How AI is Impacting the Global Dairy Industry Growth
The global dairy market is presently experiencing a profound transformation. This is largely accredited to the strategic integration of artificial intelligence (AI), a technology poised to redefine established paradigms of efficiency and innovation within the industry. From real-time bovine monitoring and AI-driven predictive analytics for health and breeding, to automated milking systems and optimized feed management, AI's influence permeates every stratum of the dairy production process. Beyond the confines of the farm, AI further optimizes supply chain logistics, refines demand forecasting, and enhances quality control, thereby minimizing waste and ensuring product freshness. This technological amalgamation not only promises substantial increase in productivity and profitability but also contributes significantly to elevated standards of animal welfare, directly addressing some of the most pressing challenges confronting the industry worldwide. According to a report by IMARC Group, the valuation of the global dairy market reached USD 991.5 Billion in 2024.
Wellness in Every Drop: Where Dairy Meets Data
Gut Instinct: The Rise of Functional Dairy
The demand for probiotic and functional dairy items is rising considerably as consumers prioritize health and wellness. Probiotics, recognized for their benefit to digestion and immunity, are becoming vital components in items like yogurt. Top dairy companies are consequently launching products that meet the evolving demands of health-conscious consumers. For instance, Meiji introduced its functional yogurt, Meiji W Skin Care Yogurt, in March 2025, in Japan. This yogurt enhances skin health with probiotics, collagen peptides, and sphingomyelin for UV protection and hydration, highlighting increasing consumer demand for functional foods that provide nutrition alongside extra health advantages.
Straight From the Source: Clean Labels, Clear Intent
The contemporary consumer, increasingly attuned to overall well-being, is demonstrating a pronounced preference for dairy products free from synthetic additives, artificial hormones, and antibiotics. This represents a significant paradigm shift that is actively compelling dairy brands to embrace and implement more sustainable and transparent practices across their complete value chain. For instance, in 2025, Meliha, a member of Ektifa, introduced a bottled laban beverage in the UAE, addressing the increasing interest in organic, clean-label dairy items, showcasing the brand's dedication to sustainability and healthier, environment-friendly choices.
Green Cream: How Dairy Is Cutting Waste and Emissions
Sustainable methods are becoming vital in the dairy industry, as producers concentrate on minimizing waste and tracking carbon emissions. Dairy producers are reducing their environmental footprint by implementing precision agriculture, utilizing renewable energy, and enhancing feed management. Initiatives involve minimizing water usage, improving feed efficiency, and strengthening waste handling. As sustainability becomes important in the dairy industry, companies are introducing innovative solutions to further reduce environmental impacts. In 2024, John Deere and DeLaval introduced the Milk Sustainability Center, a digital platform that combines agricultural and livestock data to assist farmers in enhancing efficiency, minimizing environmental impact, and reaching sustainability objectives.
Data-Driven Dairy: Where Automation Meets Agriculture
AI is revolutionizing dairy farming through enhanced cow health monitoring, forecasting milk production, and automating tasks. It also improves inventory control, demand predictions, and enhances cold chain logistics for effective deliveries. The continued advancement of AI technologies is driving significant innovation in dairy farming, with companies developing cutting-edge solutions to enhance operational efficiency. In 2025, for instance, Lely unveiled three innovations at Future Farm Days: Astronaut A5 Next for improved milking and cow health tracking, Astronaut Max for larger farms, and Lely Hub to enhance data security and farm productivity.
AI Tracks, Detects, and Optimizes Dairy Farm Health
AI is improving herd management via predictive analytics and immediate health tracking. Employing information from sensors and wearable gadgets, AI can monitor the health of individual cows, forecast milk output, and identify initial indications of illness or stress. This preventative strategy enables farmers to tackle health issues early, reducing expensive veterinary expenses and enhancing herd productivity. Using AI, farmers can gain insights into their cow’s requirements, enhance productivity, and guarantee the overall health of the herd.
Reinventing Dairy with Smarter Milking and Feeding
Automated milking systems and intelligent feeding solutions driven by AI are revolutionizing dairy farming by enhancing efficiency and lowering labor expenses. These systems employ sensors and algorithms to enhance milking schedules and deliver customized feed, boosting cow health, development, and milk yield. Building on the advancements in automated systems, key players are further improving efficiency for larger dairy operations. In 2024, DeLaval's VMS™ Batch Milking system, designed for large farms, uses robotic units to improve efficiency and reduce labor, allowing farmers to maintain familiar milking practices.
Tech-Driven Precision in Dairy Quality Control
AI is transforming quality control in dairy manufacturing by utilizing image recognition and sensor information to guarantee product uniformity and safety. Utilizing computer vision, AI systems evaluate dairy items throughout different production phases, detecting flaws, contaminants, and irregularities that might be missed by human observation. Through sensor data, AI observes elements like texture, color, and composition, guaranteeing that products align with strict quality standards. This sophisticated application of AI is exemplified by companies that have already begun to integrate these cutting-edge solutions. For example, in 2024, ITC Foods incorporated AI into its dairy and beverage production processes, employing visual inspection and real-time monitoring technologies to improve quality control.
Forecasting Dairy Demand with AI algorithms
AI forecasts future demand by examining previous sales, consumer preferences, and market trends, enabling dairy producers to modify production and inventory levels. It allows for immediate inventory monitoring, automatic replenishment, minimizes waste, excess inventory, storage expenses, and improves supply chain effectiveness. This ability to leverage AI for smarter inventory and production management is already being used by leading companies in the dairy sector.
Smart Cold Chain Solutions
AI improves cold chain logistics in dairy by utilizing real-time sensors for temperature and humidity to ensure optimal conditions and avoid spoilage. Predictive algorithms anticipate disruptions, allowing quick responses to maintain product quality throughout storage, transportation, and distribution. The growing adoption of AI in cold chain logistics is already helping companies implement more resilient and sustainable systems. A notable instance is Amul's 2025 plan, which aims to improve solar-powered cold chain facilities in rural India, addressing heatwaves and rising fuel costs with solar chillers and IoT-enabled transport, boosting dairy freshness and farmers' earnings.
The Dairy Lineup: Products Powering Global Growth:
Top Dairy Product Type Categories to Look Out For
- Liquid Milk: Liquid milk represents the largest segment, driven by steady consumer demand for fresh and nutritious beverages. It is a staple in many diets worldwide, particularly in developing economies where milk consumption is rising.
- Skimmed Milk Powder (SMP): SMP is becoming popular because of its long shelf life, affordability, and adaptability in food manufacturing. SMP is commonly utilized in dairy products, such as beverages, baked items, and infant formula.
- Whole Milk Powder (WMP): WMP is essential in areas with restricted access to fresh milk, appreciated for its nutritional benefits and extended shelf life. Whole Milk Powder frequently utilized in the manufacturing of cheese, chocolate, and infant formula.
- Butter: Butter continues to be vital in the dairy sector, valued for its taste and adaptability in culinary and baking applications. The demand for butter is driven by consumer inclination towards natural, high-fat dairy products.
- Cheese: The cheese market serves a variety of preferences, ranging from traditional hard cheeses to creative soft types. Rising interest in artisanal, organic, and functional cheeses that offer health advantages is strengthening the market growth.
- Yogurt: The increasing popularity of yogurt is driven by consumer interest in probiotic-rich, functional foods that promote digestive and immune wellness. Its adaptability as a snack, component, and dish, combined with plant-based choices, enhances its attraction.
- Ice Cream: The segment is gaining from consumer demand for premium and artisanal ice creams that address a variety of dietary preferences. Furthermore, advancements in healthier options, including low-sugar, high-protein, and lactose-free ice creams, are increasing the attractiveness of ice cream to health-aware consumers.
-(1)_11zon.webp)
World Milk Map: Who’s Driving the Dairy Boom:
Modern Health Trends Shape Dairy Growth in Asia Pacific Market
Asia-Pacific is a crucial region in the global dairy market, accounting 40.5% of the market share, attributed to the increasing incomes, swift urban development, and shifting dietary habits. India is one of the top producers and consumers of dairy, with milk serving as a fundamental part of everyday diets. Meanwhile, China is seeing a growing demand for premium and health-conscious dairy products, like organic milk, protein-rich beverages, and lactose-free alternatives, driven by heightened health consciousness. This regional prominence, particularly in the demand for premium dairy, is further exemplified by the strategic moves of key industry players. In 2024, Arla Foods revealed intentions to enhance its footprint in China, emphasizing premium dairy offerings, including organic milk, protein-rich beverages, and lactose-free alternatives.
Sustainability and Tradition Drive Europe's Dairy Evolution
Europe is experiencing growth owing to its focus on quality, tradition, and sustainability. The increasing demand for organic, pasture-raised, and environmentally certified dairy products is bolstering the market growth. As consumer preferences in the region are shifting towards organic and clean-label products, companies are adjusting their offerings to meet this demand. Besides this, dairy brands from different regions are partnering with local brands to strengthen their market hold in the region. For example, on June 05, 2025, Indian brand Amul declared its debut in the European region through a collaboration with Spain’s key dairy cooperative, COVAP. This partnership will help the Indian brand launch its flagship fresh milk in several Spanish cities, such as Barcelona and Madrid.
Reinventing Dairy in North America with Fortified and Organic Options
The dairy market in North America is expanding because of the growing consumer demand for organic, fortified, and functional dairy items. Health trends and the growing demand for clean-label products persist in shaping product development, resulting in a broader range of low-fat yogurts, and probiotic drinks. In 2025, Oikos introduced its "Oikos PRO" range in Canada, providing yogurt that contains 18-24 grams of protein per serving, crafted from 100% Canadian milk, without added sugars, aimed at muscle growth and recovery.
Health-Focused Dairy Innovations in Latin America
Latin America is experiencing expansion in the dairy sector on account of the change in consumer preferences for convenient and health-focused dairy items. Local and regional dairy brands are investing in new product development and improved packaging to appeal to changing consumer preferences. For example, in 2025, Cooperoeste, a prominent Brazilian dairy company, introduced yogurt and dulce de leche in SIG CloverCap pouches at ExpoSuper 2025, providing protein and "triple zero" varieties to satisfy health-focused, convenience-driven consumer needs.
Dairy Production Drives Growth in the Middle East and Africa
The Middle Eastern and African market is mainly driven by swift urbanization, increasing disposable incomes, and heightened awareness about the nutritional benefits of dairy products. Investments in regional dairy production, cutting-edge processing technologies, and cold storage facilities are improving the area’s local supply potential. For example, in 2025, Saudi Arabia initiated a significant dairy industrial complex in Al-Kharj, aiming to establish itself as the regional frontrunner in dairy production.
Dairy by the Numbers: Trends Shaping 2025 and Beyond:
According to IMARC Group’s projections, the global dairy market is projected to grow at a CAGR of 4.75% from 2025 to 2033, reaching USD 1,505.8 Billion by 2033, supported by nutritional demand, digital transformation, and sustainable innovation.
The Demand Engine: Tech, Health, and Global Reach:
- Dairy Meets Health-Conscious Demand: There is a rise in the demand for low-fat, high-protein, lactose-free, and probiotic-rich dairy products. Producers are introducing product innovations that harmonize nutritional benefits with flavor, while tackling issues associated with digestion, calorie consumption, and immune health. In 2025, Nova Dairy introduced a skim milk powder that is rich in nutrients, providing low-fat, high-protein choices for health-focused consumers. It guarantees freshness, convenience, and purity, supporting weight management and cholesterol regulation without any additives.
- Growing Momentum in Emerging Economies: Developing economies are contributing to the expansion of the dairy market, supported by increasing income levels, urban development, and enhanced nutritional awareness. Global dairy industry leaders and local companies are consequently investing in these regions to tap into growing demand and establish long-term market presence.
- Processing and Delivery with Smarter Tech: Sophisticated methods like membrane filtration, high-pressure processing, and automation are allowing manufacturers to uphold uniform quality and safety standards as they increase production. These technological breakthroughs are being applied in practical solutions that significantly enhance dairy processing efficiency and sustainability. For instance, in 2025, DuPont launched the FilmTec Hypershell XP RO-8038, a reverse osmosis solution that improves dairy processing efficiency, cutting energy and costs by up to 50% while increasing lactose and whey concentration and lowering emissions. In logistics, the combination of smart cold chain technologies and live tracking ensures the safe transportation of dairy goods across extensive distances.
Dairy’s Frontier: Where the Next Growth Wave Lives:
- Diet Trends in Urban Hubs: Rapid urban growth in Africa and Southeast Asia is transforming eating patterns, resulting in higher demand for dairy items across urban centers. According to the Africa’s Urbanisation Dynamics 2025, the urban population is estimated to increase from 700 million to 1.4 billion by the year 2050. This demographic change highlights the increasing significance of dairy in addressing changing consumer demands, especially in rapidly advancing urban markets where convenience and health are critical factors influencing purchases.
- Digital Shopping Transforms Dairy Delivery: E-commerce and D2C platforms are changing dairy distribution by providing ease and direct ties between producers and customers. Dairy companies are putting money into online platforms, subscription services, and delivery options to address changing needs. For example, in 2024, Aavin launched the ‘Aavin on Wheels’ service in Madurai, utilizing mobile vans to bring dairy products straight to homes. This project mirrors a wider movement towards accessible, technology-driven distribution.
- Tech Ties for Smarter Dairy Management: Collaborations between major dairy market players and technology firms, especially agritech startups, are transforming dairy management through the incorporation of AI-powered tools that boost efficiency, optimize resource utilization, and elevate product quality. This trend of partnerships between dairy industry leaders and tech innovators is accelerating advancements in dairy management and product development. In 2024, Dairy Management Inc. (DMI) collaborated with PIPA’s AI platform to investigate the health advantages of dairy through the LEAP initiative, boosting innovation in dairy nutrition and wellness to address consumer needs for healthier, functional products.
Behind the Numbers: IMARC’s Role in Dairy’s Innovation Surge:
IMARC Group empowers stakeholders across the dairy and food and beverage industries with strategic intelligence to thrive in the dynamic and competitive global dairy market. Our services help clients identify emerging opportunities, mitigate potential risks, and drive innovation in dairy products and solutions through:
- Market Insights: We analyze global trends shaping the dairy market, such as available healthier, functional dairy options.
- Strategic Forecasting: We predict future developments in dairy tech, sustainable products, and innovations in dairy formats like ready-to-drink (RTD) beverages and yogurt-based snacks.
- Competitive Intelligence: We track innovations by leading dairy players, including trends in natural ingredients, sustainable packaging, and D2C sales models.
- Policy and Regulatory Analysis: We assist clients in navigating food safety standards, labeling rules, and global trade policies affecting market access and compliance.
- Tailored Consulting Solutions: We provide customized consulting, from market studies to digital transformation, to help clients stay competitive in the evolving dairy market.
.webp)
.webp){kind=logo}
Our Clients
Contact Us
Have a question or need assistance? Please complete the form with your inquiry or reach out by emailing us on sales@imarcgroup.com.
Previous post
People’s relationship with food is undergoing a profound transformation. No longer just a source of fuel, what individuals eat is now seen as a cornerstone of the overall well-being—a tool to boost immunity, sharpen focus, support digestion, and build long-term resilience. This evolution in consumer consciousness is creating a powerful demand for foods that are functional, organic, and transparently made with real ingredients.
Tequila, once confined to regional consumption in Mexico, has now become a popular spirit worldwide, known for its rich heritage, skilled craftsmanship, and premium quality. Made from blue agave, tequila has attracted international consumers for its distinct flavor, artisanal qualities, and cocktail versatility.
Avocado oil is a nutritious oil pressed from the pulp of avocados (Persea americana), in contrast with most oils, which are seed derived. Avocado oil is valued for its rich content of monounsaturated fats, especially oleic acid, in addition to necessary vitamins like E, A, and D. Avocado oil has a mild, buttery taste and very high smoke point and is used both in food preparation and cosmetics.
Biscuits are dry, baked foods made from flour and usually crisp in texture and flat in shape, eaten frequently as a snack or with a meal. They consist mostly of wheat flour, sugar, fat (butter or vegetable oil), and leavening agents such as baking powder. Flavors and variety may be added using ingredients like milk solids, chocolate, spices, or dried fruits. Biscuits come in sweet and savory forms, varying from cookies and cream-filled to salted crackers. Their shelf life, which is lengthy, convenient packaging, and broad taste appeal have made them a household staple, school staple, and workplace staple worldwide.
Nutritional powders have become essential nutritional supplements created to address the specific health needs of vulnerable demographics, including diabetic patients, the aged, and the sick. When regular food intake is inadequate or compromised, these powders, which are made with specially designed compositions and are high in vital vitamins, minerals, protein, and carbs, offer balanced nourishment. Specialized baby formulas guarantee the best possible growth and development in the early years of life.
Vegetable oils remain among the world’s most widely used agricultural products, essential to food manufacturing, biofuels, cosmetics, and industrial goods.
Learn key financial strategies, operational and capital cost planning essentials for starting a profitable livestock feed production business in 2025.
World Tea Day, celebrated every year on May 21st, is an opportunity to appreciate the rich history, cultural significance, and economic impact of tea. From its origins in ancient China to its status as a global commodity, tea continues to connect people, cultures, and economies.
Mango pulp is the thick, smooth, and semi-liquid product yielded by crushing or pulping ripened mangoes. It is the inner flesh of the mango fruit extracted, without the skin and seeds. Mango pulp is widely utilized as a base for many food items, including mango juice, nectar, drinks, smoothies, ice creams, desserts, and as a topping for pancakes or yogurt. Mango juice is a cool drink prepared from ripe mangoes' juice. To make mango juice, the ripe mangoes are normally peeled, pitted, and the flesh of the mango is squeezed to get the pulp. The pulp is further treated to remove the juice from any remaining fibers or solids.
Soy sauce is a liquid condiment used extensively in cooking and seasoning food. Produced from fermented soybeans, wheat, salt, and water, it provides a deep umami taste that can be used to enhance different foods. It is a common ingredient in Asian cooking and has become popular worldwide in marinades, stir-fries, dips, and processed foods. Come in various forms including light, dark, and low-sodium, soy sauce meets the different consumer tastes and nutritional requirements, rendering it a vital ingredient in the food industry.
Instant coffee is a quick and easy-to-brew coffee beverage that is produced by brewing coffee beans into a liquid that concentrates and evaporates into powder or grain form. It rapidly dissolves in hot water, so it's highly sought after by customers demanding fast and easy coffee brewing. It has a long storage life and is inexpensive, making it popular in homes, offices, and food service establishments. It is fueled by urbanization, hectic lifestyles, and growing demand for convenience drinks.
Glucose syrup and sorbitol syrup are versatile sweeteners widely used across the food and beverage industry. Their ability to enhance texture, retain moisture, and extend shelf life makes them essential ingredients in confectionery, bakery, dairy, and beverage products. Beyond their functional benefits, these syrups contribute to taste enhancement and product stability, catering to consumer preferences for smooth, consistent formulations.
Potato flakes are a highly adaptable food ingredient created by processing cooked potatoes into thin, dehydrated slices. They are often used in soups, snacks, baked goods, and fast meals and are well-known for their usefulness, taste, and simplicity of usage. These flakes provide a reliable and effective option for home cooking, foodservice, and commercial food production while preserving the natural flavour, texture, and nutritional value of fresh potatoes. They are indispensable in a variety of culinary applications due to their lengthy shelf life, lightweight design, and easy rehydration method. Their ability to be used in a variety of recipes, from thickened stews to crispy coatings, further solidifies their position as a basic component of the world's food industry.
Industrial enzymes are biological catalysts that fast-track the chemical process that is involved during the industrial processes. Their use is mainly seen in the food and beverage, pharmaceutical, textile, biofuel, and detergent industries. This enzyme is very effective as it is energy efficient and has cleaner and greener production. Its stability and specificity make it a wonderful tool for breaking complex molecules while improving product quality and yield. Industrial enzymes can enhance the texture of bread, benefit dairy processing, assist in the production of biofuels, and clean wastewater. All these phenomena illustrate that industrial enzymes are a mandatory requirement to manufacture many more products with sustainability and cost effectiveness for multiple industries.
Sorbitol is a sugar alcohol widely used as a sweetener, humectant, and stabilizer in food, pharmaceuticals, and cosmetics. It is made commercially by hydrogenating glucose and is naturally present in fruits like apples and pears. Because of its mild sweetness, low glycaemic index, and ability to retain moisture, sorbitol is a popular ingredient in skincare, dental care, and sugar-free goods. It is also an essential component of industrial processes and a laxative in medical applications.
Inedible beef tallow, a byproduct of the meat processing industry, is derived from beef suet and serves various industrial and commercial purposes. This versatile substance undergoes rendering, a process that separates the fat from solid components. Inedible beef tallow's primary application is in animal feed, as it provides essential fats and energy for livestock, particularly in pet food and livestock supplements. Additionally, it finds use in the cosmetics and personal care industry, contributing to the production of candles, soaps, and skin-care products.
Vitamin C supplements are typically made by extracting ascorbic acid from various sources, such as citrus fruits, or synthesizing it in a laboratory setting. The extracted or synthesized ascorbic acid is then processed and formulated into different types of supplements, including tablets, capsules, chewable, and powdered forms. One of the primary advantages of Vitamin C supplements is their ability to support a healthy immune system.
Over the recent decade, the online food and grocery delivery business in India has witnessed exponential growth. This expansion is attributed to the increasing penetration of smartphones, the affordability and convenience offered by food delivery app services, and the growing availability of low-cost internet services. The industry has become progressively competitive, with numerous local and international players competing for a significant market share. Nonetheless, despite the extreme competition, global players are continuing to make significant investments in India on account of its significant market share in the global online food delivery market.
‘World Food Day’ is celebrated on October 16th as a global responsibility to abolish hunger. 2024’s theme for the day is ‘Right to foods for a better life and a better future’. This theme highlights the significance of enabling access to nutritious food for all, particularly in the face of global challenges, including poverty, climate change, and conflict. In line with this theme, in October 2024, India and the United Arab Emirates (UAE) announced plans for developing a food corridor between the two nations, with an initial investment of over USD 2 Billion (INR 17,000 Crore) in food processing and logistics for food parks. This project significantly reinforces the UAE's food security while providing support to Indian farmers. The initiative is part of a bigger investment strategy targeting over USD100 Billion across key sectors, including manufacturing, infrastructure, and logistics.
A vegan, or a plant-based diet, focuses mainly on consuming fruits, vegetables, grains, legumes, nuts, and seeds. It excludes all animal-derived products and ingredients, including meat, poultry, fish, dairy, eggs, and honey. Nowadays, people are shifting toward vegan diets for a variety of reasons, such as ethical concerns for animal welfare, environmental sustainability, health benefits, and personal preferences.
Functional foods promote overall well-being and offer specific health benefits beyond daily nutrient intake. These benefits encompass enhanced bone health, effective cholesterol management, improved heart health, and eye health. Functional foods include probiotic yoghurt, omega-3 enriched eggs, fortified milk, antioxidant-rich berries, and functional beverages.
Fusion cuisine and beverages blend different ingredients, flavors, or techniques from various culinary or cultural backgrounds to create unique and innovative flavor profiles in dishes and drinks. Fusion beverages encompass both alcoholic and non-alcoholic options, including cocktails, mocktails, smoothies, teas, and more. These beverages span a spectrum from simple combinations to complex and inventive concoctions. Changing taste preferences and global connectivity are the main reasons for the increasing adoption of fusion beverages. They are available in various product types, such as carbonated drinks, fused teas and coffees, fruit juices, fusion alcoholic beverages, energy drinks, sports drinks, and more. These beverages are accessible through off-trade outlets (hypermarkets, supermarkets, discounters, grocery stores, off-license stores, alcohol and confectionery stores, highly specialized retailers, and online stores), as well as on-trade establishments (pubs, bars, cafés, restaurants, clubs, discos, hotels, mass events, and others). Examples of fusion beverages include fruit-infused tea, Asian-inspired cocktails, spicy margaritas, bubble tea creations, mojito variations, and infused waters. Furthermore, fusion cuisine merges elements from diverse culinary traditions, such as Asian, European, African, or Latin American, to craft new and exciting dishes. Examples of fusion cuisine include sushi burritos, Thai basil pizza, kimchi tacos, and more.