Dairy Food Market Report 2026

The dairy food market size has grown strongly in recent years. It will grow from $871.3 billion in 2025 to $920.25 billion in 2026 at a compound annual growth rate (CAGR) of 5.6%. The growth in the historic period can be attributed to expansion of organized dairy processing, rising urban consumption of packaged dairy products, increasing livestock productivity, growth of modern retail channels, improved cold storage infrastructure.

The dairy food market size is expected to see strong growth in the next few years. It will grow to $1.17 trillion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to growing demand for protein-rich diets, rising lactose-free and specialty dairy consumption, expansion of e-commerce dairy sales, increasing focus on sustainable packaging, growing investments in advanced dairy processing technologies. Major trends in the forecast period include increasing demand for functional and fortified dairy products, rising adoption of sustainable dairy farming practices, growing preference for value-added dairy products, expansion of cold chain and refrigerated distribution, enhanced focus on product traceability and quality assurance.

The expanding development of cold chains is expected to drive the growth of the dairy food market. Cold chains are specialized supply chain networks designed to maintain and manage temperature-controlled storage, transportation, and distribution of temperature-sensitive products, including perishable foods, pharmaceuticals, vaccines, and chemicals. Cold chains help preserve product freshness, enable geographic expansion, support product variety, facilitate global trade, extend shelf life, ensure food safety compliance, and enhance consumer convenience. For example, in September 2024, the Cold Chain Federation, a UK-based association, reported that energy costs in the cold chain sector surged by 46% in 2023 compared to 2022. Additionally, the number of cold stores using blast freezers increased by 3%, while the use of CO2 as a primary refrigerant rose by 4%, with ammonia and HFCs each declining by 2%. Therefore, the growing development of cold chains is fueling the dairy food market.

Leading companies in the dairy food market are concentrating on developing technologically advanced solutions, such as the Go High in Protein initiative, to satisfy the increasing consumer demand for health-oriented products and improve nutritional value. Go High in Protein refers to a product line or dietary trend that highlights elevated protein content, primarily aimed at health-conscious consumers, athletes, and individuals looking to enhance their overall nutrition. These products usually encompass dairy items like yogurt, milk, and cheese that are fortified with higher protein levels compared to standard offerings. For example, in September 2024, Arla Foods Group, a Denmark-based food company, launched the Go High in Protein campaign to encourage dairy manufacturers to create innovative high-protein products. This campaign provides manufacturers with the opportunity to enhance their dairy offerings using Arla’s Nutrilac Protein Boost solutions, emphasizing the improvement of protein content while preserving appealing taste and texture. Additionally, it features educational resources, including a virtual seminar to assist industry professionals in effectively utilizing these innovative products.

In July 2025, Dodla Dairy Ltd., an India-based dairy company, acquired HR Food Processing Pvt. Ltd. for US$31.6 million. This acquisition aims to expand Dodla Dairy’s product portfolio, strengthen its presence in the processed dairy segment, enhance production capabilities, and support long-term growth across key markets. HR Food Processing Pvt. Ltd. is an India-based company specializing in dairy-based products.

Major companies operating in the dairy food market are Lactalis Group, Danone, Fonterra, Yili, Nestlé, Saputo, Arla Foods, Dairy Farmers of America, Amul, Mengniu, Mother Dairy, Nadec, Almarai, FrieslandCampina, Prairie Farms, California Dairies, Glanbia Cheese, Ornua, Agropur, Schreiber Foods, Clover SA, Müller UK & Ireland, Yeo Valley, MILMA, AAVIN, Dudhsagar Dairy, Piracanjuba, La Serenísima, Colun, Ilolay.

Asia-Pacific was the largest region in the dairy food market in 2025. Western Europe was the second-largest region in the dairy food market. The regions covered in the dairy food 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 food 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 dairy food market consists of sales of buttermilk, cheese, cream, soy milk, whipping cream, butter, and other dairy food. The companies in the industry package and distribute their products through various distribution channels to both individual customers and commercial establishments. 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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