Dairy products and alternatives in 2025: The big picture
The outlook is expected to be positive for dairy products and alternatives in Pakistan in 2025, with both healthy current value and volume growth in 2025. The economy is improving, with inflation easing, which is seeing consumer purchasing power becoming more stable. As such, there is expected to be increasing demand across the board, supported by continuing population growth.
Key trends in 2025
Pakistan’s dairy industry is going through a noticeable transformation, with more and more people shifting from buying loose milk and other unpackaged dairy offerings to choosing packaged and branded offerings. This change is especially strong in cities, where concerns about hygiene and food safety are leading families to opt for known brands. As such, products like flavoured yoghurt, cheese, and pasteurised milk are becoming staples. Government efforts to regulate the industry and crack down on adulteration is also playing a role in building consumer confidence and further encouraging the move toward cleaner, safer dairy options.
Competitive Landscape
Nestlé Pakistan Ltd and FrieslandCampina Engro Pakistan Ltd continue to be the leading players, with both being the only companies with a double-digit percentage value share. They are particularly strong in products such as baby food, coffee whiteners, cream, yoghurt and drinking milk. Both also have local manufacturing plants and this ensures accessibility and affordability.
Channel developments
Small local stores or kiryana continue to account for well over half of value sales, especially for mass-market products like UHT milk, powdered milk, and cooking fats. However, due to unreliable cold storage, the availability of perishable dairy products like yoghurt and cheese is limited in this channel. To address this, local dairy producers like Dairyland and Haleeb Foods have invested in localised distribution hubs and refrigerated supply chains to improve product freshness through small local grocers.
What next for dairy products and alternatives?
The dairy industry in Pakistan is poised for moderate to high growth over the forecast period, driven by a combination of urbanisation, changing dietary preferences, technological advancement, and increasing formalisation of the sector. This will be particularly evident in drinking milk. As consumer awareness of food safety, nutrition, and convenience continues to rise, there will be a gradual but noticeable shift from loose and unbranded milk toward packaged and processed drinking milk. Although the informal sector will remain significant, especially in rural areas, its share is expected to decline as government policies, health concerns, and private sector investments encourage a shift to formal trade.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Pakistan 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 Pakistan, 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 Pakistan 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 Pakistan?
- Which are the leading brands in Dairy Products and Alternatives in Pakistan?
- How are products distributed in Dairy Products and Alternatives in Pakistan?
- 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 Pakistan?
- 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 Pakistan
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 Pakistan
KEY DATA FINDINGS
Healthy value and volume growth in 2025
Nestlé continues to dominate
Health and beauty specialists have commanding lead, but e-commerce gains most value share
Growing middle class and urbanisation drive growth
Increasing awareness of importance of nutrition for babies
Digital space continues to gain influence
Butter and Spreads in Pakistan
KEY DATA FINDINGS
Modest growth in 2025
Competitive landscape stable in 2025
Small local grocers continue to lead, though hypermarkets gain most value share
Growth in foodservice channel
Focus on health-driven product innovation
Legislative change leads to healthier offerings, while discussions are ongoing about reducing sales tax
Cheese in Pakistan
KEY DATA FINDINGS
Positive performance in 2025
Adam’s Milk Foods remains in the lead
Small local grocers continue to lead, but lose value share
Increasing demand for flavoured cheese, as well as on-the-go formats
Potential to focus messaging around nutrition
Export potential for halal-certified cheese
Drinking Milk Products in Pakistan
KEY DATA FINDINGS
Shift from loose to packaged milk
Nestlé and FrieslandCampina Engro continue to lead
E-commerce and q-commerce gain most value share
With consumers demanding higher quality, investment in dairy sector could yield results
Storytelling builds connections with consumers
Increasing focus on fortified and functional benefits of drinking milk
Yoghurt and Sour Milk Products in Pakistan
KEY DATA FINDINGS
Flavoured yoghurt increasingly popular
Nestlé continues to hold commanding position
Small local grocers dominate distribution
Degree of premiumisation over forecast period
Increasing focus on health benefits of yoghurt and sour milk products
Sustainability moves higher up agenda
Other Dairy in Pakistan
KEY DATA FINDINGS
Tea whiteners continue to dominate other dairy
No change in competitive landscape
Small local grocers continue to dominate, though modern grocery retailers gain value share year-on-year
Shift towards local production
Focus on making other dairy healthier
Advances in technology drive efficiencies and improving quality
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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