Market Overview
Mordor Intelligence has released a new report analysing the global dairy products market, outlining key trends, growth drivers, and prospects. The report projects the market to grow from USD 0.97 trillion in 2025 to USD 1.24 trillion by 2030, registering a compound annual growth rate (CAGR) of 4.94 per cent. Rising demand for functional and fortified nutrition continues to drive this growth, supported by favourable regulations for probiotics and government initiatives aimed at strengthening dairy production.
Health-focused product innovation plays a central role in market expansion. Premium yoghurt, high-protein milk, whey-based ingredients, and lactose-free dairy products are gaining popularity among health-conscious consumers. However, the sector continues to face challenges from raw milk price volatility and growing competition from plant-based alternatives. To protect margins, dairy processors increasingly invest in cold-chain infrastructure and vertical integration. The competitive landscape remains moderately fragmented, shaping pricing and innovation strategies.
Health-Led Consumption Patterns
Growing health awareness, particularly in developed markets, is reshaping consumer preferences. Buyers now favour natural, organic, low-sugar, and protein-rich dairy products. These shifts support demand for value-added dairy, especially products linked to digestive health and overall wellness. As a result, traditional dairy categories continue to evolve to meet changing dietary expectations.
Yoghurt Emerges as a Key Growth Driver
Yoghurt has emerged as the fastest-growing dairy segment. Consumers associate it with weight management and functional nutrition. Its flexibility across meals and snacking occasions further strengthens its appeal. These factors position yoghurt as a core growth engine within the global dairy portfolio.
Retail Channels Undergo Gradual Change
Supermarkets and hypermarkets continue to dominate dairy sales, particularly in Europe. Consumers value these outlets for convenience, product variety, and promotional offers. At the same time, online retail channels gain momentum, especially in the Asia-Pacific region. Free delivery, easy returns, and digital discounts encourage consumers to shift towards e-commerce for dairy purchases.
Rising Demand from Food Service
Food service demand for dairy products continues to expand. Increased dining out and higher reliance on food delivery services support this trend. With nearly half of consumers eating outside the home, restaurants, cafés, and on-trade channels increasingly rely on dairy ingredients. As a result, on-trade dairy sales are expected to show strong growth through 2025.
Market Segmentation Highlights
By product type, the market includes butter, cheese, cream, dairy desserts, and other dairy products. Distribution channels span both retail and food service segments. Geographically, the market covers North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
Competitive Landscape
Leading players in the global dairy products market include China Mengniu Dairy Company Ltd, Danone SA, Inner Mongolia Yili Industrial Group Co., Ltd, Nestlé SA, and Unilever PLC. These companies continue to strengthen their market positions through acquisitions, partnerships, and product innovation to meet evolving consumer demand.
Outlook
The global dairy products market is expected to experience steady growth between 2025 and 2030. Europe continues to dominate in terms of market share, while Asia-Pacific and Africa offer strong growth potential driven by rising consumption and government support. Segments such as yoghurt and dairy desserts are expanding rapidly due to their nutritional value and versatility. Overall, the sector remains dynamic as major players adapt to health trends, competitive pressures, and shifting consumer behaviour.
