Dairy products and alternatives in 2025: The big picture
Dairy products and alternatives in Germany faces slower value growth in 2025 following the price hikes and inflationary pressures of recent years. Lower inflation has provided some relief for consumers, although prices are still increasing. While this is hampering overall consumption, volume sales are set to increase marginally in 2025. German consumers include a high level of dairy products in their diet, where cheese, yoghurt, and milk remain staples. At the same time, plant-based alternatives have found their way into the mainstream, with plant-based drinking milk rivalling traditional dairy milk.
Key trends in 2025
The dairy industry is navigating a landscape where health, sustainability, and economic considerations are key factors shaping consumer behaviour and industry dynamics. Trends in dairy products and alternatives in Germany have primarily been driven by evolving consumer preferences and economic factors. A major trend is the growing interest in health and animal welfare, which continues to propel the demand for plant-based dairy alternatives. Plant-based dairy is growing as consumers seek options that align with their dietary choices and ethical values. Rising awareness of health benefits and sustainability concerns are steering many towards these alternatives, reflecting a growing interest in food products perceived as more humane and environmentally friendly.
Competitive Landscape
Dairy products and alternatives in Germany continues to be led by private label products from supermarkets and discounters. These retailers have established a strong position ahead of well-known German dairy players such as Savencia Fromage & Dairy Deutschland GmbH and Unternehmensgruppe Theo Müller. Private label has also gained further popularity in recent years, mainly driven by inflationary pressures and the consumer focus on value for money. Supermarkets such as Rewe and Edeka, along with discounters such as Aldi and Lidl, have capitalised on this trend by offering a wide range of private label dairy products that are competitively priced, while maintaining standards that meets consumers’ expectations. The development of high-quality private label dairy products that often rival those of established brands, but at lower prices, gives retailers considerable leverage. Even in plant-based alternatives private label competes with well-known brands in terms of price, quality, and taste. This has led to a significant increase in consumer trust and loyalty towards private label lines, which are often viewed as viable alternatives to traditional dairy brands. In addition, the extensive distribution networks and large-scale operations of supermarkets and discounters allow these private label products to be widely available, further cementing their strength in the market.
Channel developments
Discounters is set to remain the primary distribution channel for dairy products and alternatives, followed by supermarkets. The strength of discounters is largely due to their ability to offer competitive prices, which appeal to the cost-conscious German consumer. Supermarkets, while slightly behind discounters, still hold a substantial share of value sales in dairy products and alternatives. These outlets offer a broader range of products than discounters, including premium and organic options, thereby catering to consumers who prioritise variety and quality. Supermarkets also benefit from their convenient locations and the ability to provide a one-stop shopping experience, which includes not just dairy products, but a wide assortment of groceries and household items. However, despite this, the cost advantage of discounters often makes them the go-to option for everyday dairy purchases, especially when products are promoted or consumers buy for bigger households.
What next for dairy products and alternatives?
Dairy products and alternatives in Germany is set to witness solid growth in both retail volume and current value terms in the forecast period, with particularly strong growth anticipated for plant-based dairy alternatives. Even as the category matures, plant-based dairy products will remain popular, driven by ongoing consumer interest in sustainability, animal welfare, and different dietary approaches. However, the explosive growth witnessed in the early stages of development is likely to taper off as some of the sub-categories are expected to reach maturity.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Germany 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 Germany, 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 Germany 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 Germany?
- Which are the leading brands in Dairy Products and Alternatives in Germany?
- How are products distributed in Dairy Products and Alternatives in Germany?
- 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 Germany?
- 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 Germany
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 Germany
KEY DATA FINDINGS
Premiumisation trend capitalises on health and convenience trends
Hipp GmbH & Co Vertrieb strengthens leading position
Health and beauty specialists offer extensive reach and convenience to parents
Falling birth rate poses some challenges
Health and wellness factors will shape development of baby food
Regulation as a quality gatekeeper
Butter and Spreads in Germany
KEY DATA FINDINGS
Higher butter prices lead to weaker consumption
Premium attributes support leading brands amid more intense challenges from private label
Hypermarkets recover due to aggressive pricing
Stagnation amid shifting consumer preferences
Better-for-you alternatives gain ground
Sustainable credentials to take centre stage
Cheese in Germany
KEY DATA FINDINGS
Cheese consumption proves resilient as prices rise
Private label strengthens its already dominant position
Discounters lead the way as hypermarkets adopt aggressive pricing tactics
Dietary changes will support cheese consumption
Health, quality and indulgence can shape purchasing decisions
Sustainability agenda remains important for consumers
Drinking Milk Products in Germany
KEY DATA FINDINGS
Cow’s milk sees mild revival as backlash against ultra-processed brings consumers back
Strength of private label expands the position of discounters
Price competition and broader product range boosts supermarket share
Challenges ahead for drinking milk products
Players will emphasise natural and functional benefits
Sustainability will be a defining factor in drinking milk products
Yoghurt and Sour Milk Products in Germany
KEY DATA FINDINGS
Price sensitivity drives demand for promotional deals and private label
Retailers have a strong competitive advantage
Discounters take the lead by delivering competitive prices and value
Functional health and natural benefits to support future growth
Kefir to capitalise on mainstream appeal
Sustainability and flavour will combine to win over consumers
Other Dairy in Germany
KEY DATA FINDINGS
Higher prices drive value growth
Rising private label share amid affordability concerns
Discounters retain lead in other dairy
Protein-rich recipes and snacking products set to drive growth
Health and wellness attributes to gain prominence
Low sugar recipes to become more popular
Plant-Based Dairy in Germany
KEY DATA FINDINGS
Steady growth as plant-based milk becomes well-established
Private label extends its position across all plant-based dairy categories
Discounters have an enviable lead in plants-based dairy distribution
Plant-based dairy to gain momentum as a staple household item
Further scrutiny for some plant-based dairy
Sustainability and health concerns will force greater transparency
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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