Market Size of dairy Industry
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 631.4 Billion |
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Market Size (2029) | USD 781.3 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 4.35 % |
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Largest Share by Region | Europe |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Dairy Market Analysis
The Dairy Market size is estimated at 631.4 billion USD in 2024, and is expected to reach 781.3 billion USD by 2029, growing at a CAGR of 4.35% during the forecast period (2024-2029).
631.4 Billion
Market Size in 2024 (USD)
781.3 Billion
Market Size in 2029 (USD)
2.85 %
CAGR (2017-2023)
4.35 %
CAGR (2024-2029)
Largest Market by Category
32.68 %
value share, Milk, 2023
Some of the key factors driving the segment in the market include population growth, rising health consciousness, increasing demand from emerging markets, value addition, etc
Largest Market by Country
32.48 %
value share, Europe, 2023
Rising health consciousness with increasing flexiterian diet in the region majorly among younger generations in Europe is driving the regional growth in the study period.
Fastest-growing Market by Category
5.16 %
Projected CAGR, Yogurt, 2024-2029
The global yogurt segment is largely driven by the health benefits associated with consuming yogurt and increase in awareness among people for losing weight globally.
Fastest-growing Market by Country
5.84 %
Projected CAGR, Africa, 2024-2029
Irrespective of the falling weaker demand globally and milk prices, Africa is perceived to be a high growth with the rising middle class and younger demographic catering to growth.
Leading Market Player
2.61 %
market share, Inner Mongolia Yili Industrial Group Co. Ltd, 2022
The stringent food safety aspects followed by the manufacturer along with innovation in product categories is largely driving Inner Mongolia Yili Industrial Group Co Ltd's dominance in the market.
The capability to influence consumer decision is driving the demand through Supermarkets/ Hypermarkets.
- Compared to other retail channels, supermarkets and hypermarkets dominate the dairy market. Europe topped the place with the most sales of dairy products in Supermarkets and Hypermarkets. As of 2022, the sales of dairy products through supermarkets and hypermarkets accounted for 41.6% of the value share in Europe. The proximity factor of Supermarkets and Hypermarkets, especially in large cities and metropolitan areas, provides them with an added advantage of influencing the consumer's decision to make the purchase among the large variety of products available in the market.
- Increasing demand for dairy-based recipes from food service channels is boosting the growth of the global dairy market. The sales of dairy through on-trade channels are anticipated to grow by 9% in 2025 compared to the year 2022. The segment's growth is attributed to consuming food prepared away from home. In 2022, 47% of consumers globally consumed meals at restaurants, and 31% of consumers ordered their food from food service channels.
- Asia-Pacific is one of the largest markets for the sales of dairy products through online channels globally, growing by 10.2% in terms of value from 2018 to 2022. Advantages like free deliveries, ease of canceling orders, refund process, and coupon codes offered by these platforms provide consumers with a hassle-free shopping experience.
- Among all dairy products, dairy desserts accounted for the majority of share in off-trade channels. In 2022, dairy desserts accounted for 40.24% of the total dairy industry, followed by cheese, with a 24.6% value share.
The demand from Europe followed by Asia-Pacific is dominating the global market
- The global dairy market grew by 11% in terms of value from 2019 to 2023. South America is expected to see a substantial spike of 12% in dairy consumption in 2023 compared to 2019, mainly due to government investments, product innovations from manufacturers, and the growing awareness of healthier choices.
- Europe dominates the market with a value share of 33.76%, which was 10.9% more than North America in 2023. High production of cow's milk and the growing government investments in the milk industry are driving the market's growth in Europe. Much of the dairy consumed in Europe is produced locally. In 2021, European dairy farms produced 161 million metric tons of raw milk, of which 96% was cow's milk. The European governments' investments in organic farming are creating opportunities for organic milk production. The European Commission's Green Deal Industry Plan set a target of utilizing at least 25% of the European Union's agricultural land under organic farming by 2030.
- Asia-Pacific is the second-largest dairy market globally. The region is anticipated to register a growth rate of 14% by value during 2024-2027. In Asia-Pacific, the dairy market is expanding rigorously due to the strong demand for dairy products and the presence of countries with the world's leading dairy producers. India is the largest producer of milk in the world, contributing 24% of the global milk production from 2021-2022. The Government of India permitted 100% FDI (Foreign Direct Investment) through an automatic route for food processing. The dairy industry recorded a substantial FDI constituting about 40% of FDIs in the Indian food industry, thus boosting the market's growth in the region.
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. Africa, Asia-Pacific, Europe, Middle East, North America, South America are covered as segments by Region.
- Compared to other retail channels, supermarkets and hypermarkets dominate the dairy market. Europe topped the place with the most sales of dairy products in Supermarkets and Hypermarkets. As of 2022, the sales of dairy products through supermarkets and hypermarkets accounted for 41.6% of the value share in Europe. The proximity factor of Supermarkets and Hypermarkets, especially in large cities and metropolitan areas, provides them with an added advantage of influencing the consumer's decision to make the purchase among the large variety of products available in the market.
- Increasing demand for dairy-based recipes from food service channels is boosting the growth of the global dairy market. The sales of dairy through on-trade channels are anticipated to grow by 9% in 2025 compared to the year 2022. The segment's growth is attributed to consuming food prepared away from home. In 2022, 47% of consumers globally consumed meals at restaurants, and 31% of consumers ordered their food from food service channels.
- Asia-Pacific is one of the largest markets for the sales of dairy products through online channels globally, growing by 10.2% in terms of value from 2018 to 2022. Advantages like free deliveries, ease of canceling orders, refund process, and coupon codes offered by these platforms provide consumers with a hassle-free shopping experience.
- Among all dairy products, dairy desserts accounted for the majority of share in off-trade channels. In 2022, dairy desserts accounted for 40.24% of the total dairy industry, followed by cheese, with a 24.6% value share.
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Dairy Market Size Summary
The dairy market is experiencing significant growth, driven by increasing consumer demand and strategic expansions by key players. Supermarkets and hypermarkets are the dominant retail channels, particularly in Europe, where they hold a substantial share of dairy product sales. The convenience of these outlets, especially in urban areas, plays a crucial role in consumer purchasing decisions. The market is further bolstered by the rising popularity of dairy-based recipes in food service channels, with a notable shift towards dining out and ordering from food services. Online sales channels, particularly in the Asia-Pacific region, are also contributing to market expansion, offering consumers a seamless shopping experience with benefits like free delivery and easy returns.
Regionally, Europe leads the dairy market, supported by high cow's milk production and government investments in the sector. The European focus on organic farming is creating new opportunities, aligning with consumer preferences for natural and healthy products. The Asia-Pacific region is witnessing robust growth, fueled by strong demand and significant production in countries like India, which is a major global milk producer. In North America, the United States shows increased domestic consumption and import of dairy products, with a growing interest in organic and natural dairy options. The market is characterized by fragmentation, with major players like China Mengniu Dairy Company, Danone, and Nestlé actively expanding their portfolios through acquisitions and partnerships to meet evolving consumer preferences.
Dairy Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)
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1.1 Category
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1.1.1 Butter
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1.1.1.1 By Product Type
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1.1.1.1.1 Cultured Butter
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1.1.1.1.2 Uncultured Butter
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1.1.2 Cheese
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1.1.2.1 By Product Type
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1.1.2.1.1 Natural Cheese
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1.1.2.1.2 Processed Cheese
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1.1.3 Cream
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1.1.3.1 By Product Type
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1.1.3.1.1 Double Cream
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1.1.3.1.2 Single Cream
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1.1.3.1.3 Whipping Cream
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1.1.3.1.4 Others
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1.1.4 Dairy Desserts
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1.1.4.1 By Product Type
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1.1.4.1.1 Cheesecakes
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1.1.4.1.2 Frozen Desserts
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1.1.4.1.3 Ice Cream
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1.1.4.1.4 Mousses
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1.1.4.1.5 Others
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1.1.5 Milk
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1.1.5.1 By Product Type
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1.1.5.1.1 Condensed milk
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1.1.5.1.2 Flavored Milk
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1.1.5.1.3 Fresh Milk
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1.1.5.1.4 Powdered Milk
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1.1.5.1.5 UHT Milk
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1.1.6 Sour Milk Drinks
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1.1.7 Yogurt
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1.1.7.1 By Product Type
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1.1.7.1.1 Flavored Yogurt
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1.1.7.1.2 Unflavored Yogurt
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1.2 Distribution Channel
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1.2.1 Off-Trade
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1.2.1.1 Convenience Stores
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1.2.1.2 Online Retail
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1.2.1.3 Specialist Retailers
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1.2.1.4 Supermarkets and Hypermarkets
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1.2.1.5 Others (Warehouse clubs, gas stations, etc.)
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1.2.2 On-Trade
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1.3 Region
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1.3.1 Africa
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1.3.1.1 By Category
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1.3.1.2 By Distribution Channel
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1.3.1.3 By Country
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1.3.1.3.1 Egypt
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1.3.1.3.2 Nigeria
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1.3.1.3.3 South Africa
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1.3.1.3.4 Rest of Africa
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1.3.2 Asia-Pacific
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1.3.2.1 By Category
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1.3.2.2 By Distribution Channel
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1.3.2.3 By Country
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1.3.2.3.1 Australia
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1.3.2.3.2 China
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1.3.2.3.3 India
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1.3.2.3.4 Indonesia
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1.3.2.3.5 Japan
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1.3.2.3.6 Malaysia
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1.3.2.3.7 New Zealand
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1.3.2.3.8 Pakistan
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1.3.2.3.9 South Korea
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1.3.2.3.10 Rest of Asia Pacific
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1.3.3 Europe
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1.3.3.1 By Category
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1.3.3.2 By Distribution Channel
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1.3.3.3 By Country
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1.3.3.3.1 Belgium
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1.3.3.3.2 France
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1.3.3.3.3 Germany
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1.3.3.3.4 Italy
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1.3.3.3.5 Netherlands
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1.3.3.3.6 Russia
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1.3.3.3.7 Spain
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1.3.3.3.8 Turkey
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1.3.3.3.9 United Kingdom
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1.3.3.3.10 Rest of Europe
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1.3.4 Middle East
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1.3.4.1 By Category
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1.3.4.2 By Distribution Channel
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1.3.4.3 By Country
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1.3.4.3.1 Bahrain
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1.3.4.3.2 Iran
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1.3.4.3.3 Kuwait
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1.3.4.3.4 Oman
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1.3.4.3.5 Qatar
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1.3.4.3.6 Saudi Arabia
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1.3.4.3.7 United Arab Emirates
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1.3.4.3.8 Rest of Middle East
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1.3.5 North America
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1.3.5.1 By Category
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1.3.5.2 By Distribution Channel
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1.3.5.3 By Country
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1.3.5.3.1 Canada
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1.3.5.3.2 Mexico
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1.3.5.3.3 United States
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1.3.5.3.4 Rest of North America
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1.3.6 South America
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1.3.6.1 By Category
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1.3.6.2 By Distribution Channel
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1.3.6.3 By Country
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1.3.6.3.1 Argentina
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1.3.6.3.2 Brazil
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1.3.6.3.3 Rest of South America
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Dairy Market Size FAQs
How big is the Global Dairy Market?
The Global Dairy Market size is expected to reach USD 631.36 billion in 2024 and grow at a CAGR of 4.35% to reach USD 781.31 billion by 2029.
What is the current Global Dairy Market size?
In 2024, the Global Dairy Market size is expected to reach USD 631.36 billion.
