; Dairy Food Market Size, Share, Forecast, 2034

Dairy Food Market

Dairy Food Market Size, Share, and Analysis, By Product Type (Milk, Butter, Cheese, Milk-Based Beverages, Cream, and Others), By Source (Cattle, Goats, Camel, Sheep), By Distribution Channel (Supermarkets, Convenience Stores, Online Grocery Services, B2B Services, and Others), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034.

Published on: Feb-2024
Report Code: FG F&B 01876
No. of Pages: 170-350
Report Format: PDF

Dairy Food Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 5% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 0.8 billion and is projected to reach USD 1.3 billion by the completion of 2034.

Product Overview

Dairy foods are milk products which are primarily derived by mammals such as cows, goats, and sheep, among others. These products include milk, cheese, yogurt, butter, and cream, that provide essential nutrients such as calcium, along with protein and vitamins (like D and B12). They play an essential role in a balanced diet, which supports bone health and muscle growth. However, some individuals can have lactose intolerance or dairy allergies, which requires alternatives. Dairy has been incorporated into societies all across the world, which has resulted in a vast range of foods and culinary traditions. They are versatile and flavourful, including creamy pastries to savory cheeses, which enriches cuisines and deliver nourishment. These collective applications of dairy product highlight their role in preserving health and gastronomic diversity across countries.

Market Highlights

Dairy Food Market is expected to grow at a compound annual growth rate (CAGR) of 5% from 2024 to 2034

Dairy Food Market is expected to reach a value of USD 1.3 billion, with a forecasted CAGR of 5%, due to growing popularity and awareness of healthy food choices among the general public. Dairy food items often contain essential vitamins like A, D, and B12, as well as proteins and calcium. These nutrients play a direct role in promoting bone and muscle health, which help in lowering blood pressure, and weight management. Such benefits are crucial for the growth and development of children. These products are offered in low-fat, plant-based, and lactose-free varieties to address the growing consumer needs. Consequently, even though these products are produced in huge quantities for public consumption, they however need to pass multiple crucial quality inspections to meet the testing specifications set by regulatory and governmental organizations.

Source: Fatpos Global

Dairy Food Market Segmentation

Cattle segment will dominate due to the accessibility and nutritional benefits of cattle milk

By Sources, the Dairy Food Market is typically segmented into Cattle, Goats, Camel, Sheep. The cattle segment is expected to dominate the dairy food market owing to its efficiency in converting feed protein into consumable food. Cattle are renowned for their ability to efficiently utilize feed resources, which makes them the preferred choice for meat and milk production. Additionally, consumers show a strong preference for cattle milk due to its numerous health benefits, including higher vitamin and mineral content as compared to alternative milk sources. It is easier to digest as it contains less protein or fat and its high-water content makes it less calorically dense, which appeals to health-conscious people. Therefore, the supremacy of cattle segment in the dairy food market is highlighted by its nutritional benefits and vast accessibility.

Supermarkets segment to lead the market due to its fundamental advantages and financial influence

Based on Distribution Channels, the Dairy Food Market is divided into Supermarkets, Convenience Stores, Online Grocery Services, B2B Services, and Others. The supermarkets segment is likely to dominate the dairy food market due to its inherent advantage of having the financial power to buy in bulk directly from the brands and sell them to consumers on discounts and special offers. Moreover, due to large display and warehousing spaces supermarkets outplay other retail distribution channels such as convenience stores or hypermarkets. This ability to showcase a diverse range of dairy products enhances the appeal of supermarkets and solidify their significance in the dairy food market. Furthermore, supermarkets are strategically situated in urban areas, which ensures easy accessibility for shoppers. This distribution channel provides a consistent revenue stream for dairy product manufacturers, as their offerings are prominently featured and regularly purchased by customers. Thus, supermarkets facilitate efficient supply chains and offer consumers a diverse range of dairy options, which makes them a key player in the distribution network.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increasing Health Awareness will be crucial in driving industrial growth

Growing attention of consumers on nutrient-dense food options due to rising health awareness, is responsible to boost the demand for healthier dairy products. The popularity of low-fat dairy products is increasing as people seek to reduce their saturated fat intake while still getting the nutritious benefits of dairy. Dairy products which are enriched with protein and probiotics are preferred due to their perceived health advantages, which includes better digestion and immune support. This rising health consciousness among consumers serves as a major catalyst for growth in the dairy food market. Therefore, manufacturers are developing such products that cater to these health-conscious trends and broaden their consumer.

Innovations in Product Development will provide growth opportunities

Innovation is essential for promoting growth in the dairy product business by adjusting to evolving consumer preferences and lifestyle patterns. Manufacturers are investing in R&D to provide new tastes, formats, and functional additives in dairy products. This includes the development of lactose-free options for individuals with lactose intolerance and plant-based alternatives to attract vegan consumers. Furthermore, the introduction of dairy products with added health benefits, such as omega-3 fatty acids or vitamins, improves the interest of consumer in adopting dairy food products. Therefore, innovation in product development allow dairy manufacturers to improve their offerings and enter new market segments to stay competitive in an evolving dairy industry.

Restraints

Growing Popularity of Plant-Based Alternatives Can Impact Dairy Food Market

Rise in plant-based consumption and the increasing adoption of the vegan lifestyle are emerging as significant challenges for the growth of the Dairy Food Market. This is primarily due to the rising incidence of lactose intolerance and a growing preference for conservative eating habits, particularly in western economies such as North America and Europe. Therefore, individuals are shifting towards plant-based alternatives such as soy milk, almond milk, coconut milk, and tofu cheese, which directly impact the market share of dairy companies. Consequently, dairy companies must navigate these challenges to retain their market share by actively addressing the shift in consumer choices and promoting their own line of plant-based dairy products. Such efforts by major companies can help the market to evolve without losing their customer base.

Recent Developments

  • In May 2023, Aavin, a state government cooperative, introduced a range of new milk products fortified with vitamins A and D. The company aims to gauge the market demand for fortified milk products with these launches.
  • In August 2022, Dairy Farmers of America (DFA) completed the acquisition of two Extended Shelf-Life (ESL) processing facilities previously owned by Smith Foods. Located in Pacific, Missouri, and Richmond, Indiana, these facilities are now part of DFA's dairy brands division, operating under the names Pacific Dairy Solutions and Richmond Beverage Solutions.
  • Unilever partnered with ASAP in October 2022 to distribute its ice creams, along with snacks, through ASAP's delivery services and Unilever's virtual store, The Ice Cream Shop.
  • GCMMF introduced over 100 new products, including various milk-based items like ginger, tulsi, and turmeric variants, in July 2022. This expansion of its product portfolio aims to broaden the company's business reach.
  • In October 2021, Lactalis Group acquired the European cheese brand Leerdammer for USD 533.745 million, enabling access to the Dutch cheese market and bolstering its presence in Germany, Ukraine, and Italy at an industrial level.

Dairy Food Market

Key Players:

  • Nestlé
  • Danone
  • Lactalis
  • Arla Foods
  • Saputo
  • FrieslandCampina
  • Dean Foods
  • Yili Group
  • Müller
  • Meiji Holdings
  • Grupo Lala
  • Aurora Organic Dairy
  • Megmilk Snow Brand
  • Amul
  • Unilever
  • Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Dairy Food Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region is set to dominate the dairy food market, owing to the contribution of India and China in the world's milk production. The region is known for its substantial population, expanding demand for milk, and increasing government efforts to improve milk output. Moreover, milk is extensively used in households across Asia Pacific, which further leads to high consumption of dairy products. Consequently, it is anticipated that the Asia Pacific region will maintain its dominance due to these factors and their influence on market dynamics.

Simultaneously, North America region will witness steady growth in dairy food market due to the vast presence of restaurants like Burger King, Pizza Hut, among others, which extensively utilize cheese and butter in their products. The growing popularity of yogurt and dairy desserts among North American consumers additionally propels the growth of dairy food market. Additionally, high consumer awareness about A2 milk is expected to fuel the expansion across the North America region.

Source: Fatpos Global

Impact of Covid-19 on Dairy Food Market

Covid-19 pandemic had a substantial impact on the dairy food market due to disrupted supply chains, halted production facilities, and transportation limitations, which resulted in low dairy output. The pandemic presented a potential danger of outbreaks among livestock, which limited the capacity to feed animals and affected the ability to sell livestock. However, despite the initial effects, the downturn was temporary. Businesses adopted more preventative measures, such hands-free production, which helped in market recovery. Additionally, the sector saw high emphasis on cleanliness regulations and sustainable practices to enable flexibility in the face of the COVID-19 pandemic.

Dairy Food Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Dairy Food Market Scope and Segments:

ATTRIBUTE

  DETAILS

Study Period

2018-2034

Base Year

2023

Forecast Period

2024-2034

Historical Period

2019-2022

Growth Rate

CAGR of 5% from 2024-2034

Unit

Value (USD Billion)

Segmentation

Main Segments List

By Product Type

  • Milk
  • Butter
  • Cheese
  • Milk-Based Beverages
  • Cream
  • Others

By Source

  • Cattle
  • Goats
  • Camel
  • Sheep

By Distribution Channel

  • Supermarkets
  • Convenience Stores
  • Online Grocery Services
  • B2B Services
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

         

Frequently Asked Questions (FAQ):

Dairy Food Market size was valued at USD 0.8 billion in 2023 and is projected to reach the value of USD 1.3 billion in 2034, exhibiting a CAGR of 5% during the forecast period.

Dairy Food Market is a global industry that comprises the production and distribution of dairy products, such as milk, butter, yogurt, cheese and milk based beverages.

The Cattle and the Supermarket segment accounted for the largest Dairy Food Market share.

Nestlé, Danone, Lactalis, Arla Foods, Saputo, FrieslandCampina, Dean Foods, Yili Group, Müller, Meiji Holdings, Grupo Lala, Aurora Organic Dairy, Megmilk Snow Brand, Amul, Unilever, and Other Prominent Players are the key players under the Dairy Food Market.

Increasing health awareness and innovations in product development are the key factors driving dairy food market.

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