Dairy Products Market - Forecast(2023 - 2028)

Dairy Products Market Overview

The Dairy Products market size is estimated to reach $551.3 billion by 2026, growing at a CAGR of 4.6% during the forecast period 2021-2026. Dairy Products or milk products are any foods that contain milk from mammals such as cattle, goats, yaks, camels, buffaloes, and sheep. Some of the most common milk products are cheese, yogurt, butter, powdered milk, and frozen food products such as ice creams and desserts. An increase in awareness regarding the nutritional benefits of Dairy Products is anticipated to drive the market during the forecast period. Milk products contain multiple essential nutrients such as proteins, calcium, vitamin D, Riboflavin, and Vitamin B12. However, the absence of adequate infrastructure necessary for cold storage and transportation of dairy products in underdeveloped regions is anticipated to hamper growth during the forecast period.

Report Coverage

Key Takeaways

• Geographically, the Asia Pacific market accounted for the largest dairy Products Market share in 2020 and it is poised to dominate the market over the period 2021-2026 owing to the increasing target population and high levels of dairy product consumption in the region.
• An increase in health awareness and the demand for protein-rich foods is anticipated to drive the market during the forecast period. However, the rise in the popularity of veganism is predicted to hamper growth, especially in the developed regions.
• Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Dairy Products Market Report.

Dairy Products Market Segment Analysis-By Product Type

Based on Product Type, the Dairy Products market is segmented into Milk, Butter, Cheese, Cream, Desserts, Milk Powder, Yogurt, and others. The Milk segment held the largest share of the market in 2020 and is anticipated to continue dominating the market during the forecast period 2021-2026 owing to the high levels of milk consumption in both developing and developed regions. Moreover, milk is also purchased by consumers to make other beverages such as tea, milkshakes, and coffee which are also consumed in large volumes globally. The Cheese segment is projected to register the fastest growth at a CAGR of 4.8% owing to their high popularity and usage in western countries. Moreover, the increase in the westernization in certain countries of Asia Pacific is another major factor contributing to the growth of the segment.

Dairy Products Market Segment Analysis-By Distribution

The Dairy Products Market based on Distribution Channel can be further segmented into Supermarkets or Hypermarkets, Online Channel, Specialty Stores and others. The Supermarkets/Hypermarkets segment is predicted to be the largest segment during the forecast period with a share of 5.1% owing to their rapid expansion in major developing regions and their high penetration in developed countries. The large size of Supermarkets/Hypermarkets allows them to house a wide variety of dairy products which is not possible for specialty stores. Moreover, they have temperature-controlled shelves to ensure the dairy products remain fresh. However, the Online Channel is anticipated to register the fastest growth during the forecast period 2021-2026 owing to its convenience and increase in its popularity during the Covid-19 pandemic. The fear of contracting the virus along with travel restrictions in several nations has led to a surge in the use of online shopping to purchase groceries.

Dairy Products Market Segment Analysis-By Geography

The Dairy Products Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The Asia Pacific was the largest segment in 2020 with a revenue share of 27%. This is attributed to the presence of major Dairy Products industry players in the region such as Amul, Yili, and Mengniu. Moreover, the increase in disposable income, target population, and dairy consumption in the region have significantly contributed to the growth of the Dairy Products Market in the Asia Pacific region. The North American segment is anticipated to register the fastest growth during the forecast period owing to the use of more advanced and efficient milk processing machinery in the region. The fact that Dairy Products such as cheese, butter, and cream are extensively used by the North American population in their diet is also another contributing factor to the rapid growth rate.

Dairy Products Market Drivers

Increase in Global Consumer Awareness regarding Health Benefits of Dairy Products is Projected to Drive Market Growth

Owing to the global increase in disposable income and development, the demand for healthy and nutritious food products has seen a rapid increase. This is anticipated to drive the Dairy Products market owing to their high nutritional value and low cost. For instance, one cup or 240ml of cow’s milk has 149 calories, 7.7g of protein, 11.7g of Carbohydrates, 8g fat, calcium, vitamin B12, vitamin B2, vitamin D, and Phosphorous. 1 cup of milk contains 65% of the daily recommended vitamin D amount. Dairy products are known to help increase bone density, reduce the risk of conditions such as osteoporosis, and helps reduce high blood pressure. 

Rise in Population in High Dairy Products Consumption Regions is Anticipated to Boost Service Demand

The global population in 2010 was 6.96 billion, of which 3.59 billion lived in urban areas. In 2020, the global population increased to more than 7.79 billion, of which 4.38 billion lived in urban areas. Moreover, the global population is predicted to reach 9.9 billion by 2050. This growth in population along with the rapid rate of urbanization will significantly increase the demand for dairy products owing to their high nutritional value, availability, awareness, and relatively lower costs. The increase in government initiatives regarding milk production in countries with a high population such as India will further enhance demand for dairy products.

Dairy Products Market Challenges

Increase in the Prevalence of Lactose Intolerance Among the Population is Anticipated to Hamper Market Growth

The increase in cases of lactose intolerance among the global population is causing consumers to completely avoid dairy products in their diet. People with lactose intolerance suffer from bloating, diarrhea, and stomach pains when dairy products are consumed. This is highly common in East Asia where it is estimated that more than 70% of the population is lactose intolerant.

Increase in the Population Adopting Veganism is Projected to Limit Growth Opportunities

The increase in veganism, where people abstain from consuming any animal-based products in their diet is a major challenge as milk is obtained from animals. This has also led to the increased demand for dairy substitutes that are produced without milk, such as vegan cheese, soy milk, and vegan butter. It is estimated that there are more than 79 million vegans worldwide in 2021. The Promotion of the vegan lifestyle by prominent celebrities such as American singer Ariana Grande and organizations like People for the Ethical Treatment of Animals (PETA) have further caused a decline in the use of dairy products among the young population in western countries.

Dairy Products Market Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Dairy Products Market. The top 10 companies in of the industry are-

• Arla Foods amba
• Fonterra Co-operative Group
• GCMMF
• The Kraft Heinz Company
• Nestle S.A.
• Danone S.A.
• Royal FrieslandCampina
• Dairy Farmers of America, Inc.
• DMK Group
• Amul

Partnerships/Product Launches:

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