Asia-Pacific Dairy Market Size

The Asia-Pacific dairy market is experiencing significant growth, with its market size expanding due to various factors. The off-trade segment, particularly through supermarkets and hypermarkets, dominates the distribution channels, driven by the strong presence of popular retail chains offering a wide range of dairy products. The increasing demand for dairy-based recipes from foodservice channels and the rising popularity of online retail stores are further contributing to the market's expansion. India and China are the primary markets, supported by high raw milk production and consumer preference for quality products. Additionally, the demand for healthy dairy variants is expected to propel market growth across the region.

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Market Size of asia-pacific dairy Industry

Asia-Pacific Dairy Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 194.6 Billion
svg icon Market Size (2029) USD 243.9 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 4.62 %
svg icon Largest Share by Country China

Major Players

Asia-Pacific Dairy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Asia-Pacific Dairy Market Analysis

The Asia-Pacific Dairy Market size is estimated at 194.6 billion USD in 2024, and is expected to reach 243.9 billion USD by 2029, growing at a CAGR of 4.62% during the forecast period (2024-2029).

194.6 Billion

Market Size in 2024 (USD)

243.9 Billion

Market Size in 2029 (USD)

3.14 %

CAGR (2017-2023)

4.62 %

CAGR (2024-2029)

Largest Market by Category

54.65 %

value share, Milk, 2023

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The region is home to countries with the largest dairy production and consumption, with India being the highest milk producer, ranking first globally, is driving the growth of the dairy market.

Largest Market by Country

36.96 %

value share, China, 2023

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The support from the Chinese government is actively pushing the consumption of dairy products in the region with constant push with its health and nutritional benefits.

Fastest-growing Market by Category

7.13 %

Projected CAGR, Sour Milk Drinks, 2024-2029

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With the advent of functional products, and the emphasis on low-calorie, low-sugar, digestive products, the yogurt segment is anticipated to be the fastest segment in the forecasted period.

Fastest-growing Market by Country

6.55 %

Projected CAGR, India, 2024-2029

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Dairy consumption in India is anticipated to increase with a rise in health and wellness awareness leading to increasing acceptance towards healthier and functional products.

Leading Market Player

8.97 %

market share, Inner Mongolia Yili Industrial Group Co. Ltd, 2022

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The stringent food safety aspects followed by the manufacturer along with innovation in product categories is largely driving the Inner Mongolia Yili Industrial Group Co Ltd's dominance in the market.

Widespread adoption of distribution channels, led by remarkable sales through supermarkets and hypermarkets is propelling the growth

  • Among overall distribution channels, the Asia-Pacific dairy market is dominated by the off-trade segment. Supermarkets and hypermarkets accounted for most of the share in the off-trade segment. In 2022, supermarkets and hypermarkets accounted for 57.9% of the value share. The major reason behind the segment holding the highest share is the strong penetration of popular chains such as Maruetsu, Aldi, Big Bazaar, Woolworths Group, and Aeon Retail, which provide a wide selection of dairy products that are both imported and made locally.
  • There is an increasing demand for dairy-based recipes from foodservice channels, further boosting the market growth. Dairy sales in the on-trade channel are anticipated to grow by USD 17,104.2 million in 2025, up from USD 14,932.6 million in 2021. The growth in the segment is attributed to consuming food prepared away from home, whether while eating out at a restaurant or ordering takeout. As of 2021, Indian consumers were eating out nearly seven times a month, and over 80% of the respondents stated that they preferred affordable casual dining options and quick-service restaurants to eat out, while cafes, desserts, and ice-cream parlors were the most frequented.
  • When it comes to online shopping, the Asia-Pacific region is one of the largest markets in the world. Thus, online retail stores as a sales channel are gaining popularity across the region. In 2022, the sales value of dairy products through e-commerce in the Asia-Pacific region reached a total of USD 6028.7 million, while it was USD 5618.3 million in 2021.
  • Among all dairy products, milk accounted for the majority of share in overall retail channels. In 2022, milk accounted for 55% of the total category, and yogurt stood in second place with 29.2% of the value share.
Asia-Pacific Dairy Market

High production of raw milk and rising consumer preference for quality dairy products are key market drivers in the region

  • India and China are identified as the region's major markets for the dairy industry, followed by New Zealand and Japan. India and China collectively accounted for a 65.25% share of the overall dairy products volume sales across the region in 2022. The key driving factors are the high production of raw milk, rising consumer preference for quality dairy products, and adequate industry regulation to facilitate the manufacturing and trading of dairy products. The Government of India has permitted 100% FDI (Foreign Direct Investment) through an automatic route for food processing. The dairy industry accounts for a substantial FDI contribution of about 40% of the total FDIs in the Indian food sector. Also, India is one of the largest milk-producing countries, contributing 24% of global milk production in 2021.
  • Milk and yogurt are the leading categories in the Japanese dairy market and collectively accounted for an 83.18% share of the overall dairy sales in 2022. The market growth in the country is attributed to the advancement of dairy farms. In Japan, dairy farms with 200 or more cows increased by 10% in 2022. Also, the average yard population of Japanese dairy farms reached 103 heads, a 5% Y-o-Y growth from 2021 to 2022. China is identified as the fastest-growing dairy market in Asia-Pacific. In China, dairy products' sales value is anticipated to register a CAGR of 9.21% during the forecast period to reach a market value of USD 123,925.48 million by the end of 2029.
  • Demand for healthy dairy variants such as no or reduced sugar, low-fat content, grass-fed, and organic products is anticipated to drive market growth in the region during the forecast period. Aquila Sustainable Farming Ltd (ASF), a supplier of certified A2 organic milk in New Zealand, converted four of its six portfolio farms to A2 organic in 2020.

Asia-Pacific Dairy Industry Segmentation

Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel. Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, South Korea are covered as segments by Country.

  • Among overall distribution channels, the Asia-Pacific dairy market is dominated by the off-trade segment. Supermarkets and hypermarkets accounted for most of the share in the off-trade segment. In 2022, supermarkets and hypermarkets accounted for 57.9% of the value share. The major reason behind the segment holding the highest share is the strong penetration of popular chains such as Maruetsu, Aldi, Big Bazaar, Woolworths Group, and Aeon Retail, which provide a wide selection of dairy products that are both imported and made locally.
  • There is an increasing demand for dairy-based recipes from foodservice channels, further boosting the market growth. Dairy sales in the on-trade channel are anticipated to grow by USD 17,104.2 million in 2025, up from USD 14,932.6 million in 2021. The growth in the segment is attributed to consuming food prepared away from home, whether while eating out at a restaurant or ordering takeout. As of 2021, Indian consumers were eating out nearly seven times a month, and over 80% of the respondents stated that they preferred affordable casual dining options and quick-service restaurants to eat out, while cafes, desserts, and ice-cream parlors were the most frequented.
  • When it comes to online shopping, the Asia-Pacific region is one of the largest markets in the world. Thus, online retail stores as a sales channel are gaining popularity across the region. In 2022, the sales value of dairy products through e-commerce in the Asia-Pacific region reached a total of USD 6028.7 million, while it was USD 5618.3 million in 2021.
  • Among all dairy products, milk accounted for the majority of share in overall retail channels. In 2022, milk accounted for 55% of the total category, and yogurt stood in second place with 29.2% of the value share.
Category
Butter
By Product Type
Cultured Butter
Uncultured Butter
Cheese
By Product Type
Natural Cheese
Processed Cheese
Cream
By Product Type
Double Cream
Single Cream
Whipping Cream
Others
Dairy Desserts
By Product Type
Cheesecakes
Frozen Desserts
Ice Cream
Mousses
Others
Milk
By Product Type
Condensed milk
Flavored Milk
Fresh Milk
Powdered Milk
UHT Milk
Sour Milk Drinks
Yogurt
By Product Type
Flavored Yogurt
Unflavored Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
Country
Australia
China
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
South Korea
Rest of Asia Pacific
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Asia-Pacific Dairy Market Size Summary

The Asia-Pacific dairy market is experiencing significant growth, driven by a combination of factors including increasing consumer demand for dairy-based products and the expansion of distribution channels. The off-trade segment, particularly supermarkets and hypermarkets, dominates the market due to the presence of well-established retail chains offering a wide range of dairy products. The region's robust online shopping trend further boosts sales, with e-commerce becoming an increasingly popular channel for dairy product distribution. India and China are the leading markets within the region, supported by high milk production, a growing preference for quality dairy products, and favorable regulatory environments. The demand for healthy dairy variants, such as low-fat and organic products, is also on the rise, reflecting changing consumer preferences towards healthier lifestyles.

The market landscape is characterized by a fragmented structure, with several key players holding significant shares. Companies like China Mengniu Dairy Company Ltd, Gujarat Co-operative Milk Marketing Federation Ltd, and Inner Mongolia Yili Industrial Group Co. Ltd are prominent in the market. The dairy industry in Japan is witnessing advancements in dairy farming, contributing to its market growth, while China is recognized as the fastest-growing dairy market in the region. The increasing adoption of Western food habits in countries like India is driving the demand for cheese and other dairy products, supported by the expansion of foreign foodservice operators. Additionally, the ice cream market is expanding, fueled by rising consumer expenditure and the introduction of new flavors, catering to both indulgence and health-conscious consumers.

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Asia-Pacific Dairy Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Butter

        1. 1.1.1.1 By Product Type

          1. 1.1.1.1.1 Cultured Butter

          2. 1.1.1.1.2 Uncultured Butter

      2. 1.1.2 Cheese

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Natural Cheese

          2. 1.1.2.1.2 Processed Cheese

      3. 1.1.3 Cream

        1. 1.1.3.1 By Product Type

          1. 1.1.3.1.1 Double Cream

          2. 1.1.3.1.2 Single Cream

          3. 1.1.3.1.3 Whipping Cream

          4. 1.1.3.1.4 Others

      4. 1.1.4 Dairy Desserts

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Cheesecakes

          2. 1.1.4.1.2 Frozen Desserts

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Mousses

          5. 1.1.4.1.5 Others

      5. 1.1.5 Milk

        1. 1.1.5.1 By Product Type

          1. 1.1.5.1.1 Condensed milk

          2. 1.1.5.1.2 Flavored Milk

          3. 1.1.5.1.3 Fresh Milk

          4. 1.1.5.1.4 Powdered Milk

          5. 1.1.5.1.5 UHT Milk

      6. 1.1.6 Sour Milk Drinks

      7. 1.1.7 Yogurt

        1. 1.1.7.1 By Product Type

          1. 1.1.7.1.1 Flavored Yogurt

          2. 1.1.7.1.2 Unflavored Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

    3. 1.3 Country

      1. 1.3.1 Australia

      2. 1.3.2 China

      3. 1.3.3 India

      4. 1.3.4 Indonesia

      5. 1.3.5 Japan

      6. 1.3.6 Malaysia

      7. 1.3.7 New Zealand

      8. 1.3.8 Pakistan

      9. 1.3.9 South Korea

      10. 1.3.10 Rest of Asia Pacific

Asia-Pacific Dairy Market Size FAQs

The Asia-Pacific Dairy Market size is expected to reach USD 194.64 billion in 2024 and grow at a CAGR of 4.62% to reach USD 243.95 billion by 2029.

In 2024, the Asia-Pacific Dairy Market size is expected to reach USD 194.64 billion.

Asia-Pacific Dairy Market Report Snapshots

Asia-Pacific Dairy Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029