Dairy products and alternatives in 2025: The big picture
Sales of dairy products and alternatives saw strong growth in current value terms in 2025, shaped by a complex interplay of health trends, economic forces, innovation, and evolving consumer behaviours. The main reason for the category’s expansion was a pronounced shift toward products that deliver tangible health benefits. Consumers are increasingly seeking dairy products that are fortified with probiotics for digestive health, high-protein content for muscle support, and lactose-free or plant-based alternatives to accommodate dietary restrictions and ethical preferences. This health-driven demand has catalysed innovation across all categories, with launches not only responding to consumer needs but also expanding the market into previously niche areas, such as adaptogen-enriched yoghurt and functional dairy desserts targeting health benefits.
Key trends in 2025
A defining trend in Brazil’s dairy products and alternatives market in 2025 was the rapid evolution of snacking occasions, driven by changing consumer lifestyles and urbanisation. As more Brazilians lead busy lives, particularly in metropolitan areas, the demand for convenient, nutritious, and portable food options has surged. Producers have responded by innovating across product formats, focusing on high protein, healthy meal replacements that cater to on-the-go consumption.
Competitive Landscape
Nestlé Brasil Ltda was the leading company within dairy products and alternatives overall in 2025. The company produces the Ninho, Moça and Molico brands, which are present in the powder milk, condensed milk and milk categories. Nestlé’s leadership in Brazil’s dairy market is the result of a sophisticated blend of scale, innovation, brand equity, distribution excellence, and strategic adaptation to local market dynamics. The company’s approach is both broad and deep, allowing it to capture value across every major category of dairy products and alternatives, from staple products to premium innovations.
Channel developments
In 2025, small local grocers, often referred to as “mercadinhos” or neighbourhood stores, remained the leading distribution channel for dairy products and alternatives in Brazil. This strong position is rooted in several structural and behavioural factors. Brazilian consumers, especially in urban favelas, suburbs, and rural areas, have long favoured frequent, small-volume purchases of essentials like fresh and shelf stable milk. The proximity and convenience of these stores align perfectly with daily shopping habits, limited home refrigeration, and erratic incomes that make bulk shopping less practical. Small local grocers offer rapid restocking of perishable dairy products, credit flexibility, and personalised service, which are highly valued by low- to middle-income households. These outlets are deeply integrated into local communities, providing trusted access to staple products and catering to the immediacy of consumer needs.
What next for dairy products and alternatives?
Looking ahead to 2030, the Brazilian dairy products and alternatives market is poised for sustained growth, shaped by a convergence of macroeconomic stability, evolving consumer preferences, and relentless innovation across all categories. The market’s resilience should be underpinned by controlled inflation and a recovering economy, which together will bolster consumer purchasing power and enable both premiumisation and the expansion of affordable offerings. As disposable incomes rise, particularly among urban middle-class households, demand for health-oriented, functional, and convenient dairy products and alternatives should continue to accelerate, setting the stage for a dynamic and competitive landscape.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Brazil 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 Brazil, 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 Brazil 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 Brazil?
- Which are the leading brands in Dairy Products and Alternatives in Brazil?
- How are products distributed in Dairy Products and Alternatives in Brazil?
- 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 Brazil?
- 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 Brazil
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 Brazil
KEY DATA FINDINGS
Baby food category growth follows birth rate and urbanization indexes
Nestle and Danone account for most sales of baby food
Health and beauty specialists lead the distribution of baby food
Sales set for growth thanks to urbanisation and an improving economy
Health and wellness trends point toward clean labels and local and organic sourcing
Dairy compounds face stricter legislation
Butter and Spreads in Brazil
KEY DATA FINDINGS
Butter and spreads grows in value despite inflation and changing consumer habits
BRF and JBS stand out with strong portfolios
Supermarkets lead sales while small local grocers lose relevance
Macroeconomic stability and increased production should boost sales
Non-dairy alternatives and healthier options expected to gain more relevance
Sales set to benefit from omnichannel strategies
Cheese in Brazil
KEY DATA FINDINGS
Macroeconomic factors bring stability promoting volume growth in the category
Polenghi cements its lead through marketing and innovation
Small local grocers facing competition from supermarkets and convenience stores
Cheese set to benefit from economic stability and increased variety
Cheese innovation expected to be influenced by health and indulgence trends
Legislation efforts aim to improve product quality within cheese
Drinking Milk Products in Brazil
KEY DATA FINDINGS
Sales of drinking milk products pushed by controlled prices and health and wellness trends
Lactalis delivers dynamic growth thanks to ongoing investments in marketing and innovation
Small local grocers still lead sales despite losing share
Controlled inflation and local production expected to drive category growth
The category’s alignment with current health and wellness trends will be key to growth
Logistical improvements needed for cold chain storage
Yoghurt and Sour Milk Products in Brazil
KEY DATA FINDINGS
Yoghurt increasingly seen as a healthy indulgence suitable for convenient snacking
Danone leads with extensive portfolio and health and wellness alignment
Supermarkets benefit from extensive refrigeration aisles and high bargain power
Healthy eating trends and a stable economy bode well for yoghurt
Innovation will remain central to the category
Yoghurt innovation leaning towards ‘food as medicine’ concept
Other Dairy in Brazil
KEY DATA FINDINGS
Other dairy category shows maturity and resilience amid price hikes
Nestlé benefits from its large portfolio while Danone drives innovation
Supermarkets benefit from offering a broad range of products
Consistent consumer demand and innovation should support growth in other dairy
Health and wellness trends set to influence the market’s development
Legislation developments aim at clearer labelling and to assure products’ quality
Plant-Based Dairy in Brazil
KEY DATA FINDINGS
Plant-based dairy sees strong value growth in 2025 as prices rise
Ades retains the lead in 2025 but faces mounting competition as demand grows
Supermarkets benefit from visibility, accessibility and choice
Plant-based dairy set to benefit from shifts in consumer behaviour
Health and wellness trend set to inform plant-based innovation
Decrees aim at fair competition among animal and plant-based dairy, with clearer labelling
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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