Dairy Products Market Size is Expected to Reach USD 722.07 Bn by 2034 Rising Demand for Functional and Convenient Food

The global dairy products market size is predicted to increase from USD 545.25 billion in 2025 and is estimated to hit around USD 722.07 billion by 2034, growing at a CAGR of 3.17% from 2025 to 2034. A study published by Statifacts a sister firm of Precedence Research.

Ottawa, July 09, 2025 (GLOBE NEWSWIRE) -- According to Statifacts, the global dairy products market size was exhibited at USD 528.5 billion in 2024 and is anticipated to be worth USD 722.07 billion by 2034, growing at a CAGR of 3.17% during the forecast period from 2025 to 2034.

Rising consumer demand for functional foods, expansion of the food and beverage industry, rising disposable incomes, and growing demand for protein-rich products are driving the growth of the market.

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Dairy Products Market Overview

The dairy products market refers to the production, distribution, and use of dairy products or milk products, which are food products made from milk. The most common dairy animals are ewe, nanny goat, water buffalo, and cow. Dairy products include common grocery store food around the world, such as butter, milk, cheese, and yogurt. Benefits of dairy products include that milk is packed with nutrients, high nutrient content, helps prevent weight gain, builds muscles, gut health, bone health, and with vitamin A, selenium, zinc, vitamin B12, riboflavin, phosphorus, vitamin D, and calcium.

The dairy products market growth is driven by rising consumer demand for functional foods, expansion of the food & beverage industry, growing demand for protein-rich ingredients, and consumers' shift toward healthier lifestyles. Dairy products keep vision, skin, teeth, nerves, bones, and muscles healthy. Release energy from foods and reduce tiredness and fatigue. Support normal growth and brain development.

Dairy Products Market Highlights

Asia Pacific held the dominant share of the dairy products market in 2024 due to its large population base, growing demand, and government support for milk production.
By product type, the milk segment contributed the highest market in 2024.
By product type, the yogurt segment is projected to experience the highest growth rate in the market between 2025 and 2034, which is driven by rising awareness of digestive health and immunity benefits.
By distribution channel, the supermarket segment captured the biggest market in 2024.
By distribution channel, it is anticipated to grow with the highest CAGR in the market during the studied years, owing to increased online shopping and convenience.

Major Trends in the Dairy Products Market

Which Principal Factors Shape the Dairy Products Industry?

Consumer demand for functional foods: Consumer demand for functional foods is increasing because they contain nutrients and compounds that offer significant health benefits. They may support your immune system, blood sugar control, heart health, and more. Functional foods are foods that have a potential beneficial effect on health beyond their basic nutritional value. They promote good health and lower the risk of diseases. Dairy functional foods significantly contribute to the prevention of many diseases like diabetes, cancer, obesity, hypertension, and some transmissible diseases.
Expansion of the food and beverage industry: A well-run food and beverage industry can greatly contribute to a hotel’s success by improving its reputation among guests. The food manufacturing industry also plays an important role in food preservation and safety. Through innovative technologies and processes, the industry can extend the shelf life of perishable foods, reduce food waste, and ensure that food reaches consumers in a safe and consumable condition.

Growth Factors in the Dairy Products Market

Increasing use of dairy by-products in sports nutrition: The main benefit of consuming dairy products for sports nutrition is that it is a great choice for exercise recovery. The carbohydrates in milk refuel muscles and replenish energy stores, while the high-quality protein repairs and rebuilds muscles. Milk also replaces electrolytes lost in sweat. Eating or drinking dairy products offers health benefits like building and maintaining strong bones. Traditional sports drinks, milk is also an excellent source of complete protein with a high concentration of branched chain amino acids to support muscle protein synthesis.
Expansion of the health and wellness trend: According to a report published in February 2025, dairy products are in 90% of U.S. households, and the health and wellness space could be big for the dairy industry. There is a paradigm shift in the dairy consumption preferences as consumers are preferring products to boost their health and wellness. Dairy products' benefits include supporting normal immune functioning, supporting normal growth and brain development, maintaining healthy blood pressure, releasing energy from foods, reducing tiredness & fatigue, and more.

Source:- Dairy Foods

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Role of Artificial Intelligence (AI) in the Dairy Products Market

Artificial intelligence (AI) is transforming dairy science, allowing for more precise and informed decision-making that improves both productivity and sustainability on the farm. AI allows farmers to access the best bull genetics from all across the globe. Dairy farm automation lessens the need for human supervision, which decreases the possibility of human error during the production process. AI helps in avoiding contamination due to improper product mixing through timely and proper cleaning of production lines.

AI’s ability to integrate and analyze data from multiple sources in real time has streamlined the decision-making process, significantly enhancing the efficacy of daily operations. AI-based systems manage the timing and quantity of feed, optimizing milk production per feed unit and reducing waste. AI helps food companies develop new health-focused products, like functional foods designed to improve immunity, reduce inflammation, and support gut health.

What are the Significant Achievements of the Leading Industrial Firms?

In April 2025, to create the strongest dairy cooperative in Europe, Arla Foods and DMK Group announced that to would merge. The mergers bring together more than 12000 farmers, and they aim to become one joint cooperative that will achieve a combined pro forma revenue of 19 billion euros.

Source: - Arla

In June 2025, to launch Amul Milk in Spain and the EU, Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) announced its partnership with Cooperativa Ganadera del Valle de los Pedroches (COVAP), Spain’s first-tier cooperative.

Source: - Daily Excelsior

How Does IoT Act as an Opportunity for the Dairy Products Market?

Internet of Things (IoT) helps in the efficient monitoring of the feeding and drinking method, which can lead to better nutrition of the cows and more milk production. In smart dairy farming, using Internet of Things (IoT) devices equipped with sensors represents a pivotal aspect of monitoring livestock health and productivity. Wearable sensors attached to the cow’s track parameters allow for the collection of real-time data on each animal’s health status.

IoT-based systems allow users to know the groupings of gases in crude milk continuously. A smart dairy management solution can help increase milk productivity by keeping a real-time check on the milk levels, monitoring the health of the cattle. IoT is used in the dairy industry to predict herd reproduction, milk production, and animal diseases based on a combination of external and internal factors. The use of IoT and sensor-based technologies has the potential to allow dairy farmers to control and manage their herd better and in less time.

Limitations and Challenges in the Dairy Products Market

What are the Potential Concerns Related to the Dairy Products Market?

Competition from plant-based alternatives: Plant-based products that are marketed and sold as alternatives to milk, which are made from legumes, oats, coconuts, rice, seeds, and nuts. Some people choose not to have dairy products due to they follow a vegan diet. There are several alternative foods and drinks available in the supermarkets, like potatoes, quinoa, coconut, hazelnuts, almonds, oats, rice, and soya drinks. Nutritionally, soy milk is closest to cow’s milk.
Supply chain disruptions: Supply chain disruptions range from logistical bottlenecks to fluctuations in demand and supply imbalances. The dairy industry has faced unprecedented supply chain disruptions, driven by a combination of natural disasters, pandemics, and geopolitical tensions. Delays in transportation can lead to spoilage or decreased shelf life. Unpredictable delays can disrupt delivery schedules, resulting in customer dissatisfaction and eroded trust.

Regional Insights

How did Asia Pacific Dominate the Dairy Products Market in 2025?

Asia Pacific held the largest share of the dairy products market in 2025. Rising consumer demand for functional foods, the expansion of the food and beverage industry, urbanization, increasing disposable incomes, and increasing health consciousness are contributing to the growth of the market in the Asia Pacific region.

How do Dairy Products act as a Key to the Future of the Dairy Industry in China?

In March 2025, the debut of two new dairy products, O’PURE original imported milk and JD PLUS co-branded milk, exclusively on JD’s platform in China, was jointly announced by JD Worldwide, the cross-border e-commerce arm of JD.com, and O’PURE, the New Zealand natural artesian water producer.

Source: - Jingdong Corporate Blog

What to Expect from North America’s Dairy Products Market?

North America is anticipated to grow at the fastest rate in the market during the forecast period. Increased demand for confectionery, bakery, and protein-rich diets, increasing popularity of functional foods for health and wellness, and expansion of e-commerce platforms, allowing broader consumer access, contribute to the growth of the dairy products market in the North American region.

U.S. Dairy Products Market Size 2025 to 2034 (USD Billion)

The U.S. dairy products market size was calculated at USD 48.64 billion in 2024 and is predicted to surpass around USD 67.16 billion by 2034 with a CAGR of 3.27% from 2025 to 2034.

How do Dairy Products Act as a Key to the Dairy Products Market in the United States?

According to a report published in March 2022 by the USDA Government, U.S. product groups like butter and butterfat products like cream, fluid milk, milk-based drinks, cheese, and whey products continue to gain popularity among Canadian buyers. Accordingly, the value of export sales of butter and butterfat products has increased by $41.7 million, after adjusting for inflation. The value of the U.S. dairy product exports to Canada grew by nearly 50%.

Source: - Economic Research Service

Dairy Products Market Scope

Report Attribute	Key Statistics
Market Size in 2025	USD 545.25 Billion
Market Size in 2024	USD 528.5 Billion
Market Size by 2034	USD 722.07 Billion
Growth Rate from 2025 to 2034	CAGR of 3.17%
Largest Market	Asia Pacific
Fastest Growing Market	North America
Base Year	2024
Forecast Period	2025 to 2034
Segments Covered	By Product Type, By Distribution Channel, and By Region
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Dairy Products Market Segmentation

Product Type Insights

The milk segment held a dominant presence in the dairy products market in 2024. Milk and milk products are a main part of a young child’s diet. They are a good source of protein and contain a wide range of vitamins and minerals, including calcium. These will help young children build bones and keep their bones healthy.

The yogurt segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034. The benefits of eating yogurt include reducing appetite and weight, reducing high blood pressure and risk of heart diseases, reducing inflammation, good for bones, regulating blood sugar levels, reducing the risk of cancer, natural immunity booster, and improving digestion. Yogurt provides almost every nutrient that our body needs. It is especially high in calcium, B vitamins, and trace minerals.

Distribution Channel Insights

The supermarket/hypermarket segment accounted for a considerable share of the market in 2024. Supermarkets/hypermarkets offer a wide selection of products, from food to toiletries. They offer a wide range of payment options and a variety of ways to get groceries at home. Supermarkets/hypermarkets also offer a wide variety of products, so we can find something for everyone in our family.

The other segment is projected to experience the highest growth rate in the market between 2025 and 2034. Other segments include online distribution of products. The main benefit of online distribution is that it can reach a wider and more diverse market than traditional channels. We can sell products or services to customers across different regions, countries, or even continents, without the need for physical stores, intermediaries, and transportation costs.

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The global dairy processing equipment market size accounted for USD 10,800 million in 2024 and is expected to exceed around USD 18,620 million by 2034, growing at a CAGR of 5.6% from 2024 to 2034.
The global non-dairy creamer market size accounted for USD 4,095 million in 2024 and is expected to exceed around USD 6,482 million by 2034, growing at a CAGR of 4.7% from 2024 to 2034.
The global dairy container market size is calculated at USD 27,900 million in 2024 and is predicted to reach around USD 38,980 million by 2034, expanding at a CAGR of 3.4% from 2024 to 2034.
The global dairy protein crisps market size surpassed USD 267 million in 2024 and is predicted to reach around USD 800.12 million by 2034, registering a CAGR of 11.6% from 2025 to 2034.
The U.S. A2 milk market size surpassed USD 865 million in 2024 and is predicted to reach around USD 2,538 million by 2034, registering a CAGR of 13.77% from 2025 to 2034.
The global A2 milk market size was evaluated at USD 4.36 billion in 2024 and is expected to grow around USD 14.16 billion by 2034, registering a CAGR of 12.5% from 2025 to 2034.
The global milk protein market size accounted for USD 11,800 million in 2024 and is expected to exceed around USD 16,600 million by 2034, growing at a CAGR of 3.4% from 2024 to 2034.
The global organic milk market size was exhibited at USD 24,151 million in 2024 and is projected to hit around USD 34,398 million by 2034, growing at a CAGR of 3.6% during the forecast period 2024 to 2034.

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Competitive Landscape in the Dairy Products Market

Arla Foods Amba: They specialize in milk- and whey-based nutrition solutions and ingredients for infants, toddlers, medical, and sport nutrition, foods, and beverages.
Nestle: Nestle products include coffee and tea, candy and confectionery, bottled water, infant formula and baby food, dairy products, ice cream, frozen foods.
Danone: Danone is a leading global food and beverage company operating in three health-focused, fast-growing, and on-trend categories like essential dairy & plant-based products, waters, and specialized nutrition.
Fonterra: They are the world’s largest exporter of dairy products, a leader in dairy science and innovation, and a partner to many of the world’s leading food companies.
Lactalis: Lactalis is a family-owned company settled in rural areas, which became the dairy industry’s global leader and a major player in employment.
Friesland Campina: It is one of the world’s largest dairy co-operatives and one of the five dairy companies in the world with an annual revenue of 11 billion euros.
DMK Group: DMK Group is a German dairy cooperative that struggled to monitor its raw materials, and this hindered its demand planning and sustainability initiatives.
GCMMF: GCMMF handles the marketing of the Amul products.
Dairy Farmers of America, Inc.: Dairy Farmers of America, Inc. offers rewarding jobs across the nation in a variety of fields, including manufacturing, accounting, communications, marketing, economics, on-farm field services, and more.
Meiji Holdings Co. Ltd: Meiji Holdings Co. Ltd is a manufacturer and distributor of dairy products, confectionery, and nutritional products.
The Kraft Heinz Company: This is a global food and beverage company that manufactures and markets a wide range of products, including beverages, meats, cheese, and condiments.

What is Going Around the Globe?

In July 2025, a new range dedicated to children, at a time when kids’ nutrition is under the microscope in the UK, starting with low-sugar milk and yoghurt alternatives, was introduced by Danone-owned plant-based dairy leader Alpro.

Source: - Green Queen

In July 2025, the dairy and cooperative products worth over Rs. 400 Crore in Gujarat, urging transparency and technology adoption, were launched by Amit Shah. Minister Shah launched the Sardar Patel Cooperative Dairy Federation Limited and unveiled its logo. He also inaugurated a string of major cooperative infrastructure projects, including the expansion of Amul’s cheese plant in Khatraj and its chocolate plant in Mogar.

Source: - Krishi Jagran

Segments Covered in the Report

By Product Type

Milk
Cheese
Butter
Desserts
Yogurt
Others

By Distribution Channel

Supermarket/Hypermarket
Specialty Stores
Convenience Stores
Others

By Geography

North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
Asia-Pacific
- China
- India
- Japan
- South Korea
- Malaysia
- Philippines
Latin America
- Brazil
- Rest of Latin America
Middle East & Africa (MEA)
- GCC
- North Africa
- South Africa
- Rest of the Middle East & Africa

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