In 2025, the global dairy industry is characterised by pricing-led value growth and modest volume performance. Functional benefits, affordability and evolving routines continue to redefine category dynamics. Emerging markets offer strong potential, while mature regions will see a focus on premiumisation and wellness. Functionality, pack strategy and local relevance are becoming essential for brand differentiation and securing future success, especially as private label gains ground.
Delivery
This report comes in PPT.
Key Findings
Balancing functional added value with cost-conscious demand
In 2025, global retail value of dairy products and alternatives is set to reach USD705 billion, with volume sales of 221 million tonnes. Pricing remains a key value growth driver, helping offset modest volume growth across most regions and categories. Companies are working to balance premiumisation around functionality and convenience, while keeping affordability front of mind.
Cheese, coffee whiteners and fermented dairy are key growth drivers
Cheese and coffee whiteners are seeing above market average growth. Soft cheese benefits from its high protein content and clean-label appeal, while coffee whiteners thrive on the growing coffee culture and innovations like cold foam creamers. Yoghurt and sour milk products, especially kefir, are also performing well, fuelled by interest in gut health and natural fermentation.
Dairy giants lose ground to agile local players and private label rivals
Global leaders Danone and Nestlé hold the top spots but face rising pressure from private label and regional players. Lactalis expanded via acquisitions, while Yili and Mengniu lost share due to reliance on ambient formats and intensifying domestic competition. Private label gains, strongest in Europe, are driven by affordability, while regional brands benefit from agility and local relevance.
Emerging markets set the pace for dairy’s next growth wave
The industry is set to grow at a 2.1% CAGR over 2025-2030, adding USD77.0 billion in value. MEA and LATAM will be the most dynamic regions, while APAC will lead in terms of absolute growth. Emerging markets like Nigeria, the Philippines and Indonesia have strong potential, fuelled by rising incomes, urbanisation and demand for affordable packaged formats.
E-commerce advances, while affordable and local channels gain ground
E-commerce remains the fastest growing channel, though it accounts for just 8% of global retail penetration in 2025, with baby food in APAC and North America showing high online share. Growth in small local grocers is strong across emerging regions, where they exceed 40% of retail sales. Discounters are expanding rapidly in Europe, while warehouse clubs gain traction in the Americas.
Our expert’s view of dairy products and alternatives in 2025
Dairy product and alternatives snapshot
Key findings
Pricing fuels dairy growth in 2025, as volume is stagnant and affordability worries persist
Top five trends in dairy products and alternatives
Top five trends uncovered
Drivers of consumer markets and impact on dairy products and alternatives
Adjacent industries and how they impact dairy products and alternatives
Pricing is driving value growth, offsetting weakness in volume within the dairy industry
Functional fermented dairy gains momentum across key global markets
Cheese gains ground, while baby food faces headwinds
Latin America and MEA see rapid growth in the dairy industry, while APAC leads sales
Dairy protein preferences shift, with gains in key markets and losses in APAC
Top companies in dairy products and alternatives
Local expertise fuels growth in a fragmented global dairy landscape
Smaller brands and private label erode market share of dairy giants
New launches in dairy and alternatives seek differentiation amid intense competition
Sustainability claims drive growth in dairy and baby food despite premium barriers
Evolving channel mix drives growth in digital, local and value-based dairy retail
US and China at the forefront of online sales for dairy products and alternatives
MEA and LATAM the most dynamic regions; cheese and plant-based dairy lead growth
Cottage cheese and coffee whiteners poised for strong growth in the US dairy forecast
Coffee whiteners and plant-based dairy are projected to fuel forecast growth
Gut health and at-home coffee expected to drive dairy growth while baby food declines
Consumer-led trends expected to inject vitality into the dairy and alternatives industry
Emerging economies have the potential to reshape the future of dairy consumption
The dairy and alternatives industry navigates cost, competition and consumer needs
Opportunities for growth
Our expert’s view of dairy products and alternatives to 2030
Scope
Global snapshot: Baby food
Global snapshot: Butter and spreads
Global snapshot: Cheese
Global snapshot: Drinking milk products
Global snapshot: Other dairy
Global snapshot: Plant-based dairy
Global snapshot: Yoghurt and sour milk products
Regional snapshot: Asia Pacific
Regional snapshot: Australasia
Regional snapshot: Eastern Europe
Regional snapshot: Latin America
Regional snapshot: Middle East and Africa
Regional snapshot: North America
Regional snapshot: Western Europe
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