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.

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.

Impact of COVID-19 on the Dairy Industry Ma...

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.

This statistic shows the dairy market value worldwide from 2020 to 2022 and also provides a forecast for 2023 to 2028. The global dairy market was valued at 893 billion U.S. dollars in 2021 and was projected to grow to about 1243 billion U.S. dollars by 2028.

The Asia-Pacific 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 (Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, South Korea). Market Value in USD and Volume are both presented. Key Data Points observed include Per capita consumption; Population; and Dairy production.

The 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 Region (Africa, Asia-Pacific, Europe, Middle East, North America, South America). Market Value in USD and Volume are both presented. Key Data Points observed include Per capita consumption; Population; and Dairy production.

United States dairy market size reached US$ 109.98 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 153.52 Billion by 2032, exhibiting a growth rate (CAGR) of 3.30% during 2024-2032. The increasing consumer demand for high-protein diets, innovations in dairy products, the growing popularity of organic and non-GMO options, expanding export markets, rising health consciousness, and advancements in dairy farming and production technologies are some of the major factors propelling the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on product, application, and distribution channel.

IMARC Group’s latest report, titled “Dairy Industry in Punjab: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution”, offers an in-depth analysis of the Punjab dairy market. The milk production in Punjab mainly consists of cow and buffalo milk. According to the report, the Punjab dairy market size reached INR 633.3 Billion in 2024. Looking forward, the market is expected to reach INR 1,851.3 Billion by 2033, exhibiting a growth rate (CAGR) of 12.03% during 2025-2033.

In 2017, the growth rate of the dairy market size in Vietnam was estimated at 10.5 percent. In that year, the dairy market size reached approximately 4.6 billion U.S. dollars.

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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, driven by the rising adoption of healthy food habits among consumers. This trend is particularly prominent in the US, where there is a growing preference for nutritious and natural food options. Another key factor fueling market growth is the increasing demand for online retail, which is transforming the way consumers purchase dairy products. However, the market also faces challenges, such as distribution difficulties in the packaged food and beverages sector. These challenges arise due to the perishable nature of dairy products and the need for efficient and timely delivery to maintain product quality. Overall, the market is expected to continue growing, driven by consumer preferences for healthier options and the convenience of online retail.

What will be the Size of the Dairy Food Market During the Forecast Period?

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The market encompasses a broad range of products, including milk, yogurt, cheese, spreads, and ice creams. This market exhibits strong growth, driven by consumer preferences for nutritious and convenient food options. Dairy products are rich in essential nutrients such as calcium, vitamins, and bioactive peptides, making them a staple in many diets. Fonterra, Danone, Arla Foods, and other leading players continue to innovate, introducing new product lines with added health benefits, such as conjugated linoleic acid, antioxidants, and probiotic bacteria. The industry faces challenges, however, including a global labor shortage and the increasing popularity of online retail channels.
Fermented dairy products, like yogurt and cheese, are gaining traction due to their probiotic properties and association with gut health. Consumers are also seeking out organic and natural options, driving demand for products free from artificial additives and preservatives. Market size is significant, with milk and cheese being the largest segments. The yogurt and ice cream markets are also experiencing steady growth, fueled by consumer preferences for these indulgent treats. Overall, the dairy food industry is expected to continue its upward trajectory, driven by evolving consumer trends and innovative product offerings.

How is this Dairy Food Industry segmented and which is the largest segment?

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.

Product

  Milk
  Cheese
  Yogurt
  Butter
  Others


Distribution Channel

  Supermarkets
  Convenience stores
  Online


Type

  Lactose
  Lactose-free


Geography

  APAC

    China
    India
    Japan


  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  South America



  Middle East and Africa

By Product Insights

The milk segment is estimated to witness significant growth during the forecast period.

The market encompasses milk, yogurt, cheese, spreads, and ice creams, providing essential nutrients such as calcium, vitamin B12, iodine, potassium, phosphorus, and vitamin B2. Milk, particularly important for bone health, is recommended for women due to their higher risk of osteoporosis. Organic milk offers additional benefits, including omega-3 fatty acids and the absence of pesticides and antibiotics. The dairy industry includes milk from cattle, sheep, goat, and camel segments. Nutritional dairy products cater to lactose-intolerant consumers through lactose-free and lactose-free alternatives like Lactose-free milk, Skyr yogurt, and Milkymist. Sustainable dairy production and functional dairy products, such as fermented dairy products, fortified with vitamins, bioactive peptides, specific proteins, conjugated linoleic acid, antioxidants, organic acids, and minerals, are gaining popularity.

Companies like Fonterra, Danone, Arla Foods, and Yum Brands are key players in this market. Online retail, supermarkets/hypermarkets, convenience stores, and Starbucks Corporation's oat milk-based beverage are major distribution channels. Dairy production faces challenges like labor shortage and milk oversupply. The market is expected to grow due to the increasing demand for premium dairy products and personalized dairy products.

Get a glance at the Dairy Food Industry report of share of various segments Request Free Sample

The milk segment was valued at USD 273.90 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 41% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trend

This statistic depicts the growth of total milk sales in the United States in 2024, by category. According to the report, whole milk sales decreased by 1.1 percent during the 12 weeks ending March 24, 2024.

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

Growing Global Population to Boost Market Growth

a growing population, rising consumer personal disposable income, rising health consciousness, rising milk output in developing countries, and rising consumption of foods enhanced with protein. These are some of the elements driving the market's expansion in demand for dairy products. By 2050, there will be 9.9 billion people on the planet, according to the Population Reference Bureau. Due to population expansion, there is a significant demand for dairy products, including milk, butter, yoghurt, and other dairy products. Customers directly use these products for a number of reasons. Cheese is good for the heart, according to studies, and demand for dairy products is rising globally as more people become aware of its health advantages. As consumers switch from eating meat to dairy-based products for micronutrients and proteins, the demand for dairy-based products is predicted to increase dramatically over the coming years.

Increase in Government Programs and Activities to Drive Market Growth

The industry is anticipated to expand as a result of government programs and activities targeted at enhancing the output of milk and livestock. For example, the National Dairy Program of the Indian Government seeks to increase milk and cattle production. The growing popularity of fast-food restaurants has significantly increased the consumption of cheese, dairy desserts, and butter. The consumption of dairy products in households is being driven by their wonderful taste and high protein content. They are frequently used in a variety of foods, such as pizza, burgers, and pasta. Furthermore, most households today consider milk to be a daily and necessary product. Consequently, it is anticipated that the global market for dairy products will expand significantly throughout the forecast period.

Restraint Factor for the Dairy Product Market

Rise of Plant-Based Alternatives Will Limit Market Growth

Consumers' increased concern for animal welfare is driving up demand for plant-based food substitutes. Soy milk, almond milk, non-dairy ice creams, cheese substitutes, and whipped cream are examples of plant-based dairy products that are quickly making their way into the mainstream retail market because of the rising belief that they are safer and healthier. It is anticipated that the fast growing dairy substitutes market, which includes new product innovations including non-dairy ice creams, cheese substitutes, and whipped creams, will impede the expansion of the global dairy products market. One significant issue impeding the growth of the global dairy products market is the growing number of people who do not ingest lactose.

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 affect...

Dairy Market is expected to grow at a high CAGR during the forecast period 2024-2031 | DataM Intelligence

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

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 Australia dairy market size was valued at USD 6.7 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 10.6 Billion by 2033, exhibiting a CAGR of 4.64% from 2025-2033. Some of the factors driving the Australia dairy market include the growing demand for plant-based alternatives, advancements in dairy farming and production technologies, increased consumer preference for premium and specialty dairy products, and robust government support and initiatives promoting sustainability and innovation.

IMARC Group provides an analysis of the key trends in each segment of the Australia dairy market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product, application, and distribution channel.

In 2023, the retail sales value of dairy products in China totaled 495.06 billion yuan, increasing from around 473.89 billion yuan in 2022. The retail sales value of dairy products was estimated to maintain steady growth and reach approximately 564.72 billion yuan by 2024.

Explore the Dairy Products Global Market Report 2025 Market trends! Covers key players, growth rate 4.6% CAGR, market size $657.27 Billion, and forecasts to 2033. Get insights now!

The Global Plant-Based Dairy Market is projected to grow at a CAGR of 9.1% during 2023-2028, with the market size expected to expand significantly. Explore key trends, drivers, and forecasts shaping the future of the plant-based dairy industry.

The global dairy products market is anticipated to grow from USD 526.83 billion in 2024 to USD 803.48 billion by 2037, registering a CAGR of around 3.3% during the forecast period, from 2025 through 2037. Key industry players include Friesland Campina, Fonterra USA, Danone, Arla Foods, among others.

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.