Dairy Products Market Report 2026

The dairy products market size has grown steadily in recent years. It will grow from $544.2 billion in 2025 to $568.28 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 global milk production, growth of packaged dairy consumption, increasing urbanization, development of cold storage infrastructure, rising nutritional awareness.

The dairy products market size is expected to see steady growth in the next few years. It will grow to $680.06 billion in 2030 at a compound annual growth rate (CAGR) of 4.6%. The growth in the forecast period can be attributed to increasing demand for plant-based and hybrid dairy alternatives, growing focus on protein-rich diets, expansion of online dairy retail, rising investment in sustainable dairy farming, innovation in dairy processing technologies. Major trends in the forecast period include rising demand for value-added dairy products, increasing adoption of fortified and functional dairy items, expansion of yogurt and fermented dairy consumption, growing focus on clean-label dairy processing, enhanced emphasis on cold chain optimization.

The growing demand for cheese is expected to drive the expansion of the dairy products market in the coming years. Cheese is a dairy product made from curds of soured milk that are pressed together to form a soft or hard solid as they ripen. It typically consists of coagulated, compressed milk and ripened curds. Cheese is produced by separating milk from whey and pressing the curds, so rising cheese demand directly supports market growth. For example, in November 2023, according to the Cheese Reporter, a US-based publication focused on cheese and related products, U.S. cheese production reached 1.15 billion pounds in 2023, a 0.1% increase compared to September 2022. For the first nine months of 2023, cheese production totaled 10.55 billion pounds, reflecting a 0.2% rise from the same period in 2022. This trend indicates steady growth in cheese output amid varying market dynamics. Therefore, increasing demand for cheese is propelling the dairy products market.

Key companies in the dairy products market are introducing high-protein dairy variants, such as protein-rich drinking yogurts and ready-to-consume dairy beverages, to meet growing consumer demand for nutritious, convenient options that support active lifestyles and health-conscious diets. These products provide elevated levels of complete dairy protein per serving - often 15-25 g - while maintaining the full nutrient profile of dairy, offering a convenient meal-or-snack alternative for on-the-go consumers and fitness-oriented segments. For instance, in September 2023, Danone S.A., a France-based food and beverage company, launched GetPRO, a high-protein dairy range in the UK, including yogurts, puddings, mousses, and drinks, each containing 15-25 g of protein per serving. The launch reflects the company’s commitment to meeting growing global demand for protein-enriched dairy products.

In January 2024, Royal FrieslandCampina N.V., a Netherlands-based dairy cooperative, partnered with Selecta Group to enhance the quality and consistency of Selecta’s coffee and beverage offerings across Europe. Under this agreement, FrieslandCampina will supply Selecta with liquid milk, creamers, and its professional Lattiz® dairy system across 16 European markets, strengthening Selecta’s premium beverage portfolio. Selecta Group is a Switzerland-based FoodTech and self-service coffee solutions provider serving workplace, hospitality, and on-the-go segments across Europe.

Major companies operating in the dairy products market are Arla Foods amba, Fonterra Co-operative Group Limited, Nestlé S.A., Danone S.A., Royal FrieslandCampina N.V., Dairy Farmers of America Inc., DMK Group, Gujarat Cooperative Milk Marketing Federation Ltd., Meiji Holdings Co. Ltd., Parmalat S.p.A., Sodiaal Group, Inner Mongolia Yili Industrial Group Co. Ltd., China Mengniu Dairy Co. Ltd., Megmilk Snow Brand Co. Ltd., Saputo Inc., Lactalis International, Agropur Cooperative, Kaira District Co-operative Milk Producers' Union Limited, Arion Dairy Products BV, Bel Group S.A., Savencia SA, Cabot Creamery Cooperative Inc., California Dairies Inc., Clover Sonoma Inc., Darigold Inc., Davisco Foods International Inc., Foremost Farms USA, Glanbia plc, Hilmar Cheese Company Inc., Idaho Milk Products, Kerry Group plc, Land O'Lakes Inc., Leprino Foods Company.

Asia-Pacific was the largest region in the dairy products market in 2025. Asia-Pacific is expected to be the fastest-growing region in the dairy products market during the forecast period. The regions covered in the dairy products 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 dairy products market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The dairy products market consists of sales of paneer, ice cream, whey protein, and condensed milk. 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.

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