Dairy products and alternatives in 2025: The big picture
Dairy products and alternatives in Kenya witnessed healthy value growth in 2025 whilst volume growth remained relatively flat. Inflation remains high, although lower than the peaks seen in 2022-23, and retail prices of dairy continued to rise in 2025. This can be attributed to the increase in raw material prices, particularly raw milk, and packaging materials. Additionally, higher transportation costs, driven by fuel price hikes, have contributed to overall price increases. Consumers remain highly price-sensitive, notably in low-income groups, curbing dairy consumption and driving consumers towards more affordable lines. Middle- and high-income consumers are a key target audience with urbanisation helping to expand this consumer base. Dairy in Kenya is being sustained by the expansion and development of its local industry and a growing formal milk processing sector.
Key trends in 2025
Dairy products that are low in fat, high in protein, and with added probiotics, are becoming increasingly popular as consumers look for healthier choices. In response, dairy players are developing new products with these features and are promoting the possible health benefits of their products. Significant new product development, particularly in the area of healthy eating, has widened the dairy offer and competitive landscape in Kenya. In response to rising consumer demand for healthier ingredients, dairy manufacturers have been launching yoghurt with natural fruits, as well as versions with reduced sugar content and vitamin fortification.
Competitive Landscape
New Kenya Co-operative Creameries Ltd was the leading player within dairy products and alternatives overall in 2025, owing to its strong position in drinking milk products. New Kenya Co-operative Creameries Ltd is the oldest and largest dairy processor in East and Central Africa, enjoying a longstanding presence in the market and strong processing capacities.
Channel developments
Small local grocers remain the major channel for purchasing dairy products and alternatives in Kenya. These are the traditional retail outlet for many consumers as they are located in local communities and rural areas. The small local grocer faces a challenging operating environment due to growing competition from modern grocery retail formats, with the latter offering competitive promotions and discounts.
What next for dairy products and alternatives?
Dairy products and alternatives is set to witness a steady rise in volume and value sales over the forecast period. Demand will be sustained by population growth, lifestyle changes, rising urbanisation and further growth of the formal dairy milk processing sector in Kenya. The buoyant performance of dairy products will also continue to be fuelled by rising consumer awareness, the development of consumer foodservice industry and further expansion of modern grocery retailers. High inflation and production costs are likely to threaten dairy consumption in Kenya, notably at the start of the forecast period. Such economic factors will continue to challenge growth prospects as Kenyan consumers are highly price sensitive.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Kenya 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 Kenya, 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 Kenya 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 Kenya?
- Which are the leading brands in Dairy Products and Alternatives in Kenya?
- How are products distributed in Dairy Products and Alternatives in Kenya?
- 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 Kenya?
- 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 Kenya
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 Kenya
KEY DATA FINDINGS
Kenyan parents are increasingly conscious about what they feed their babies
Nestlé Food Kenya maintains its leadership thanks to strong brand awareness
Supermarkets retain their leading position in baby food distribution
Moderate outlook ahead for baby food
Rising demand for organic and natural baby food products
Global players will likely focus on sustainable packaging
Butter and Spreads in Kenya
KEY DATA FINDINGS
Margarine continues to enjoy strong popularity in Kenya
Upfield Holdings BV introduces new products in the Kenyan market
Supermarkets lead the distribution of butter and spreads
Population growth will continue to support sales
Health and wellness is predicted to become a key differentiator
Manufacturers rekindle push to scrap import duty tax
Cheese in Kenya
KEY DATA FINDINGS
Kenyans are gradually embracing cheese in food preparation
Brown's Cheese Ltd leads the category thanks to its longstanding presence
Supermarkets have dominant position in cheese
Rising popularity of cheese offers growth opportunities
Cheese producers will look to diversify
More sustainable dairy farming practices
Drinking Milk Products in Kenya
KEY DATA FINDINGS
Full fat fresh milk continues to dominate
New Kenya Co-operative Creameries Ltd leads in milk powder whilst Brookside Dairy dominates in fresh milk
Small local grocers retained their position as the largest channel in drinking milk products
Healthy growth of drinking milk products in Kenya
Projected development of healthier products
Kenya has strategic plan for sustainability and growth
Yoghurt and Sour Milk Products in Kenya
KEY DATA FINDINGS
Fierce competition as new yoghurt variants are rolled out
Brookside Dairy Ltd bolsters its position in the category
Small local grocers retain strong position in yoghurt and sour milk products
Positive outlook for yoghurt and sour milk products
Health and wellness trends are set to be play a pivotal role
Sustainability concerns will shape new product development
Other Dairy in Kenya
KEY DATA FINDINGS
Cream continues to shape other dairy in Kenya
Portcross Ltd leads the category due to the success of its Kara coconut brand
Modern channel dominates distribution of other dairy
Demand will remain hindered by low affordability and accessibility
Other dairy players are set to introduce a range of healthier other dairy options
Cold chain system development will likely boost category growth
Plant-Based Dairy in Kenya
The consumption of plant-based dairy is the preserve of more affluent and sophisticated urban consumers
Organic products drive the short-term potential of plant-based dairy
Growing offer helps to familiarise plant-based yoghurt in the market
Plant-based dairy to grow its appeal among more affluent, health-conscious consumers
Global brands may enter the fray in the forecast period
Plant-based yoghurt is driving the category towards the mainstream
The following categories and subcategories are included:
Dairy Products and Alternatives
-
- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
-
-
- Liquid Standard Milk Formula
- Powder Standard Milk Formula
-
- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
-
- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
-
- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
-
-
-
- Butter
- Cooking Fats
- Margarine and Spreads
-
- Spreadable Cheese
- Processed Cheese excl Spreadable
-
- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
-
-
- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
-
-
-
- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
-
- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
-
- Goat Milk
-
- Powder Milk
-
-
- Sour Milk Products
-
- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
-
-
- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
-
-
- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
-
- Cream
-
- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
-
-
-
-
- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
-
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!