The Report Covers Global Organic Dairy Products & Industry Size and it is Segmented by Type (Skimmed Milk and Whole Milk); Source (Cow, Buffalo, and Others); Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail Stores, and Other Distribution channels); and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The market size and forecasts are provided in terms of value (USD million) for the above segments.

This statistic depicts the market value of organic dairy products worldwide in 2018 to 2022, and provides a forecast for 2028. In 2022, the global market value of organic dairy products reached 23.9 billion U.S. dollars, and is projected to increase to 36 billion U.S. dollars by 2028.

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Organic Dairy Products Market Size 2024-2028

The Organic Dairy Products Market size is projected to increase by USD 9.09 billion at a CAGR of 6.52% between 2023 and 2028. The increasing awareness of the benefits of organic dairy products is driving consumer preference towards these products. Additionally, the availability of financial aid and subsidies for organic dairy farming is encouraging more farmers to transition to organic practices, leading to an increase in supply. The rise of e-commerce and online sales channels is further boosting the accessibility and visibility of products, contributing to their growing market share. This convergence of factors is reshaping the dairy industry, with organic products gaining a stronger foothold in the market. Consumers are becoming more conscious of their health and environmental impact, leading to a shift towards organic options. The availability of financial incentives is incentivizing farmers to adopt sustainable practices, further fueling the growth of the sector. E-commerce platforms are providing a convenient avenue for consumers to purchase organic dairy products, driving overall market growth.

Increasing awareness of the benefits of organic dairy products is a key factor driving market growth. The market has experienced significant growth due to increasing consumer awareness and preference for healthier options. In contrast to conventional dairy products, which may contain synthetic feed and potentially harmful additives, organic dairy products offer numerous nutritional benefits. These benefits include higher levels of omega-3 fatty acids, Conjugated Linoleic Acid (CLA), antioxidants, and vitamins. The Yoghurt segment, particularly organic yoghurt, is a popular choice due to its probiotic properties. Packaging options include Tetra packs, aseptic cartons, glass packaging, and plastic packaging. Specialty stores dominate sales in the Asia-Pacific region, where population growth and consumer trends favor organic dairy products for industry applications.

Market Overview

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Market Segmentation

The report provides a detailed analysis of the market by product (organic milk, organic yogurt, organic cheese, and others), Distribution Channel (Offline and Online), and geography (APAC, Europe, MEA, North America, and South America).

By Distribution Channel

Offline distribution channels like supermarkets, health food stores, and grocery stores offer a selection of organic dairy products. These products are typically found in the dairy section alongside conventional dairy items. Specialty stores, including those that sell natural food products, focus exclusively on natural products. Health food stores are the second-most prominent channel for these products. Currently, the market is witnessing an immense expansion of health food stores, especially food retail stores. It offers stiff competition to offline distribution channels like supermarkets and hypermarkets. Consumers look for convenience as a key factor while shopping. Hence, they prefer shopping at convenience stores in their neighborhoods. For example, JustGreen, one of the largest chains of convenience stores in Hong Kong, offers a wide variety of products like organic yoghurt and organic ghee. Thus, these factors will promote the growth of the global market during the forecast period.

By Product

The market share growth by the organic milk segment will be significant during the forecast period. Its demand is increasing rapidly across countries. The market is experiencing significant growth due to increasing consumer trust in sustainable farming practices. Dairy farmers adhering to organic methods raise livestock that consume organic feed, avoiding synthetic hormones and antibiotics. This results in organic milk with higher omega 3 fatty acids and no preservatives, offering numerous health benefits such as improved metabolism, immunity, and cancer disorder prevention.

The organic milk segment was the largest and was valued at USD 9.24 billion in 2018.

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Another reason behind the demand is the rising awareness of the health benefits of organic milk consumption. Consumer demographics are shifting towards a preference for organic fluid milk, cream, and dairy products packaged in various formats like pouches, tetra-packs, bottles, and cans. Supermarkets, hypermarkets, convenience stores, grocery stores, organic specialty stores, online retailers, and direct sales channels cater to this demand. Technological developments enable the production of low-fat and low-sugar content products, catering to diverse consumer lifestyles. Consumer awareness campaigns and rising living standards contribute to the market's growth. Regional producers collaborate with governments to ensure quality and price competitiven

The global Organic Milk Market is poised to reach a value of 25636 USD Million by 2025 and is projected to reach a value of 34608.6 USD Million by 2035, reflecting a compound annual growth rate of 3.0% over the assessment period 2025 2035.

Country wise Insights

Category-wise Insights

This statistic shows the sales of organic dairy products in the United States from 2016 to 2025. In 2020, sales of organic dairy yielded approximately five billion U.S. dollars in the United states.

According to Cognitive Market Research, the global Organic Milk Products market size is USD 25512.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 10204.88 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 7653.66 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 5867.81 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 1275.61 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa held the major market ofaround 2% of the global revenue with a market size of USD 510.24 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The high-temperature short time (HTST) held the highest Organic Milk Products market revenue share in 2024.

Market Dynamics of Organic Milk Products Market

Key Drivers of Organic Milk Products Market

Consumer Health Awareness to Increase the Demand Globally

One key driver in the Organic Milk Products market is the increasing consumer health awareness. With growing concerns about food safety, environmental sustainability, and animal welfare, consumers are seeking healthier and more sustainable food options. Organic milk products are perceived as healthier alternatives to conventional dairy products due to their lack of synthetic pesticides, hormones, and antibiotics. Additionally, organic milk is often produced using environmentally friendly farming practices, such as pasture-based grazing and organic feed, which further appeals to health-conscious consumers. As a result, the demand for organic milk products continues to rise as consumers prioritize products that align with their health and wellness goals.

Shift towards Organic and Sustainable Lifestyles to Propel Market Growth

Another significant driver in the Organic Milk Products market is the shift towards organic and sustainable lifestyles. As more consumers become aware of the environmental impact of food production and the importance of supporting sustainable agriculture, there is a growing demand for organic dairy products. Consumers are increasingly seeking products that are produced in an environmentally responsible manner, with minimal impact on ecosystems and natural resources. Organic milk products are perceived as more environmentally friendly than conventional dairy products, as they are produced without the use of synthetic fertilizers, pesticides, and genetically modified organisms (GMOs). This shift towards organic and sustainable lifestyles drives the demand for organic milk products, as consumers prioritize products that support their values of environmental conservation and sustainability.

Restraint Factors Of Organic Milk Products Market

Supply Chain Challenges to Limit the Sales

One of the key restraints in the Organic Milk Products market is supply chain challenges. Organic dairy farming often requires adherence to strict regulations and certification processes, which can result in limited availability and higher production costs compared to conventional dairy farming. Additionally, organic dairy farmers may face challenges such as limited access to organic feed, fluctuating milk prices, and difficulties in finding suitable pastureland for grazing. These supply chain challenges can result in inconsistent supply and higher prices for organic milk products, limiting their accessibility to consumers and hindering market growth. Addressing supply chain inefficiencies and supporting organic farmers with better access to resources and infrastructure is essential to overcoming this restraint in the Organic Milk Products market.

Impact of Covid-19 on the Organic Milk Products Market

The Covid-19 pandemic has had a mixed impact on the Organic Milk Products Market. Initially, during the pandemic's onset, there was a surge in demand for organic milk products as consumers’ prioritized health and wellness, seeking products perceived to boost immunity. This led to increased sales of organic milk...

The size and share of the market is categorized based on Type (Milk, Cheese, Yogurt, Others;) and Application (Supermarkets-Hypermarkets, Convenience Stores, Online Retailing, Others;) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Middle East and Africa Organic Milk Products Market size will be USD 510.24 million in 2024 and will expand at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.

The size and share of the market is categorized based on Type (Whole organic milk, Skim organic milk, Lactose-free organic milk, Flavored organic milk, Organic milk powder) and Application (Fresh dairy products, Baby food, Baked goods, Beverages, Cooking ingredients) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

By 2029, the organic dairy food and beverages industry in Latin America was estimated to reach a value to more than five billion U.S. dollars. That is an increase of more than 135 percent in comparison to a 2022 estimate.

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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.

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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

The size and share of the market is categorized based on Application (Children, Adult, The Aged) and Product (Organic Whole Milk, Organic 2% Milk, Organic 1% Milk, Organic Fat-free Milk, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Overview The global organic dairy products market is anticipated to expand significantly, reaching a market size of USD XXX million by 2033, exhibiting a CAGR of XX% over the forecast period (2025-2033). The growing consumer preference for healthy and sustainable food products, coupled with rising awareness about the benefits of organic farming practices, is driving market growth. Additionally, the increasing disposable income of consumers in emerging economies and the proliferation of online retail channels are contributing to the market expansion. Key Trends and Drivers The organic dairy market is experiencing several key trends and drivers that are shaping its growth trajectory. Consumers are increasingly opting for organic products due to concerns about the adverse effects of conventional farming methods on human health and the environment. This shift towards organic products is being fueled by the growing availability of organic dairy alternatives, such as plant-based milks and yogurts, which cater to the dietary preferences of vegans and lactose-intolerant individuals. Furthermore, the implementation of stringent regulations and certifications related to organic farming practices is ensuring the quality and credibility of organic dairy products in the market.

Global cheese consumption has gone up because there's more cheese to choose from, and people crave for more organic dairy products. Hence, the organic cheese market is on a trajectory of pure indulgence, holding potential to progress at a promising CAGR of 7.1% through.

Category Wise Insights

Country wise insights

Global Organic Dairy Products Market market size valued at US$ 4.45 Billion in 2023, set to reach US$ 6.73 Billion by 2032 at a CAGR of about 4.7% from 2024 to 2032.

In 2021, the retail sales value of organic dairy products in Japan amounted to almost 26 million U.S. dollars. The market was forecast to grow steadily in the following years, exceeding 28 million dollars in 2026. Food products labeled as organic in Japan have to be certified under the "Organic JAS" standards or a comparable system in case of imports.

Organic Dairy Products (Foods and Drinks) Market size is expected to develop revenue and exponential market growth at a remarkable CAGR during the forecast period from 2024-2032

This statistic shows the market share of organic dairy products in Norway in 2017. That year, organic sweet milk had the highest share of the total organic dairy products sold in Norway, with 40 percent, followed by organic soured milk, whose share amounted to nearly 30 percent. Organic yoghurt and cream each had a market share of less than 5 percent.

Lactose Free Dairy Products Market size is set to expand from $ 140.51 Million in 2023 to $ 254 Million by 2032, a CAGR of around 6.8% from 2024 to 2032.

The global organic whole milk market size was valued at 1816.1 million in 2025 and is projected to grow at a CAGR of 3.9% during the forecast period, 2025-2033. The market growth is attributed to the increasing demand for organic and natural products, growing awareness about the health benefits of organic whole milk, and rising disposable income. Moreover, the increasing preference for healthy and natural food products, along with the growing awareness about the negative effects of conventional farming practices, is further driving the market growth. The market is segmented into type, application, and region. By type, the market is divided into below 300 ML, 1L, and other. By application, the market is segmented into children, adults, and the aged. Geographically, the market is analyzed across North America, South America, Europe, Middle East & Africa, and Asia Pacific. The North American region is expected to dominate the market during the forecast period due to the high demand for organic products, increasing health consciousness, and the presence of well-established organic dairy industry. This comprehensive report provides an in-depth analysis of the global organic whole milk market, valued at over $530 million in 2023. It covers key trends, market dynamics, and regional insights.