The global dairy market is estimated to witness a moderate growth rate of around 5% during the period of 2019–2028. The increasing population is one of the primary factors that is driving the demand for dairy products including milk, cheese, and butter among others. Higher disposable income coupled with rising health concerns is also expected to propel the demand for dairy products across the globe. Global milk production has grown significantly in recent years. According to the Food and Agriculture Organization (FAO), global milk production has grown nearly 2.0% in 2020 to reach a volume of 906 million tons. The upsurge in milk output has been primarily driven by yield improvements, a considerable increase in dairy cattle numbers, and strong demand across the globe.
Globally, most dairy products are consumed in the form of fresh dairy products
Dairy products are either consumed in the form of fresh or processed. Freshly consumed dairy products that are unprocessed or only slightly processed (for instance, pasteurized or fermented) have dominated the global dairy market. Moreover, the global market share of fresh dairy products is expected to expand in the coming future, mainly due to strong demand from India, Pakistan, and Africa, driven by increases in income and population. According to the FAO, per capita consumption is projected to grow significantly from 23.6 kg in 2018-2022 to 25.2 kg (milk solids) by 2030 in developed economies, compared to an increase from 10.7 kg to 12.6 kg in developing economies. There has been a growing inclination toward processed dairy products in developed economies, while in developing economies fresh dairy products comprise over two-thirds of average per capita dairy consumption in milk solids.
The Asia Pacific is the key region in the global dairy market
Geographically, the market is analyzed into North America, Western Europe, Eastern Europe, Asia Pacific, Latin America, and the Middle East & Africa. The Asia Pacific is dominating the global dairy market on account of higher milk production, larger population base, and increasing income levels. As per the FAO, milk output reached 379 million tons in 2020 in Asia mainly driven by increased demand in India, China, and Pakistan. India contributed more than half of total Asia’s milk output in 2020. An increasing number of dairy cattle and improved feed and fodder availability on favorable monsoon rains are some of the pivotal factors positively influencing milk production in the country. Moreover, the rapid mobilization of the village cooperatives’ network in the early phase of the pandemic and the channeling of milk into drying plants further facilitated milk output growth in India.
Market Structure and Competition Landscape
The global dairy market is fragmented in nature with the presence of various players operating in the market. Some of the prominent players that contribute significantly to the market growth include Lactalis International, Nestle S.A., Dairy Farmers of America Inc., Danone S.A., Yili Group, Fonterra Co-operative Group Limited, Royal FrieslandCampina N.V., Arla Foods amba, China Mengniu Dairy Company Limited, Saputo Inc., Unilever PLC, DMK Deutsches Milchkontor GmbH, Meiji Holdings Company, Ltd., Savencia Fromage & Dairy, The Kraft Heinz Company among others. These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers & acquisitions, partnerships and collaborations, and product launches are some of the strategies followed by industry players. Some of the key developments in the global dairy market include,
- In December 2021, Michigan Milk Producers Association announced the acquisition of Superior Dairy in Canton, Ohio, a subsidiary of LEL Operating Co. The acquisition would enhance the company’s innovation and product diversity.
- In July 2019, Dreamery – a consumer brand of Fonterra Future Dairy, has been launched to cater a wide range of consumers in India. Dreamery is a joint venture between global dairy nutrition company Fonterra and India-based Future Consumer. Products included in the Dreamery range are yogurts among others.
- In March 2019, Danone – one of the prominent leaders in the industry, launched Wallaby No sugar added Australian-style yogurt in the US. The product is sweetened with organic fruit and is available in three flavors, namely vanilla chai, strawberry rose, and peach hibiscus.
Key Market Segmentation
RationalStat has segmented the global dairy market on the basis of product type, form, distribution channel, and region.
- By Product Type
- Others (Goat, Sheep, and Camel)
- Other Product Types (Dairy Desserts)
- By Form
- By Distribution Channel
- Conventional Retail
- Modern Retail
- Specialty Stores
- Online Retail
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, Food and Agriculture Organization (FAO), US Department of Agriculture (USDA), National Milk Producers Federation (NMPF), and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for dairy service providers, government organizations, market educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The Global Dairy market is expected to grow at a CAGR of around 5% during the forecast period 2022-2028.
Asia Pacific is dominating the Global Dairy market in 2021.
The Global Dairy market is estimated at around US$ 489 billion in 2020.
Increasing population coupled with the shifting preference of consumers towards healthy lifestyles are the key driver in the Global Dairy market.
Major companies operating in the Global Dairy market include Lactalis International, Nestle S.A., Dairy Farmers of America Inc., Danone S.A., Yili Group, Fonterra Co-operative Group Limited, etc.