Europe Dairy Market

Market Overview:

European dairy market size reached USD 249.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 366.7 Billion by 2033, exhibiting a growth rate (CAGR) of 4.37% during 2025-2033​. The growing consumer consciousness toward their health and nutrition and the launch of favorable government policies to maintain quality dairy products are primarily driving the regional market. The EU is the world’s second-largest raw milk producer after India, with about 160.8 Million Tonnes produced in 2023.

Dairy encompasses items derived from milk, typically obtained from mammals like cows, goats, and sheep. Common dairy products comprise milk, cheese, butter, yogurt, and cream. Milk, serving as the foundational substance for various dairy items, is a valuable source of vital nutrients, including calcium, protein, vitamins, and minerals. These dairy products play a crucial role in human nutrition, offering a multitude of health advantages. They contribute to maintaining bone health and mitigating the risk of osteoporosis through their calcium content. Furthermore, the protein in dairy supports muscle growth and facilitates repair. Dairy products also contain essential vitamins, such as vitamin D, which plays a role in supporting immune function and preserving skin health.

Europe Dairy Market Trends:

Strong Foundations in Dairy Farming and Processing

The European dairy market benefits from centuries of established farming practices, which are supplemented by contemporary processing technologies. A well-developed infrastructure facilitates both large-scale manufacturing and artisanal activities, allowing the area to meet domestic demand while retaining a strong export position. Countries such as France, Germany, and the Netherlands are known for their efficient supply chains and sophisticated facilities, which assure the quality and consistency of a wide range of dairy products. This foundation enables organizations to adjust swiftly to changing consumer demands while maintaining competitive pricing. The combination of competent farmers, processing innovation, and a robust regulatory framework has positioned Europe as a worldwide dairy sector leader.

Rising Preference for Dairy-Based Nutrition

Consumers in Europe are increasingly turning to dairy products for their nutritional value, which has a direct impact on the EU dairy market size. The demand spans protein-rich yogurts, fortified milk, and specialized items designed to support active lifestyles or address dietary needs. Health-conscious buyers and aging populations are fueling interest in products with added vitamins, minerals, and probiotics. This trend is also being reinforced by the growth of functional foods, where dairy serves as a natural carrier for nutrients. Companies are investing in research to develop products that go beyond basic consumption, meeting the expectations of athletes, families, and wellness-focused consumers. The shift reflects how dairy is viewed as an essential part of balanced diets across diverse demographics.

Sustainability as a Driving Force

Sustainability is shaping the future of the European milk market, with a focus on reducing emissions, improving animal welfare, and promoting resource efficiency. Farmers and processors are adopting practices such as precision feeding, renewable energy use, and waste recycling to cut environmental impact. The dairy industry in Europe is now setting higher standards by embracing low-carbon technologies and circular production models. Consumers are also driving this movement, as demand grows for products with eco-friendly labels and transparent sourcing. Retailers and brands are responding by setting ambitious climate goals and collaborating with producers to lower carbon footprints. These efforts are central to the Europe dairy market forecast, which highlights sustainability as a decisive factor in shaping long-term growth.

Europe Dairy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for ​2025-2033​. Our report has categorized the market based on product type.

Product Type Insights:

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• 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

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.

Country Insights:

• Germany
• United Kingdom
• France
• Italy
• Russia
• Spain
• Netherlands
• Switzerland
• Poland
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Germany, United Kingdom, France, Italy, Russia, Spain, Netherlands, Switzerland, Poland, and Others.

European Dairy Companies:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Europe Dairy Market News:

• In June 2025, Amul launched its fresh milk products in Europe, starting with Spain, through a partnership with Spanish dairy cooperative COVAP. The launch was hosted at the Indian Embassy in Madrid with dignitaries in attendance. Amul milk is first available in Madrid and Barcelona, with expansion planned across Spain, Portugal, and later into Germany, Italy, and Switzerland. GCMMF’s managing director highlighted the collaboration as a step to bring Amul’s quality milk to European consumers.
• In April 2025, Arla Foods and DMK Group announced a plan to merge, forming Europe’s largest dairy cooperative with over 12,000 farmers and a combined pro forma revenue of EUR 19 Billion. The partnership aims to strengthen milk supply, secure competitive milk prices, and expand dairy innovation in Europe and globally. Pending regulatory and board approval, the union builds on past collaborations like ArNoCo, enhancing production of whey proteins and high-quality dairy ingredients.

Europe Dairy Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe dairy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Europe dairy market.
• 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 Europe 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.