Dairy products and alternatives in 2025: The big picture
Value sales of dairy products and alternatives in Portugal rose in 2025 and are expected to continue expanding over the forecast period, albeit at a slower pace than during the historical review period. This positive performance was primarily driven by plant-based dairy, baby food, and yoghurt and sour milk products. Within plant-based dairy, growth was supported by increased segmentation, with brands introducing a wider array of alternatives including protein-enriched products such as Alpro’s plant-based yoghurts and barista-style plant-based milk. Additionally, the narrowing price gap between plant-based and traditional dairy products encouraged more consumers to experiment with plant-based options and incorporate them into their regular diets.
Key trends in 2025
Health and wellness remained a dominant theme across the dairy products and alternatives space in 2025. Manufacturers focused on reformulating products to offer functional benefits, particularly for gut health and immune system support. Consumers showed increased interest in simplified ingredient lists and clear, transparent labelling. In response, producers placed greater emphasis on clean-label formulations and packaging that communicated nutritional benefits more effectively.
Competitive Landscape
Lactogal - Produtos Alimentares SA remained the leading player in dairy products and alternatives in Portugal in 2025. The company’s portfolio includes several well-known brands such as Mimosa, Agros, Vigor, and Castelões, with a presence across nearly all product categories. A Portuguese-owned firm, Lactogal benefits from strong local brand recognition, with Mimosa in particular enjoying a reputation for quality and trustworthiness among consumers. The company continued to innovate and broaden its product offering, following its 2023 acquisition of Queijos Santiago, which further consolidated its position in the cheese segment. Lactogal also entered the protein yoghurt space with its relaunch of the Mimosa brand, in response to emerging consumer health trends.
Channel developments
Supermarkets remained the leading distribution channel for dairy products and alternatives in 2025, with the channel’s value share rising during the year. This continued dominance reflects Portuguese consumers’ strong preference for supermarkets when purchasing food, driven by the convenience of extensive product ranges and frequent promotional activity. Supermarkets serve as the primary showcase for both branded and private label innovation, with new launches often first introduced through this channel. Major retailers such as Continente and Pingo Doce release weekly promotional leaflets that feature significant price reductions across dairy and alternative products, sometimes exceeding 35%, which encourages trial and repeat purchases. Mercadona also continued its expansion in Portugal, increasing its relevance within the market. Having entered the country in 2019, the retailer had reached 50 stores by the end of 2024 and was expected to expand to 60 by the end of 2025. This growth supports the continued relevance and competitiveness of the supermarket channel in the national retail landscape.
What next for dairy products and alternatives?
Value sales of dairy products and alternatives are set to rise over the forecast period, although the pace of growth is expected to be slower than during the historical period. Price increases are expected to moderate, following several years of elevated inflation. Nonetheless, volume sales are projected to increase as consumer demand remains stable, supported by the launch of products with greater added value. Functional attributes, such as enhanced protein content and the inclusion of vitamins and minerals, will continue to drive purchasing decisions, along with growing interest in plant-based options. These trends will contribute to an increase in overall market value, albeit with a forecast CAGR below previous levels.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Portugal 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 Portugal, 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 Portugal 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 Portugal?
- Which are the leading brands in Dairy Products and Alternatives in Portugal?
- How are products distributed in Dairy Products and Alternatives in Portugal?
- 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 Portugal?
- 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 Portugal
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 Portugal
KEY DATA FINDINGS
Innovation and VAT reduction support steady growth in baby food
Nestlé retains leadership as private label and niche players gain ground
Supermarkets remain dominant as e-commerce gains traction
Baby food expected to grow at a slower pace amid demographic and economic headwinds
Health and naturalness will remain key purchase drivers
Government support measures to encourage healthier consumption
Butter and Spreads in Portugal
KEY DATA FINDINGS
Value sales rise as price inflation offsets declining volume
Upfield leads as private label gains ground through retailer expansion
Supermarkets dominate while retail e-commerce sees fastest growth
Butter and spreads to grow in value as olive oil replaces cooking fats
Functional and innovative products expected to drive consumer engagement
Sustainability and ethical sourcing to shape future product development
Cheese in Portugal
KEY DATA FINDINGS
Cheese sales rise as prices and consumption increase across channels
Bel retains leadership as Lidl and Lactalis bring renewed dynamism
Supermarkets lead while specialist retailers attract artisanal cheese seekers
Growth expected across both value and volume, with strong performance from PDO and Flamengo cheeses
Demand rises for artisanal, lactose-free and diet-friendly cheese formats
Regulatory oversight and sustainability drive industry investment and packaging innovation
Drinking Milk Products in Portugal
KEY DATA FINDINGS
Slower value growth as consumers shift away from cow’s milk
Lactogal leads the market while Lidl and regional producers show dynamism
Supermarkets dominate, while discounters gain traction through pricing
Steady value growth expected despite shifting consumption habits
Health-oriented innovation presents strong growth opportunities
Sustainability efforts and certifications support brand differentiation
Yoghurt and Sour Milk Products in Portugal
KEY DATA FINDINGS
Health-driven choices boost sales of functional yoghurt and kefir
Brand innovation supports competition with private label
Supermarkets remain dominant with expanded segmentation and promotions
Sales set to rise as consumers shift from milk to yoghurt
Functional benefits and customisation drive innovation
Sustainability goals shape production and packaging practices
Other Dairy in Portugal
KEY DATA FINDINGS
Value growth driven by price increases despite falling volume in some segments
Brand leadership shared between heritage and innovation-focused players
Supermarkets remain dominant, but e-commerce shows fastest growth
Modest growth expected, driven by chilled desserts and foodservice
Product innovation to focus on functional benefits and nutrient enrichment
Sustainability efforts prioritised by leading manufacturers
Plant-Based Dairy in Portugal
KEY DATA FINDINGS
Strong double-digit growth driven by oat milk and expanding availability
Private label growth and strong branding define the competitive landscape
Supermarkets remain the primary sales channel for plant-based dairy
Steady growth driven by innovation and category expansion
Protein enrichment and barista formats enhance consumer appeal
Sustainability and younger consumers fuel long-term growth
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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