Dairy Processing Equipment Market to Reach USD 17.27 Billion by 2030, Driven by Automation, Food Safety Regulations, and Demand for Value-Added Dairy Products

The global dairy processing equipment market, valued at USD 13.38 billion in 2025, is projected to grow to USD 17.27 billion by 2030, registering a compound annual growth rate (CAGR) of 5.24%. This growth is being propelled by several factors, including rising consumer demand for packaged milk, cheese, and functional dairy ingredients, an increase in food safety regulations, and the ongoing push for automation across processing lines. With the increasing demand for shelf-stable dairy products and more sustainable processing systems, the dairy processing equipment market is set to experience significant advancements in the coming years.

A key element influencing this market growth is the rise in automation and digital monitoring across dairy plants. The USDA's Dairy Business Innovation Initiatives and the FDA's revised Pasteurized Milk Ordinance (PMO) are pushing for modernizations to improve food safety and meet consumer expectations. Furthermore, the growing emphasis on energy-efficient technologies is prompting dairy processors to invest in new solutions such as membrane filtration, heat pumps, and cogeneration systems, which are not only reducing operational costs but also cutting emissions.

Report Overview: https://www.mordorintelligence.com/industry-reports/dairy-processing-equipment-market?utm_source=openpr

Key Trends in Dairy Processing Equipment Market:

Automation and Industry 4.0 Integration:

Automation has become an essential component in modern dairy processing. The increasing adoption of Industry 4.0 technologies, such as IoT-enabled systems, data-driven decision-making, and robotics, has allowed dairy processors to enhance their production efficiency, improve quality control, and reduce operational costs. This trend is particularly significant in developed markets like North America and Europe, where dairy plants are increasingly investing in automation to stay competitive.

Stricter Food Safety Regulations:

Regulatory compliance continues to be a major driver of innovation in the dairy processing sector. In particular, the FDA's Grade 'A' Pasteurized Milk Ordinance (PMO) has updated standards for equipment design, requiring that all processing systems meet rigorous sanitary and safety protocols. As consumers become more conscious of food safety, dairy processors are prioritizing equipment that ensures compliance with these regulations, thus fostering market growth.

Demand for Value-Added Dairy Products:

The rising popularity of value-added dairy products, such as flavored milk, functional dairy ingredients, and cheese, has led to an increase in demand for specialized dairy processing equipment. With growing consumer interest in convenience and health-focused products, dairy processors are investing in advanced machinery capable of producing a variety of niche products. This trend aligns with government-backed initiatives that encourage the production of value-added dairy items to cater to evolving market preferences.

Shift Toward Energy-Efficient and Low-Emission Processing Systems:

Environmental sustainability is increasingly becoming a priority for dairy processors worldwide. In line with global sustainability mandates, dairy plants are adopting energy-efficient processing technologies such as membrane filtration, heat pumps, and cogeneration systems. These technologies help processors reduce their energy consumption, lower operational costs, and meet sustainability goals. This shift is particularly strong in Europe and North America, where governments are actively incentivizing the adoption of green technologies.

Growing Demand for Shelf-Stable Dairy Products:

The demand for shelf-stable dairy products is on the rise, driven by consumer preference for longer shelf life and convenience. Ultra-high temperature (UHT) processing systems and aseptic packaging technologies are gaining traction as they allow dairy products to be stored without refrigeration, making them ideal for markets with limited cold-chain infrastructure. These systems are also essential for maintaining product safety and meeting regulatory standards.

Dairy Processing Equipment Market Segmentation:

By Equipment Type:

- Pasteurizers: The largest segment, pasteurizers accounted for 28.32% of the market share in 2024. This is due to their critical role in ensuring food safety by meeting temperature and time requirements during pasteurization. Pasteurization remains one of the most widely used and essential processes in dairy plants worldwide.

- Membrane Filtration Systems: This segment is expected to grow at the fastest rate, with a projected CAGR of 6.89% from 2025 to 2030. Membrane filtration systems are crucial in processes such as protein concentration, lactose removal, and water recovery, offering both energy efficiency and versatility in processing different dairy products.

By Application:

- Liquid Milk Processing: The largest application segment, liquid milk processing, accounted for 36.45% of the market share in 2024. This is due to the high demand for liquid milk, which is the backbone of the dairy industry globally. Equipment used in this segment must meet stringent regulatory requirements for food safety and quality.

- Milk Powder and Infant Formula: Expected to grow at a CAGR of 7.04% from 2025 to 2030, this segment is driven by increasing export opportunities and the demand for longer shelf-life products. The need for high-quality infant formula and milk powder has led to innovations in processing technologies, ensuring compliance with international food safety standards.

By Geography:

- Asia-Pacific: Leading the global market, Asia-Pacific held 39.76% of the market share in 2024. The region benefits from robust milk production, government policies supporting dairy processing, and increasing consumer demand for dairy products, particularly in countries like India and China.

- South America: This region is expected to grow at the fastest rate, with a projected CAGR of 7.32% from 2025 to 2030. Favorable production conditions, export-oriented policies, and increasing milk production are driving the growth of dairy processing equipment demand in South American countries, particularly Brazil and Argentina.

Explore Our Full Library of Food & Beverage Research Industry Reports - https://www.mordorintelligence.com/market-analysis/food-beverage?utm_source=openpr

Dairy Processing Equipment Market Key Players:

The global dairy processing equipment market is moderately fragmented, with both large-scale players and niche providers contributing to the market's competitive landscape. Key players in the market include:

- GEA Group Aktiengesellschaft: A leading player in dairy processing, known for offering comprehensive solutions, including pasteurizers, separators, and evaporators.
- Krones AG: A major provider of dairy processing equipment, particularly in the areas of packaging and bottling systems.
- Tetra Laval Group (Tetra Pack): A global leader in dairy packaging and processing solutions, offering UHT processing systems and aseptic packaging technologies.
- SPX FLOW, Inc: Known for its advanced dairy processing technologies, including pasteurization and filtration equipment.
- Alfa Laval: A key player in heat exchangers, separators, and membrane filtration technologies.

These companies are focusing on developing energy-efficient, automated, and customizable solutions to cater to the growing demand for diverse dairy products.

Conclusion:

The dairy processing equipment market is poised for steady growth, driven by automation, energy-efficient solutions, and stringent food safety regulations. With increasing consumer demand for value-added dairy products and longer shelf-life formats, dairy processors are investing in advanced technologies to improve production efficiency and meet evolving market needs. While challenges like high initial investment and limited technical expertise persist, the opportunities presented by government incentives, modernization programs, and sustainability mandates are likely to drive the market forward. With significant growth projected in regions like Asia-Pacific and South America, the global dairy processing equipment market is set to expand through 2030, offering new avenues for both established players and emerging market entrants.

Industry Related Reports

Fruit & Vegetable Processing Market - The Fruit & Vegetable Processing Market report segments the industry into Type (Fruits, Vegetables), Product (Fresh, Fresh-cut, Canned, Frozen, Dried), Processing Equipment (Pre-processing, Processing, Washing, Filling, Seasoning, Packaging) and Geography (North America, Europe, Asia-Pacific, South America, Middle-East and Africa). Five years of historical data with five-year forecasts are included.

Get More Insights: https://www.mordorintelligence.com/industry-reports/fruit-and-vegetable-processing-market?utm_source=openpr

Food Processing Equipment Market - The Food Processing Equipment Market report segments the industry into Type (Processing Machinery and Equipment, Packaging Machinery and Equipment, Utilities), Application (Dairy and Dairy Alternatives, Meat/Seafood and Meat/Seafood Alternatives, Bakery and Confectionery, Beverages, Fruits, Vegetables, and Nuts, Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa).

Get More Insights: https://www.mordorintelligence.com/industry-reports/food-processing-machinery-market?utm_source=openpr

Food Encapsulation Market - The report covers Global Micro- Encapsulation Market Size & Share and is segmented by Technology (Microencapsulation, Nano encapsulation, Hybrid technologies), By Material Type (Polysaccharides, Proteins, Lipids, Emulsifiers, Other Shell Materials), By Core Phase (Vitamins, Minerals, Enzymes, Organic Acids, Additives, Probiotics, Prebiotics, Essential oils, Other Core Phase Materials); and by geography.

Get More Insights: https://www.mordorintelligence.com/industry-reports/food-encapsulation-market?utm_source=openpr

Spray Drying Equipment Market - The global spray drying equipment market is segmented by Drying Type (Single Stage, Double Stage, and Multi-stage); By Application (Food, Pharmaceuticals, Chemical, and Others); By Process (Rotary atomizer spray dryer, Nozzle atomizer spray dryer, Fluidized spray dryer, Centrifugal spray dryer, Closed-loop spray dryer, and Others), and By Geography.

Get More Insights: https://www.mordorintelligence.com/industry-reports/spray-drying-equipment-market?utm_source=openpr

Slaughtering Equipment Market - The global slaughtering equipment market is segmented by Type (Stunning, Killing, Cut-Up, Deboning & Skinning, Evisceration, and Others), by Automation (Fully Automated Line, and Semi-Automated Line), by Livestock (Poultry, Swine, Bovine, Seafood, and Others), and by Geography.

Get More Insights: https://www.mordorintelligence.com/industry-reports/slaughtering-equipment-market?utm_source=openpr

For any inquiries or to access the full report, please contact: media@mordorintelligence.com https://www.mordorintelligence.com/ Mordor Intelligence, 11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli,
Hyderabad, Telangana, India 500032

About Mordor Intelligence:

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

This release was published on openPR.