Dairy Products Market - Databook 2025 to 2034

The global dairy products market size accounted for USD 528.5 billion in 2024 and is predicted to touch around USD 722.07 billion by 2034, growing at a CAGR of 3.17% from 2025 to 2034.

Highlights of the Dairy Products Market

• Asia Pacific held the dominant share of the dairy products market in 2024 due to its large population base, growing demand, and government support for milk production.
• Europe is projected to expand rapidly in the market in the coming years, fueled by urbanization, rising income levels, and strong government.
• By product type, the milk segment recorded its dominance over the market in 2024.
• By product type, the yogurt segment is projected to experience the highest growth rate in the market between 2025 and 2034, which is driven by rising awareness of digestive health and immunity benefits.
• By distribution channel, the supermarket segment maintained a leading position in the market in 2024.
• By distribution channel, it is anticipated to grow with the highest CAGR in the market during the studied years, owing to increased online shopping and convenience.

Industry Valuation and Growth Rate Projection

Dairy products include a wide range of food items made from milk, just like butter, Cheese, Cream, yogurt, and milk powders. These products are rich in essential nutrients like protein, calcium, and vitamins, making them vital to a balanced diet. Dairy items are consumed globally in various forms like both fresh and processed, and are often used as standalone foods or ingredients in cooking and baking. With increasing demand for nutritional food options, dairy products remain a staple in households, hospitality, and foodservice industries while also improving through innovations like fortified, organic, and plant-based dairy alternatives.

Dairy products serve multiple sectors, including food and beverage, healthcare, hospitality, retail, and organic products are gaining traction in the wellness and nutritional supplement sectors. The rise of online grocery platforms and increasing foodservice consumption in urban areas further expand the market’s reach and utility.

• Increasing consumer awareness of nutrition is driving demand for protein-rich fortified and organic dairy products.
• Rapid urban growth and the rise of organized retail, especially in Asia Pacific, have improved dairy product availability and consumer access.

Dairy Product Market: Stats and Figures

• In 2019, the dairy sector produced 881 million tons of milk, with production increasing annually.
• More than 80% of the world’s population, approximately 6 billion people, regularly consume milk and dairy products.
• Approximately 9% of global milk production is traded annually.
• In 2018, global per capita dairy consumption reached 114.7 kg, marking a 1.2% increase from the previous year.
• Cow’s milk accounts for 81% of global milk production, with buffalo and goat milk showing higher growth rates, indicating a growing appetite for these products.

How AI has Benefited the Market

• AI-powered wearable devices, such as smart collars and ear tags, which allow real-time monitoring of dairy cows’ health and behavior. These tools assist in the early detection of illness, including diseases like avian influenza inspection and improve overall herd management
• AI algorithms analyze data from sensors and other sources to tailor feeding schedules and nutritional plans for individual cows. This precision feeding approach ensures optimal mil production and animal health while also minimizing feed waste and reducing operational costs.
• In dairy processing facilities, AI systems predict equipment maintenance needs and automate routine tasks, such as milking and cleaning processes. This leads to increased efficiency, which reduces downtime and ensures consistent product quality.

Industry Leader Announcements

• Biery, Industry Expert on Sustainability Initiatives

“Cheese film recyclability and carbon footprint are at the forefront of every retailer’s and manufacture’s mind. Post-consumer recycled material and mini resin co-extruded films will be two areas that we focus on, and we have already launched one film into the marketplace.”

• Burton, Industry Expert on Methane Mitigation

“Cow numbers are 60% down, but milk volume is increasing, methane mitigation has become viable and is being adopted, and FARM program initiatives have been implemented almost without exception.”

Geographical Insights

Asia Pacific

Asia Pacific held a significant share of the dairy products market in 2024. Among Asian nations, India stands out as a major contributor. As the world’s largest milk producer, India has a deeply rooted dairy culture supported by millions of small and midsized dairy farms. The country’s dairy sector benefits from both traditional demand for fresh milk and modern trends like organic dairy, lactose-free milk flavored yogurt. Government subsidies, cooperative models like Amul, and technological adoption in milk collection and distribution further cement India’s leadership in the dairy industry.

North America

North America is projected to be the fastest-growing during the forecast period. The widespread presence of restaurants and fast food outlets like Burger King, Pizza Hut, and Domino's, which extensively use cheese and butter, boosts dairy demand. Consumers are increasingly favoring yogurt and dairy-based desserts, contributing to market expansion. Health-conscious consumers are showing a preference for A2 milk, known for its potential digestive benefits. These trends are expected to fuel the growth of the dairy products market in North America.

Middle East and Africa

While Asia Pacific dominates, the Middle East and Africa region is projected to grow at the fastest CAGR during the forecast period. Growth here is driven by rising urban populations, changing dietary preferences, and a growing awareness of national health. Adding to this improvement in cold chain logistics and food processing infrastructure is supported greater distribution of perishable dairy products across previously underserved areas. Increasing western influence on diets and a young population are further boosting dairy consumption.

Recent Developments in the Dairy Products Market

• In January 2024, India’s Mother Dairy launched a new variant of pure buffalo milk in the Delhi NCR region. This product features a creamy texture with 6.5% fat content and 9% solids not fat, catering to health-conscious consumers seeking richer taste profiles and higher nutritional value.
• In March 2024, Italian dairy company Granarolo signed an agreement to acquire the milk production and marketing branch of Consorzio Produttori Latte Maremma, located in Grosseto, Tuscany.

Competitive Landscape

The global dairy products market is highly competitive and moderately fragmented, characterized by a mix of multinational corporations and regional cooperatives. This competitive landscape is driven by factors such as technological advancements, evolving consumer preferences, and the introduction of innovation dairy products.

• Company Name: Nestle S.A.
• Year of Incorporation: 1866
• Headquarters: Switzerland

Nestle is a global leader in the food and beverage industry, offering a wide range of dairy products including milk, yogurt, and infant nutrition. This company’s dairy segment focuses on innovation and sustainability with significant investments in R&D to develop fortified and plant-based dairy alternatives.

• Company Name: Danone
• Year of Incorporation: 1919
• Headquarters: Paris, France

Donane specializes in dairy and plant-based products, early life nutrition, and medical nutrition. This company has a dairy portfolio that includes brands like Activa and Actimel. The company emphasizes health and wellness, investing in R&D to enhance probiotic offerings and reduce sugar content in its products.

• Company Name: Fonterra
• Year of Incorporation: 2001
• Headquarters: Auckland, New Zealand

Fonterra is a multinational dairy cooperative owned by New Zealand farmers. It is a leading exporter of dairy products. The company’s product range includes milk powders, butter, and cheese.

• In 2023, Nestle achieved a revenue of 95.92% billion, marking a consistent growth trajectory over the past four years. Similarly, Danone reported a revenue of 30.45 billion in 2023, reflecting steady annual increases.