Market Overview:
The global dairy market size reached US$ 944.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,459.3 Billion by 2032, exhibiting a growth rate (CAGR) of 4.95% during 2024-2032. The rapid urbanization, increasing awareness about health and nutrition, significant technological advancements, rising popularity of dairy-based snacking, shifting dietary preferences and favorable government policies and regulations are some of the major factors propelling the market.
Report Attribute
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Key Statistics
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Base Year
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2023
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Forecast Years
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2024-2032
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Historical Years
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2018-2023
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Market Size in 2023 |
US$ 944.7 Billion |
Market Forecast in 2032 |
US$ 1,459.3 Billion |
Market Growth Rate 2024-2032 |
4.95% |
Dairy refers to products derived from milk, primarily produced by mammals such as cows, goats, and sheep. The most common dairy products include milk, cheese, butter, yogurt, and cream. Milk is the raw material from which various dairy products are made, and it serves as a valuable source of essential nutrients such as calcium, protein, vitamins, and minerals. Dairy products are an essential part of the human diet, providing numerous health benefits. They contribute to bone health and help reduce the risk of osteoporosis due to their calcium content. Additionally, dairy products contain protein, which aids in muscle growth and repair. The vitamins present in dairy, like vitamin D, support immune function and maintain healthy skin.
The globally growing population translates into an increasing demand for food, including dairy products. Rising global populations, particularly in emerging economies, are contributing to higher consumption of dairy products, driving market growth. Additionally, rapid urbanization and changing dietary patterns, there has been a shift toward processed and convenient foods, including dairy products. As more people migrate to cities, the demand for packaged and on-the-go dairy options is on the rise. Other than this, a growing awareness of the health benefits of dairy products, such as their calcium and protein content, has led to increased consumption. Dairy is recognized as an essential part of a balanced diet, thus escalating the demand for dairy products among health-conscious consumers. Besides this, the popularity of dairy-based snacks and desserts has increased, driven by the convenience of ready-to-eat options. This trend is fostering the development of new dairy products tailored to consumers' snacking preferences. In line with this, the use of dairy derivatives, such as whey protein and lactose, in the food processing industry is increasing. These ingredients enhance the nutritional profile and functionality of various processed foods. Furthermore, international trade plays a vital role in the dairy market. As countries with varying dairy production capacities engage in trade, it affects prices, availability, and consumption patterns worldwide. Moreover, advancements in dairy processing technologies have led to improved production efficiency, product diversification, and extended shelf life. Innovations in packaging and distribution have also contributed to market expansion.
Dairy Market Trends/Drivers:
Rising Population Growth
As the global population continues to grow, so does the demand for essential nutrients like calcium and protein, which are abundantly found in dairy products. Developing countries, in particular, are witnessing rapid population growth, resulting in increased dairy consumption due to improved economic conditions and rising disposable incomes. Additionally, as urbanization accelerates, more people are transitioning from traditional diets to modern ones that include processed foods and dairy products, further boosting the market.
Rapid Urbanization
With more people moving to cities and leading busy lifestyles, convenience has become a key factor in food choices. Dairy companies have capitalized on this trend by offering a wide range of packaged, ready-to-eat, and on-the-go dairy options. Urban consumers are increasingly looking for quick and nutritious meals, making dairy an attractive choice due to its nutritional content and versatility in various recipes. Consequently, the urbanization trend is propelling the growth of the dairy industry.
Increasing Health and Nutrition Awareness
Dairy products are considered an important component of a balanced diet due to their rich calcium content, which is essential for bone health and development. Additionally, dairy is a valuable source of protein, vitamins (such as vitamin D and B12), and minerals (like potassium and magnesium). As consumers become more health-conscious and seek wholesome, nutrient-dense foods, dairy products are witnessing increased demand. Moreover, the growing awareness of lactose intolerance and milk allergies has led to the development of lactose-free and plant-based dairy alternatives, further shaping the market dynamics. Dairy companies are also responding by fortifying products with additional nutrients, catering to the demand for functional foods that support overall well-being.
Dairy Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global dairy market report, along with forecasts at the global and country levels from 2024-2032. Our report has categorized the market based on product type.
Breakup by Product Type:
- Liquid Milk
- Flavored Milk
- Cream
- Butter
- Cheese
- Yoghurt
- Ice Cream
- Anhydrous Milk Fat (AMF)
- Skimmed Milk Powder (SMP)
- Whole Milk Powder (WMP)
- Whey Protein
- Lactose Powder
- Curd
- Paneer
Liquid milk dominates the market
The report has provided a detailed breakup and analysis of the market based on the product type. This includes liquid milk, flavored milk, cream, butter, cheese, yoghurt, ice cream, anhydrous milk fat (AMF), skimmed milk powder (SMP), whole milk powder (WMP), whey protein, lactose powder, curd, and paneer. According to the report, liquid milk represented the largest segment.
Liquid milk is the largest segment in the dairy market due to its widespread consumption and essential role in daily diets worldwide. As a primary dairy product, liquid milk is sourced directly from mammals like cows, goats, and sheep, making it readily available and accessible to consumers.
One of the key factors driving the dominance of liquid milk is its versatility. It serves as a standalone beverage, a vital ingredient in various recipes, and a base for producing other dairy products like butter, cheese, and yogurt. Its widespread use in cooking, baking, and preparing dairy derivatives contributes to its high demand. Furthermore, liquid milk is perceived as a wholesome and nutritious option, rich in calcium, protein, vitamins, and minerals, all of which are essential for human growth and development. This nutritional profile has solidified its position as a staple food item in many households and contributes to its consistent demand across diverse demographics. Additionally, liquid milk's relatively longer shelf life, when compared to some other dairy products, makes it a convenient and reliable choice for consumers. The availability of different milk variants, such as whole, skimmed, and lactose-free milk, caters to a broader consumer base with varying dietary preferences, further contributing to its market dominance.
Breakup by Region:
- United States
- China
- India
- Japan
- Germany
- France
- United Kingdom
- Italy
- Spain
- Australia
- New Zealand
- Canada
- Brazil
- Mexico
- Turkey
India exhibits a clear dominance in the market
The report has also provided a comprehensive analysis of all the major regional markets, which include the United States, China, India, Japan, Germany, France, the United Kingdom, Italy, Spain, Australia, New Zealand, Canada, Brazil, Mexico, and Turkey. According to the report, India was the largest market for dairy.
With over 1.3 billion people, there is a massive consumer base for dairy products in India. As the population continues to rise, the demand for essential nutrients provided by dairy products also accelerates. Besides this, the agricultural nature of the country ensures a significant presence of livestock, particularly cows and buffaloes. This abundance of milk-producing animals facilitates a steady supply of raw milk for dairy processing and production. Additionally, the Indian dairy industry has witnessed significant modernization and infrastructure development, which has enhanced milk collection, processing, and distribution capabilities. This has made dairy products more accessible to consumers across urban and rural areas. Furthermore, the popularity of dairy-based traditional sweets and snacks, as well as the use of dairy in religious and cultural ceremonies, further boosts the demand for dairy products in India. Moreover, the government's support through various schemes, subsidies, and incentives has also contributed to the growth and stability of the market.
Company Overview:
Leading dairy companies continuously invest in research and development to create innovative dairy products that cater to evolving consumer preferences. This includes introducing new flavors, formats, and packaging to appeal to a broader customer base. Moreover, companies focus on developing value-added dairy products with functional benefits, such as probiotic-enriched yogurt or fortified milk, to meet health-conscious consumers' demands. Additionally, key players often expand their market presence by entering new geographical regions or penetrating untapped markets. This expansion may involve setting up new production facilities, distribution centers, or forming strategic partnerships with local businesses to strengthen their supply chain. Other than this, in response to growing environmental concerns, major dairy companies are implementing sustainable practices throughout their operations. This includes adopting eco-friendly farming techniques, reducing greenhouse gas emissions, and promoting animal welfare. Besides this, robust marketing strategies are employed to build brand awareness and connect with consumers. Key players invest in advertising campaigns, social media presence, and influencer partnerships to engage their target audience effectively.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Nestlé S.A.
- Fonterra Cooperative Group
- Royal FrieslandCampina N.V.
- Arla Foods amba
- Danone S.A.
- Lactalis Group
Recent Developments:
- In March 2022, Fonterra and Future Consumer Limited, an Indian company, jointly decided to bring the operations of their 50:50 joint venture, known as Fonterra Future Dairy, to a close. Fonterra Future Dairy was established as a collaboration between the two companies to explore opportunities in the Indian dairy market.
- Arla Foods announced its adoption of fiber-based caps for their milk cartons. This initiative signifies Arla's commitment to sustainability and environmental responsibility, aiming to reduce its ecological footprint and promote more eco-friendly packaging solutions.
- Danone achieved a significant milestone in the baby formula industry with the introduction of its innovative product, the Dairy & Plants Blend baby formula. This launch represents an industry-first, pioneering the incorporation of both dairy and plant-based ingredients into a single formula, catering to the evolving preferences and dietary needs of modern parents and their infants.
Dairy Market Report Scope:
Report Features |
Details |
Base Year of the Analysis |
2023 |
Historical Period |
2018-2023 |
Forecast Period |
2024-2032 |
Units |
Tons, US$ Billion |
Scope of the Report |
Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
|
Product Types Covered |
Liquid Milk, Flavored Milk, Cream, Butter, Cheese, Yoghurt, Ice Cream, Anhydrous Milk Fat (AMF), Skimmed Milk Powder (SMP), Whole Milk Powder, (WMP), Whey Protein, Lactose Powder, Curd, Paneer |
Countries Covered |
United States, China, India, Japan, Germany, France, the United Kingdom, Italy, Spain, Australia, New Zealand, Canada, Brazil, Mexico, Turkey |
Countries Covered |
United States, China, India, Japan, Germany, France, United Kingdom, Italy, Spain, Australia, New Zealand, Canada, Brazil, Mexico and Turkey |
Companies Covered |
Nestlé S.A., Fonterra Cooperative Group, Royal FrieslandCampina N.V., Arla Foods amba, Danone S.A., Lactalis Group, etc. |
Customization Scope |
10% Free Customization |
Report Price and Purchase Option |
Single User License: US$ 4500
Five User License: US$ 5500
Corporate License: US$ 6500 |
Post-Sale Analyst Support |
26 Weeks |
Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Benefits for Stakeholders:
- IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the dairy market from 2018-2032.
- The research study provides the latest information on the market drivers, challenges, and opportunities in the global dairy market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the dairy industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.