The global dairy products market growth is driven by robust food-service traffic, a resurgence in tourism, and demand for functional, high-protein products. While Europe shows stabilization, Asia is driving significant consumption growth.
Chicago, Jan. 28, 2026 (GLOBE NEWSWIRE) — According to recent data from Astute Analytica, the dairy products market was valued at US$ 525.5 billion in 2024 and is projected to hit the market valuation of US$ 693.4 billion by 2033 at a CAGR of 3.13% during the forecast period 2025–2033.
Global dairy production is poised for steady expansion between 2025 and 2030, with milk output expected to surpass 992 million metric tons by 2025, according to the Food and Agriculture Organization (FAO). This growth trajectory reflects a combination of rising demand and improvements in production efficiency, particularly in emerging markets. The International Dairy Federation highlights that China and India alone account for half of global milk consumption, underscoring the pivotal role these countries play in shaping the dairy landscape.
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The primary engines behind this growth are emerging markets such as India, Pakistan, and China, where both fluid milk and processed dairy product consumption continue to rise rapidly. These countries are experiencing demographic shifts, urbanization, and rising incomes, all of which fuel increased dairy consumption. India, in particular, aims to become a major exporter of high-quality dairy products, supported by expanding national herds and improved breeding techniques. The Organization for Economic Cooperation and Development (OECD) forecasts India’s milk production growth at an impressive 3.6% annually between 2025 and 2034, the highest rate globally.
A2 Milk: Redefining Premium Dairy Across Key Markets
A2 protein milk variants have revolutionized the premium dairy segment across North America, Europe, and Oceania, creating a distinct niche that commands significantly higher retail prices. Averaging US$ 4.80 per liter, A2 milk is priced substantially above conventional milk, which typically retails at around US$ 2.95 per liter. This pricing premium reflects growing consumer interest in the unique qualities of A2 milk, particularly its reputation for easier digestibility and potential health benefits, which have reshaped consumer perceptions and purchasing behaviors in these mature dairy markets.
Major retailers such as Walmart, Kroger, and Tesco responded to soaring demand by dramatically expanding shelf space dedicated to A2 milk products. In 2024 alone, these retail giants introduced approximately 12,500 new Stock Keeping Units (SKUs) to accommodate a growing variety of A2 offerings. This expansion underscores consumers’ willingness to pay a premium for dairy products that promise improved digestive comfort, signaling a shift in shopper preferences toward specialized, health-oriented dairy options.
The a2 Milk Company continues to lead the market, reporting robust revenues of US$ 1.8 billion in 2024, demonstrating the strong commercial viability of A2 milk products. Meanwhile, global dairy powerhouse Nestlé has aggressively expanded its presence in this category by launching 45 new A2-based products, ranging from infant formulas to yogurts. This diversification illustrates the broadening appeal of A2 protein across various consumer segments and product categories, helping to cement its role in the mainstream dairy market.
Precision Fermentation: A Breakthrough in Dairy Protein Production
In 2024, precision fermentation reached a pivotal milestone in the dairy products market by achieving commercial viability for producing dairy-identical proteins without relying on cows. Perfect Day, a leading innovator in this space, operates three state-of-the-art facilities capable of producing 85,000 metric tons of animal-free dairy proteins annually. This breakthrough marks a significant shift from laboratory-scale experiments to industrial-scale production, proving that engineered microorganisms can reliably manufacture casein and whey proteins that are molecularly identical to those found in traditional dairy.
The surge in commercial viability attracted substantial investment capital, with US$ 3.7 billion flowing into fermentation-based dairy companies in 2024 alone. This influx of funding enabled the construction of 22 new production facilities across North America and Europe, rapidly expanding the industry’s capacity. These investments reflect growing confidence in precision fermentation’s potential to disrupt the traditional dairy supply chain by offering scalable, sustainable alternatives to animal-derived proteins.
Precision fermentation facilities produce casein and whey proteins at costs approaching US$ 12 per kilogram, narrowing the gap with conventional dairy proteins, which typically cost around US$ 8.50 per kilogram. While still slightly higher, this cost trajectory signals rapid progress toward price parity, driven by technological advancements and economies of scale. As production scales up, further cost reductions are expected, making precision-fermented proteins increasingly competitive in mainstream markets.
Supermarkets and Hypermarkets: The Backbone of Dairy Distribution
Supermarkets and hypermarkets dominate the global dairy products market distribution, commanding an impressive 58% share thanks to their unparalleled infrastructure and strategic advantages. These retail giants combine temperature-controlled environments with extensive product variety and prime urban locations, creating a shopping experience that strongly influences consumer purchasing decisions.
In 2024 alone, supermarkets and hypermarkets invested a staggering US$ 12.8 billion in refrigeration technology and cold storage facilities. This investment supports the maintenance of ideal temperatures for an astonishing 45,000 different dairy SKUs across their networks. Such advanced cold-chain infrastructure drastically reduces spoilage rates to under 2%, a significant improvement compared to the 8% losses typically seen in traditional retail channels.
Proximity plays a crucial role in consumer choice, with studies showing that 78% of shoppers prefer supermarkets located within 3.5 kilometers of their homes for purchasing dairy products. This convenience factor, combined with the wide product assortment, makes supermarkets and hypermarkets the go-to option for regular dairy needs. Their urban and suburban locations ensure easy access, encouraging frequent visits and fostering customer loyalty.
Asia Pacific Dominating the Global Dairy Market
The Asia Pacific region commands a dominant 45.66% share of the global dairy products market, a position built on the staggering production volumes of key countries. India leads the charge with an annual output of 230 million metric tons of milk, followed by Pakistan’s 63 million metric tons and China’s 42 million metric tons.
One of the region’s competitive advantages lies in its vast livestock population, totaling around 270 million dairy animals, including large buffalo herds that are unique to South Asia. These buffalo herds contribute significantly to milk production, offering a cost-effective alternative to traditional dairy cows. The average production cost in the Asia Pacific is approximately US$ 0.35 per liter, markedly lower than the US$ 0.68 per liter typical in developed markets. This cost efficiency positions the region as a key supplier in the global dairy landscape.
At the heart of Asia Pacific’s dairy success are the 185 million smallholder farmers scattered across India, Bangladesh, and Pakistan. These farmers form extensive cooperative networks that play a crucial role in collecting, processing, and distributing dairy products. Approximately 198,000 village collection centers act as vital hubs, processing an impressive 450,000 metric tons of milk daily.
Top Companies in the Dairy Products Market
- Arla Foods amba
- Dairy Farmers of America, Inc
- Danone S.A
- DMK Group
- GCMMF
- Fonterra Co-operative Group
- The Kraft Heinz Company
- Nestle
- Royal FrieslandCampina
- Meiji Holdings Co., Ltd.
- Other Prominent Players
Market Segmentation Overview
By Product Type
- Milk
- Cheese
- Butter
- Desserts
- Yogurt
- Others
By Distribution Channel
- Supermarket/Hypermarket
- Specialty Stores
- Convenience Stores
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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About Astute Analytica
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CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: sales@astuteanalytica.com Website: https://www.astuteanalytica.com/
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