Global Dairy Market Size, Share, and COVID-19 Impact Analysis, By Category (Butter, Cheese, Cream, Dairy Desserts, Milk, Sour Milk Drinks, and Yogurt), By Distribution Channel (Off-Trade and On-Trade) and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035

Global Dairy Market Insights Forecasts to 2035

• The Global Dairy Market Size Was Estimated at USD 981.5 Billion in 2024
• The Dairy Market Size is Expected to Grow at a CAGR of around 4.98% from 2025 to 2035  
• The Worldwide Dairy Market Size is Expected to Reach USD 1675.8 Billion by 2035
• Europe is expected to grow the fastest during the forecast period.

According to a research report published by Spherical Insights and Consulting, The Global Dairy Market size was worth around USD 981.5 Billion in 2024 and is predicted to Grow to around USD 1675.8 Billion by 2035 with a compound annual growth rate (CAGR) of 4.98% from 2025 to 2035. The market is driven by several major factors including rapid urbanization, health and nutrition awareness, technological advancements, growth of dairy-based snacks, changing dietary trends, and supportive government policies and regulations.

Market Overview

The Global Dairy Market Size is the term used to describe the entire industry, worldwide, which is engaged in the production, processing, distribution, and consumption of milk and milk-based products and through that supporting human nutrition with a variety of fresh and processed dairy products out of the various regions. Additionally, an increase in the demand for organic and clean-label products is one of the main opportunities in the dairy market. The health and environmental consciousness of consumers are leading to a higher preference for products that have no additives, hormones, and antibiotics, which is a trend that is pushing dairy makers to go for organic and open labeling so that they can win over this group of consumers. Moreover, functional dairy products development like probiotics, omega-3 fatty acids, and plant sterols fortified products is bringing in yet another profitable opportunity, targeting the health-seeking consumers.

Report Coverage

This research report categorizes the dairy market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the dairy market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the dairy market. 

Driving Factors

The technological innovations in the dairy farming and processing sectors have a positive impact on the market growth. New and better breeding techniques, better feeding and milking equipment, and so on offer higher and better-quality milk production. In addition to this, all the sustainable and efficient production practices by the farmers need to be highly accountable, as they are the only ones to meet the growing environmental concerns and regulatory standards; thus, this contributes to the growth of the market. The use of technology in the supply chain like blockchain for tracing products or AI for forecasting has made the process easier and less wasteful and thus, dairy products are now getting to the consumers in good condition.

Restraining Factors

The environmental impact of the dairy sector is at the forefront of the debates, especially in the areas of CO2 emissions, water consumption, and land deterioration. Consumers who are more aware of the environment are putting the industry under pressure to switch to eco-friendly farming methods and to carbon footprint reduction. A few firms are indeed moving towards sustainability through their investments in renewable energy, waste reduction, and responsible sourcing, among other things.

Market Segmentation

The dairy market share is classified into category and distribution channel.

• The milk segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.           

Based on the category, the dairy market is divided into butter, cheese, cream, dairy desserts, milk, sour milk drinks, and yogurt. Among these, the milk segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The rising awareness of the health benefits of milk, especially calcium and vitamin D for the bones, is the main factor that continues to increase the demand for it. The consumer base has been widened by the introduction of new products like fortified and flavored milk. Lactose-free and plant-based milk substitutes are also gaining popularity, as they are catering to the needs of lactose-intolerant consumers as well as those wanting vegan options, thus the market is being expanded even more. The traditional perspective of milk as a basic food item continues to guarantee its constant demand all over the world.      

• The off-trade segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period.      

Based on the distribution channel, the dairy market is divided into off-trade and on-trade. Among these, the off-trade segment accounted for the highest market revenue in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The supermarket, hypermarket, convenience store and online platform segments together account for a lion's share of the market because of their extensive availability. The segment's widely available features such as bulk buying, low-cost pricing, and consumer preference for home consumption are factors that will contribute to its continued revenue share and growth even after the forecast period.    

Regional Segment Analysis of the Dairy Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the dairy market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the dairy market over the predicted timeframe. The region's market is predicted to increase at a strong rate of 4% per year, mainly due to the factors of higher income levels, urban expansion, and alterations in consumer preferences. The government's support for dairy farming through various programs and their focus on improving production efficiency are also propelling the market's growth to some extent. Besides, the geographical presence of product distribution through retail outlets and online shopping portals is making dairy products more accessible and available in the region, thus, indirectly contributing to the growth of the entire market.

Europe is expected to grow at a rapid CAGR in the dairy market during the forecast period. The area's marketplace is powered by a solid dairy consumption tradition and excellent production standards. The specialty cheeses and premium dairy products demand is very high, backed by the region's culinary heritage as well as gourmet culture. On the other hand, the production practices are heavily impacted by the authorities' strict rules in the areas of environmental sustainability and animal welfare, which are causing dairy manufacturers to come up with new ideas and changes.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the dairy market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Danone S.A.
• Lactalis Group
• Fonterra Co-operative Group Limited
• Dairy Farmers of America Inc.
• Arla Foods amba
• Saputo Inc.
• Yili Group
• Mengniu Dairy Company Limited
• Dean Foods Company
• FrieslandCampina
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In November 2023, Nestlé S.A. launched N3 milk, which was made from cow’s milk and contained all the essential nutrients found in milk, such as proteins, vitamins, and minerals. It also contained prebiotic fibers, had a low lactose content, and 15% fewer calories.

• In September 2023, China Mengniu acquired organic infant formula producer Bellamy's Australia for USD 1 billion.”

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the dairy market based on the below-mentioned segments: 

Global Dairy Market, By category

• Butter
• Cheese
• Cream
• Dairy Desserts
• Milk
• Sour Milk Drinks
• Yogurt

Global Dairy Market, By Distribution Channel

• Off-Trade
• On-Trade

  Global Dairy Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa