Press release
Dairy Products Market to See Steady Growth to 2031 Driven by Nutrition Trends & Innovations
The global dairy products market is poised for steady expansion from 2024 through 2031, supported by rising consumer demand, evolving dietary preferences, and sustained innovation. With a projected compound annual growth rate (CAGR) of 3.2%, the industry is benefiting both from strong cultural consumption patterns in developed markets and an expanding customer base in emerging economies.A shift from meat-based protein sources toward dairy alternatives, improved retail infrastructure, and enhanced cold chain logistics are making dairy products more accessible and attractive worldwide. Companies are actively investing in research and development to deliver new products, improve supply chains, and capture emerging segments.
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Population Growth and Rising Incomes Fuel Demand
Emerging economies are prime drivers of dairy market growth, particularly in the Asia Pacific region, which accounted for around 45.78% of global population in 2023. High-population countries such as China and India, with significant infant and youth demographics, are seeing sharp increases in dairy consumption.
In India, approximately 70% of milk production is self-consumed, illustrating how population growth is directly linked to rising market demand. South American nations-Brazil, Chile, and Argentina-are also experiencing increased dairy consumption due to urbanization, economic expansion, and food-tech investments.
Latin America's diversity in dairy markets and the potential in Brazil, Argentina, and Chile are drawing foreign direct investments and encouraging innovative product launches, supporting sustained industry growth.
Cultural Consumption in Developed Regions
In regions like North America and Europe, dairy products hold deep cultural and culinary significance. In the U.S., 90% of consumers drink milk daily, while European demand for cheese and fresh milk remains strong due to both tradition and nutritional awareness.
Cheese plays a central role in European cuisine, with varieties such as Gorgonzola tracing origins back to Italy in 879 A.D., underscoring longstanding regional expertise in dairy production. This cultural affinity not only sustains domestic consumption but also positions Europe as a key global supplier of premium dairy products.
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Shifting Perceptions of Health Benefits
Regular dairy consumption is associated with improved bone and gut health, as well as reduced risks of cardiovascular diseases and type 2 diabetes. Though cheese was once perceived negatively due to its fat content, research has revealed benefits for heart health and calcium intake, even among lactose-intolerant individuals.
Growing attention to infant nutrition, clean-label organic dairy, and functional products is boosting demand. Flavored, fat-free, and drinkable yogurts are finding new audiences, while innovative packaging formats such as single-serve and on-the-go packs are expanding consumption occasions.
Market Segment Insights
Milk Products: Largest Share
The milk segment accounted for 32.7% of revenue in 2019 and is set to maintain dominance. Its nutritional profile-with protein, calcium, and bone health benefits-drives strong demand, especially in developing countries and among elderly populations seeking to reduce osteoporosis risk.
Yogurt: Fast-Growing Segment
Yogurt consumption is rising rapidly in Brazil, China, and India, driven by its association with gut health and immunity. In China, preferences for slightly sweet, flavored varieties add momentum to this segment's growth.
Retail Channels: Supermarkets/Hypermarkets Lead
Supermarkets and hypermarkets held over 60% share in 2019, supported by product variety, temperature-controlled storage, and competitive pricing. Expanding modern retail networks are making dairy products increasingly available to wider consumer bases.
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Regional Analysis
Europe: Largest Market Share
Europe held a 31.9% revenue share in 2019 and is expected to retain leadership. Germany is a key growth market, with rising demand for cheese, creamers, milk desserts, and clean-label products fueling expansion.
North America: Strong Demand and Product Innovation
In the U.S., cheese consumption remains high, contributing to regional leadership. Innovations in milk-including low-fat and sugar-free options-are enhancing demand among health-conscious consumers.
Asia Pacific: Fastest Growth Potential
APAC is both the largest and fastest-growing market, owing to rising packaged dairy consumption and robust e-commerce channels. India in particular is expected to lead regional growth with increasing demand for value-added products such as yogurt and cheese.
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