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Dairy Products Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global dairy products market was valued at USD 743.6 billion in 2022 and is projected to expand at a CAGR of 3.3% from 2023 to 2030. The rising demand for dairy products due to their nutritional value is driving the market growth. Dairy products are rich in essential minerals, vitamins, and proteins, which are important for human health. These products are also used in various food products, such as ice cream, cheese, yogurt, and butter.
The growing demand for cheese and yogurt due to their health benefits is expected to drive the market growth. Cheese is a good source of calcium and other essential nutrients, and it is widely used in pizzas, burgers, sandwiches, and snacks. Furthermore, the rising preference for flavored yogurt with added flavors and ingredients, such as fruits and nuts, is expected to fuel the market growth.
The demand for plant-based dairy products is increasing due to the rising health consciousness among consumers. The growing demand for vegan products is due to their health benefits, such as containing fewer calories, fat, and cholesterol than traditional dairy products. Furthermore, the increasing number of vegan restaurants and the rising number of health-conscious consumers are driving the demand for plant-based dairy products.
In addition, the growing demand for convenience foods, such as ready-to-eat foods, is expected to drive the market growth. The increasing number of working women and the rising disposable income among consumers are increasing the demand for convenience food products, such as cheese and yogurt. Furthermore, the increasing demand for low-fat and low-calorie products is expected to support the market growth.
The rising demand for organic dairy products is also driving the market growth. Organic dairy products are free from artificial flavors and preservatives and contain fewer amounts of toxins and pesticides. Furthermore, the rising consumer awareness concerning the health benefits of organic dairy products is expected to drive the market growth.
Product Insights
The milk segment held the largest share in the market in 2022, accounting for more than 68%. This can be attributed to its high nutritive value and its wide range of applications in food and beverages. Rising health consciousness among consumers, increasing demand for organic and fortified milk, and the growing preference for lactose-free milk products are some of the factors driving the segment growth.
The cheese segment is expected to register the fastest CAGR of 7.5% over the forecast period. The increasing popularity of cheese among health-conscious consumers as a source of protein, calcium, and other nutrients is driving the growth of the segment. Furthermore, the rising demand for cheese in the food and beverage industry, as an ingredient in various dishes, is propelling the growth of the segment.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the major share of around 47.2% in 2022. This segment is expected to remain dominant over the forecast period owing to the increasing consumer inclination towards supermarkets & hypermarkets as a primary source to buy dairy products. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as they provide a wide range of product choices in dairy products and assist customers in making rapid purchasing decisions for the required product.
The online segment is anticipated to expand at the highest CAGR of 10.1% over the forecast period. E-commerce development in the dairy product industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in December 2022, Milkbasket launched Milkbasket.com dedicated to dairy products. The website will offer products like milk, curd, ghee, cheese, paneer, and buttermilk. In addition, it will also provide the best brands and products for dairy products along with expert advice and opinions on choosing the best product.
Type Insights
The liquid segment accounted for the largest revenue share of 58.2% in the year 2022. The easy availability of liquid dairy products such as milk, butter, and cream, in supermarkets, convenience stores, and online stores, is driving the demand for the segment. Additionally, the increasing number of working women and rising health consciousness among the population, who prefer dairy-based drinks, has also increased the demand for liquid dairy products. Furthermore, the increasing demand for flavored milk products, such as strawberry and chocolate milk, is propelling the market.
The frozen segment is anticipated to expand at the highest CAGR of 8.2% over the forecast period. The growing demand for frozen dairy products such as cheese, desserts, and yogurt, is propelling the market. Additionally, the increasing popularity of frozen products in the foodservice sector is also driving the segment. Moreover, the rising demand for frozen dairy products from working consumers due to their convenience, long shelf life, and easy availability is also expected to fuel the segment.
Regional Insights
Europe is expected to hold the largest market share in the global dairy products market in the coming years. This can be attributed to the increasing demand for dairy products from countries such as Germany, France, Italy, and the UK. In addition, the presence of large-scale dairy producers and manufacturers in the region is also driving the growth of this market. For instance, in 2021, the Netherlands-based FrieslandCampina launched an organic milk powder range in Europe.
Asia Pacific is projected to witness the fastest growth in the coming years. This can be attributed to the increasing demand for dairy products in countries such as India, China, and Japan. In addition, changing dietary habits and the growing popularity of vegan products are also expected to drive the growth of the market in this region. For instance, in 2021, Amul launched a range of dairy products in India, including ghee, paneer, and yogurt.
Financial Projections
In this part of the dairy products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your dairy products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a dairy products business comes from sales of dairy products, such as milk, cheese, yogurt, and other dairy products. Other potential sources of revenues include sales of ice cream, butter, and other related products.
Projecting Expenses
In this section, all the regular expenses related to keeping the dairy products business running will be described. The list of operating expenses includes the costs of raw materials, packaging materials, labor, utilities, advertising, insurance, and others. Additionally, the costs of maintaining and operating the necessary equipment such as refrigerators, pasteurizers, and other machinery should also be taken into consideration.
Key companies & market share insights
Some of the key companies operating in the dairy products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In May 2022, Nestle S.A. launched the Plant Protein Plus, a dairy-free and lactose-free plant-based beverage.
– In June 2022, Lactalis Group launched a line of organic dairy products, including butter, cheese, yogurt, and milk.
– In August 2022, Danone S.A. launched a range of organic dairy products such as yogurt, milk, and cheese.
Some of the prominent players in the dairy products market include:
– Nestle S.A.
– Lactalis Group
– Danone S.A.
– Fonterra Co-operative Group
– Arla Foods
– Kraft Heinz Company
– Saputo Inc.
– Glanbia plc
– Dean Foods Company
– Emmi Group
Global Dairy Products Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global dairy products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Milk
– Yogurt
– Cheese
– Butter
– Ice Cream
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Organic
– Conventional
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Drivers of the Dairy Products Market?
[A]: The increasing demand for dairy products due to the growing health consciousness among consumers, coupled with the changing consumer preferences, are expected to be the major drivers of the global dairy products market. The increased demand for food products with health benefits and the availability of a variety of dairy products has also helped drive market growth.
[Q]: Who are the Major Players in the Dairy Products Market?
[A]: Major players in the global dairy products market include Nestle S.A., Danone S.A., Fonterra Co-operative Group Limited, Lactalis Group, Amul, Arla Foods, Dean Foods, Saputo Inc., FrieslandCampina and Kraft Foods Group, Inc.
[Q]: What are the Trends Driving the Dairy Products Market?
[A]: The increasing demand for organic and natural food products, the growing demand for lactose-free and low-fat dairy products, and the rising investment in research and development activities are the major trends driving the dairy products market.
[Q]: What Opportunities are Present in the Dairy Products Market?
[A]: There are numerous opportunities present in the dairy products market, such as the increasing demand for dairy-based snacks and beverages, the growing demand for fortified dairy products, and the increasing demand for plant-based dairy products. Moreover, the increasing trend of e-commerce and the rising demand for functional dairy-based products are also expected to create new growth opportunities for the market.
[Q]: What is the Impact of the COVID-19 Pandemic on the Dairy Products Market?
[A]: The COVID-19 pandemic has impacted the dairy products market significantly. The disruption in the supply chain has caused a shortage of dairy products in the market, which has resulted in a decrease in the demand for these products. Furthermore, the rising cost of production and the increasing costs of packaging materials are also expected to hamper the growth of the market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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