Dairy products and alternatives in 2025: The big picture
Retail value sales of dairy products and alternatives are set to rise in Tanzania in 2025. Historically, Tanzania has a low capacity for dairy production with only 30% of cows in the country being able to produce enough milk for processing. Thus, the dairy market is dominated by imported products. Many of the small holder farms in the country are also situated in remote areas and run by local herders without the means of mass-producing milk for processing. These milk vendors make up the informal market for raw unpasteurised milk in Tanzania by selling unpasteurised milk and home-made yoghurts to locals on the side of the road.
Key trends in 2025
Government policies have aided growth in the local production of dairy products in Tanzania. Higher taxes on imported dairy products have enabled local companies to meet consumer demand for affordable products. Local companies have also managed to diversify their offerings to produce products such as butter, ghee and cheese in order to better compete with imported brands. This increased production is the culmination of a four-year government programme to increase milk production. In the spirit of Ubuntu (the traditional African philosophy of humanity, solidarity, and interconnectedness), farmers in the Tanga region, where the Tanga Fresh Milk Processing Plant is located, have formed dairy co-operatives in their areas to support each other and pool their resources, thus increasing milk production output. They have close working relationships with the Tanga Fresh Plant, ensuring a steady flow of raw milk to the plant even in times of scarcity such as during the dry season.
Competitive Landscape
Local players, Tanga Fresh Ltd and Asas Dairies, are set to be the leading players within dairy products and alternatives overall in 2025. Asas is also expected to be the most dynamic of the major players in the category. The company produces the Asas brand, which is present in the drinking milk products, yoghurts and butter categories. Asas Dairies recently saw a gap in the market for locally made powder milk, often used as a substitute for baby milk formula, and entered the market. Being locally made, the product is more affordable than imported brands and increases competition for multinationals such as Nestlé.
Channel developments
Small local grocers is set to be the dominant distribution channel within dairy products and alternatives overall in 2025. Small local grocers is a key distribution channel for dairy products and alternatives, with these stores benefiting from their convenient neighbourhood locations and the fact that they stock locally made and affordably priced products. While small local grocers is set to continue to account for more than 95% of dairy products and alternatives value sales, modern grocery retailing channels are growing rapidly, particularly convenience stores and supermarkets. Supermarkets benefits from offering a broad range of products and brands. These outlets are well stocked with both imported and local brands and are a convenient one stop shop, particularly when purchasing in bulk for families rather than for immediate on-the-go consumption. Supermarkets players can also play on their ability to absorb some of the rising prices of products and offer consumers attractive price promotions.
What next for dairy products and alternatives?
Retail value sales of dairy products and alternatives are set to rise in Tanzania over the forecast period. Volume sales are also predicted to increase, driven by stronger sales of shelf stable milk. Demand for shelf stable milk remains high due to its ability to remain fresh without refrigeration. Powder milk sales should also show growth due to its ability to be stored without refrigeration, as well as the introduction of more affordable, locally produced powder milk.
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 Tanzania 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 Tanzania, 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 Tanzania 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 Tanzania?
- Which are the leading brands in Dairy Products and Alternatives in Tanzania?
- How are products distributed in Dairy Products and Alternatives in Tanzania?
- 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 Tanzania?
- 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 Tanzania
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
Key Data Findings
2025 Developments
Affordability remains a key issue
Nestlé dominates but faces growing competition
Small local grocers dominates distribution
Prospects and Opportunities
Further growth, but category faces constraints
Homemade food and fortified flour present strong competition
Opportunities for local products
Category Data
Key Data Findings
2025 Developments
Shelf stable milk suited to local conditions
Local players lead
Small local grocers dominates sales
Prospects and Opportunities
Government and NGOs working to strengthen local dairy industry
Health and wellness trend to drive growth
Development of distribution
Category Data
2025 Developments
Plant-based dairy remains niche
Prospects and Opportunities
Potential for further development, but category expected to remain niche
Category Data
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!