Dairy products and alternatives in 2025: The big picture
In 2025, dairy in Spain experienced positive value growth, although retail volume sales for major categories, such as drinking milk products, remained flat. Price declines in 2024 had temporarily boosted demand, but as prices stabilised in 2025, this momentum slowed. A significant factor influencing sales was the reintroduction of standard VAT rates from 1 January 2025. Basic dairy products such as milk and cheese saw their VAT rate increase from 0% to 4%, while yoghurt, previously taxed at 10%, benefited from a reduced rate of 4%. Plant-based milk, however, continued to be taxed at 10%, reflecting its classification as non-essential goods. These changes in taxation were crucial as they directly impacted consumer spending and purchasing decisions, particularly for essential dairy products.
Key trends in 2025
Plant-based dairy continued to record steady growth in both retail volume and value terms in 2025, driven by high consumer satisfaction with the taste and texture of plant-based milk and its lactose-free status. Despite plant-based milk being marginally more expensive than cow’s milk, the price difference was not substantial, making it a viable and comparable alternative for many consumers. This trend was important as it reflected a broader shift towards healthier and more inclusive dietary choices, particularly among consumers with lactose intolerance or those seeking to reduce their dairy intake for environmental or ethical reasons.
Competitive Landscape
The competitive landscape of dairy in Spain continued to be led by Mercadona SA, the country’s largest grocery retailer, which maintained a strong position across major categories. Mercadona's broad coverage, strong consumer loyalty, vast private label range under Hacendado, and extensive product offering, including specific options such as high-protein yoghurt and desserts, kefir, and plant-based alternatives, contributed to its leading status. Danone, the top branded manufacturer, also held significant share, particularly in yoghurt, other dairy, and plant-based dairy. Danone's success in these categories was driven by innovation and strong brand recognition, with key brands such as Actimel and Alpro. However, yoghurt experienced intense competition from private label, which continued to expand, fuelled by consumers' price sensitivity following years of inflation. To counter this, Danone adopted a dual strategy towards the end of the review period, lowering prices on its basic brands while investing in innovation within value-added segments. This included launches such as Actimel +Triple Action with immune support claims, a reformulated YoPro range enriched with magnesium and vitamin B9, and Oikos, a Greek yoghurt focused on indulgence. Despite these efforts, private label remained a formidable force, increasingly viewed not just as a low-cost alternative but as a trustworthy and evolving choice.
Channel developments
Supermarkets retained its dominance in the distribution of dairy in 2025, even as e-commerce and hybrid shopping habits gained traction. The likes of Carrefour, Eroski, and Alcampo expanded their supermarket formats, leveraging the advantages of proximity and faster product turnover. Mercadona, the country's leading grocery retailer with 1,674 stores, maintained a strong focus on its private label line, Hacendado, which accounted for approximately 75% of its sales. The company also invested EUR250 million in a digital excellence plan (2025–2028) to enhance over 300 digital tools, thereby improving logistics, decision-making, and daily operations. Spanish consumers, influenced by years of inflation, became increasingly promotion-driven and sought personalised shopping experiences. Therefore, loyalty programmes played a crucial role in customer retention. For example, Dia’s Club Dia added over one million new members in 2024, reaching nearly six million, with the programme offering personalised coupons, games, and exclusive partner deals. In addition, Lidl upgraded its Lidl Plus app, introducing features such as personalised offers and partner discounts, and sought user permission to share app data with Google and Meta to deliver more relevant advertisements and improve campaign outcomes.
What next for dairy products and alternatives?
Over the forecast period, dairy in Spain is expected to undergo significant transformations, driven by two key food trends: health and indulgence. Value sales will be supported by premiumisation and innovation, with strong demand for functional products that offer high-protein and gut health benefits. Local consumers increasingly appreciate natural and clean label products, particularly in baby food and cheese, which is expected to boost sales of soft cheese, national hard cheese, and local organic baby food brands such as Smileat. While health remains a major factor, indulgence is also set to play a crucial role, especially in yoghurt, plant-based alternatives, and cheese. Brands are responding to the ageing population by introducing products designed to support heart health and bone density, such as Lactalis Puleva's expansion of its Puleva Omega 3 range with flavoured milk drinks under Cremosos that claim to help regulate cholesterol and support heart health without compromising rich, indulgent flavours.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Spain 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 Spain, 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 Spain 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 Spain?
- Which are the leading brands in Dairy Products and Alternatives in Spain?
- How are products distributed in Dairy Products and Alternatives in Spain?
- 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 Spain?
- 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 Spain
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 Spain
KEY DATA FINDINGS
Mixed performance but convenience and snacking trend support some demand
Nestlé retains leadership but pressure from dynamic competitors increases
Discounters and e-commerce make gains in retail environment led by specialists
Despite low birth rate, baby food offers some growth opportunities
Health and wellness trend to drive new development and potentially add value
Regulations and sustainability will help shape future manufacturing processes
Butter and Spreads in Spain
KEY DATA FINDINGS
Flat performance but plant-based options gain ground
Upfield strengthens leadership in competitive landscape driven by private label
Mercadona supports dominance of supermarkets, but e-commerce makes gains
Competition from olive oil consumption will hinder stronger growth
Niche of plant-based options offers further growth potential
Regulations and sustainability demands set to influence manufacturing processes
Cheese in Spain
KEY DATA FINDINGS
Solid growth driven by health trend and rising interest in different cheese varieties
Brands make gains despite strength of private label options in Spain
Supermarkets retains dominance, driven by Mercadona
Cheese offers stable growth potential, driven by established position in local households
Health and wellness trend places greater focus on protein content
Players look to invest in more sustainable production processes
Drinking Milk Products in Spain
KEY DATA FINDINGS
Category maturity drives players to focus on functionality and specific benefits
Private label retains lead, but brands offering differentiation make gains
Wide distribution network supports dominance of supermarkets
Despite maturity, value growth potential will be driven by indulgent and functional options
Health trends to drive innovation within drinking milk products
Local manufacturers aim to secure future of dairy production
Yoghurt and Sour Milk Products in Spain
KEY DATA FINDINGS
Rising gut health awareness supports dynamic growth of sour milk products
Mixed results for leader Danone as it loses further share to private label
Dominance of supermarkets driven by nationwide coverage and expanding network
Value sales to be driven by sour milk products and functional yoghurt
Health and wellness trend to drive further innovation
Danone aims to drive sustainable packaging initiatives in Spain
Other Dairy in Spain
KEY DATA FINDINGS
Chilled dairy desserts continues to drive demand for indulgence, while focusing on protein trend
Private label from major retailers continues to make gains, pressurising brands
Supermarkets consolidates dominance, while e-commerce continues to make gains
Demand for other dairy to be increasingly influenced by health trends
Multifunctional benefits to drive new product development in other dairy
Ban on single-use plastic likely to influence future packaging development
Plant-Based Dairy in Spain
KEY DATA FINDINGS
Rising awareness and shelf placement support demand for plant-based dairy
Danone makes further gains despite strength of private label
Mercadona continues to support dominance of supermarkets
Health trend, innovation and diversification to drive future growth of plant-based dairy
Players to focus on offering greater functionality and specific health benefits
Sustainability initiatives to drive future research and development
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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