Dairy products and alternatives in 2025: The big picture
Dairy products and alternatives has seen healthy growth in current value terms in 2025. This growth is attributed to a moderate increase in volume sales and an increase in average unit prices. Dairy products and alternatives continues to be strongly shaped by health and wellness. Whether baby food, dairy, or plant-based dairy, a large number of new launches in 2024/2025 have been health and wellness focused. Functional/fortified products, but also organic and natural, remain a strong focus area for consumers. Traditionally, Austrians like dairy products including cow’s milk, cheese and yoghurt with there being a solid presence of local dairies in the country. As a result, dairy continues to account for the largest share of value and volume sales within dairy products and alternatives.
Key trends in 2025
As the impact of climate change becomes more visible consumer concerns around issues of sustainability are becoming more pronounced. This is leading to a preference for locally sourced dairy while it is also prompting major players to adopt eco-friendly strategies. Austrians are very proud of their landscape including the Alpine mountains and the large number of pastures and meadows. In Austria, there are traditionally many pastures and mountain meadows that are used to keep cattle. In early summer, the cattle move from the valleys to the alpine pastures to graze on mountain meadows. Grazing is not only important for the cattle, but also for the preservation of diverse plant and animal species in these landscapes. However, in recent years, Austria has been impacted by storms, floods and record temperatures. More flooding and storms are expected in 2025. As a result, consumers in Austria are becoming more concerned about their environment and are aware of the importance of preserving natural resources through various measures, including establishing protected areas, restoring wild river landscapes, and managing Alpine pastures sustainably. Austria's commitment to environmental protection extends to encouraging organic farming and ensuring environmentally compatible use of soil and water.
Competitive Landscape
Berglandmilch is Austria’s largest dairy manufacturer and thus the company continues to lead dairy products and alternatives in 2025. The company’s brands have a long tradition in the country and are well known and popular with consumers. Berglandmilch is the country’s number one cheese company with it also leading sales in other dairy. The company invests heavily in research and development and regularly launches new products or extends lines, as well as launching limited editions.
Channel developments
Supermarkets is the leading distribution channel for dairy products and alternatives in Austria in 2025. There are a large number of supermarkets outlets in Austria considering the relatively small size of the country. As a result, most consumers in the country have a supermarket close by. A special feature of Austria is the exceptionally high density of supermarkets. This leads to increased competition among supermarkets. Many supermarkets respond with promotions to attract consumer awareness and interest. Spar and Billa are the most popular chains of supermarkets with these having the largest number of outlets. Other chains of supermarkets include Nah&Frisch, MPREIS and ADEG. Supermarkets are highly convenient as they provide significant shelf space and offer a wide range of brands and private label options in dairy products and alternatives. Consumers favour the wide choice of products, brands and private label and the different price levels.
What next for dairy products and alternatives?
Demand for dairy products and alternatives will remain high in Austria over the forecast period. Traditionally, Austria is a dairy manufacturing and consuming country and this will unlikely change over the forecast period. Cheese will remain popular with a stable performance predicted the forecast period, with the category accounting for the largest share of overall value sales. Cow’s milk is expected to suffer slightly from declining volume sales, due in part to increasing competition from plant-based milk, with consumers seen to be consuming less cow’s milk. Most consumers will however continue to opt for fresh cow’s milk rather than shelf-stable variants. The popularity of yoghurt and sour milk products is also expected to continue growing. Indulgence, convenience and health and wellness will likely shape demand for yoghurt and sour milk products. Austrian households will likely also continue to be interested in cream, butter, fromage frais and quark, and chilled desserts.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Austria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Austria, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Austria report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Austria?
- Which are the leading brands in Dairy Products and Alternatives in Austria?
- How are products distributed in Dairy Products and Alternatives in Austria?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Austria?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Austria
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in Austria
KEY DATA FINDINGS
Players focus on adding value as birth rate decline presents challenges
Competition heats up as leading players expanding their offering in baby food
Health and beauty specialists dominate but e-commerce showing dynamic growth
Falling birth rates present challenges but growth opportunities remain
Health and wellness will be a focus of innovation
Sustainability set to become a point of differentiation
Butter and Spreads in Austria
KEY DATA FINDINGS
A positive year for butter and spreads despite further price rises
Upfield leads with its focus on new product development and sustainability
Supermarkets dominate but e-commerce benefits from ongoing investment
Stable performance predicted for butter and spreads
Health and wellness trend likely to inform demand and new product development
Local players expected to remain on top
Cheese in Austria
KEY DATA FINDINGS
Mozzarella in demand as cheese sales see healthy growth
Berglandmilch remains on top with local cheese
Supermarkets and discounters account for most sales
Health and convenience trends expected to inform demand for cheese
Health and wellness set to inform new product development and demand
Local dairies set to remain on top
Drinking Milk Products in Austria
KEY DATA FINDINGS
Price rises drive value growth in drinking milk products in 2025
Rewe leads thanks to strong private label line
Supermarkets and discounters benefit from broad offer and accessibility
Mixed outlook for drinking milk products
Fortified/functional products showing strong potential
End of the organic milk surcharge presents a threat to the future of organic milk
Yoghurt and Sour Milk Products in Austria
KEY DATA FINDINGS
Yoghurt and sour milk products thriving thanks to healthy and indulgent image
Competition intensifies thanks to large number of new product launches
Supermarkets and discounters continue to account for most sales
Demand set to continue growing thanks to the category’s healthy image
Health and wellness claims will remain a key feature of the category
Local dairies set to remain on top thanks to ongoing category investment
Other Dairy in Austria
KEY DATA FINDINGS
Demand for other dairy continues to grow
Players focus on new product development to gain share
Supermarkets benefit from proximity and a broad offer of products and promotions
Mixed outlook for other dairy with demand driven by the key categories
Consumers expected to look for healthier options
Cream could suffer from maturity
Plant-Based Dairy in Austria
KEY DATA FINDINGS
Plant-based dairy thriving thanks to healthy image
Alpro benefits from new product development
Supermarkets remain key to sales but e-commerce showing promise
Plant-based dairy set to benefit from new product development
Manufacturers set to lean into the health and wellness trend
Plant-based cheese full of potential
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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