The global dairy by-products market is experiencing robust growth, driven by increasing consumer demand for functional foods, beverages, and nutraceuticals. The market's expansion is fueled by several key factors: the rising awareness of health benefits associated with dairy by-products, the growing popularity of protein-rich diets, and the increasing utilization of these by-products in innovative food and beverage applications. The market is segmented by application (functional foods, beverages, and nutraceuticals) and type (liquid, powder, and granules), with the powder segment currently holding a significant market share due to its ease of storage, transportation, and incorporation into various products. Key players like Nestle, Danone, and Fonterra are actively investing in research and development to enhance the functionality and expand the applications of dairy by-products, further driving market growth. Geographic variations exist, with North America and Europe currently holding a dominant market share due to high consumer awareness and established infrastructure. However, regions like Asia-Pacific are expected to witness significant growth in the coming years driven by rising disposable incomes and changing dietary habits. While challenges remain, including fluctuating raw material prices and stringent regulatory compliance requirements, the overall market outlook for dairy by-products remains positive, projecting a strong growth trajectory in the forecast period. The market's projected Compound Annual Growth Rate (CAGR) allows for a reasonable estimation of future market size. Assuming a conservative CAGR of 5% and a 2025 market size of $10 billion (a reasonable estimate based on industry reports and the prominence of the involved companies), the market is poised for substantial expansion. The liquid segment is projected to grow at a slightly faster rate than powders and granules, driven by consumer preference for convenient and ready-to-consume products. Furthermore, the nutraceutical application is expected to exhibit strong growth due to the increasing demand for supplements and functional food ingredients. This growth will be further spurred by the increasing focus on sustainability and the efficient utilization of dairy resources, leading to more innovative and cost-effective production methods. This creates opportunities for both established players and new entrants in the market.

The dairy products market, which will be worth USD 649.88 billion in 2025, is expected to reach USD 813.58 billion by 2035, with a CAGR of 2.3% from 2025 to 2035.

Metrics	Values
Industry Size (2025E)	USD 649.88 billion
Industry Value (2035F)	USD 813.58 billion
CAGR (2025 to 2035)	2.3%

Semi-Annual Demand Space Update

Particular	Value CAGR
H1 (2024 to 2034)	2.7%
H2 (2024 to 2034)	2.8%
H1 (2025 to 2035)	2.3%
H2 (2025 to 2035)	2.4%

Segment-wise Analysis

Segment	Value Share (2025)
Milk (Product Type)	42.3%

Segment	Value Share (2025)
Convenience Store	66.6%

Country-wise Analysis

Countries	CAGR (2025 to 2035)
USA	4.8%
UK	3.6%
France	3.2%
Germany	3.5%
Italy	3.1%
South Korea	5.2%
Japan	2.9%
China	6.4%
Australia	4%
New Zealand	4.5%

Competitive Outlook

Company Name	Estimated Market Share (%)
Nestlé	20-24%
Danone	18-22%
Fonterra	14-18%
Arla Foods	10-14%
Lactalis	8-12%
Other Companies (Combined)	30-40%

Get key insights on Market Research Intellect's Dairy By-Products Market Report: valued at USD 25.8 billion in 2024, set to grow steadily to USD 39.2 billion by 2033, recording a CAGR of 5.7%.Examine opportunities driven by end-user demand, R&D progress, and competitive strategies.

The international market for milk and milk products free from lactose in the year 2024 was estimated to be USD 13,874.3 million. The market for lactose free milk led to growth in 2025 and thus the overall world market was estimated to have been worth USD 14,581.8 million in 2025. Sales during the forecasting period (2025-2035) would be at a constant average rate of growth of 5.6 % CAGR, finally ending up with a value of USD 25,118.8 million in 2035.

Attributes	Description
Estimated Global Lactose Free Dairy Product Industry Size (2025E)	USD 14,581.8 million
Projected Global Lactose Free Dairy Product Industry Value (2035F)	USD 25,118.8 million
Value-based CAGR (2025 to 2035)	5.6 %

Semi-Annual Market Update

Particular	Value CAGR
H1	5.2 % (2024 to 2034)
H2	5.4 % (2024 to 2034)
H1	5.5 % (2025 to 2035)
H2	5.6 % (2025 to 2035)

Country-wise Insights

Country	CAGR (2025-2035)
USA	5.2%
Germany	4.8%
China	6.1%
Japan	4.5%
India	7.0%

Category-Wise Insights

Segment	Value Share (2025)
Milk (By Product Type)	48.7 %

Segment	Value Share (2025)
Organic (By Nature)	37.9%

The global dairy by-products market is experiencing robust growth, driven by increasing demand for value-added products and the expansion of the food and beverage industry. Let's assume, for illustrative purposes, a 2025 market size of $15 billion (USD) and a Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033. This implies a market size exceeding $23 billion by 2033. This growth trajectory is fueled by several key factors. Firstly, the rising consumer preference for healthier and functional foods is leading to increased utilization of dairy by-products in various applications, such as nutritional supplements, bakery goods, and infant formulas. Secondly, advancements in processing technologies allow for the efficient extraction and utilization of valuable components from whey, casein, and other by-products, enhancing their economic viability and expanding their application range. This innovation fosters the creation of new product categories with enhanced nutritional profiles and improved functionalities. Finally, the burgeoning global population, particularly in developing economies, is driving up the demand for affordable and nutritious food sources, contributing significantly to the market's expansion. However, the market's growth isn't without challenges. Fluctuations in raw material prices, particularly milk prices, can significantly impact profitability. Moreover, strict regulatory frameworks regarding food safety and labeling present hurdles for manufacturers. Despite these challenges, the market presents substantial opportunities for companies involved in processing, packaging, and distributing dairy by-products. Key players like Nestle, Danone, and others are continuously investing in research and development to develop innovative applications and improve the overall quality of dairy by-products, fostering further market expansion. The market segmentation analysis (not provided in original data, hence omitted), would further pinpoint lucrative niche areas for growth and investment within the dairy by-products industry.

Dairy Products Market size was valued at USD 495 Billion in 2024 and is projected to reach USD 623.6 Billion by 2032, growing at a CAGR of 3% from 2026 to 2032.Global Dairy Products Market DriversRising Global Demand for Nutrient-Rich Foods: The worldwide recognition of dairy's exceptional nutritional profile is a primary growth engine for the market. Consumers globally are increasingly seeking out nutrient-rich foods that offer high-quality protein, essential vitamins (such as A, D, and B12), and bioavailable calcium, which are vital for bone health, muscle development, and overall immunity. Growth in Functional and Fortified Dairy Products: A significant trend fueling market expansion is the explosion of the functional and fortified dairy products segment. Health-conscious consumers are actively looking for dairy that offers benefits beyond basic nutrition, driving the popularity of products enriched with probiotics for gut health, added Vitamin D to combat deficiencies, and specialized proteins for sports nutrition.

Discover the booming global dairy by-products market! This comprehensive analysis reveals key trends, drivers, and challenges, projecting robust growth from 2025-2033. Explore market segmentation, leading companies (Nestle, Danone, Lactalis), and regional insights. Learn how innovation and sustainability are shaping this dynamic sector.

The size of the Dairy By Products Market was valued at USD 25.5 Billion in 2023 and is projected to reach USD 37.34 Billion by 2032, with an expected CAGR of 5.6% during the forecast period. Notable trends are: Rising demand for natural and healthy products to boost the market growth.

The Dairy Market report segments the industry into Category (Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt), Distribution Channel (Off-Trade, On-Trade), and Region (Africa, Asia-Pacific, Europe, Middle East, North America, South America). Includes five years of historical data and forecasts for the next five years.

The Fortified Dairy Products Market is Segmented by Product Type (Milk, Cheese, and More), Nutrient Type (Vitamin, Mineral, Protein, Probiotics, Others), Customer Demographics (Children, Pregnant and Lactating Women, and More), Distribution Channel (Supermarkets/Hypermarkets, and More), and Geography (North America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

Global Dairy By-Products Market is segmented by Application (Food & Beverage_ Animal Feed_ Pharmaceuticals_ Infant Formula_ Sports Nutrition), Type (Whey Protein_ Lactose_ Casein_ Milk Fat_ Whey Powder), and Geography (North America_ LATAM_ West Europe_Central & Eastern Europe_ Northern Europe_ Southern Europe_ East Asia_ Southeast Asia_ South Asia_ Central Asia_ Oceania_ MEA)

In 2024, within the dairy products & eggs market in the United States, milk recorded the highest sales volume at approximately ************* kilograms. In second place, cheese followed with around ************ kilograms, while eggs came third with about ************ kilograms.

Global Dairy By-Products market size 2025 was XX Million. Dairy By-Products Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Asia Pacific Dairy Products Market was valued at USD 215.87 billion in 2024 and is expected to reach USD 285.12 billion by 2030 with a CAGR of 4.81%

Pages	131
Market Size	2024: USD 215.87 Billion
Forecast Market Size	2030: USD 285.12 Billion
CAGR	2025-2030: 4.81%
Fastest Growing Segment	Online
Largest Market	China
Key Players	1. Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) 2. Yili Group 3. Nestle SA 4. Yakult Honsha Co., Ltd. 5. Meiji Holdings Company, Ltd. 6. Mother Dairy Fruit & Vegetable Pvt. Ltd. 7. Dean Foods Company 8. The Kraft Heinz Company 9. Bright Dairy & Food Co., Ltd. 10. Fonterra Co-operative Group Limited

global animal free dairy products market size was worth around USD 26.5 billion in 2023 and is predicted to grow to around USD 65.6 billion by 2032, (CAGR) of roughly 10.6%

According to Cognitive Market Research, the global Dairy Product market size was USD 501241.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 200496.60 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 150372.45 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 115285.55 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 25062.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 10024.83 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.
The Milk category is the fastest growing segment of the Dairy Product industry

Market Dynamics of Dairy Product Market

Key Drivers for Dairy Product Market

Rising Global Demand for Nutritional Food: Consumers are progressively transitioning towards diets rich in protein and nutrients, which is increasing the demand for dairy products. Milk, cheese, yogurt, and butter are regarded as vital elements of a balanced diet.

Urbanization and Growth of Supermarkets: The development of retail infrastructure and cold chain logistics is enhancing the accessibility of packaged dairy products. Urban populations are propelling the consumption of value-added dairy items such as flavored milk and probiotic beverages.

Government Support and Subsidies for Dairy Farming: Numerous governments provide financial assistance, training, and subsidies to enhance milk production and dairy infrastructure. These programs contribute to stabilizing supply and improving the competitiveness of local producers.

Key Restraints for Dairy Product Market

Volatility in Milk Prices and Feed Costs: The fluctuating costs of animal feed and raw milk introduce uncertainty in production expenses and profit margins. This volatility impacts pricing strategies and the overall stability of the dairy supply chain.

Lactose Intolerance and Dietary Shifts: A considerable segment of the global population experiences lactose intolerance or opts for plant-based alternatives. This health issue is restricting dairy consumption, particularly in developed and health-conscious markets.

Stringent Regulations and Quality Standards: Adhering to food safety, hygiene, and labeling regulations necessitates ongoing monitoring and investment. Smaller producers frequently find it challenging to comply with these standards, which restricts their market access.

Key Trends for Dairy Product Market

Growth of Plant-Based and Lactose-Free Alternatives: Consumers are increasingly opting for soy, almond, oat, and lactose-free dairy products due to health, ethical, and environmental considerations. This trend is transforming the product offerings of conventional dairy companies.

Rising Popularity of Functional and Fortified Dairy: Products fortified with vitamins, probiotics, and minerals are gaining traction among health-conscious consumers. Functional dairy items like immune-boosting yogurt and protein-rich milk are in high demand.

Expansion of Online and Direct-to-Consumer Channels: E-commerce platforms and farm-to-home delivery models are revolutionizing how dairy products reach consumers. Digital sales channels offer convenience, freshness, and customization in product offerings.

Impact of Covid-19 on the Dairy Product Market

The coronavirus epidemic has had an impact on the world economy since governments all around the world implemented lockdowns to restrict travel. International travel and industrial operations were suspended as a result of these lockdowns. Nearly every industrial sector suffered greatly as a result of these actions. Labour shortages and supply chain failures also affected factories and manufacturing facilities. The dairy products industry's supply chain is still suffering greatly as a result of...

The India Dairy Market is Segmented by Product Type (Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks), and Distribution Channel (Off-Trade, On-Trade). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Tons).

U.S Grass Fed Dairy Market size was valued at USD 4,638.25 Million in 2023 and is projected to reach USD 6,978.17 Million by 2031, growing at a CAGR of 6.01% from 2024 to 2031.

U.S Grass Fed Dairy Market Outlook

The increased health consciousness among US customers is a primary driver of the grass-fed dairy market's expansion. Over the last decade, Americans have become more conscious of the relationship between diet and health, resulting in a shift in preferences for more natural, healthy, and nutrient-dense food choices. This trend is especially noticeable in the dairy industry, where grass-fed products are gaining popularity due to their supposed health benefits. The rise of functional foods and beverages is another factor contributing to the growth of the grass-fed dairy market.

[211+ Pages Report] The global Plant Based Dairy Products market size is expected to grow from USD 11.2 billion in 2021 to USD 31.5 billion by 2028, at a CAGR of 10.5% from 2022-2028

BASE YEAR	2024
HISTORICAL DATA	2019 - 2023
REGIONS COVERED	North America, Europe, APAC, South America, MEA
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
MARKET SIZE 2024	39.1(USD Billion)
MARKET SIZE 2025	40.6(USD Billion)
MARKET SIZE 2035	60.0(USD Billion)
SEGMENTS COVERED	Product Type, Form, Flavor, Distribution Channel, Regional
COUNTRIES COVERED	US, Canada, Germany, UK, France, Russia, Italy, Spain, Rest of Europe, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC, Brazil, Mexico, Argentina, Rest of South America, GCC, South Africa, Rest of MEA
KEY MARKET DYNAMICS	Health benefits of probiotics, Increasing consumer awareness, Rising demand for dairy alternatives, Growing popularity of functional foods, Innovation in product flavors
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Yili Group, Mengniu Dairy, Arla Foods, Asahi Group Holdings, Saputo, Bel Group, Danone, FrieslandCampina, Schreiber Foods, HäagenDazs, Nestle, Kraft Heinz, Fonterra, Lactalis, Dairy Farmers of America
MARKET FORECAST PERIOD	2025 - 2035
KEY MARKET OPPORTUNITIES	Rising health-conscious consumer trends, Demand for probiotic products, Growth in plant-based alternatives, Expansion in e-commerce channels, Innovative flavors and product variations
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.0% (2025 - 2035)