Dairy products and alternatives in 2025: The big picture
The market for dairy products and alternatives in Estonia is expected to see a flat performance in volume terms in 2025. Despite early signs of economic recovery, a VAT increase, implemented in July, has led to a noticeable rise in retail prices across most food categories, including dairy. As a result, consumers are becoming more cautious with their spending, prioritising essentials and cutting back on discretionary purchases.
Key trends in 2025
While most categories within dairy products and alternatives are expected to show moderate growth in current value terms in 2025, this will be largely price-driven - reflecting inflationary pressures rather than a genuine increase in consumer demand. Economic challenges have led to more cautious consumer behaviour, with lower overall purchasing activity and longer decision-making cycles. Nevertheless, demand for essential dairy products - such as milk, butter, cream, fromage frais, and cheese - remains relatively stable, as these items are deeply embedded in daily consumption habits. However, in response to rising prices, consumers are increasingly turning to promotional offers and private label options in search of better value.
Competitive landscape
Tere AS remains the leading player in the dairy products and alternatives market in Estonia. The company’s eponymous Tere brand enjoys a high level of trust amongst consumers, particularly for its core range, which includes milk, cream, fromage frais, and other staple dairy products. Tere’s products also benefit from a broader consumer preference for locally produced goods over imports - an attitude rooted in perceptions of freshness, quality, and national pride.
Channel developments
In Estonia, supermarkets remains the dominant distribution channel for dairy products and alternatives. "Local chains like Selver and Coop, along with international retailers such as Maxima and Rimi, provide a high-quality shopping experience and a well-rounded selection of products. However, unlike in neighbouring Lithuania and Latvia - where Maxima and Rimi hold significantly stronger market positions - the Estonian retail landscape is more fragmented, with no single player exercising overwhelming dominance.
What next for dairy products and alternatives?
The dairy products and alternatives market in Estonia is projected to register a stagnant performance in volume terms over the forecast period. Dairy remains a highly saturated category, deeply rooted in local consumption traditions, and dominated by established domestic players. Thus far, no significant product innovations have emerged that could meaningfully boost overall performance. As a result, sales will continue to rely heavily on core staples such as butter, milk, cream, cheese, and fromage frais.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Estonia 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 Estonia, 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 Estonia 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 Estonia?
- Which are the leading brands in Dairy Products and Alternatives in Estonia?
- How are products distributed in Dairy Products and Alternatives in Estonia?
- 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 Estonia?
- 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 Estonia
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 Estonia
KEY DATA FINDINGS
Baby food sales continue to decline, driven by unfavourable demographic trends
Local brand Põnn seizes lead in baby food, while Lidl shows fastest growth
Supermarkets dominate sales while discounters and e-commerce continue to grow
Baby food sales will continue downward trajectory
Natural ingredients will be in high demand
E-commerce will likely gain further value share
Butter and Spreads in Estonia
KEY DATA FINDINGS
Butter drives value growth amid declining demand for margarine
Tere leads market as Lidl gains ground with private label
Shift in distribution landscape as discounters and e-commerce win share
Demand for butter will remain steady as margarine and spreads see further declines
Health and wellness claims will drive innovation
Private labels will enjoy ongoing growth in the years ahead thanks to the activity of key players Lidl and Maxima
Cheese in Estonia
KEY DATA FINDINGS
Cheese remains a staple, but volume growth slows due to price pressures
Local player Estover OÜ maintains its lead
Supermarkets remains leading channel
Cheese market to see stable demand, with value growth supported by convenience and premium snacking trends
Cheese has potential to align with health and wellness trends
Lidl set to gain ground with its private label cheeses
Drinking Milk Products in Estonia
KEY DATA FINDINGS
Full fat fresh milk retains dominant presence
Tere maintains leadership while Lidl gains momentum
Supermarkets remain dominant, but discounters and e-commerce see fastest growth
Full fat fresh milk will remain most popular choice
Potential could lie in products with health and wellness claims
Private labels to gain further ground amid strong local brand presence
Yoghurt and Sour Milk Products in Estonia
KEY DATA FINDINGS
Healthier choices help to boost value in saturated market
Local leaders dominate competitive landscape but private labels gain ground
Supermarkets remain dominant, but discounters and e-commerce gather pace
Maturity and private label expansion to weigh on value sales
Health and wellness will be path to future growth
Packaging will be potential differentiator
Other Dairy in Estonia
KEY DATA FINDINGS
Cream drives value growth amid price increases
Tere AS leads, while private label drives growth
Discounters continue to gain traction
Flat performance for other dairy, with cream continuing to dominate sales
High-protein positioning could boost sales of fromage frais
Other dairy faces limited threat from plant-based offerings
Plant-Based Dairy in Estonia
KEY DATA FINDINGS
Plant-based dairy continues to grow, but price sensitivity restricts wider demand
Alpro retains its dominance
Modern retail leads sales
Strong growth anticipated for plant-based dairy but challenges remain
Innovation and diversification could drive growth
Private labels to gain ground as discounters expand presence
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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