Dairy products and alternatives in 2025: The big picture
In 2025, retail value sales of dairy products and alternatives in Italy continued to show growth in current terms, driven by several key factors. Firstly, the growing demand for high-quality products, particularly PDO (protected designation of origin) cheeses such as Grana Padano and Parmigiano Reggiano, contributed significantly to growth. These cheeses, renowned for their superior quality and authentic craftsmanship, experienced a rise in sales, driven by consumers' appreciation of their unique attributes and traditional heritage, and a desire to support local producers. Meanwhile, the diversification of the product range across dairy products and alternatives to cater to evolving dietary requirements played a crucial role in stimulating sales. The introduction of health-focused products, such as low fat and lactose-free yoghurts and cheeses, aligned with consumers’ increasing emphasis on wellbeing and health, broadening the industry’s appeal.
Key trends in 2025
Dairy in Italy, a historic and fundamental part of the country’s economy and food culture, includes a wide range of traditional products, such as cheese, butter, yoghurt, and milk. These items are not only everyday staples but also cultural and traditional symbols, often linked to specific regions and artisanal practices passed down through generations. However, in recent years, dairy has experienced significant shifts, driven by increased consumer awareness of health and sustainability issues. The consumption of traditional milk, once a mainstay, has declined, as it is often perceived as less healthy and less sustainable compared to its reputation in the past. This decline has prompted companies to reassess their communication and product strategies, shifting their focus towards more innovative, organic, and nutritionally-specific offerings.
Competitive landscape
In 2025, Groupe Lactalis was the leading company in dairy products and alternatives in Italy in global brand owner terms, and the only player to hold a double-digit retail value share. This position was maintained through a targeted growth strategy, strong local roots, and a portfolio of historic brands well-recognised by Italian consumers. Despite being a French multinational, Lactalis has successfully integrated into the Italian agri-food market, becoming a key player in both dairy product distribution and the promotion of local excellence. The company’s expansion in Italy has been marked by strategic acquisitions, such as BiG Srl (Galbani, Invernizzi, and Président) and Parmalat SpA (Parmalat and Zymil), which has allowed Lactalis to incorporate well-established Italian brands while preserving their strong local identity. Lactalis also demonstrates a commitment to product quality and environmental sustainability, investing in research and development to enhance product quality, extend shelf-life, and develop more eco-friendly products. Additionally, the company maintains strong ties with traditional production techniques, respecting regional excellence and promoting DOP (Protected Designation of Origin) and IGP (Protected Geographical Indication) products.
Channel developments
In Italy, supermarkets continued to play the leading role in the distribution of dairy products and alternatives in retail value terms in 2025, a position bolstered by several key factors. The widespread presence of large-scale retail chains, such as Coop, Conad, Esselunga, and Carrefour, ensures that supermarkets are easily accessible to the majority of the Italian population. These chains, along with more local brands, are not only prevalent in major urban areas, but also in smaller towns, facilitating the continuous and large-scale availability of dairy products and alternatives. Additionally, the rise of private label products has significantly contributed to the strength of supermarkets. Private label products, often produced by the same manufacturers as well-known brands, offer consumers a broader range of choices at more competitive prices due to optimised supply chains and the strong bargaining power of retailers. The product variety available within supermarkets also extends beyond traditional lines to include a growing selection of local, organic, lactose-free, and high-protein dairy products, catering to increasingly diverse and nutritionally conscious consumers.
What next for dairy products and alternatives?
Over the next five years, dairy is forecast to experience continued stable retail current value growth in Italy, driven by a blend of structural and cultural factors. Despite challenges for traditional cow’s milk, largely due to evolving consumer habits and increased interest in perceived healthier alternatives, overall resilience will be underpinned by a deep-rooted tradition of consumption of dairy products. Products like yoghurt, and mature and fresh cheeses remain integral to Italian culinary practices, valued for their nutritional benefits and versatility in both home cooking and catering.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Italy 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 Italy, 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 Italy 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 Italy?
- Which are the leading brands in Dairy Products and Alternatives in Italy?
- How are products distributed in Dairy Products and Alternatives in Italy?
- 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 Italy?
- 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 Italy
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 Italy
KEY DATA FINDINGS
Milk formula maintains growth in a declining category due to its critical role in baby nutrition
Heinz maintains its lead, but some smaller players see stronger growth from a low base
Supermarkets and health and beauty specialists continue to dominate, but retail e-commerce is on a rising trend
Despite challenges, growth is expected as players adapt
Manufacturers likely to focus on healthier options with short ingredients lists
Advanced technologies to improve the production and packaging of baby food
Butter and Spreads in Italy
KEY DATA FINDINGS
Butter remains most popular due to its natural profile
Coop Italia leads, but faces competition from other private label providers and Vallè
Only minor movements in distribution shares in 2025
An increasing consumer preference for natural, minimally processed, and sustainable products
A move towards organic and salted variants in butter
New production technologies likely to impact both margarine and spreads, and butter
Cheese in Italy
KEY DATA FINDINGS
Interest in regional cheese, especially unpackaged hard cheeses from delicatessens, drives growth
Nestlé Italiana sees dynamism as its Mio brand is relaunched
Supermarkets maintains its stable lead due to a wide product variety, including unpackaged and private label products
Consumers will continue to value the tradition and quality of local controlled origin unpackaged hard cheeses
Following health trends to meet consumers’ needs
In addition to health, innovation likely to focus on sustainability
Drinking Milk Products in Italy
KEY DATA FINDINGS
Although cow’s milk declines, flavoured milk drinks and goat milk serve specific consumer groups and see growth
Parmalat maintains its share despite sales decline, while Almalattea performs well with its goat milk
Consumers value the convenience, wide product range, and promotions of supermarkets
Volume growth will be prevented by the falling birth rate and a move to alternative milks
More health-focused product lines set to emerge
Labelling will be an important area of focus
Yoghurt and Sour Milk Products in Italy
KEY DATA FINDINGS
Focus on health drives growth for plain yoghurt and sour milk products
Danone continues lead, while Latteria NOM focuses on health as well as taste to drive growth
Large modern grocery retailers continue to dominate, but retail e-commerce grows from a low base
Increased focus on health and product diversification set to contribute to growth
The natural, healthy profile of protein-rich Greek yoghurt will be highlighted
Product development, production processes, and sustainability likely to be areas of innovation
Other Dairy in Italy
KEY DATA FINDINGS
Mixed performances, with plain condensed milk seeing a surge in sales
Nestlé’s ability to meet consumer needs drives strong growth, but Ferrero maintains its lead
Retail e-commerce maintains its rising trend due to convenience, and access to more specialised products
Continued growth, but limited price increases likely to prevent a stronger increase
Chilled and shelf stable desserts will suffer from continued competition from healthier alternatives
Healthy and plant-based products expected to have a higher profile
Plant-Based Dairy in Italy
KEY DATA FINDINGS
Dynamic growth continues for plant-based dairy, with oat milk particularly popular
Eurofood extends its lead with a wide product portfolio and a sustainable focus
Health and beauty specialists sees dynamism from a low base as consumers seek niche products
The consumer group is likely to expand further due to greater visibility and formula advancements
Clear labelling expected, to highlight nutritional profile and ensure transparency
Algae may be the next raw material incorporated in plant-based dairy products
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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