Europe Dairy Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The Europe dairy market attained a value of USD 169.38 Billion in 2024 and is further expected to grow at a CAGR of 1.40% over the forecast period of 2025-2034to reach a value of USD 194.64 Billion by 2034.

Health concerns are driving up the demand for common dairy products due to their health and nutritional benefits. Growing population, easy availability of dairy animals, and a conducive climate for dairy farming are all aiding the Europe dairy industry. The market accounts for about 22% of the global milk production.

Key Trends and Developments

Growing health concerns; rising trend of healthy snacking; increasing demand for functional and personalised dairy products; and surging emphasis on sustainability are favouring the Europe dairy market expansion.

November 2024

UK-based dairy cooperative Arla Foods expanded its yoghurt range by launching three new branded yoghurt products, Arla LactoFREE natural yogurt, Arla Protein yogurt, and Arla Skyr Whipped (in three flavours). While Arla LactoFREE natural yogurt is high in protein and contains vitamin D, Arla Skyr Whipped offers a blend of feel-good indulgence.

September 2024

Müller Yogurt & Desserts entered into a strategic partnership with THG’s, Myprotein, to introduce a range of high-quality yoghurts and desserts. The range taps into the growing chilled yoghurt and potted desserts protein segment and aims to meet the rising demand for convenient and protein-rich options.

May 2024

Arla Foods signed a licensing agreement with Mondelēz International to distribute, produce, and market chocolate milk under the Milka brand in Germany, Austria, and Poland. Through this, the company aims to improve its expertise in dairy innovations and secure growth in the very mature chocolate milk category.

September 2023

Empire Bespoke Foods launched the Spanish flavoured milk brand, Cacaolat, into the UK retail market. The flavoured milk, made with Rainforest Alliance-certified cocoa plants from Africa and locally sourced milk in Spain, is available in No Added Sugar, Original, and Mocca varieties.

Growing health-consciousness

With growing health consciousness in Europe, there is a rising preference for dairy products with health claims such as organic, gluten-free, low/no/reduced fat, high source of protein, and natural. Moreover, key players are increasingly incorporating ingredients such as hemp, pumpkin seed, collagen, spirulina, moringa, and vegetables (spinach, beet, and kale) to enhance their nutritional profile.

Rising trend of healthy snacking

The emerging trend of healthy snacking and the increasing customer demand for nutritious, convenient, and portion-controlled snacks are positively influencing the Europe dairy market dynamics. Dairy products such as probiotic yoghurts, pre-packaged cheese sticks, flavoured milk beverages, and kefir, among others, are gaining popularity as gut-friendly, healthy, and convenient snacking options among European consumers.

Surging demand for functional and personalised dairy products

Consumers are actively seeking products that function beyond basic nutrition, driving the demand for functional dairy options designed to address specific health issues like immunity, digestive health, cardiovascular health, and cognitive function. Moreover, the growing trend of personalised nutrition is prompting key players to offer dairy products with customised ingredients for specific consumer groups.

Increasing focus on sustainability

Growing concerns regarding climate change and animal welfare are revolutionising the Europe dairy market landscape. Farmers are increasingly adopting sustainable practices such as precision agriculture, renewable energy integration, and improved feed practices to optimise the use of resources, reduce reliance on fossil fuels, lower greenhouse gas emissions, ensure the optimal health of cattle, and improve soil quality.

Dairy: Market Segmentation

Dairy products constitute an essential part of the daily nutritional requirements and form an important component of a balanced diet. These products are derived out of the milk of cows, goats and other similar animals, and includes products ranging from butter, cheese, milk powder, yoghurt to even ice cream. They are an important source of essential nutrients like calcium, protein, iodine, and various vitamins, among others. Almost 45 million metric tons of these products are annually consumed in the European Union, which has over 300 registered kinds of cheese and dairy products.

Market Breakup by Product

• Fluid Milk/UHT Milk/ Flavoured Milk
• Cream
• Butter
• Anhydrous Milk Fat (AMF)
• Skimmed Milk Powder/Non-fat Dry Milk
• Whole Milk Powder (WMP)
• Whey Protein (Powder and Concentrate)
• Lactose
• Casein
• Cheese
• Yoghurt
• Ice-cream
• Probiotic Dairy Products
• Others

Market Breakup by Region

• Germany
• United Kingdom
• France
• Italy
• Spain
• Netherlands

Market Analysis

The dairy market in Europe is one of the leading markets globally and produces almost a quarter of the milk available globally. Western Europe will see a healthy growth in the dairy market with rising GDP and higher standards of living in the coming years. However, Germany was the only market in the region that saw a growth in 2017, while UK experienced a decline. Netherlands produced over 866 million kilograms of cheese in 2017, especially its famous edam and gouda cheese.

Italy, in Southern Europe, also has a flourishing dairy market aided by the favourably warm Mediterranean climate and increasing standards of living.

Eastern and South-Eastern Europe, on the other hand, have a dairy production that is only sufficient for local consumption. Niche products like ‘lactose-free’ or ‘organic’ milk are expensive in the region and the countries have to rely on Northern and Western Europe for such products.

The production of dairy in Europe as a whole has been declining due to the decreasing milk prices. The milk quota imposed by the European Union will also act as a restraint for the Europe dairy market growth.

Key Industry Players in the Europe Dairy Market

Key Europe dairy market players are fortifying dairy products with added nutrients to cater to the growing trend of health and wellness in the region. Dairy companies in Europe are also investing in reducing their carbon emissions and improving animal welfare amid rising environmental and ethical concerns among European customers.

Danone S.A.

Danone S.A., founded in 1919 and headquartered in Paris, France, is a prominent food and beverage company that operates in the specialised nutrition, plant-based products, dairy, and water segments. Some of its leading brands include Actimel, evian, Aptamil, Nutricia, Cow & Gate, and AQUA, among others. In 2023, the company generated EUR 27.6 billion in sales.

Groupe Lactalis S.A.

Groupe Lactalis, founded in 1933 and headquartered in Laval, France, is a food and beverage company and a leader in the global dairy industry. It offers milk in all forms, including dairy ingredients, fluid milk, cheese, yoghurt, cream, and butter. With 85,500 employees across the world, the company generated a revenue of EUR 28.3 billion in 2022.

Arla Foods amba

Arla Foods amba, founded in 1881 and headquartered in Viby, Denmark, is one of the largest dairy companies in the world. It is a cooperative owned by more than 12,500 dairy farmers across the United Kingdom, Sweden, Denmark, Belgium, Germany, Luxembourg, and the Netherlands. Its renowned brands such as Castello®, Arla®, Lurpak®, and Puck® are sold in over 120 countries.

Royal FrieslandCampina N.V.

Royal FrieslandCampina N.V., founded in 1871 and headquartered in Amersfoort, the Netherlands, is an integrated dairy company. Employing 20,928 individuals and operating in 29 countries, the company’s products are marketed and sold in over 100 countries. The company’s dairy products are aimed at meeting the specific nutritional needs of different consumer groups, such as sportspeople, children, and the elderly.

Other key players in the Europe dairy market include Nestlé S.A., Unilever, DMK Deutsches Milchkontor GmbH., Sodiaal International SA., Savencia S.A., and Müller Group, among others.