The World Market for Dairy Products and Alternatives

In 2025, the global dairy industry is characterised by pricing-led value growth and modest volume performance. Functional benefits, affordability and evolving routines continue to redefine category dynamics. Emerging markets offer strong potential, while mature regions will see a focus on premiumisation and wellness. Functionality, pack strategy and local relevance are becoming essential for brand differentiation and securing future success, especially as private label gains ground.

The World Market for Dairy Products and Alternatives global briefing provides a comprehensive overview of the Dairy Products and Alternatives market, providing insight on sales and market potential, retail distribution and company and brand shares. Analysis identifies emerging geographies alongside growth opportunities in the most developed, highest value countries. It also offers strategic analysis of the key trends shaping the industry and consumer demand, such as health and wellness, sustainability, the evolution of eating occasions, in addition to ongoing considerations of convenience and value-for-money in the post-pandemic world. Insight into how these trends are shaping demand, helps to provide forecasts, clearly indicating how the market is expected to change.

Report Scope:

• Product coverage: Baby Food, Dairy, Plant-based Dairy.
• Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.

Key Findings

Balancing functional added value with cost-conscious demand

In 2025, global retail value of dairy products and alternatives is set to reach USD705 billion, with volume sales of 221 million tonnes. Pricing remains a key value growth driver, helping offset modest volume growth across most regions and categories. Companies are working to balance premiumisation around functionality and convenience, while keeping affordability front of mind.

Cheese, coffee whiteners and fermented dairy are key growth drivers

Cheese and coffee whiteners are seeing above market average growth. Soft cheese benefits from its high protein content and clean-label appeal, while coffee whiteners thrive on the growing coffee culture and innovations like cold foam creamers. Yoghurt and sour milk products, especially kefir, are also performing well, fuelled by interest in gut health and natural fermentation.

Dairy giants lose ground to agile local players and private label rivals

Global leaders Danone and Nestlé hold the top spots but face rising pressure from private label and regional players. Lactalis expanded via acquisitions, while Yili and Mengniu lost share due to reliance on ambient formats and intensifying domestic competition. Private label gains, strongest in Europe, are driven by affordability, while regional brands benefit from agility and local relevance.

Emerging markets set the pace for dairy’s next growth wave

The industry is set to grow at a 2.1% CAGR over 2025-2030, adding USD77.0 billion in value. MEA and LATAM will be the most dynamic regions, while APAC will lead in terms of absolute growth. Emerging markets like Nigeria, the Philippines and Indonesia have strong potential, fuelled by rising incomes, urbanisation and demand for affordable packaged formats.

E-commerce advances, while affordable and local channels gain ground

E-commerce remains the fastest growing channel, though it accounts for just 8% of global retail penetration in 2025, with baby food in APAC and North America showing high online share. Growth in small local grocers is strong across emerging regions, where they exceed 40% of retail sales. Discounters are expanding rapidly in Europe, while warehouse clubs gain traction in the Americas.

Why buy this report?

• Get a detailed picture of the Dairy Products and Alternatives market;
• Pinpoint growth sectors and identify factors driving change;
• Understand the competitive environment, the market’s major players and leading brands;
• Use five-year forecasts to assess how the market is predicted to develop.