Milk and Butter Market Report 2026

The milk and butter market size has grown steadily in recent years. It will grow from $334.21 billion in 2025 to $348.77 billion in 2026 at a compound annual growth rate (CAGR) of 4.4%. The growth in the historic period can be attributed to expansion of dairy farming activities, rising consumption of milk-based products, improvements in cold storage and distribution, growing urban population, increased availability of packaged dairy products.

The milk and butter market size is expected to see strong growth in the next few years. It will grow to $424.84 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to rising demand for functional and fortified dairy, expansion of organic milk consumption, growing investments in sustainable dairy farming, increasing adoption of smart dairy processing systems, rising focus on animal welfare standards. Major trends in the forecast period include increasing demand for organic and clean-label dairy products, rising adoption of advanced dairy processing technologies, expansion of value-added butter variants, enhanced focus on traceability and quality control, increasing product diversification.

The rising demand for food is anticipated to drive the growth of the milk and butter market in the coming years. Global food demand is increasing due to factors such as population expansion, higher income levels, climate change, greater emphasis on food security, shifting dietary preferences, and rising per capita consumption. This growing demand encourages the development of flavored milk, dairy spreads, flavored butter, and other value-added dairy products to address evolving consumer tastes. For instance, in April 2023, according to the International Food Information Council, a U.S.-based nonprofit organization that provides science-based information on food safety, nutrition, and health, a recent survey found that 52% of Americans reported following specific eating patterns or diets in the past year, remaining consistent with the previous year. Younger generations showed higher adoption rates, with Gen Z at 66% and Millennials at 63%, compared to Gen X at 50% and Boomers at 41%. Notably, diet adherence among Boomers increased significantly from 29% in 2022 to 41%. The most commonly reported eating patterns included high-protein diets (18%), mindful eating (17%), calorie tracking (12%), clean eating (12%), and intermittent fasting (12%). Therefore, the growing demand within the food sector is supporting the expansion of the milk and butter market.

Prominent companies operating in the milk and butter market are actively engaged in innovating new products to enhance their market profitability. These innovative food products often incorporate advanced freezing technologies or methods that preserve the quality, texture, and nutritional value of the food. As an example, in March 2023, Lactalis, a France-based dairy company, introduced a light butter in the UK and Ireland. This newly launched product is aimed at the market for lighter spreadable butter and is devoid of vegetable oil. The introduction of this product by Lactalis is in response to the growing demand for healthier dietary options. The new light butter offers reduced fat content and is crafted using premium ingredients, catering to the preferences of health-conscious consumers.

In December 2025, Horizon Family Brands, a U.S.-based food and beverage company, acquired Maple Hill Creamery, LLC, for an undisclosed amount. Through this acquisition, Horizon sought to broaden its organic dairy portfolio by incorporating Maple Hill’s 100% grass-fed organic dairy products into its distribution and brand network. This move combines Horizon’s established market presence and distribution strengths with Maple Hill’s focus on regenerative agriculture and premium grass-fed dairy products. Maple Hill Creamery, LLC is a U.S.-based dairy company specializing in grass-fed organic dairy offerings.

Major companies operating in the milk and butter market are Danone S.A., Inner Mongolia Yili Industrial Group Co. Ltd., Fonterra Group Cooperative Limited, Groupe Lactalis S.A., Saputo Inc., Arla Foods amba, FrieslandCampina, Nestle S.A., Dairy Farmers of America Inc., Yili Group, China Mengniu Dairy Company Limited, Land O'Lakes Inc., Dean Foods, DMK Deutsches Milchkontor GmbH, Meiji Holdings Company Ltd., The Agropur Dairy Co-operative, Savencia Fromage & Dairy, Sodiaal, Amul, Schreiber Foods Inc., Müller, Foremost Farms, Hiland Dairy, Prairie Farms Dairy, St. Mary's Farm, St. Pete's Select, The Turner Dairies, Tillamook County Creamery Association, Alpenrose Dairy, Challenge Dairy, Agropur Cooperative.

Asia-Pacific was the largest region in the milk and butter market in 2025. Western Europe was the second largest region in milk and butter market. The regions covered in the milk and butter market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the milk and butter market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The milk and butter market consists of sales of sweet buttermilk, sour buttermilk, skimmed milk powder, fat-filled milk powder, whole milk powder, dairy whiteners, reduced-fat milk (2%), whole milk, lactose-free milk, low-fat milk(1%), skim milk, evaporated milk, condensed milk, creamery butter, whey butter. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.