal livelihoods. There are over 133 million dairy farms worldwide. Also, as functional foods gain popularity, dairy products fortified with probiotics, omega-3s, and other beneficial ingredients are attracting health-conscious consumers. The demand for convenient and ready-to-eat dairy products, such as cheese, yogurt, and flavored milk, aligns with fast-paced lifestyles and busy routines, further boosting consumption.
Growing Innovation by Key Players
The growing innovation by key players in the dairy industry is a significant driver of dairy products market. Companies are investing in new technologies to develop healthier, more diverse product offerings such as lactose-free, plant-based alternatives, and functional dairy products enriched with probiotics, vitamins, and minerals. As a part of this, as of September 2024, Relco, a Kovalus Company, entered a strategic alliance with Milky Mist Dairy Food Private Limited, a well-known name in India's private dairy sector. This collaboration represents a key milestone in the Indian dairy industry by establishing the country's largest cheddar cheese facility. Milky Mist Dairy, recognized for its vast line of over 20 dairy products and recent expansions into chocolate and ice cream manufacturing, currently processes around 1,000,000 liters of milk every day, obtained from over 60,000 farmers.
Rising Demand for Functional Foods
The rising demand for functional foods is significantly impacting the dairy market, as consumers increasingly seek products that offer health benefits beyond basic nutrition. Probiotic yogurt, fortified milk, and other functional dairy items are in high demand for their ability to support digestive health, boost immunity, and enhance overall well-being. Probiotic yogurt contains live beneficial bacteria that promote a healthy gut microbiome, aiding in digestion and potentially reducing the risk of certain diseases. Fortified milk, enriched with vitamins, minerals, and other nutrients like omega-3 fatty acids or calcium, appeals to those looking to address specific health needs. This trend reflects a broader consumer shift toward foods that not only nourish but also contribute to long-term health, making functional dairy products an essential part of modern diets. As a result, the market for functional dairy items continues to expand rapidly.
Key Market Challenges
Increased Competition from Plant-Based Alternatives
The rise in popularity of plant-based alternatives such as almond, soy, and oat milk presents significant competition to traditional dairy products, particularly among health-conscious, environmentally aware, and vegan consumers. As a part of this, according to the Good Food Institute, as of 2023, the retail plant-based food market in the United States was valued at USD 8.1 billion. These alternatives are perceived as healthier options due to lower calorie content, absence of cholesterol, and suitability for individuals with lactose intolerance or milk allergies. The expanding variety of plant-based cheeses, yogurts, and other dairy substitutes is further intensifying competition, pushing the dairy industry to innovate and cater to changing consumer preferences.
Strict Government Norms
The presence of strict government norms and regulations pose a significant challenge to the dairy product market. Regulatory requirements concerning food safety, quality standards, and labeling can increase operational costs for producers. As a part of this, as of August 2024, The Food Safety and Standards Authority of India (FSSAI) has instructed companies to stop using labels like 'A1' and 'A2' on dairy products such milk, ghee, butter, and curd due to a lack of differentiation in food legislation. This move attempts to prevent false marketing that claims A2 milk is healthier. Companies have six months to exhaust their existing labels. This measure guarantees that customers get accurate information regarding the nutritional content of dairy products. These regulations vary across regions, making it challenging for global dairy brands to standardize their products while adhering to local laws, potentially affecting market reach and profitability.
Key Market Trends
Growing Demand for Innovative Flavor & Format
The growing demand for innovative flavors and formats in dairy products is driving brands to experiment with new, exciting combinations that cater to evolving consumer preferences. Dairy companies are introducing a variety of exotic fruit-infused yogurts, smoothies, and milk options, offering consumers unique, refreshing taste experiences. Savory dairy products, such as cheese with herbs, spices, or infused with chili and garlic, are gaining popularity as more consumers seek bold, non-sweet alternatives. Also, the rise of snackable dairy products such as mini cheese portions, yogurt tubes, and single-serve cheese sticks appeals to busy individuals and on-the-go consumers.
Increased Demand for Personalized Nutrition
The increased demand for personalized nutrition is significantly influencing the dairy product market, as consumers seek products tailored to their individual health and dietary requirements. Dairy products are being increasingly customized to address specific needs such as lactose intolerance, gluten sensitivities, and preferences for organic or non-GMO ingredients. Lactose-free dairy items, such as milk, yogurt, and cheese, are gaining popularity as more individuals with lactose intolerance turn to these alternatives to enjoy the nutritional benefits of dairy without digestive discomfort. Similarly, gluten-free dairy options cater to those with celiac disease or gluten sensitivities.
Rising Consumer Focus on Sustainability
Rising consumer focus on sustainability is significantly influencing the dairy industry, prompting producers to adopt eco-friendly practices. Environmental concerns about climate change, resource depletion, and animal welfare have led consumers to demand more sustainable products. In response, dairy companies are reducing their carbon footprints by implementing energy-efficient production processes and adopting renewable energy sources. Also, there is a growing emphasis on improving animal welfare standards, ensuring ethical farming practices that appeal to ethically minded consumers. This trend is reshaping the industry and pushing brands toward more responsible practices.
Segmental Insights
Distribution Channel Insights
Supermarket & Hypermarket dominated the global Dairy Product market due to their widespread accessibility, extensive product range, and competitive pricing. These retail formats offer a wide variety of dairy products, from fresh milk and cheese to yogurt, butter, and specialty items, making it convenient for consumers to access all their dairy needs in one place. The large-scale operations of supermarkets and hypermarkets allow for bulk purchasing, which often leads to cost savings passed on to consumers, attracting price-sensitive buyers.
Regional Insights
Europe dominated the global Dairy Product market, driven by factors such as long-established dairy farming heritage, high per capita dairy consumption, and strong market infrastructure. Countries like Germany, France, and the Netherlands are major producers of dairy products, with a rich tradition of cheese, yogurt, and milk production. Europe's well-developed supply chain, including efficient dairy processing and distribution systems, ensures widespread availability of dairy products across the continent.
In this report, the Global Dairy Product Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies presents in the Global Dairy Product Market.
Global Dairy Product Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: