Dairy products and alternatives in 2025: The big picture
Value sales of dairy products and alternatives in Bulgaria increased in 2025, largely driven by higher prices rather than a significant expansion in consumption. While inflation stabilised at a relatively low level, rising energy costs, higher minimum and average wages, and increased operational expenses for producers and retailers placed upward pressure on unit prices. These higher costs, combined with retailer mark-ups, were reflected in shelf prices across the market. At the same time, growing consumer sensitivity towards product quality encouraged many Bulgarians to avoid cheaper, lower-quality dairy products in favour of trusted, higher-priced options – often purchased on promotion. The exposure of substandard products in the media, such as reports of elevated water content in cheese, further reinforced this shift towards perceived quality. Premium cheese segments, although still holding a relatively low penetration rate, recorded faster growth than standard offerings, contributing to the overall increase in value sales.
Key trends in 2025
The high-protein and lactose-free dairy segment continued to expand, supported by the rising number of health-conscious Bulgarians, sports and fitness enthusiasts, and consumers with specific dietary needs. Both local and international players invested in this space, with launches such as Arla Protein and Stay Strong, as well as Bulgarian producers Bor Chvor and Dimitar Madjarov offering broad ranges of high-protein products. Lactose-free dairy also gained momentum, reflecting both growing awareness of lactose intolerance and a widening selection of suitable options.
Competitive Landscape
Obedinena Mlechna Kompania EAD led dairy products and alternatives in 2025. Formed through the merger of Obedinena Mlechna Kompania AD and Tirbul EAD, the company maintains a presence across nearly all dairy categories and also offers plant-based milk under the Vereia, Olympus, Fibela, and Carpos brands. Its strong brand recognition, wide product portfolio, and multi-channel availability reinforce its leading position.
Channel developments
Small local grocers retained their leadership in dairy products and alternatives sales in 2025, benefiting from their proximity and convenience, particularly for the frequent, small-basket shopping trips preferred by many Bulgarians. According to Billa’s analysis, 70% of Bulgarian shoppers typically purchase up to seven items per trip, at shorter intervals. This behaviour prompted large retail chains to invest in smaller-format outlets, such as Billa’s new neighbourhood concept, Billa Today. Similarly, Metro Bulgaria (formerly Metro Cash & Carry Bulgaria EOOD) expanded its Mojat Magazin franchise programme, which aims to revitalise independent grocery stores, particularly in smaller towns and rural areas. These modernised outlets preserve the role of traditional trade in communities where large modern retailers have less presence, while Metro’s pricing and supply model enables these small retailers to remain competitive.
What next for dairy products and alternatives?
Value sales of dairy products and alternatives are projected to maintain a positive trajectory over the forecast period, reflecting their status as staple foods in the Bulgarian diet. These products are valued for their high nutritional content, including probiotics, amino acids, vitamins, and proteins, which continue to support strong household demand. Even with inflation stabilising, prices are unlikely to fall, as wage growth – particularly in the event of Bulgaria joining the Eurozone – is expected to keep production, distribution, and retail costs at elevated levels. The market will also benefit from rising consumer interest in vegetarian and plant-forward diets, which will support both traditional dairy and dairy alternatives. Baby food will remain an important growth driver, aided by growing parental trust in the safety and nutritional quality of industrially produced products. The continued penetration of organic private label baby foods – such as Kaufland’s K-Bio, Lidl’s Lupilu, and Avendi’s new BioNino – will make higher-quality products more accessible at competitive prices. Moreover, the reduced VAT rate on baby foods, currently set at 9% instead of the standard 20%, is expected to remain in place, further encouraging category growth.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Bulgaria 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 Bulgaria, 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 Bulgaria 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 Bulgaria?
- Which are the leading brands in Dairy Products and Alternatives in Bulgaria?
- How are products distributed in Dairy Products and Alternatives in Bulgaria?
- 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 Bulgaria?
- 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 Bulgaria
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 Bulgaria
KEY DATA FINDINGS
Convenience, quality, and rising incomes sustain positive growth
Hipp retains leadership while value brands accelerate growth
Supermarkets remain dominant while e-commerce gains traction
Rising demand for convenience and diverse baby food formats
Organic baby food becomes mainstream and more affordable
Innovation in packaging and growing sustainability focus
Butter and Spreads in Bulgaria
KEY DATA FINDINGS
Butter drives value growth as consumer preferences shift towards quality
Milky Group Bio maintains leadership while private label gains momentum
Neighbourhood stores lead distribution as online sales accelerate
Market growth to remain driven by butter as margarine continues to decline
Health and wellness perceptions to shape consumption patterns
Packaging innovation to enhance convenience and product longevity
Cheese in Bulgaria
KEY DATA FINDINGS
Value growth supported by price stability and premiumisation
Dimitar Madjarov retains leadership as organic and niche brands gain momentum
Local grocers remain important, but modern channels gain ground
Moderate volume gains but sustained value growth driven by premiumisation
Health-oriented innovation and organic options gaining traction
Protected designation status to enhance authenticity and marketability
Drinking Milk Products in Bulgaria
KEY DATA FINDINGS
Value growth supported by higher prices and import penetration
Category leadership strengthened by diversified portfolios
Modern grocery remains dominant while e-commerce gains momentum
Value growth sustained by premiumisation and stable high prices
Health-focused innovation to drive demand for high-protein and lactose-free products
Product and production innovations supported by regulatory developments
Yoghurt and Sour Milk Products in Bulgaria
KEY DATA FINDINGS
Price growth and stable demand support positive category performance
Fragmented competitive landscape with strong regional brands and private label growth
Traditional retail dominates but e-commerce and discounters gain traction
Growth to continue, led by drinking and flavoured yoghurt
High-protein and lactose-free yoghurt to strengthen health and wellness positioning
Protected designation status and scientific research to bolster category image
Other Dairy in Bulgaria
KEY DATA FINDINGS
Higher prices and protein-rich choices underpin growth
Danone maintains leadership as Merone and Lidl record fastest growth
Discounters lead growth in distribution while e-commerce expands
Sustained value and volume growth led by highprotein and convenience formats
Highprotein and lactosefree positioning set to expand further
Automation, production efficiency and sustainability underpin industry direction
Plant-Based Dairy in Bulgaria
KEY DATA FINDINGS
Stronger uptake of plant-based dairy alternatives amid shifting dietary preferences
Brand leadership anchored by Alpro, with fast growth from niche challengers
E-commerce surges as the fastest-growing distribution channel
Steady value growth underpinned by premium pricing, but volume expansion slows
Functional and clean-label positioning reinforces health appeal
Innovation in bases and texture drives next-generation offerings
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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