Retail e-commerce gained biggest distribution share over 2020-2025, though penetration remained low, at 8%. Supermarkets, while they still account for a third of global sales, lost share to e-commerce, discounters, warehouse clubs and small grocers. Impulse occasions have shaped shopper behaviour, creating a preference for smaller format stores with proximity to neighbourhoods and everyday locations benefiting convenience retailers and, in the case of Asia Pacific, small local grocers.
Delivery
This report comes in PPT.
Key Findings
Offline continues to dominate sales of dairy products and alternatives
Offline retail dominates the sales of dairy products and alternatives with 92% in 2025, with e-commerce sales held back by dairy products’ perishable nature, fragility of packaging (such as for butter) and the physical need to view certain products (such as unpackaged cheese). In contrast, retail e-commerce is particularly significant in baby food compared to dairy.
Discounters see a 7% increase in value sales of dairy in 2025
Discounters held a 9% share of global value sales of dairy products and alternatives in 2025, and experienced strong growth between 2020 and 2025, at a CAGR of 8%. Growth was particularly rapid in Asia Pacific, from a very small base, largely due to the expansion of certain chains in key markets like China and the Philippines.
Retail e-commerce lacks penetration in dairy categories
Butter and spreads registered the lowest penetration of retail e-commerce as a channel, with only 6% of global sales. Other dairy, such as cream and coffee whiteners, had the largest share of retail e-commerce sales of dairy in 2025, at 8%, and in North America its share rose from 8% in 2020 to 21% in 2025, driven largely by the dynamism of coffee whiteners.
Walmart plays a major role through both offline and online channels
Walmart is the top retail player globally, and this leadership is mirrored in retail dairy sales. The retailer’s private label line has contributed to its growth in the dairy market, offering competitive prices to customers. Amazon’s sales have risen strongly, enabling the e-commerce retailer to establish itself as a notable competitor in the broader retail space, but not in dairy.
Price sensitivity, e-commerce and impulse to define dairy distribution
Discounters and warehouse clubs are predicted to hold onto their value as wallet-friendly options for consumers who are sensitive to market volatility and rising prices. This cautiousness will also be one of the reasons for consumers increasingly to look online to learn about, discover and eventually buy dairy products. Impulse and pleasure-seeking habits are set to benefit small stores.
Key findings
Price sensitivity and market volatility reshaped shopper habits
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
Retail e-commerce, discounters, warehouse clubs and convenience stores lead growth
Dominance of supermarkets and hypermarkets challenged by smaller format stores
Global channel movement is hugely affected by APAC, which shows unique trends
Health and beauty specialists retains relevance only for baby food in certain regions
Affordability has shaped the evolution of grocery channels for dairy
Discounters earned USD20.6 billion more in 2025 than in 2020
Discounters in the Philippines emerged as a key channel
Brands must solidify their presence through retail e-commerce while growth is strong
Robust Q4 sales indicate (over-)reliance on festive occasions
Retail e-commerce offers new growth opportunities and improved brand footprint
Walmart remains the leading e-commerce retailer for the largest dairy market
Leerdammer chose e-commerce as a core channel for its spreadable cheese debut
Evolution of distribution within dairy products and alternatives
How to win
Euromonitor Passport E-Commerce: Coverage and methodology
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