Dairy Market Research Report By Product Type (Milk, Cheese, Yogurt, Butter, Ice Cream), By Source (Cow, Buffalo, Goat, Sheep, Camel), By Distribution Channel (Supermarkets, Convenience Stores, Online Stores, Specialty Stores, Direct Sale), By Application (Food Industry, Beverages, Nutraceuticals, Cosmetics, Animal Feed), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Dairy Market Summary

As per MRFR Analysis, the Global Dairy Market was valued at 680.81 USD Billion in 2023 and is projected to grow to 800 USD Billion by 2035, with a CAGR of 1.36% from 2025 to 2035. The market is driven by increasing health consciousness, rising demand for dairy alternatives, and technological advancements in dairy farming. Key players are adapting to consumer preferences for premium and sustainable products, reflecting a dynamic market landscape.

Key Market Trends & Highlights

The Global Dairy Market is witnessing transformative trends driven by consumer preferences and health awareness.

• Health consciousness is driving demand for low-fat and fortified dairy products, with studies linking dairy to improved bone density.
• The demand for dairy alternatives is surging, with nearly 30% of consumers avoiding lactose, leading to growth in plant-based options.
• Technological innovations in dairy farming are enhancing productivity, with precision feeding practices increasing milk production by up to 15%.
• Urbanization is shifting consumer preferences towards convenience food options, with dairy products playing a significant role.

Market Size & Forecast

2023 Market Size: USD 680.81 Billion

2024 Market Size: USD 690.07 Billion

2035 Market Size: USD 800.0 Billion

CAGR (2025-2035): 1.36%

Largest Regional Market Share in 2024: North America.

Major Players

Key Companies include Arla Foods, Danone, California Dairies, AgriMark, Unilever, FrieslandCampina, Schreiber Foods, Nestle, Saputo, Associated Milk Producers, Stonyfield Farm, Fonterra, Lactalis, Dairy Farmers of America, Muller.

Key Dairy Market Trends Highlighted

The growing health consciousness of consumers, which highlights the need for low-fat and fortified dairy products, is one trend propelling the Dairy Market's ongoing evolution. As consumers look for clearer labeling, there is a noticeable trend toward organic and natural dairy products.

As businesses strive to accommodate a range of dietary choices, including lactose-free and plant-based substitutes, innovations in dairy manufacturing and product creation are especially noteworthy. Dairy producers are investigating non-dairy alternatives as a result of the global surge in veganism, which reflects changing customer attitudes toward sustainability and health.

Urbanization and population increase are major market factors that raise consumer demand for nutrient-dense food items. Dairy product consumption is rising in emerging nations as customers' disposable incomes improve and they are ready to pay more for higher-quality goods.

Furthermore, improvements in supply chain technology improve the effectiveness of dairy distribution while guaranteeing the safety and freshness of the final product. Growth into emerging areas where dairy consumption is increasing, especially in Asia and Africa, where demand for dairy is anticipated to rise as a result of shifting dietary patterns, is one opportunity to be investigated.

Additionally, the dairy supply chain might benefit from increased traceability and transparency through the use of emerging technologies like blockchain and artificial intelligence. The desire from consumers for eco-friendly goods has led to a recent trend in dairy production toward sustainable techniques.

Many farmers have responded to this by using more environmentally friendly farming methods, such as lowering carbon emissions and raising standards for animal care. The future of the Dairy Market is being shaped by the confluence of these trends and factors.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Dairy Market Drivers

Increasing Global Population

The Dairy Market is significantly driven by the increasing global population, which reached approximately 7.9 billion in 2021 and is estimated to surpass 9.7 billion by 2050 according to the United Nations. This population growth contributes to a higher demand for dairy products such as milk, cheese, and yogurt.

As the global population continues to grow, so does the need for nutritious food sources, with dairy playing a pivotal role due to its rich calcium and protein content. Organizations like the Food and Agriculture Organization (FAO) have highlighted that dairy products are essential for food security and nutrition, contributing to the dietary needs of billions.

Moreover, with urbanization trends, consumers are looking for convenient, nutritious options to incorporate into their diets, which dairy products satisfy effectively. This ongoing trend indicates a solid growth trajectory for Dairy Market, as more manufacturing units are required to meet the ever-increasing demand for dairy in various regions worldwide.

Health Benefits of Dairy Products

The growing awareness of the health benefits associated with dairy consumption significantly contributes to the escalation of the Dairy Market. Dairy products are well-known for their health advantages, including bone health improvement through calcium and vitamin D.

According to the World Health Organization (WHO), an adequate intake of these nutrients is critical for preventing osteoporosis and maintaining bone health. Reports suggest that nearly 200 million women worldwide suffer from osteoporosis, increasing awareness toward diets rich in dairy products.

Health campaigns led by organizations such as the American Dairy Association promote milk's contributions to daily nutrition, prompting more consumers to include dairy in their diets. The widespread acceptance of dairy as part of a healthy lifestyle bolsters market demand and influences production, encouraging innovation in product offerings to cater to health-conscious consumers.

Increase in Processed Dairy Products

The rise in demand for processed dairy products considerably drives the Dairy Market. With changing lifestyles and consumer habits, there is a marked increase in the consumption of cheese, yogurt, and other ready-to-eat dairy items.

The International Dairy Federation reports that global cheese consumption has grown significantly, with more than 30 million tons consumed in 2021 alone. This trend reflects shifting consumer preferences towards convenience and easy-to-consume food options.

As urban populations grow and the need for quick meal solutions rises, manufacturers are rapidly innovating to create new, appealing dairy products. Industry giants, including Nestlé and Danone, are leading the way in introducing fortified and flavored dairy products to meet these evolving consumer demands, thereby enhancing the competitive edge of the Dairy Market.

Dairy Market Segment Insights

Dairy Market Product Type Insights

The Dairy Market encompassed an extensive range of products categorized by type, which played a critical role in determining market dynamics and consumer preferences.In 2024, Milk led the way at 300.0 USD Billion, representing the largest share by a considerable margin. Milk’s dominance stems from its nutritional profile, versatility, and strong demand in various forms such as liquid, powdered, and fortified products.

The Cheese segment followed closely, valued at 175.0 USD Billion, gaining traction due to its usage in advanced culinary applications and processed foods, which brings immense importance given the growing consumer base looking for convenience and flavor in their dairy choices.Yogurt too showed impressive growth, reaching a valuation of 90.0 USD Billion, largely driven by the rising trend of health-conscious lifestyles and the popularity of probiotic products, making it a staple in many households.

Butter, valued at 60.0 USD Billion in 2024, maintains its significance as a cooking essential, while Ice Cream saw a valuation of 65.07 USD Billion, which highlighted the seasonal and celebratory aspects of dairy products, capitalizing on consumer indulgence and lifestyle changes.Each of these segments revealed distinct market behavior and trends, with Milk and Cheese commanding major shares and showcasing stability, while Yogurt, Butter, and Ice Cream reflect varying growth potential driven by evolving consumer preferences.

Overall, the Dairy Market segmentation emphasized not only the inherent diversity of dairy products but also the potential for innovation and growth across these vital segments, with Milk consistently being the majority holding, demonstrating its foundational role in the Dairy Market revenue landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Dairy Market Source Insights

The Dairy Market presents diverse opportunities across its Source segment, characterized by different animal sources including Cow, Buffalo, Goat, Sheep, and Camel. Cow’s milk continues to lead the market due to its global prevalence and high demand in multiple dairy products.

Buffalo milk is particularly dominant in regions like South Asia, where it contributes significantly to dairy consumption and is known for its rich nutritional profile. Goat milk, while capturing niche markets, is gaining traction due to rising health awareness and lactose intolerance among consumers.

Sheep milk, although more limited in production, plays a crucial role in specialty cheese markets, particularly in Mediterranean countries. Camel milk, recognized for its unique health benefits, is emerging as a valuable alternative in the Middle East and parts of Africa.

The segmentation landscape demonstrates the Dairy Market's adaptability, catering to diverse consumer needs and preferences, while growing health trends and market statistics underline the increasing focus on nutritional diversity in dairy consumption. This emphasizes the significance and evolving dynamics of the Source segment in shaping the overall dairy industry's growth trajectory.

Dairy Market Distribution Channel Insights

The Distribution Channel segment within the Dairy Market plays a crucial role in shaping consumer access and purchasing patterns. This segment is seeing significant growth fueled by diverse retail formats. Supermarkets dominate the distribution landscape due to their extensive product range and convenience for customers, allowing them to access dairy products easily.

Convenience Stores are also gaining traction, catering to the preference for quick and easy shopping experiences. The rise of Online Stores has transformed the retail environment, enabling consumers to purchase dairy products from the comfort of their homes, which has become increasingly popular.

Specialty Stores focus on organic and premium dairy solutions, appealing to health-conscious consumers and providing niche offerings that enhance overall market appeal. Lastly, Direct Sale channels emphasize a personal touch with consumers, often providing farm-to-table advantages.

These dynamics in the Dairy Market segmentation contribute to effective market growth while addressing varying consumer needs and preferences, ultimately highlighting the evolving landscape of dairy distribution channels.

Dairy Market Application Insights

The Application segment is critical within the Dairy Market, encompassing various categories such as Food Industry, Beverages, Nutraceuticals, Cosmetics, and Animal Feed. The Food Industry plays a vital role, leveraging dairy products for their nutritional benefits and versatility.

Beverages have seen an increase in demand for dairy-based options, driven by consumer preferences for healthy and functional products. Nutraceuticals are emerging as a significant area, combining food and pharmaceutical benefits, thus promoting health.Cosmetics harness dairy-derived ingredients, recognized for their moisturizing properties, ensuring a wide market appeal. Animal Feed represents another crucial aspect, providing essential nutrients for livestock, essential for food production.

Overall, the Dairy Market is characterized by shifting consumer trends, the rising popularity of functional foods, and the growing demand for sustainable dairy production practices, all contributing to its optimistic future landscape. As this market evolves, it presents numerous opportunities for innovation and expansion across diverse applications globally.

Dairy Market Regional Insights

Among these, North America and Europe held significant positions, with North America valued at 210.0 USD Billion, while Europe led with a valuation of 220.0 USD Billion in the same year. This dominance can be attributed to robust dairy consumption patterns and established dairy farming practices in these regions.

The Asia Pacific region, valued at 180.0 USD Billion in 2024, followed closely, driven by increasing population and changing dietary preferences. Meanwhile, South America represented a developing market with a valuation of 50.0 USD Billion, reflecting potential growth opportunities.

The Middle East and Africa market, valued at 30.07 USD Billion, highlighted a growing demand for dairy products amid urbanization and rising incomes.Overall, the Dairy Market segmentation illustrated varying levels of development and consumer preferences across regions, offering insights into market dynamics. The majority holding in North America and Europe was significant due to established consumer habits, while emerging markets in Asia Pacific and South America presented opportunities for future expansion.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Dairy Market Key Players and Competitive Insights

The Dairy Market is characterized by its dynamic nature and diverse product offerings, driven by changing consumer preferences and a growing demand for dairy alternatives. The competition within this market is intense, with players striving to innovate and differentiate themselves through product quality, sustainability initiatives, technology adoption, and expanding distribution channels.

Consumer awareness regarding health, nutrition, and sustainability plays a significant role in shaping market strategies. Additionally, the rise of plant-based dairy alternatives has introduced new competition and challenges to traditional dairy companies, prompting them to adapt to new trends and consumer demands.

This competitive landscape constantly evolves, influenced by regulatory changes, market access opportunities, and shifting trade dynamics on a global scale.FrieslandCampina stands out in the Dairy Market with a robust presence built on a heritage of excellence in dairy production and distribution. The company leverages its strong cooperative structure, allowing it to harness the resources and expertise of its member farmers while ensuring a steady supply of high-quality milk.

FrieslandCampina focuses on product innovation and sustainability, enabling it to meet diverse consumer demands across various regions. Its extensive portfolio includes milk, cheese, yogurt, and infant nutrition products tailored to different markets, further strengthening its competitive position.

The company's strong emphasis on research and development helps drive continuous improvements in product offerings while maintaining rigorous quality standards. FrieslandCampina’s commitment to sustainable practices and ethical sourcing resonates with consumers, enhancing its brand reputation and loyalty in a crowded marketplace.

Unilever also plays a significant role in the Dairy Market with its diverse product lineup that includes dairy-based products like yogurt, ice cream, and cheese. The company's strategy emphasizes expanding its presence in emerging markets while innovating existing product lines to meet changing consumer preferences.

Unilever’s strength lies in its ability to leverage a strong global distribution network along with well-established brand recognition, making its dairy products widely accessible. The company continuously invests in research and development to create healthier and more sustainable product options, which are receiving positive responses from consumers.

Unilever has also engaged in various mergers and acquisitions to expand its dairy segment capabilities, allowing it to diversify its offerings and strengthen its competitive edge in the dairy sector worldwide. Its commitment to sustainability and responsible sourcing further enhances Unilever's position, as it aligns with the increasing consumer demand for transparency and eco-conscious products.

Key Companies in the Dairy Market Include

• FrieslandCampina


• Unilever


• Arla Foods


• Danone


• Saputo


• Nestle


• Bellamy's Australia


• Fonterra


• Lactalis


• China Mengniu Dairy


• Meiji Holdings


• Austrian Dairy


• Dairy Farmers of America

Dairy Market Developments

With aspirations to expand to the UK and EU, Antler Bio received £3.2 million in June 2025 to extend its epigenomics-based Epiherd platform, which evaluates cow gene responses to environmental conditions including stress and dehydration.The technology now serves over 100 farms in Europe, mostly in the Nordic region. Halter, a New Zealand agri-tech startup, became a unicorn on June 23, 2025, following a $100 million Series D at a $1 billion valuation.

The company's cattle-management system uses virtual fencing and smart collars to minimize environmental impact and maximize grazing, with plans to expand operations in 18 U.S. states. Rabobank said in June 2025 that the minor 0.5% increase in output in Q1 had caused a jump in global dairy commodity prices in early 2025.However, Rabobank cautioned that an increase in supply (estimated at 1.1% in Q2 and 1.4% in Q3) and a decline in demand might cause the market to rebalance in H2.

Even as the EU and Oceania stabilize and Africa experiences modest reductions, the FAO predicted on June 18, 2025, that worldwide milk output will climb by 1% in 2025, driven by gains in Asia, the Americas, and recovery in Argentina and the U.S. Arla Foods announced a little increase in sales from €13.7 billion to €13.8 billion in February 2025, predicting more growth in the year but warning about supply-chain concerns and geopolitical challenges.

Earlier in September 2024, Ajinomoto and Danone joined up to improve cow digestion and manure management in order to lower dairy CO₂ and methane emissions.

Dairy Market Segmentation Insights

Dairy Market Product Type Outlook

• Milk


• Cheese


• Yogurt


• Butter


• Ice Cream

Dairy Market Source Outlook

• Cow


• Buffalo


• Goat


• Sheep


• Camel

Dairy Market Distribution Channel Outlook

• Supermarkets


• Convenience Stores


• Online Stores


• Specialty Stores


• Direct Sale

Dairy Market Application Outlook

• Food Industry


• Beverages


• Nutraceuticals


• Cosmetics


• Animal Feed

Dairy Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric	Details
Market Size 2023	680.81(USD Billion)
Market Size 2024	690.07(USD Billion)
Market Size 2035	800.0(USD Billion)
Compound Annual Growth Rate (CAGR)	1.35% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	FrieslandCampina, Unilever, Arla Foods, Danone, Saputo, Nestle, Bellamy's Australia, Fonterra, Lactalis, China Mengniu Dairy, Meiji Holdings, Austrian Dairy, Dairy Farmers of America
Segments Covered	Product Type, Source, Distribution Channel, Application, Regional
Key Market Opportunities	Plant-based dairy alternatives, Functional dairy products growth, E-commerce distribution expansion, Sustainable packaging solutions, Premiumization of dairy products
Key Market Dynamics	rising health consciousness, shifting consumer preferences, technological advancements, rising demand for dairy alternatives, increasing urbanization
Countries Covered	North America, Europe, APAC, South America, MEA