Dairy Products Market size was valued at USD 526.83 billion in 2024 and is set to exceed USD 793.43 billion by 2037, registering over 3.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of dairy products is evaluated at USD 540.32 billion.
The global demand for dairy products is steadily expanding, mostly driven by population expansion, increasing incomes, urbanization, and the adoption of Western diets in many nations. The rising demand for dairy products is placing additional strain on natural resources such as freshwater and soil. The World Wildlife Fund collaborates with dairy farmers, industry associations, and other relevant parties in multiple countries to preserve and safeguard natural resources and habitats.
Approximately 270 million dairy cows are looked after by millions of farmers worldwide for the purpose of milk production. WWF envisions a worldwide market where all dairy products are produced in the most sustainable manner possible. WWF's objective is to revolutionize the milk production business by actively involving dairy farmers, co-ops, companies, and other stakeholders in the promotion and adoption of sustainable techniques further driving the market growth.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
3.2% |
Base Year Market Size (2024) |
USD 526.83 billion |
Forecast Year Market Size (2037) |
USD 793.43 billion |
Regional Scope |
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Product (Milk, Cheese, Yogurt, Butter)
Milk segment is estimated to dominate dairy products market share of around 65% by the end of 2037. The increase in milk consumption in emerging nations can be attributed to its high nutritional value, as it provides ample amounts of protein and calcium.
Approximately 45% of milk output is utilized for the consumption as fluid milk. Over 35% of the milk is transformed into butter, while around 7% is changed into cheese. Another 4% is processed into milk powder, and the remaining portion is utilized for the production of various items such as yogurt and flavored milk satisfying the customer demand and thus, driving the market growth.
Distribution Channel (Hypermarket/supermarket, convenience store, online retailer)
In dairy products market, supermarket/hypermarket segment is projected to dominate revenue share of around 54% by the end of 2037. In 2021, the segment had a value of USD 256.1 billion and is expected to see a compound annual growth rate (CAGR) of 3.3%. It is also anticipated to maintain a market share of approximately 59% during the forecast period.
Hypermarkets and supermarkets were the primary players in the worldwide dairy manufacturing business. The ample shelf space provided in supermarkets and hypermarkets contributed significantly to the robust sales. The increased accessibility of many brands, clarity in reading product labels, and convenience in comparing different products contribute to the growing popularity of this segment for acquiring dairy products.
Our in-depth analysis of the global market includes the following segments:
Product |
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Distribution channel |
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APAC Market Statistics
Asia Pacific industry is anticipated to account for largest revenue share of 47% by 2037. The region's large population, expanding milk demand, production, and consumer knowledge of dairy's health benefits are driving market expansion.
From 2012 to 2024, China's dairy product output grew at a CAGR of 1.6%. The National Bureau of Statistics reported that there were 30.6 million tons of dairy production in China in 2023. Milk production rose to 39.33 million tons in 2022 from 30.2 million tons in 2013.
In South Korea, due to fewer dairy farms, milk cows, and demand, and a lowering birth rate, milk production is predicted to decline. Cheese consumption, as well as demand for other dairy products like cream and butter, is rising due to changing tastes and understanding of dairy's beneficial proteins. In 2023, high inflation and a falling Korean won may cause imports to drop unusually, especially versus the U.S. dollar.
North America Market Analysis
North America is anticipated to be the most opportunistic market. Pizza Hut, Domino's, and various other Brands have played a vital role in driving the dairy production market growth as these eateries employ cheese and butter in most dishes. Over the projected period, North American consumers' increased love of yogurt and dairy desserts is anticipated to drive the dairy products market in the projected period.
Average milk cows, milk per cow, and total milk production in the U.S. are expected at 9.345 million, 24,330, and 227.3 billion pounds in 2024. Cheddar cheese and butter prices are risen for 2024, but non-fat dry milk and dry whey prices have dropped. Overall, the 2024 all-milk price estimate rises $0.30 to $21.20 per hundredweight.
After two years, Canada adopted the federal budget in 2021, committing to protect COVID-19-affected sectors and establish a resilient, fair economy. The government earmarked USD 5.2 billion for agriculture, including direct investment and programming-related expenditure in agriculture, forestry, and fisheries and support for temporary foreign workers' quarantine requirements. Thus, such initiatives boost market growth.
The Dairy Products market is dominated by key market players who are gaining traction in the market by adopting several strategies including mergers and acquisitions.
Author Credits: Parul Atri
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