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 United States Dairy Market is segmented by Category (Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt) and by Distribution Channel (Off-Trade, On-Trade). Market Value in USD and Volume are both presented. Key Data Points observed include Per capita consumption; Population; and Dairy production.

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%

Global Dairy Products market size is expected to reach $649.18 billion by 2029 at 4.5%, surging demand propels growth in the dairy products market

Middle East and Africa Dairy Industry Market size will be USD 17825.08 million in 2024 and will expand at a compound annual growth rate (CAGR) of 4.3% from 2024 to 2031.

The dairy product production industry in the US has been a staple of the agricultural sector, consistently contributing to the nation's economy. Over recent years, it has faced a blend of challenges and opportunities. Despite the volatility in milk prices and shifting consumer preferences, the sector has shown resilience. Traditional dairy products like milk, cheese and yogurt remain household staples, but there's been a noticeable shift towards organic and specialty products. Innovations in production methods and a focus on sustainability have also started to shape the industry's landscape, reflecting broader consumer trends toward healthier and more environmentally friendly options. However, the rise in dairy imports, particularly from countries with lower production costs, has intensified competition, putting pressure on domestic producers and affecting profitability. The industry has been shrinking at an average annualized 3.2% over the past five years and is expected to total $124.4 billion in 2025 when revenue will climb by an estimated 0.5%. Over the past few years, the dairy industry has undergone significant transformations. The adoption of advanced technology in dairy farming, like automated milking systems and precision farming techniques, has increased efficiency and productivity. At the same time, there’s been growing competition from plant-based dairy alternatives, which has pressured traditional dairy producers to innovate and diversify their product offerings. The farm-to-table movement has also gained momentum, with more consumers opting for locally sourced and artisanal dairy products. This trend has helped small and mid-sized farms find new markets and build stronger community connections. Despite these advancements, the industry has had to navigate challenges like fluctuating feed costs, labor shortages and stringent environmental regulations. Several key trends are likely to shape the dairy industry. Sustainability will be a significant focus, with farms adopting greener practices to meet regulatory requirements and consumer expectations. Technological advancements will continue revolutionizing the sector, from precision farming to blockchain for supply chain transparency. The rise of functional and health-focused dairy products will drive growth as consumers seek options offering added nutritional benefits. Also, the competition from plant-based alternatives will persist, pushing traditional dairy producers to innovate. Overall, industry revenue is forecast to grow at an annualized 1.2% over the five years through 2030 to total $131.8 billion.

According to Cognitive Market Research, the global Dairy Industry Market size will be USD 891254.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 4.60% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 356501.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.8% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 267376.26 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 204988.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.6% from 2024 to 2031.
The Latin America market will account for more than 5% of global revenue and have a market size of USD 44562.71 million in 2024. It will grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2031.
The Middle East and Africa held the major markets, accounting for around 2% of the global revenue. The market was USD 17825.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.3% from 2024 to 2031.
The Bakery & Confectionery held the highest Dairy Industry Market revenue share in 2024.

Market Dynamics of Dairy Industry Market

Key Driver for the Dairy Industry Market

Income Growth and Urbanization to Increase the Demand Globally

As income levels rise and urbanization accelerates worldwide, the demand for dairy products, including cheese, is expected to increase significantly. Urbanization brings about changes in lifestyle and dietary habits, with urban populations often having greater purchasing power and access to a wider variety of food options. With more people living in urban areas, there is a higher demand for convenient and processed foods, including cheese, which is versatile and widely enjoyed in various cuisines.

Additionally, as disposable incomes increase, consumers are more likely to incorporate dairy products into their diets as part of a more diverse and nutritionally rich food intake. These factors create a conducive environment for the growth of the cheese segment within the dairy industry, with opportunities for producers to innovate, expand their product offerings, and tap into new markets both domestically and internationally.

Population Growth to Propel Market Growth

Population growth is a significant driver propelling market growth across various industries, including the dairy sector. As the global population continues to expand, particularly in emerging economies, the demand for dairy products is expected to rise steadily. With more mouths to feed, there is an increased need for staple foods like dairy, which provides essential nutrients such as protein, calcium, and vitamins. Moreover, population growth often correlates with urbanization, as more people move to cities in search of better opportunities. Urban populations tend to have higher purchasing power and access to a diverse range of food products, including dairy items like milk, cheese, and yogurt.

Furthermore, population growth isn't just about quantity but also demographic shifts. Changes in age demographics, such as an aging population in some regions, can also impact dairy consumption patterns. Older adults may seek dairy products for their calcium content to support bone health, contributing to sustained demand for dairy products.

Restarint Analysis for Dairy Industry Market

Health Concerns and Dietary Shifts to Limit the Sales

While population growth is a significant driver of market growth in the dairy industry, it's essential to recognize that health concerns and dietary shifts can act as limiting factors, impacting sales. In recent years, there has been a growing awareness of health issues related to dairy consumption, including lactose intolerance, concerns about cholesterol levels, and saturated fats. These health concerns have prompted some consumers to reduce their intake of dairy products or seek alternatives.

Additionally, dietary shifts towards plant-based diets and veganism have gained traction, driven by concerns about animal welfare, environmental sustainability, and perceived health benefits. As a result, many consumers are opting for plant-based dairy alternatives such as almond milk, soy milk, and oat milk, which offer similar nutritional profiles without the drawbacks associated with dairy consumption...

North America Dairy Industry Market size will be USD 356501.68 million in 2024 and will expand at a compound annual growth rate (CAGR) of 2.8% from 2024 to 2031.

The North America Dairy Market is segmented by Category (Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt), by Distribution Channel (Off-Trade, On-Trade) and by Country (Canada, Mexico, United States). Market Value in USD and Volume are both presented. Key Data Points observed include Per capita consumption; Population; and Dairy production.

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%

Dairy Products Market is growing at a CAGR of 3.2% during the forecast period 2024-2031

The global dairy market attained a value of approximately USD 561.66 Billion in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 3.60%, reaching a value of around USD 799.97 Billion by 2034.

According to Cognitive Market Research, the global Dairy Product market size will be 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 resul...

The global dairy products market size was valued at around USD 526.83 billion in 2024 and is projected to grow at a CAGR of around 3.3%, reaching USD 803.48 billion revenue by 2037. Milk segment is likely to attain 65% share by 2037, fueled by increase in milk consumption in emerging nations, attributed to its high nutritional value, providing ample protein and calcium.

The India Dairy Market size was valued at USD 115.57 USD Billion in 2023 and is projected to reach USD 210.45 USD Billion by 2032, exhibiting a CAGR of 8.94 % during the forecast period. A dairy is the integral part of the socioeconomic fabric and considering the dairy animal .A dairy is a company that sells milk and milk products such as butter, cheese, yogurt, cream, etc. Dairy products provide essential nutrients such as calcium, vitamins, proteins, etc. The Production of milk on dairy farms and processing of milk and milk product at dairy plant up the dairy industry. Dairy products undergo different processing stages in specialized plants to ensure quality and safety. The dairy market includes dairy farming and milk production. In dairy farming, there is the raising of dairy cattle for milk production. There is growing interest in functional dairy products with added health benefits, such as probiotics and fortified options. There are the dairy product like including like butter, cheese , ice cream ,yoghurt and dried milk. These are the properties of the milk include the milk nutrient like fats ,protein ,lactose, vitamin and minerals are include. Dairy products like milk ,cheese, and yoghurts .for example three contain are include like protein ,calcium. And vitamin B12.there are various type of the dairy farming various type of the mammals are include like goat, buffalo ,sheep ,and camel .There are some health benefits are the dairy product like digestive health, Bone health ,Dental health, weight management ,muscle mass and hydration. A healthy diet including a variety of foods from the five food groups such as fruit, vegetables and milk, cheese and yoghurt can help you manage your blood pressure. The Effect of the dairy product consumption of the health like musculation diseases. Key drivers for this market are: Expansion of International Brands in Saudi Arabia to Fuel Market Growth. Potential restraints include: Lack of Fodder Supply and Emergence of Diseases Pose a Negative Impact on the Market Growth. Notable trends are: Rising Popularity of Veganism to Fuel Market Growth.

Asia Pacific Dairy Industry Market size will be USD 204988.47 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.6% from 2024 to 2031.

Snapshot img

Dairy Food Market Size 2025-2029

The dairy food market size is forecast to increase by USD 96.1 billion, at a CAGR of 2.2% between 2024 and 2029.

The market is experiencing significant growth due to the increasing adoption of healthy food habits. Consumers are increasingly turning to dairy products for their nutritional benefits, leading to a surge in demand. However, this market faces challenges in the distribution sector, particularly in the packaged food and beverages segment. The rise of online retail has disrupted traditional distribution channels, necessitating adaptation and innovation from dairy food companies. To capitalize on this market opportunity, businesses must focus on enhancing their online presence and improving their logistics capabilities. Additionally, addressing consumer concerns regarding sustainability and ethical production practices can help differentiate offerings and build brand loyalty. Navigating these challenges requires strategic planning and a deep understanding of evolving consumer preferences and trends. Companies that successfully adapt to these market dynamics will be well-positioned to thrive in the market.

What will be the Size of the Dairy Food Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with dynamic market activities shaping its various sectors. Microbial contamination control remains a top priority, with ongoing research and development in pasteurization techniques, such as milk pasteurization and high-pressure processing, ensuring food safety. In the realm of fermented dairy products, yogurt production employs advanced methods, including microfiltration and ultrafiltration, to control viscosity and standardize product consistency. Dairy waste management is another evolving area, with a focus on recycling and utilization of by-products. Reverse osmosis and other filtration methods are employed to minimize waste and maximize resource efficiency. Meanwhile, dairy traceability systems enable transparency and accountability throughout the supply chain. Cheese production also undergoes continuous innovation, with texture analysis and casein micelle structure studies leading to improved product quality and consistency. Automated dairy processing and real-time monitoring technologies facilitate efficient production and reduce human error. Dairy ingredient sourcing and standardization are crucial, with a focus on ensuring consistent quality and functionality of milk proteins and flavor compounds. Sanitation protocols and packaging materials are also essential components of the dairy industry, ensuring product safety and longevity. The ongoing research and development in dairy processing technologies, from homogenization and cream separation methods to thermal processing and butterfat content measurement, continue to shape the market landscape. The integration of these advancements into dairy manufacturing processes ensures the production of high-quality, safe, and consistent dairy products for consumers.

How is this Dairy Food Industry segmented?

The dairy food industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductMilkCheeseYogurtButterOthersDistribution ChannelSupermarketsConvenience storesOnlineTypeLactoseLactose-freeGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACAustraliaChinaIndiaJapanRest of World (ROW)

By Product Insights

The milk segment is estimated to witness significant growth during the forecast period.In the dynamic the market, various processes and technologies play pivotal roles in ensuring the production of high-quality milk and dairy products. Milk homogenization and pasteurization techniques, such as milk pasteurization and ultra-high temperature pasteurization, are essential for prolonging milk's shelf life and enhancing its taste and texture. Dairy processing equipment, including cream separators and reverse osmosis systems, facilitate the efficient separation of milk components and the production of value-added dairy ingredients. Milk protein functionality and dairy flavor compounds are critical aspects of dairy product standardization, while automated dairy processing and dairy traceability systems streamline production and ensure food safety. Microfiltration and ultrafiltration processes enable the isolation of whey protein and casein micelles, contributing to the development of functional dairy ingredients. Yogurt viscosity control, lactose crystallization control, and microbial contamination control are essential for maintaining the quality and consistency of fermented dairy products like yogurt and cheese.

The volume is forecast to experience significant growth in all segments in 2030. Particularly striking is the exceptionally strong increase of the segment Milk towards the end of the forecast period. The value amounting to **** thousand tons stands out significantly from the average changes, which are estimated at ***** thousand tons. Find further statistics on other topics such as a comparison of the price per unit in Iran and a comparison of the price per unit in Norway. The Statista Market Insights cover a broad range of additional markets.

Europe Dairy Industry Market size will be USD 267376.26 million in 2024 and will expand at a compound annual growth rate (CAGR) of 3.1% from 2024 to 2031.

The global dairy and eggs market produced a revenue of over ***** billion U.S. dollars in 2023. By 2030, it was forecast to grow to over ***** billion U.S. dollars.